The short version
- Bring the item and an ID. The shop checks the item, tests gold or electronics and looks up what similar items resell for.
- Get an offer. The loan is based on what the shop could sell the item for, not on your credit. There is no credit check.
- Sign the pawn ticket. It lists the amount, the charges, the due date (maturity date) and the grace period. Keep it: you need it to get the item back.
- Repay or renew. Pay the loan plus charges by the due date, or pay just the charges to extend it if your state and the shop allow renewals.
- Or let it go. If you do not pay by the end of the grace period, the item becomes the shop's property. The loan is closed and it is not sent to collections.
What it costs
Pawn loans are expensive compared with a bank loan, and the price is set by state law, not by the market alone. Each state caps the monthly charge in a different way:
- A single monthly rate. Florida allows up to 25% of the amount financed per 30 days; Alabama and Mississippi 25% a month; Kansas 10%.
- Interest plus a fee. Tennessee and Kentucky allow 2% interest plus a fee of up to 20% a month; North Carolina adds dollar caps to the fee.
- Brackets by loan size. In Texas, the charge for July 2026 to June 2027 is 20% a month on loans up to $276 and 15% on loans up to $1,840, with lower rates above that.
- Different rates over time. Arizona allows 13% a month for the first two months and 11% after that; Georgia 25% per 30 days for the first 90 days and 12.5% after.
Use the pawn loan calculator to see the maximum for your state and amount, or the table of rates by state to compare.
How much you can borrow
The shop lends a part of what it expects to resell the item for, so the offer is usually well below what you paid. Gold is the easiest to value because its metal content has a daily price; electronics, tools and musical instruments depend on brand, model and condition. Read how much a pawn shop will give you and try the gold calculator before you go.
How long you have
Most states set a loan term of about one month and then a grace period before the shop can keep the item. Texas, Florida, Alabama, Mississippi and Tennessee give 30 days of grace after the due date; South Carolina and North Carolina give 60 days; Georgia gives only 10 days for most goods. The exact dates are on your pawn ticket. See what happens if you do not pay.
Pawning versus selling
Pawning keeps the option to get the item back, at a cost. Selling gives you more cash up front and nothing to repay. If you already know you will not come back for the item, selling is usually better. Compare both with the pawn or sell calculator.
Before you sign
- Check the total amount to redeem on the due date, not only the loan amount.
- Ask whether there are setup, storage or firearm fees and whether your state allows them.
- Ask how renewals work and what they cost.
- Keep the ticket in a safe place and set a reminder for the due date.
Questions
Does a pawn loan affect my credit?
There is no credit check to get a pawn loan, and the item is the only security. If you do not repay, the shop keeps the item instead of chasing the debt.
Can I pay a pawn loan early?
Yes. You can redeem the item at any time before the end of the grace period by paying the loan plus the charges earned so far. Some states, such as Texas, require a refund of part of the charge when you pay early.
Can someone else pick up my item?
Usually only the person on the ticket or someone with written authorization and ID can redeem it. Rules vary by state, so ask the shop.