What Happens if I Do Not Return to Reclaim my Pawned Item?
With a lot of pawn shops out there giving honest, hardworking pawnbrokers, like ours at Traders Loan and Jewelry, a bad reputation, it can be confusing to see exactly how working with pawnbrokers is an overall better way to obtain financing than simply visiting your nearest reputable bank. However, the answer really all boils down to the fact that working with pawnbrokers is significantly faster and almost entirely risk-free. Here’s how it works:
Understanding Collateral-Based Lending
When you apply for financing through a bank, you have to prove yourself a worthy investment. You have to submit to credit checks, financial assessments, and other meticulous analyses to convince the bank or lending institution you’re trying to borrow from that you are responsible and will pay the money you owe back within the agreed upon length of time. However, with pawnbrokers, the entire transaction is much more relaxed. Instead of needing to prove yourself, all you need is collateral. Once our pawnbrokers have something of value from you, what you do from there is up to you. You can decide to pay off your loan, plus interest, so that you can return and reclaim your item as quickly as possible. You can wait, pay off just the interest, and talk to our pawnbrokers about renewing your loans and keeping your account open so you can continue making payments over a longer period of time. Or you can simply choose to ignore the loan, not pay it off at all, and forfeit your collateral.
The Consequences of Not Paying Off Your Debts/Reclaiming Your Pawned Item
One of the reasons pawning is considered one of the best ways to get your hands on cash you don’t have fast is that if things don’t work out, there are no penalties or consequences of any kind to really contend with – other than forfeiting ownership of your pawned item, of course. Although, even then you can always return to purchase the item again once it becomes available. In some rare cases, a pawn agreement may even be able to be reactivated if the circumstances are right. However, your credit score will never take a hit. Your debts will never go to collections. You’ll never be sued or have your wages garnished to cover late payments. If you decide you don’t want to pay off what you owe and you’d rather just keep the money, that’s perfectly fine. Your pawned item will simply be put but on the shelf for resale at a slightly higher price for your or whoever else that might want it.
All in all, the best way to get the clearest picture of what your specific situation will look like is to come meet with our pawnbrokers at Traders Loan and Jewelry yourself and discuss your particular financing options in person. We can determine precise values of whatever items you hope to pawn, and answer any other specific questions you might have regarding the terms and concerns of your loan. To get your pawning adventure started, come visit us at Traders Loan & Jewelry today at 18505 Sherman Way Reseda, CA 91335, call 818.345.8696 , or simply fill out the form on our contact page if you have any questions.