How pawn loans work

What a pawn loan is

Most loans are based on your income and your credit. A pawn loan is based on an object. The item you leave with the shop is the collateral, which means it secures the loan. The shop holds it in storage while the loan is open.

That is why pawn shops can lend quickly, and why the amount depends on the item rather than on you. A clean, popular, easy-to-sell item will get a better offer than something worn, rare or hard to test.

Pawning is different from selling. When you sell, the shop buys the item and you're done. When you pawn, you're borrowing, and you have the right to buy your item back by repaying. Our guide on pawning vs selling covers when each one makes sense.

How pawning works, step by step

1. Bring the item in. Bring anything it needs to work, such as a charger, battery, remote or case. A shop can't lend much on a laptop it can't turn on.
2. The shop appraises it. Staff check the item's condition and confirm it works. For jewelry they test the metal and weigh it. For electronics and tools they power them up. Then they look at what similar items sell for.
3. You get an offer. The shop tells you how much it will lend. You can accept, ask for more, or walk away. There's no obligation to take an offer.
4. You show ID and sign. Shops record who pawned each item, so bring a valid government-issued photo ID. Read the terms before you sign.
5. You get cash and a pawn ticket. The ticket is your receipt and your claim on the item. Keep it somewhere safe.
6. You repay by the due date. You pay back the loan plus the shop's fees, and the shop returns your item.

The pawn ticket

The pawn ticket is the most important piece of paper in the deal. Before you leave the counter, check that it shows:

• a description of your item, detailed enough that you'd recognize it (brand, model, serial number for electronics, karat and weight for gold)
• the amount you borrowed
• the fees and charges, and the total you need to pay to get the item back
• the due date
• the ticket number and the shop's name and address

If anything is unclear, ask before you sign. Many shops need the ticket, or at least your ID, to release the item, so ask what happens if you lose it.

Fees and terms vary by state

A pawn loan costs money. You repay more than you borrowed, and the extra goes to the shop as interest, fees or both. How much a shop can charge, how long the loan lasts and what happens at the end are set partly by state law and partly by the shop, so they differ from place to place.

We don't publish rates, because they change by state and by shop and we can't check them for every listing. Instead, ask the shop for its terms in writing and make sure you understand the total you'll owe on the due date, not only the amount you'll walk out with.

If you need more time

Many shops let you extend or renew a pawn loan, often by paying the fees that have built up so far. The loan then gets a new due date. Whether that's possible, and on what terms, depends on the shop and the state.

If you know you'll be late, call the shop before the due date. It is much easier to sort out an extension while the loan is still open than after the item has been forfeited.

If you don't repay

If you don't repay or extend the loan in time, the item is forfeited. The shop keeps it and can put it up for sale. You lose the item, but you typically don't owe anything more.

This is the main difference from most other loans. Because the item covers the debt, a pawn shop typically doesn't send an unpaid pawn loan to a collection agency or report it to the credit bureaus. Practices vary, so if this matters to you, ask the shop directly.

It also means you should only pawn something you can afford to lose. If an item has real sentimental value, think hard about whether you're sure you can repay on time.

What you need to bring

• A valid photo ID. A driver's license, state ID or passport.
• The item, ready to test. Charged, with its charger, cables, case or batteries.
• Anything that proves what it is. The box, receipt, manual, certificate or appraisal can help the shop value it.

For a phone, tablet or laptop you plan to get back, ask the shop what it needs before you sign out of accounts or wipe anything. Our guide to preparing items to pawn or sell has the full list.

What shops will lend on

Gold and jewelry are the classic pawn item, because their value can be tested and weighed on the spot. Shops also lend on watches, tools, electronics, musical instruments, coins and more. Each shop decides what it takes, so call ahead. See what pawn shops buy for each type of item, or browse pawn shops by item.

Finding a pawn shop

Every shop in this directory passed a check that it makes pawn loans: Google files it as a pawn shop, and its name, reviews or website confirm it. Of the 6,288 listed shops, 5,753 have customer reviews that describe pawning an item or getting a loan there. 2,830 have a review or website that shows they buy gold and jewelry, and 1,551 list Sunday hours.

Pawn shops by state Shops that buy gold Open on Sundays