When you want instant cash, a car pawn loan is a quick and easy way to get approved for the money you need right at the moment.
But if you pawn something you'd like to reclaim, can you work something out with a pawnbroker near you if you forget to — or are unable to — repay the loan as scheduled? Let's look at whether pawnshops have a grace period and what you can do if you need more time.
How Do Pawn Loans Operate?
Pawn loans are among the most accessible loans to obtain. By bringing in an ID and gently used merchandise like jewelry or a laptop, borrowers can obtain a loan against the item's value.
Unlike many loan types, when you pawn an item for cash there's no credit check and no income verification. That's because if you fail to repay a pawn loan, the item used as collateral is forfeited, which allows pawnbrokers to sell it to recover the money they lent you.
How Long Do You Have to Repay a Pawn Loan?
Pawn shops are regulated by state banking authorities and supervised under various state and federal regulations. Although pawn shop laws differ by state, several customer protections exist to protect borrowers and their pawned items.
In some states, the law sets the finance contract period at 30 days and the forfeiture date at 30 or 60 days after the maturity date. In other words, although these loans are usually for 30 days, the customer has the option to pay the principal plus the fee to pick up the item within that time — or pay a fee to extend the loan for another 30 days and bring the pawned item current.
What Happens if You Miss the Scheduled Date?
If you haven't made the payment, most pawn stores use the time between the maturity date and the forfeiture date as a chance to reach out to customers who may have simply overlooked the due date but don't want to forfeit their pawned item.
The pawn business would much rather customers reclaim their collateral and remain in good standing than sell a pawned item right away. That way we can help you again in the future if a short-term need arises.
DD Pawn Loans is the right destination to sell or pawn an item.