What happens if you can't retrieve your item?

Know that the item you give acts as collateral, and the amount received is based on the value of that item. This is extremely useful in certain situations when you need short-term financing. When returning to reclaim the loan, you will pay off the loan first plus a small fee to get your item back.

However, what happens if you do not return to the pawnshop to reclaim the item you have pawned, cannot afford to get it back, or totally forgot about it? Here are three situations that you can expect to happen:

If you plan to retrieve the item but do not currently have the finances to get it back, you can extend the loan. This can be done by renewing the loan every thirty days with the pawnshop to keep your account active.

Note that extending or renewing the loan is not free. In many cases, you will need to pay for what you can, plus some interests. However, there are times where you can only opt to pay for the interest to extend the period. The more times you renew your loan, the more payments you will end up with. 

For this reason, if you absolutely cannot pay your item in full but want to retrieve the item later, you should pay the interest plus some of the loan you've borrowed to shorten the amount of time you have to keep extending.

What happens if you do not extend the loan, and you end up paying late? Know that if you pass the 30-day period to pay back your loan, you relinquish the item to the pawnshop. In other words, they will put it up for sale. While not paying for your loan will not always affect your credit, what it does do is hurt your reputation with the shop. This means that the next time you head to the shop hoping for a good deal, you might be denied due to your past failed payments.

How do you get your item back after it has been relinquished to the pawnshop? Well, you can simply repurchase it! Pawnshops would love for you to buy their things. They are usually not interested in confiscating anything and not selling that specific item. Plus, they know that you can use the same item again for more loans in the future, acting as an excellent business for the pawnshop.

At this point, you now know what to expect if you either want to retrieve the item back but do not have the funds to cover it or do not want to pay for it. However, despite what has been shared above, it is always best to discuss with the pawnshop regarding your options. Each shop might work slightly differently from the others, and knowing the operations of the shop you pawned your item at can ensure that you are not surprised by anything.

If you need quick cash, you can come and pawn your item with us. We are a pawn shop based in Kentucky and will offer trades that you can be happy with!