Understanding Financing Terms

Paying Back A Pawn Shop Loan: Four Things To Know

Selling gold or jewelry at a pawn shop can be a great way to get extra cash when you are in need, but knowing how to pay back the loan is essential if you plan to get your items back. Here are some things you should know when getting ready to pay off your pawn shop jewelry loan.

Save Your Ticket And Paperwork

You'll need your original paperwork, including any ticket you were given to use when claiming your jewelry back. Without this documentation, the pawn shop may choose to hold on to the item until the loan expires. Once the loan has expired, the item may be out up for sale at a price higher than what you received for it.

Set A Reminder For The Due Date

Because items that aren't paid off are typically put up for sale, it's important to remember when the loan payment is due. Set a reminder on your phone or computer calendar, and consider setting up a second alert to go off a few days before the loan is due. This will help give you time to gather the money or to make preparations to pay off the loan. Be sure that any loan documentation you sign clearly lists the date that the final payment is due.

Understand The Fees

Understanding the fees and knowing how much you will need to pay back can make it easier to gather the funds needed to get your item back. Once you know how much you will owe, set aside a certain amount of money every week so you can have enough to get your gold jor fine jewelry back when the loan comes due. In some cases, you may be able to extend the loan, but be sure to ask what the additional fees and penalties will be for this option.

Bring The Proper Form Of Tender

Some pawn shops only accept case for payments, while others may accept a debit card payment. If you plan to pay by personal check, ask first, as this may not be possible with your local pawn shop. If you prefer not to carry cash around, you may be able to arrange payment by money order. You can purchase a money order at your local bank branch, which prevents you from having to take out cash and bring it to the pawn shop.

Don't be afraid to ask questions when you go to your pawn shop for a loan. The owners and staff are typically happy to help both buyers and sellers who come into their stores.