A Pawning First-Timer Guidebook: What to Expect & What You Need to Know

If you’ve got items to pawn or sell, but have never set foot in a pawn shop and are unsure of the process or how it works – you are not alone. Many pawning first-timers may be nervous to walk into an unknown and daunting situation, especially when they don’t know what to expect. Below, we will break the pawning process down for you, offer a few tips and answer some of the most common questions when it comes to pawning your items.

First: Don’t believe the bad things you’ve heard

Contrary to pop culture and the media’s belief, pawn shops are the exact opposite of a shady, dark and dirty place of business stocked with stolen merchandise that’s trying to low-ball you for your items. Pawn America is highly regulated  work with local and federal law enforcement officials on top of training our staff to be on the lookout and identify stolen property. We are the worst place to try to sell any stolen goods! Pawn shops offer a great, fast alternative to banks when cash is needed in a pinch, or if you’ve got unused items collecting dust around your home. They are designed to support you in a time of need and offer a solution when help is needed.

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Just to Clarify: What is the difference between pawning and selling?

When people hear “pawn shop” many forget that you can actually sell your items directly to the store in addition to taking out a pawn loan. Pawning and selling both take the same amount of time and generally result in the same amount of money – but there is one clear difference. Selling your item means you are turning over the ownership rights indefinitely to your item in exchange for money. Pawning is another form of a collateral loan. The pawn store gives you a cash loan in exchange for your item. If you return within the terms of your loan to repay both the loaned amount and any interest, your item is then returned to you! It’s that simple.

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Next: Getting the loan

How long will it take? Do I need to make an appointment?

The loan process is quick and simple – no appointment needed! When bringing in your items, our professionally trained pawn brokers will walk you through the process with a smile on their face.  After a thorough assessment and evaluation or appraisal of your items, an offer will be made to you. Within minutes, you can be on your way with cash in hand.

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Collateral loan –what is this?

A collateral loan  is a cash loan offered in exchange for goods – offering protection to the lender (Pawn America) in the case that the lendee (customer) defaults and does not return to reclaim their item and pay back their loan. Many types of collateral are accepted and welcomed at Pawn America! From gold and diamond jewelry like rings, necklaces and earrings, electronics like Apple Products, laptops and cameras to sporting goods and tools – thousands of items can be in exchange for a loan!

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Pro Tip: The items that generate the highest loan tend to be a brand name, a newer, if not the newest version of the item, in great working condition with its original packaging and accessories.  The more in-demand a product is in today’s market, the higher loan amount you’ll be able to get!

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How much money will I be able to get?

It depends – every situation and every item brought in will have a different loan amount associated with it. The loaned amount is directly related to the collateral you bring in – a .50 tcw 18k white gold Tiffany ring will be loaned much higher than an Xbox 360. Other factors, such as product demand, condition and the store’s ability to resell, will also play a part in your loaned amount. Not all pawn stores are the same, and prices may vary.

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Pro Tip: clean your item! This simple and seemingly obvious task can boost the loan amount offered to you. Offers are based off of an item’s condition, so bringing it to us shined and polished up offers the highest payout for you. It’s amazing what 60 seconds with a Clorox wipe can do!

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Last: Repaying the loan

Make a payment

At the end of your pawn loan terms – which can be found on your pawn ticket (the receipt and paperwork you were given when you brought your item in to pawn) you must return and pay your loaned amount and any accrued interest to reclaim your item. We try to work with our customers in every situation, so if you’re unable to pay back your loaned amount on your due date in full, you can opt for an extension or a renewal. An extension requires you to pay a portion of the interest owed on your pawn which then extends your loan for as many days allowed by state law, usually 30 days.

For a renewal, you pay the interest that has accrued on your pawn loan in full, and a new pawn loan is written. The principal and interest rate for your loan will stay the same, but the due date is reset for the full loan term.

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Don’t make a payment

If you are unable to make any payments on your item or simply do not want to repay your loan, it then becomes the property of the store. After a holding period determined by the law it will be put out on the sales floor for purchase. You will never be penalized for not returning for your item or paying off your loan!

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Don’t Forget: What you need to bring

All pawn transactions will require you to provide a valid, government issued ID, no exceptions. Proof of ownership may also be required for some items, such as cell phones. Call your local Pawn America  store ahead of time if you are unsure if you will need to bring this! Last, any accessories like remotes, controllers or cables as well as any original packaging that you still might have should be brought in with your item as well.

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Pawning is quick, simple and painless and at Pawn America, we promise to make your first time pawning experience a great one! We are committed to providing 5 Star customer service to everyone who walks in our door!