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How Pawn Loans Work

To put it simply – customers pledge property as collateral, and in return, pawnbrokers lend them money. When customers pay back the loan, their merchandise is returned to them. Pawn loans can be made on everything from jewelry to electronics. If the customer elects not to redeem their collateral, there is no credit consequence to the borrower and the items are sold at a value price to retail consumers.

How to Receive A Loan

To receive a pawn loan, you can head to Oaks Pawn with a valuable item you own that you are willing to leave as collateral. Our pawnbrokers will assist the item’s value, condition and resale potential, and then decide what we can offer as a loan.

Because the item acts as collateral, Oaks Pawn does not require a credit check, bank account or co-signer. You must be 18 or older and show proof of your identity. 

If Oaks Pawn offers you a loan on your item, you will receive cash on the spot. Our instant cash loans are easy to use and take less than 30 minutes.

High-demand items typically include:

  • Jewelry
  • Firearms
  • Musical instruments
  • Current electronics

Pawn loans are used as a short term financial fix. If you take a secured short-term loan from Oaks Pawn, you will only pay interest on the actual period for which you use the loan. The initial loan period is 30 days, and while we do offer the ability to extend the loan period, we highly suggest keeping the loan period as short as possible to help prevent you from paying extra fees.

To help determin how much you will pay by extending your loan, please use our loan payback calculator.


Are pawn stores regulated?

Pawnbrokers are governed by all of the major federal laws that apply to other entities designated as financial institutions, including:

  • USA Patriot Act
  • Truth-in-Lending Act
  • Bank Secrecy Act and IRS regulations requiring reporting of certain cash transactions
  • Trading with the Enemy Act and related Executive Orders and regulations
  • Privacy provisions of the Gramm-Leach-Bliley Financial Services Modernization Act

Why would someone go to a pawnbroker to get a loan?

Pawnbrokers offer the consumer a quick, convenient, and confidential way to borrow money. A short-term cash need can be met with no credit check or legal consequences if the loan is not repaid. Pawnbroking imposes a discipline on the borrower that other lenders do not. Pawn loans do not cause people to overextend credit or go into bankruptcy. Pawn loans are great if you are in need of a quick financial fix, but is not a long-term solution.

How much should I expect for a loan on my item?

Loan amounts vary according to the item. Your loan amount will be determined by several factors – including the value of the item, demand for the item, and condition of the item. All items that pawn shops buy or pawn are tested to ensure that they work properly.

How can I be sure the merchandise I purchase at Oaks Pawn isn’t stolen?

Here at Oaks Pawn all of our locations work closely with the local police department. We are required to fill out daily reports of items that were pawned. The police will take our daily reports and line it up with any items that have been filed as lost or stolen. Each item we receive will be on hold for 30 days before we sell it, this insures the item has not been reported stolen.

Are pawns rates excessive?

No. To provide their service, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk, and recourse. Pawn transactions are small-dollar, short-term loans with no hidden charges.