Do you need fast cash to cover unforeseen expenses? Many people choose to sell their possessions to pawn shops for instant cash. Others might opt to use their items as collateral to obtain a loan from a pawn shop.
A collateral loan from a pawn shop doesn’t affect your credit score. You’ll get instant cash on the spot. Unlike conventional loans, you’ll get approved without a cosigner, regardless of your credit history.
To borrow money from a pawn shop, you need to provide your possessions as collateral. The amount of money you’ll receive is based on the pawnbroker’s appraised value of your items. Once you pay back your loan in full, you can reclaim your collateral.
While most customers have every intention of repaying their loan and reclaiming their items, it doesn’t always work out that way. Sometimes folks forget. Other times, they don’t have the funds to settle their loan.
So, what happens if you fail to reclaim your property on time or can’t repay your loan? The friendly pawnbrokers at Maxferd are here to tell you more.
What Happens if You Cannot Repay Your Loan?
At all of Maxferd’s locations, including our San Francisco pawn shop, we give our customers four months and 10 days to either renew or repay their collateral loans. This term will most likely be doubled if you use jewelry as collateral. There are no monthly payments. You only have to pay when it’s time to settle your loan.
If you defaulted on your loan, we try to assist you in every way possible to reunite you with your possessions. However, we might need to resell your collateral to recoup our losses. We will never report you to credit bureaus. You can also get a new loan based on the value of your items.
Understanding Your Options
When it comes to pawn shop loans, you have many options, including:
- Retrieving your possessions after you repay the loan
- Paying interest to renew the loan
- Forfeiting your items to the pawn shop if you are unable to settle your loan
At Maxferd, we strictly adhere to the California Financial Code. Our interest rates and loan periods are closely regulated, and you will never be overcharged. Your credit score will never be affected.
How Does Maxferd Handle Unclaimed Pawned Items?
For over 135 years, the residents of Los Angeles County have depended on Maxferd for quality, courteous loan solutions. We continuously strive to exceed our customers’ expectations and do everything we can to reunite them with their pawned possessions. We do this through accurate appraisals, fair deals, and loan renewals.
About 87% of our customers reclaim their pawned items. Our financial department always works closely with clients if they need additional time to repay their loans.
In rare circumstances, we will sell the unclaimed items to recover losses. We will display the item used as collateral after the loan expires. We only do this if the customer tells us they will not reclaim their items. If the items have sentimental value and the customer plans to recover their possessions, we will do everything possible to ensure that happens. That’s why we always encourage customers to talk to us so we can find the best solutions for their needs.
Contrary to popular opinion, pawn shops are not shady businesses that are out to make a quick buck off their customers. Maxferd always has your best interests at heart and will treat you with respect, dignity, and kindness.
If you need fast cash, we would love to look at your items and make you an offer! Contact us today by calling (800) 888-PAWN (7296) to learn more or visit one of our locations in Beverly Hills, Lawndale, Woodland Hills, Van Nuys, and San Francisco.