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Sunday, October 20 2019
What Happens if I Don't Reclaim Pawned Items?

Need extra cash asap? Have you ever considered bringing your items to a pawn shop like Cash Express to get some cash for your items?

Pawning is a great way to get a quick loan without jumping through hoops. However, you might’ve wondered what happens if you don’t come back to reclaim your pawned item(s).

First, A Brief Explanation of Pawn Loans

Sometimes, people need a cash boost quickly, but they don’t want to sell one of their items. Pawn shops let them take out pawn loans and put down their items as collateral. These loans don’t affect your credit score nor do they have a lengthy application process, making them excellent borrowing options for those with poor credit.

All you do is bring in the item and a photo ID, then the pawn shop approximates the value of the item. When they’ve decided on the value, they offer a loan amount based on a percentage of the item’s value.

Pawn loans typically have a term length of 30 days. Borrowers must repay the principal amount in full plus a small fee before the end of the loan term to get their money back.

What Happens When the Pawn Loan Comes Due?

Many people think they have to pay up when the pawn loan is due or risk forfeiting their item(s). Actually, pawn loan borrowers have many options when time’s up.

Paying off the loan: Repay the loan in full on or before the due date. You get your item(s) back.
Pay the interest and extend the loan: You can extend your loan another 30 days by paying the interest that’s accumulated. More costly, as you’ll be charged a fee each time you “renew” the loan, but it could be worth it if your item is valuable to you. Try to pay down at least some principal after you pay the interest.
Don’t pay the loan back: If your item wasn’t valuable in a sentimental or utilitarian way to you, you don’t have to pay the loan back. The pawn shop will take possession of your item per the loan contract. The great part is your credit won’t be hurt. You can’t say the same about your mortgage or car payment!

Now, is it possible to get your item back even if you didn’t pay back your loan?

Yes, believe it or not.

Once you relinquish possession to the pawn shop, they’ll put it up for sale with their other items. You can repurchase it as if it were any other item in the store.

In certain cases, you might even be able to reactivated the pawn loan at a later date if the item doesn’t sell.

Overall, pawn shops aren’t out to get you. They want to make their customers happy, because happy customers means more business. Pawn loans can create recurring income for them, whereas selling items is only a one-time revenue.

Therefore, it’s in their best interest to create a loan that works for you.

Looking for a good pawn loan in the Philadelphia area? Bring your items down to Cash Express! We especially love jewelry, watches, and antiques, but we’ll look at almost any item.

Posted by: AT 10:43 am   |  Permalink   |  Email

Cash Express  • Philadelphia Pawn Shop

731 Chestnut St. Philadelphia, PA 19106 -  (215) 922-1560