FAQ
How Pawning Works
What’s a pawn loan?
A pawn loan is another name for a collateral loan. This is when money is lent in exchange for items of value, with the loan amount based on that item’s value. The item is returned when the loan is paid-off or can be surrendered as payment in full.
What is an extension?
If you’re unable to pay back your pawn loan in full on its due date, you can get an extension. With an extension, you are required to pay a portion of the interest owed. Then you may extend the length of your pawn loan for as many days as allowed by state law, usually 30.
What is a renewal?
If you’re unable to pay back your pawn loan in full on its due date, you may be able to get a renewal. With a renewal, you pay the interest that has accrued on your pawn loan in full, and a new pawn loan is written. The principal pawn loan amount remains the same, as does the interest rate, but the due date is reset for the full loan term.
Is a credit check required for a pawn loan?
No. The only requirement is a valid photo ID.
Lorem ipsum dolor sit amet consectetur?
Lorem ipsum dolor sit amet consectetur. Augue accumsan in tellus quis laoreet felis purus tincidunt cras. Arcu amet non duis ut odio viverra vitae. Vel euismod nascetur etiam viverra ultricies fermentum aliquam amet.
What items does a pawn shop buy?
We provide loans on just about everything! Including but not limited to these common items:
- Gold and Diamond Jewelry
- Televisions
- Watches - premium designer brands and fashion watches
- Laptops, tablets and all-in-one PCs
- Cell Phones
- Cameras, lenses and camcorders
- Designer sunglasses & handbags
- Musical instruments
- Electronics of all kinds - drones, GPS, iPods, MP3, etc.
- Home Audio and Video - receivers, power amps, DVD and blue-ray players, CD players, etc.
- Tools - power, hand, storage, ladders, etc.
- Automotive - car audio, power amps, speakers, subwoofers, auto testing equipment, custom rims, etc.
- Household items - small appliances, fans, etc.
- Lawn and Garden - mowers, snow blowers, trimmers , blowers , chainsaws, wood chippers, etc.
- Firearms - rifles, shotguns and handguns.
- Art and Collectibles
- Sports and Outdoor - hunting bows, fishing rods and reels, depth finders, camping equipment, knives, binoculars, etc.
- - Recreational equipment - bicycles, motorcycles, ATVs, snowmobiles, trolling motors, etc.
Can I pawn a gun?
Yes, Pawn America accepts firearms as collateral for pawn loans, as regulated by Minnesota state law. We are a registered firearms dealer and must comply with all federal regulations.
Do most Pawn America customers lose their merchandise?
On average, roughly 80% of all pawn loans are repaid. Items are only forfeited if the borrower chooses not to repay the loan. Repeat customers make up a majority of the business, similar to other lending or retail establishments. Hence, we develop relationships with our customers because they often borrow against the same items repeatedly.
Is my collateral safe while in pawn?
While your item is in pawn, you still own it. It is our responsibility to keep it safe and in good condition while it’s in our care. When you give us an item for a pawn, we keep all accessories (remote controls, cables, etc.) with your item and place it in a secure area. Your item is safely stored until you return to pay your pawn loan in full and reclaim it. Pawn America is fully insured for the loan value of the collateral we keep.
How much should I expect for a loan on my item?
Loan amounts vary according to the item’s value. There is a $10 minimum amount on a pawn transaction, but the maximum amount may be set by state pawn laws. Your loan amount will be determined according to other factors as well, such as product demand and condition of the item. Not all pawn stores are the same, and prices may vary.
How is item value determined?
Pawn loan amounts are based on the item’s current appraised value, condition, and our ability to sell the item.
How do you determine the value of jewelry?
When jewelry is the collateral for a pawn loan, we test the precious metals and diamonds to determine its worth. The diamond testing includes a visual inspection using a jeweler's loupe, weighing the item, sizing (determining carat weight of) any stones, and noting the cut/color/clarity of each. Additionally, we test the metal using a special acid that determines the karat of gold. This is done to ensure a clean test so there are no false readings on your item that may detract from what we can loan you.
How do you determine the price of gold?
The price of gold is based on market values, the price for which is routinely reviewed and updated. Prices can vary greatly as the loan amount for 24K gold is significantly higher than that of 14K gold.
Are pawn rates excessive?
No, all lenders must charge rates commensurate with the size and duration of the loan, collateral, risk, and recourse. Pawn transactions are small, short-term loans with no hidden fees.
Is Pawn America stocked with stolen merchandise?
Pawn America is one of the worst places to attempt to get rid of stolen merchandise, as we are highly regulated, work closely with local and federal law enforcement officials, and train our staff to be on the lookout for and identify stolen property. Every pawn transaction is shared with police departments nationwide. Less than 1% of items are identified as stolen goods.
Is Pawn America regulated?
Yes, we are governed by all major federal laws that apply to entities designed as financial institutions, plus local authorities. These laws include the Patriot Act, Truth in Lending Act, Equal Credit Opportunity Act, and Federal Trade Commission Rules on Data Privacy and Security transfer. Because we deal in firearms, we are also regulated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Do pawn customers receive the same federal law protections at Pawn America that they would at other financial institutions?
No, because pawn transactions are the only type of consumer credit that requires reporting to local law enforcement agencies. This reporting is required daily and must include extremely sensitive, personal information about the customer, including gender, ethnicity, and address.
Are pawn shop prices negotiable?
We determine the value of each item based on specific characteristics. Price is not negotiable.
Are pawn shop diamonds and metals real?
We look over each item to make sure the value is correctly given to each item. Ask us for more information about the jewelry we have in store.
Lorem ipsum dolor sit amet consectetur?
Lorem ipsum dolor sit amet consectetur. Augue accumsan in tellus quis laoreet felis purus tincidunt cras. Arcu amet non duis ut odio viverra vitae. Vel euismod nascetur etiam viverra ultricies fermentum aliquam amet.
How do pawn shops work?
We buy items and make collateral loans to give you extra cash. We then sell items for their value.
Can pawn shops give out information?
Not in normal circumstances. Your information is kept private.
Karet Rewards Program
How can I enroll in the Pawn America Karat Rewards Program?
You can enroll in PA Karat Rewards by visiting any Pawn America near you. We currently do not offer online enrollment.
What are the Pawn America Karat Rewards Program points worth in Cash Discounts?
Your Karat Rewards points are worth .01 (cent) per point. Earn 100 points for a $1.00 discount that can be applied toward a retail purchase, pawn fees, or extension fees. Earn 1,000 points for a $10.00 cash discount toward a retail or pawn fees. NOTE: Pawn America Karat Rewards Point have no cash value. They can only be used as a cash equivalent discount toward a retail purchase or applied to pawn loan fees for extension or redemption fees.
What level will I be at when I enroll in the Pawn America Karat Rewards Program?
All enrollments begin at Karat Rewards Silver level. As soon as you earn 1,500 points, or more, in the first 12 months of your enrollment, you are elevated to Gold Status. If you earn more than 15,000 points in that first 12-month period, you earn Diamond Status.
How can I earn Karat Rewards Points?
There are several ways you can earn Pawn America Karat Rewards Points:
- Retail purchases at our Pawn America store locations,
- Selling us product at our pawn counters,
-
Paying pawn loan fees at our pawn loan counter, fees to extend your loan either in person at our stores or online using MyAccount. You can earn one-time Bonus Points when you:
- Enroll in the Pawn America Karat Rewards Program
- Using Get A Quote for the first time and completing a loan or selling us the product in that quote.
Please note that currently PawnAmerica.com online retail purchases do not count towards Pawn America Karat Rewards Points.
Can I earn more points in Karat Rewards Gold or Diamond levels than in the Silver level?
Yes. Pawn America Karat Rewards gives you the ability to earn more points as you advance to higher levels. Gold level members earn more points than Silver, and Diamond level earns more than Gold for each qualifying transaction. For example, a $200 retail purchase earns you 100 Karat points at the Silver level, 150 Karat points at the Gold level, or 200 Karat points at the Diamond level.
When will I receive the points, that I have earned in my Karat Rewards account?
All points are credited to your account at the end of the business day. You will see the points appear in your Karat Rewards account the day after the qualifying transaction takes place. If you earned points that result in achieving a new level, you will officially be at that level when the points are credited to your account.
How can I redeem points for cash discounts?
You may redeem points in your Pawn America Karat Reward account for retail floor purchases or use them for pawn loan fees or extension fees.
How do I earn Gold level or Diamond level status?
You only need to earn 1,500 points in a 12-month period from your enrollment date to earn Karat Gold level. As you continue to earn points in that same 12-month period and you achieve 15,000 points or more, you will earn Diamond level status.
Once I achieve Gold or Diamond level, how can I retain that level?
Once you achieve Gold or Diamond level status, you will need to continue to earn points in the succeeding 12 months from the date you earned that level to remain in that level. For example, on Feb 1, you exceeded 1,500 points; from Feb 1 to January 31 of the following year, you would need to continue to earn 1,500 new Karat Rewards Points to remain Gold Status for the following 12-month period. If you were to fall short of earning the 1,500 new points by January 31 of the following year, you would revert to silver status. The same example applies to achieving Diamond status, only the points required for that level are 15,000 in the 12-month period.
If I redeem points for a cash discount, and subsequently return an item I purchased and earned points for, could my Karat Rewards Account potentially go negative?
Yes this could happen. If it does, your account will remain negative in points value until you earn enough points sufficient to bring your account into positive points balance once again.
Are my Pawn America Karat Rewards points transferable to another person, family member, spouse, or friend?
The Pawn America Karat Rewards Program points earned by you are only redeemable by you. They are not transferable to any other person.
Can I join Pawn America Karate Rewards without providing my mobile phone number or my email address?
Pawn America Karat Rewards Program requires us to communicate with you about the program benefits, rules, changes to the program, etc. Members of the Pawn America Karat Rewards Program must provide at least 1 form of contact, either your valid and verified mobile number or your valid and verified email address. If at any time you unsubscribe from either mobile or email and we no longer have any way to communicate with you, you will be terminated from earning any additional Karat Rewards points. You may still redeem your current point balance. However, until you resubmit a valid and verified mobile number or valid and verified email address, you will not be able to earn any additional points, nor benefit from any future points bonus options or program benefits for current members.
