Many people use their valuables on a regular basis to help make ends meet. Oftentimes a pawn loan is the best solution when an unforeseen need for short-term financing arises. With a pawn, the borrower simply brings in the item they wish to use as collateral to help secure the loan along with their government-issued ID.

The loan amount is based on a percentage of the value of the item being pledged. The borrower must repay the loan in full plus the small fee (typically due in 30 days) in order to get their item back. Learn more here: How much does a pawn loan cost?

What Options Do You Have To Repay A Pawn Loan 

Pawn loans differ from regular loans in that unlike other loans, when a pawn is due, the borrower has many options. The borrower may repay the pawn loan to retrieve the item, pay the interest to renew the loan for another 30 days, and keep the account active or choose to keep the borrowed money by not paying back the loan at all and therefore forfeit the pawned item.

Can I Pay My Pawn Late? 

When a customer decides that instead of repaying the borrowed money it is in their best interest to retain the borrowed funds (or the funds may not be available), the item is relinquished to the pawnshop and made available for sale. One of the most useful features of a pawn is that if circumstances demand it, a borrower can choose not to pay back the loan with no effect on their credit. Since credit is not a part of a pawn transaction, if the account becomes past due for 32 days after the due date, for example, the borrower will instead forfeit their item to be sold by the pawnshop. Don’t try that with your car or furniture payment! As you know with your car or furniture loan, a non-payment ultimately will affect your credit; and a repossession on your credit report can therefore affect your ability to get a better rate or perhaps to borrow at all.

Paying your loan (or the interest). 

The borrower may repay the pawn loan to retrieve the item on or before the due date. If you are unable to repay the loan in full when it’s due, you may pay at least the interest on the payment due date to keep the account active and renew the loan for another 30 days. You will be charged an additional fee each time you renew based on the amount outstanding, so it is encouraged to pay the interest plus any additional amount you desire to pay towards the principal balance (or borrowed amount).

What can you do if your pawned item is forfeited?

 Although it should not be relied on, it is not unheard of for a relinquished item to be repurchased at a later date at its retail price by the person who pawned it. A relinquished item that remains available for sale may have its pawn reactivated for the interest amount due or paid out if all components of the pawn are still available.

Pawn Shop Near Me in Pompano Beach

Despite what one may believe, pawnbrokers do not set out to confiscate pawn items so they can be sold. In fact, it’s in their best interest to create happy pawn customers who are likely to return to pawn the same (or more) items should they need extra funds again in the future. Pawnbrokers know that if they sell an item that was pawned, they may only make their money back once, but if you redeem your item and need their services again, that item could create repeat business for them in the future.

To inquire more about our services, you may call us at 954-941-1826 or visit our contact page.