What is Pawning? | Blog | Pawn America MN & WI

Have you ever wondered what it means to pawn something?

Well, today is your lucky day. A pawn loan is another term for a collateral loan Pawn loans are a quick and easy way to borrow money on the spot without a credit check. By bringing in an item of value, such as jewelry, electronics, or tools, a loan will be issued based on your collateral’s value.

What happens if I decide to pawn something?

This would then mean you are getting a loan against it. We try to make the pawning process as easy as possible. If you decide to pawn your item, you will be given a term length (subject to individual state laws; usually 30 days plus a 30 day grace period) to return and pay back your pawn loan. When you’ve reached your term date, you can decide whether or not you want your original item back. In order to get your item out of pawn, you must return with your payment (pawn loan amount plus interest owned). 

If you do not come back to reclaim your item, our only recourse is to sell the item on our retail floor. Defaulting on your pawn loan will not cause you any repercussions. 

What do I need to know before pawning an item?

When bringing in an item to pawn, something to keep in mind is the quality of your product. The collateral you bring indirectly affects the dollar amount of your pawn loan. We look for wear and tear, demand for the product, and the overall condition of your item. You must be the legal owner of the property you bring in. With some items, such as cell phones, you will be asked to provide proof of ownership.  Valid, state issued identification or driver’s license is also required. 

Why should I pawn?

When you need money in a pinch, a bank may not be able to offer you the funds you need in a timeframe that works for your life. We don’t get in your business, we don’t run a credit check, and we are the quickest option to get you the money you need. We make the process as simple and seamless as possible.  

If you want to discover more about the pawning process or have something to pawn yourself, stop into one of our 18 Pawn America locations today! 

Interested in learning more? Watch Pawn America’s founder Brad Rixmann discuss the pawning process in more detail. 

So no matter what your situation is, whether you want to sell some items you no longer use or get a pawn loan on something you want to get back, Pawn America has a solution that gets you access to cash when you need it!