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Will a Pawn Loan Impact Your Credit Score?



Quick answer.... NO not at all. If you’re short on rent, want to take a vacation, or just need some cash for day-to-day expenses, you could be looking for a way to take out a loan. If you don’t qualify for a loan from a bank or other typical financial institution, you might feel as if your options are very limited. In fact, you might fear that you won’t be able to borrow the money that you need at all.


Luckily, a pawn shop loan from Greenbrier Pawn is a great choice. If you’re worried about whether or not your credit score matters or if it will be affected by your loan, these are some of the things you’ll want to know.

What Are Pawn Loans?

First, if you aren’t familiar with working with pawnbrokers to borrow money, you might be wondering what, exactly, a pawn loan is. Pawn shops like Greenbrier Pawn offer collateral loans. You bring us one or more items of value that we can sell in our shop, and we’ll hold it as collateral. We’ll give you a loan based on a percentage of the value of the items that you use for collateral. You’ll get the money in cash, and we will keep your collateral securely in our shop until you come back to pick it up. To pick up your items, you just have to pay your loan and interest back. If you are unable to pay, don’t worry; we’ll just keep your items to sell in our shop, and you won’t have to take any other action. How a pawn loan works is one of the easiest processes to understand.

Will Applying for a Pawn Loan Impact My Credit Score?

As you might know, even just applying for a loan can impact your credit score. If a lender does a hard pull on your credit when you apply for a loan, a credit inquiry will be added to your credit report. Other lenders will be able to see that you applied for the loan, and your credit score can even drop a few points.


Even though the impact on your credit score isn’t too significant, you could still be worried about losing a few points on your credit score, such as if you’re hoping to take out a mortgage soon or if you already have a low score.


Luckily, you don’t have to worry about this type of impact on your credit score when you take out a pawn loan. This is because pawnbrokers don’t check credit at all.

Will Defaulting on a Pawn Loan Affect My Credit Score?

Some lenders will loan to people with bad credit and might not check credit scores at all, but they might report to the major credit bureaus if you don’t repay your loan on time or if you completely default on your loan. This is the case with many payday lenders, for example.


If you aren’t totally sure about whether or not you will be able to repay your loan, you could be worried about your credit score being negatively impacted. If this is something you’re worried about, choose a pawn loan. Even if you don’t repay your loan, we won’t report to the credit bureaus.

Requirements for a Pawn Loan

The requirements for a pawn loan are actually very simple. All you need is:

● Collateral that is valuable enough to secure your loan

● Valid, unexpired government ID

● Basic contact information

What Pawn Shops Take for Loans

Let Greenbrier Pawn Help

If you’re ready to take out a loan that is super easy to get and that doesn’t affect your credit score, stop by Greenbrier Pawn today.

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