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Writer's pictureGlenda Craddock

What is a Pawn Shop Loan, and How Does it Work?

A pawn shop loan is a good idea for many people who want to borrow quick cash. If you're new to pawn transactions, you might have a lot of questions about how things work. We've been in the pawn industry for a long time, and we'd love to walk you through the process of taking out your first pawn shop loan. Once you know a little more about these types of loans, we think you'll go through us every time that you need a fast cash loan!


What is a Pawn Shop Loan?

A pawn shop loan is simple. These are loan options offered by your local pawn shops, such as Hilltop Pawn & Jewelry. A pawn broker can loan you anywhere from small amounts of money to the highest dollar amount, all based on you bringing in valuable collateral to secure the loan. Generally, you'll need to bring in the types of items that you would imagine being bought and sold at a pawn shop...for example, video game consoles, gold jewelry, diamond jewelry, firearms, musical instruments or another item of value can be used. The pawn broker will hold on to your valuable items until you repay the loan, then, they'll give your items back when you return and repay. There's no credit check, and all pawn loans across the country are regulated by state law in their respective state. Interest charges are generally more affordable than with payday loans, and unlike with short-term loans from banks and credit unions, there's never a credit check. For many, cash loans from pawn shops like Hilltop Pawn are incredibly useful, whether borrowers are looking to take out a small loan amount or a much bigger loan.


Yellow gold ring

What are the Benefits of a Pawn Shop Loan?

There are many benefits to taking out a pawn loan instead of a more traditional loan, including:

  • You can deal with a trusted local lender instead of a potentially shady online lender.

  • You'll get instant cash, on the spot.

  • You'll pay lower interest rates than with some loans, like auto title loans or payday loans.

  • Since your loan is based on your item's value, you get to choose how much you borrow with collateral loans.

  • There's never an application to fill out.

  • Employment history and income history don't matter.

  • There's never a credit record check! Your credit score doesn't matter!

  • The credit bureaus will not be notified if you default on your loan...you'll just surrender your item of value.


As you can see, the average pawn shop loan has many benefits when compared to other loans, and even credit cards. Even if you have a good credit score, you'll likely love how fast and easy it is to take out these loans.


Where Should I Get a Pawn Shop Loan?

Are you looking for collateral loan brokers who offer these financial products? If you're in Virginia Beach, we encourage you to visit us at Hilltop Pawn Shop & Jewelry! We have been in the business a long time, are a trusted name in Hampton Roads, and make the biggest loan offers. In fact, we make loans from $5 to $50,000!


A Simple, Step-by-Step Guide to Taking Out a Pawn Shop Loan

Taking out a pawn shop loan is very simple. These are the very easy steps you'll have to follow along the way.


Visit Our Pawn Store

First, of course, you'll need to gather up the valuable items that you're using as collateral, as well as your government-issued ID. Then, take the short drive to our Virginia Beach pawn and jewelry store, Hilltop Pawn!


Let Us Make You a Loan Offer

When you enter the store, let us know that you're interested in taking out a pawn shop loan from us. Our staff will take a few minutes to consider the items you've brought in as collateral and their value. It only takes a few minutes for us to come back with an offer.


Keep Your Pawn Ticket

If you decide that you want to accept our loan offer, let us know. We'll hand you cash and print out a pawn ticket with all of the relevant information about your loan. Make sure you keep it so you can look back at your repayment amount and due date.


Follow Our Simple Repayment Terms

As mentioned above, our simple repayment terms are listed on the pawn ticket that you will receive when you take out a loan from us. When you repay your loan by your due date, you get your items of value back on the spot. In the meantime, we keep your items safe. If you need an extension, that's not a problem...just make sure you stop by before your due date to repay just the interest and fees. Then, you'll get 30 more days to repay your loan.


Taking out personal loans from a trusted local pawn broker is incredibly easy. In fact, we make the entire process even easier here at Hilltop Pawn Shop & Jewelry. Come see us today, and let us know that you're interested in taking out one of our easy bad credit loans against your valuable items...and we'll guide you through each step of the process.



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