How Do You Know If a Pawnshop Does Cash Loans?


Quick Answer

Providing cash loans in exchange for collateral items is the primary service offered by pawnshops, explains Bankrate. Pawnshops also buy items outright from individuals, but they prefer loans to maximize profits.

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Full Answer

To acquire a cash loan, offer an item that the pawnshop can keep as collateral, according to Bankrate. Hold on to the pawn ticket, which acts as a receipt and lists the fees, expiration date and description of the loan. To close the loan and regain collateral, pay the loan plus fees before the deadline. If a customer chooses not to pay the loan, the pawnshop keeps the collateral item. Loan extensions are also available, but they usually involve extra interest fees.

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