Pawn loans: How to use your valuables to get cash fast |
pawn loan

How to get a pawn loan for fast cash

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If you have any valuable possessions, you could use them to acquire a pawn loan.

A pawn shop is a great place to sell your items for cash, but if you’re not interested in selling, a loan from a pawn shop is a quick way to get extra cash. All you need is something valuable — like a laptop or piece of jewelry — that the shop can use as collateral.

Though pawn loans can be relatively expensive, they often don’t require a credit or background check.

What is a pawn loan?

A pawn loan involves you putting up something valuable as collateral for the money you borrow. They are typically for small amounts, $150 or less, and you’ll have to pay back the principal plus interest, which can vary from as low as 10% to higher than 200% depending on where you live.

The shop won’t sell your valuables while the loan is active, but if you fail to repay, they will be kept and possibly sold in the future. Like all loans, it’s important to know the due date and pay on time. If you do, a pawn loan is a quick and simple way to get cash without worrying about past credit mistakes.

How pawn loans work

These are the basic steps to a pawn loan:

  • Take an item to a pawn shop to use as collateral. If your have something that’s worth a few hundred dollars, a pawn shop is likely to consider it for collateral.
  • Consider the loan amount the pawn shop offers you. You’ll get a loan for a percentage of your item’s value, which is generally between 25% and 60% of the resale value. It’s a good idea to shop around when taking out a pawn loan, as some shops may offer you more for an item than others.
  • Agree to the loan terms. Loan terms can vary between 30 days to a few months, and the interest you pay on your loan depends on state laws and your personal history with the pawn shop.
  • Leave the pawn shop with your cash and pawn ticket. You’ll need that pawn ticket in order to collect your item upon repayment, so we recommend taking a photo of the pawn ticket as backup. The pawn ticket will include any fees, the loan term, the grace period, and the final date at which you’ll be in default of your loan.
  • Pay back your loan. If you repay your loan successfully, you get your item back. If you fail to repay your loan, the pawn shop sells your item to collect on the loan.

What can I pawn?

Common items people pawn include:

  • Jewelry
  • Musical instruments
  • Photography equipment
  • Firearms
  • Current electronics
  • Tools

How pawns loans differ from payday loans

Pros and cons of pawn loans


  • Quick to obtain. You don’t have to go through a lengthy process to get a pawn loan. Simply bring in a valuable item and ask for a loan.
  • No credit check. Because your loan is backed by your item, you won’t be screened for good credit.
  • You can surrender your item to pay back your loan. If you default on repayment, your credit score isn’t typically affected and you won’t be on the hook for payments. The pawn shop simply keeps your item.


  • Can be relatively expensive. Finance charges and interest rates for a pawn loan typically run between 5% to 25% a month.
  • You may not be reimbursed for the surplus. If you don’t repay your loan in time, the pawn shop may sell your item. Even if your item is worth more than your loan amount, the shop may not be required to reimburse you for the profits.
  • Additional fees. Beyond interest charges, you may also pay fees for insurance, storage and more.

cash for goldHow does the cash for gold system work?

You’ve likely seen advertisements online or on TV about cash for gold. The process is rather simple, but you should be aware of the potential risks before you sell your old or unwanted jewelry.

  • Step 1: Gather all your old jewelry. This includes your rings, necklaces, bracelets and broken pieces. You may also be able to sell non-jewelry items like tooth fillings or old coins.
  • Step 2: Research current market value prices. Gold and silver prices fluctuate daily, so you’ll want to know how the market is doing before you visit your local pawn shop to make sure you’re getting the most out of selling your things.
  • Step 3: Have your old jewelry appraised. If you have an unbroken piece or a nice set containing other valuable materials (like pearls, gems or opals), you should visit a jeweler and have them estimate how much your piece may be worth. This will help you avoid buyers low-balling your offer or you selling something valuable.
  • Step 4: Visit a pawn shop or look up online buyers. Your options aren’t limited to these, however. Many payday loan stores and check-cashing services also offer cash for gold. Do your research and read reviews before selling.
  • Step 5: Get an offer. The buyer will give you an offer based on the bullion value and karat of your gold/silver. You can accept it then or ask for time to consider it. There’s nothing wrong with visiting multiple pawn shops and comparing offers to find the one that will get you the most cash.
  • Step 6: Agree to the offer. If you like what you hear, you can often get paid the same day for your old jewelry. Depending on what you sell, you could leave the store with a nice chunk of change in your pocket.
  • Warning: There have been reports over the years of online buyers running scams. They may use the logo of a reputable dealer or simply pay fractions of a percent based on what your gold is worth. Always read reviews about cash for gold dealers and make sure the business is legitimate. Until there is a better system in place, it may be worthwhile to visit a storefront so you can be sure your valuables are safe from scam artists.

Pawn loan alternatives

Since pawn loans can be expensive, consider a few other options first:

  • Ask friends or family for help. You’ll likely find they are more than willing to help you out in a financial crisis. Instead of paying expensive interest charges, you may be able to get a loan for free.
  • Call your bank or credit union. They often offer short-term loans at great rates.
  • Contact your creditors. If you need a pawn loan to cover bills that you owe, get in touch with your creditors or loan servicer to ask for more time. They may be willing to work with you to extend your due date or pay off your debt in installments.
  • Make extra cash in your spare time. If you have time, consider a side gig to earn extra money. Car and house sharing, selling unwanted items and market research are just a few options.
  • Get a short-term loan. With a short-term loan, you can borrow a small amount of money and repay it fairly quickly. Unlike pawn loans, short-term loans are unsecured, meaning they don’t require collateral.

Short-term loans to consider if you don’t want a pawn loan

Rates last updated February 23rd, 2019
Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
Name Product Product Description Max. Loan Amount Turnaround Time Requirements
OppLoans Installment Loans
Installment loans with competitive rates from a top-rated direct lender.
1 business day
Must have direct deposit and meet minimum income requirements
Jora Installment Loans
Installment loans with repayment terms up to 30 months, depending on your state.
1–2 days
Must have an active checking account, regular source of income and email address.
CashNetUSA Loan
Apply for a short-term loan with an easy online application and dedicated customer service.
Varies by state
1 business day
You must be a US citizen or permanent resident, be at least 18 years old and have regular income and a bank account.
LendYou Short-term Loans
Apply online with this loan-connection service offering unrestricted short-term loans with fast turnaround.
1 business day
You must be a US citizen or permanent resident, age 18+ and have a regular income.
CashUSA Installment Loans
A connection service for quick cash loans up to $10,000.
As early as 1 business day
Must have a monthly income of $1,000+ after taxes and valid checking account.
ACE Cash Express Short-term Loans
Quick payday, installment and title loans with no prepayment penalty and a 72-hour satisfaction guarantee. Funds can be loaded on an ACE Elite™ Visa® Prepaid Debit Card.
Varies by state
Generally receive the money the next business day
Must be 18+ years old, have a steady source of income and a checking or savings account. Must not be a debtor in bankruptcy.
LendUp Payday Loans
LendUp offers $250 loans for first-time borrowers. Good credit is not required. Visit the site to see more details for your state.
generally receive the money the next business day
Be 18+ years of age and have a checking account that can accept electronic transfers.

Compare up to 4 providers

Bottom line

Pawn loans can be a quick way to get extra cash, but because they can be relatively expensive, you may want looking at other options first.

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Apply for a short-term loan with an easy online application and dedicated customer service.

Check into Cash Payday Loan

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OppLoans Installment Loans

Installment loans with competitive rates from a top-rated direct lender.

LendYou Short-term Loans

Apply online with this loan-connection service offering unrestricted short-term loans with fast turnaround.

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