What Happens If You Don’t Reclaim Your Pawned Item?

April 2, 2018 8:20 pm Published by Leave your thoughts

There are many reasons why you might consider pawning an item. Maybe you need rent money, cash to pay for car repairs or a little extra grocery money to get you through the rest of the month. What makes pawning such a great option is that you get cash on the spot, it doesn’t require a credit check and you can choose to redeem your item once the loan is repaid (a small fee may also apply).

Are you thinking about pawning an item that holds some monetary value? While pawning an item is a fast way to supplement your current cash flow, your plan might be to get it back after repaying the loan. But what happens if you don’t reclaim your pawned item from a pawn shop in Norwich, CT in time? The following information can help you if you forget to or are unable to repay your pawn loan by the agreed-upon date.

About pawn loans

If you have valuables and need money now, you can choose to use those valuables as collateral to get a loan from a pawn shop. A pawn loan is often the best solution when an unexpected situation comes up that calls for short-term financing. To secure a pawn loan, simply bring a pawn shop the item you want to use as collateral, along with a valid state or federal identification.

Keep in mind that the loan amount will likely be based on a percentage of the value of your particular item, not the market value or what you think it’s worth. Getting a pawn loan means you have the option to redeem the item, but you must repay the loan in full, plus a small fee within 30 days (or within the time the shop requires). Here are some key facts to know:

  • Paying the loan: To get your pawned item back, you, the borrower, must repay the loan on or before the due date. A pawn shop may let you pay just the interest if you cannot repay the loan in full when it’s due, which keeps the account active and may allow you to renew it for another 30 days.
  • Paying the loan late: If you decide to keep the borrowed funds instead of repaying your loan, the pawned item is relinquished to the pawn shop and put out on the shelf for sale. Unlike other types of loans, like a car or home loan, forfeiting the item to a pawn shop will not affect your credit.
  • What to do if your item is forfeited: If the original owner of a pawned item is unable to repay the loan in full and on time, the item is forfeited and put out for sale in the pawn shop. If they want the item back, they have to repurchase it later at the shop’s asking price.

Taking an item to a pawn shop in Norwich, CT can yield fast cash to tide you over until payday. Visit AZ Pawn & Guns to learn more about the pawn loan process or to pawn an item today!

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