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  • Writer's pictureGlenda Craddock

What is a Pawn Shop Loan? | Chesapeake

Pawn shop loans in Chesapeake have been around for a while, and those in the know have found that it's one of the easiest ways out there for you to get a cash loan. If you're unfamiliar with what we do at pawn shops or how our pawn shop loans work, we're here to answer all of your questions! You can learn more about this common type of pawn transaction here, and you can visit us -- your local pawn broker -- when you're ready to borrow money without taking out a more traditional loan.

How Do Pawn Shop Loans Work?

Pawn shop loans are an easy way to use your items of value to take out a loan. If these types of loan contracts are unfamiliar for you, your number one question right now might be..."How do pawn shop loans work?" Many customers come in and ask us to tell them a little more about a typical pawn loan and how it works, and you're probably hoping to know what to expect when you come in. We have answers to a few popular questions about how pawn shop loans work here, but you can also give us a call if you still have questions about pawnshop loans.

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How Much Can You Borrow With a Pawn Shop Loan?

Your first question might much can you borrow with a pawn shop loan? Well, that's really up to you. Here, we grant loans from $5 to $50,000. How much you borrow is based on the value of your valuable items. After all, pawn shop loans are collateral loans. If you're hoping to borrow more, bring us your most valuable items, and we'll be able to offer you a higher loan amount!

How Long Does it Take to Get a Pawn Shop Loan?

With some financial institutions, it takes a while to take out a loan. You might have to gather up documentation about your income, and you may have to fill out a long application. In some cases, you'll get an answer about whether or not you're approved right away, but in other cases, you might have to wait a few days to get answers.

If you're looking for a loan that you can get quickly, a short-term loan from us, your local pawn shop, is probably going to be your best bet. It only takes 10 or 15 minutes for one of our staff to determine the value of the item you bring in, make you a loan offer, and count out your cash. Pawn stores really do offer one of the fastest possible ways to borrow money, and you don't even have to have a bank account or a good credit score.

How Long Do You Have to Repay Your Pawn Shop Loan?

You likely want to get your item of value back, so you could be wondering how much time you have to come up with the money to repay your pawn shop loan. Your due date will be 30 days from the date that you take out your loan. You'll see the repayment date listed on the pawn ticket, just in case you forget.

Are you hoping to have a little more time to repay your loan? We can help you out with that. Just come in prior to your repayment date and pay the interest charges that you already owe. Then, we can extend your loan for another 30 days. This is a great way to get a little more time to repay your loan, all without worrying about losing your gold, diamond jewelry, musical instruments, power tools, or other items of value.

​If you find yourself in a situation in which you can't afford to repay your loan at all -- or if you change your mind about getting your item back -- don't worry. We'll just keep your collateral, and the item's value when sold will cover the loan.

Will a Pawn Shop Loan Affect Your Credit?

Lastly, you could be wondering if a pawn shop loan will affect your credit. After all, you likely want to use the loan to get in a better financial situation, not a worse one. As you might know, when you apply for many financial products, there's a hard credit check. This can impact your credit score. Since we don't check your credit report at all, you don't have to worry about your report or score being dinged because of a hard credit check!

Even if you don't repay your loan, you never have to worry about your credit being affected. Pawn loans do not affect credit in any way. All that happens is you forfeit your collateral. That's it! Our loans really do offer a hassle-free way to borrow money without high interest rates or impacts on your credit.

Are you hoping to borrow some quick cash? Are you worried that your credit score will impact your ability to take out a loan? Don't worry -- we don't look at credit history at all. Plus, we'll offer you excellent service and get your loan to you in the shortest amount of time possible. Come visit our knowledgeable staff, and let us know you're interested in taking out a pawn shop loan. Taking out a small personal loan from us is always a good choice!

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