How Do Pawn Shops Work?

gold

Are you wondering, “how do pawn shops work?” Maybe you have walked by our Logan Square pawn shop and are curious, or all you know about pawn shops is from Pawn Stars.  If you are new to pawn shops, the experts at Chicago Super Pawn will fill you in on everything you need to know before your first visit. From the pawn definition to breaking down exactly how pawn loans work, we will educate you on the art of pawning so you are prepared. Whether you are looking to pawn a valuable item that is just sitting around your home, or you are interested in perusing our selection of items including jewelry, arts, electronics, and designer items, we are here for you! 

How Do Pawn Shops Work?

Pawning is the system in which you give a pawn shop a valuable item in exchange for a cash loan. For example, if you have a Rolex or a Chanel purse you don’t use, you can bring it in and receive some cash, quickly. 

rolex watch

A pawn shop basically operates as a mini-bank. When you pawn something, you use the item as collateral to receive a loan from the pawn shop. All you need in order to pawn an item and get a loan is a valuable item and a valid ID. One of our pawnbrokers will research the item and find out how much it is worth so they can determine how much to offer you for a loan. If you accept the amount, then you will receive your money in just a few minutes! There is no need to check your credit or go through any other types of checks. 

Pawning an item is much different than selling your valuables, because you have the opportunity to get them back when you pay off your loan within a set amount of time (typically 30 or 60 days) if you so choose. However, if you do not pay off your loan on time or set up an extension or a renewal, then the pawn shop takes ownership of the item and can offer it for resale. 

At Chicago Super Pawn, we consider ourselves to be the NEW Logan Square neighborhood community bank for Chicagoans. If you wish to pawn an item, simply bring us an item of value along with your valid photo ID. You will receive the money for your item just minutes after your loan is approved.

Pawn Definition

So, what is a pawn? A pawn is the object left with a pawnbroker as security for money lent. For example, you might pawn a musical instrument or a designer handbag at Chicago Super Pawn. Some of the best items to pawn include: 

  • Jewelry 
  • High-end watches, like a Rolex
  • Musical instruments
  • Designer purses and other items 
  • Precious metals 
  • Power tools
  • Electronics
  • Game consoles
  • Smartphones
  • Antiques 
  • Sporting goods 
  • Any other valuables 

At Chicago Super Pawn, we accept pawns including gold and diamond jewelry, electronics, musical instruments, tools, designer purses, and more. 

Everything You Need to Know About Pawn Loans

pawn loan
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A pawn loan at Chicago Super Pawn is an easy and quick way to borrow money, without having to go through a credit check or any other unnecessary hassle. Your loan is based on the value of your pawn or collateral, not your credit rating or pay schedule. 

How Long Is a Normal Pawn Loan?

A typical pawn loan may have a term length of 30 days (or one month), plus a grace period of another 30 days, or one month. 

Do You Offer Extensions on Pawn Loans?

Chicago Super Pawn offers extensions on some pawn loans. If you cannot pay back your loan in full during the loan or grace period, we offer extensions and renewals to give you extra time. Or, you can choose to surrender your collateral as payment in full. 

What is a Renewal? 

If you are unable to pay back your pawn loan in full on its due date, you may get a renewal. With a renewal, you pay the interest that has accrued on your pawn loan in full, and a new pawn loan is written. The principal pawn loan amount remains the same, as does the interest rate. 

What to Know About Local Pawn Shops

If you are considering a visit to your local neighborhood pawn shop, here are some important things to know in advance. 

Choose a Trustworthy Pawn Shop 

When you are considering local pawn shops, always choose to do business with a trustworthy one. A reliable pawn shop will be licensed, knowledgeable, open to negotiation, and ready to meet your needs. 

Decide If You Want to Buy or Sell

Your local pawn shop is a great place to sell valuable items for some quick cash, but it is also a wonderful place to shop. Many pawn shops like ours have a wide selection of designer items, electronics, and even reasonably priced jewelry that have been carefully appraised and are sold for an excellent price. 

Be Prepared

If you are bringing in items to sell, consider how much money you will accept in advance. Then, clean your items so they are looking their best and be sure to bring in any documentation. For example, if you bring in a designer bag, bring the receipt from when you purchased it to prove its authenticity. 

We are the Local Pawn Shop You Can Trust

If you are looking for a local pawn shop you can trust, you have found us. Chicago Super Pawn is the city’s premier pawn shop. Whether you need a special gift for a loved one during the holidays or need some cash quickly. 

Visit Chicago Super Pawn Today 

While we can’t tell you how every pawn shop operates, we can tell you what our pawning practices are at Chicago Super Pawn, the city’s premier pawn shop. We are the local pawn shop you can trust. We offer the smallest and most flexible loan payments possible, so you can pay off your loan quickly. We are here to help. Stop in today with one of your valuables to get an estimate, or to shop our wide selection of high-end electronics, purses, jewelry, and more! 

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