• Glenda Craddock

How Pawn Shops Work in Virginia

Updated: Oct 4

Pawn Shops | Cash loans, Buying and Selling Jewelry

Have you ever been to any of your local Pawn Shops? A quick google search of "Pawn Shops Near Me" will pull up a listing of your local stores similar to this Virginia Beach Pawn Shop Listing. Once you visit you'll realize there's lots of items to be found in one. But sales is only the tip of the iceberg of what they really are and what they do.


Pawn Loans | Non-Recourse Loans

The most basic function of a Pawnbroker is to lend cash to those in need. Roughly 61% of the population live paycheck to paycheck according to this CNBC article from Aug 2022. Many of these families have few options when something unexpected happens, like needing tires for the family car. This is where your local Pawnbroker comes in. A pawn loan is a non-recourse loan and it happens to be the only one available to the majority of people. non-recourse means if you default the lender cannot go after you and cannot effect your credit. Thus a pawn loan can't effect your future in anyway.Thats why the pawnbroker takes and holds the collateral. The loan is secured this way so both parties can simply walk away.



Pawn Loans | Cash Loans on Jewelry and Valuable Goods

The Pawn Loan is a very simple process. The customer brings something in of value, typically Gold Jewelry is the main item, and the lender makes an offer amount for the loan. This offer is based on a number of factors. In the example of gold jewelry the offer considers:


  • Condition of the jewelry

  • popularity of the jewelry

  • is the jewelry fixable if heavily worn

  • are the stone is the item in good condition

  • the weight of the gold itself

  • the weight of the diamonds or gems in the jewelry



All these factors are taken into consideration to make an offer or to simply give the person the amount they asked for.

The loan process itself takes about 5 mins and the rates are regulated by the State of Virginia not the Pawnbroker. When the loan comes due in 30 days the customer has three options.

  1. The loan may be renewed by coming in and paying the interest and fees portion of the loan and the loan is then extended for another 30 days.

  2. The loan may be redeemed for the interest and fees plus the principle amount that was loaned.

  3. the customer may decide they no longer want the item and simply not return. After a grace period, dictated by the state, the pawnbroker will default the item and put it out for sale. The customer has done nothing wrong and may return again in the future if needed.

Buying Gold and Diamond Jewelry

Beside getting a loan on jewelry the customer may simply sell the item. The process is the exact same from the pawnbrokers side as making an offer of a loan. Most of the time the amount will be identical, as a result many people get loans when they really don't intent to return to redeem the item. They difference is they at least have the option of returning to redeem. If you sell it its basically now the pawnbrokers and they invest time and money in the item to rehab it or they may scrap the item if it's not repairable. Either way it's not available to the customer for the most part.





Jewelry Stores | Same Jewelry for Half the Price

Lastly, your local Pawnbroker might be the Best Jewelry Store in town. Many stores have become more jewelry store than other related goods. An example is Glenda Craddock's Pawn Shops in Virginia Beach and Chesapeake Virginia. A simple goggle search of Glenda Craddock Jewelry Stores will bring up her jewelry pawn shops. These stores are known in the area as wonderful places to find hidden gems and have new inventory weekly. The pricing is easy to understand. Pawnbrokers pay less for the jewelry they sell then do jewelry stores who order new items or make it themselves. As a result they can sell for considerably less. In the case of Hilltop Pawn and Greenbrier Pawn they are full service jewelry stores and every piece is refurbished and guaranteed when it leaves the store.






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