How Does a Pawn Loan Work?

Pawn loans are loans in which you “PAWN” a personal item in exchange for an amount of money for a specified period of time (usually 30 days but can vary by state). Your item(s) serve as guarantee for the money borrowed. On your due date you have the option to pay your loan in full and redeem your item(s); or you may choose to extend the loan by simply paying the interest/fees due.

For example:

You can bring an item of gold worth $500 but only need a $50 loan.  We will hold your item and lend you the $50 which the interest per month will be $12.50. Next, redeem your item for a total of 50.00 + 12.50 = $62.50 and your item will be returned to you, OR you can just pay the interest of $12.50 and we will hold your item and extend the loan another 30 days till you can pay the principal amount plus interest.  

During that time, your item will be kept in a secured vault. There’s no need to go to your local bank for an extensive credit check.

To keep the cost of your loan as low as possible, borrow only the minimum amount needed to cover the cost of your emergency expense, and pay off your loan as soon as your finances allow. Save interest on your loan by making extra payments, paying more than your scheduled amount, or by paying off the entire balance early.

How to save money on your loan:

Pawn loans are pretty straightforward—you borrow money against something valuable and get cash fast without a credit check tripping you up. But they’re short-term loans; typically, we’re talking 30 days with an extra 30-day grace period just in case life gets in the way. That clock starts ticking the moment you walk out with your cash. 

Here are a few things you can do to save money on your loan.

• Make extra payments
• Pay more than your scheduled amount
• Pay off the entire balance early

What is a loan extension?

If you can’t pay back your loan on its due date, you are eligible to extend the principal amount by paying the interest charge.  You can continue paying the monthly interest charge for as long as needed.  The interest is determined based on the total loan amount. 

For example, if you have a loan for $100, and the interest is 25% then your interest amount will be $25.  To extend your loan another 30 days you will need to pay $25.

Will I lose my item?

If you choose to not pay your loan in full by the due date or extend the loan by paying the monthly interest fee, your item will then be forfeit. At this time your item will become the property of Prestige Pawn and Jewelry. Your item will be sold to collect the loan amount due.

Your account will then be considered paid in full and you can pawn another item.

How do you determine the value of an item?

We will assess and evaluate each item based on condition and the current market resale value for the item.  We consider the age of the item and how much it has depreciated in value since its original purchase.  Some brands and products may hold their value better than others.

How do you determine the value of jewelry?

We will perform a test to determine the authenticity of each jewelry piece and weigh it to correctly determine its value. We will also evaluate diamonds for authenticity and determine the size and value of each stone to help get you the money you need.  We will asses appraisals, market value, estate value, intrinsic value, hallmark, purity and metal weight price.

How long does the loan process take?

We try to make the loan process as quick and simple as possible. A typical transaction takes no more than 15 to 30 minutes; however, the more assets that we evaluate, the longer the process will take. When the process takes longer, it’s usually because we are trying to confirm a higher valuation for your collateral.

Can you give me a quote over the phone?

We can give you an approximate value over the phone. However, to give you the best idea of what we will be able to loan, we need to see and test the item. The physical condition of an item is an important part of determining the value. We also need to test the item to make sure it works properly.

Why is the loan amount different from the selling price at a retail store?

The value of your item is based on market value and risk assessment, not of the price of the item when it is new. Any collateral that is turned over to us and made available for sale is pre-owned and will be priced as used on our sales floor. The loan amount we give you is based on that selling price—and our ability to sell the item.

We offer you as much as we can while still allowing room to pay for the cost of storage, insurance and other costs of doing business.

​Is my item safe while in pawn?

​Your item will be kept in a safe and secure area at all times. All of our stores are fully insured for the loan value of the items we keep.

Are there items that prestige pawn will not accept?

​There are items that Prestige Pawn may not accept based on used market price. Please call the store for more details.

Are pawnshops stocked with stolen merchandise?

No. Less than 1 percent of items are identified as stolen goods. Pawnshops are actually the worst place to try and get rid of stolen merchandise, despite what you see on television or in the movies.

Pawnshops are highly regulated and work very closely with local and federal law enforcement officials.  We train our staff to be on the lookout for and identify stolen property.