How does a Pawn Loan work?

A Pawn Loan is a 30 day collateral loan. If someone is in need of quick cash they can pledge their collateral (jewelry, construction equipment, electronics, etc.) and in return receive a cash amount for their item. After 30 days or less the individual can come back and buy or reclaim his/her merchandise back from the pawnbroker for the amount loaned plus a fee.

If the individual decides they don’t want to get their item back they can just forfeit their item and the pawnbroker will retain ownership of the item. The individual’s credit is not affected and there are no collection phone calls or hassle with creditors.

If the individual decides he/she would like to get their item back but do not have enough money then they can apply for an extension. See how extensions work down below.

What is an Extension?

If the individual does not have enough money to repay the loan after 30 days, he/she can extend the pawn loan for another month by paying only the monthly fee. There is no limit on how many times an individual can extend a pawn loan.

Will I lose my Merchandise?

Hat City Pawn realizes that these are tough economic times and is therefore to customers’ needs. Hat City Pawn will work with its customers through extensions and grace periods if necessary to allow customers to get their pawned merchandise back.

Can you give a quote of an item over the phone?

Hat City Pawn does offer quotes over the phone, but only in the form of a range of prices. Since it is difficult to value an item without physically seeing its condition, we cannot give a guaranteed quote; instead, we give the customer a general idea of their item’s value before they come to Hat City Pawn.

Why does the loan amount differ from the selling price of the item at local retailers?

Hat City Pawn sells lightly used merchandise which we purchase from customers at a discount with respect to local retail prices. Hat City Pawn must purchase at a discount because it must be assumed than an individual is not coming back to reclaim his/her property. Therefore, we must have the ability to sell that property at a sufficient profit.

Is my collateral safe while it is in pawn?

Hat City Pawn prides itself in securing its customers pawned items. We have a state-of-the-art security system as well as burglary safes to secure all pawned items. Hat City Pawn also stores its customers’ pawned items in a secure storage area away from the retail showroom so pawn customers do not have to worry about their items being handled unnecessarily.

Are Pawn Shops regulated?

Pawn Shops are regulated at the state level and also at the local level.

Are Pawn Shops stocked with stolen merchandise?

Contrary to what Hollywood has told people, a very small percentage (~2%) of what is stolen is in a pawn shop. Pawn shops take great care in attempting to avoid buying stolen merchandise. Pawn shops are regulated by state and local authorities and actively work with investigators to stop the trade of stolen merchandise.