When people hear the word pawn loans made easy they might envision a rundown storefront sandwiched between a check-cashing outlet and a mini-mart, with a dusty display case filled with jewelry and firearms. But pawn shops have evolved far beyond their stereotypical image, and they are now the most accessible source of short-term loans in many communities. But how do they work, and are they a good option when you need cash fast?

Find a Pawn Shop Nearby for Instant Cash Solutions

The basic idea behind a pawn shop loan is simple: You bring in an item that you’re willing to sell, and the pawnbroker gives you a cash loan based on a fraction of its actual value. You have a certain amount of time to pay back the loan plus interest, or you can choose to forfeit your item for not paying. Pawnshops don’t run credit checks, so this type of financing is often accessible to consumers with less-than-perfect credit. And since the pawnshop is legally allowed to sell your item at any time during the pawn loan period, defaulting on your loan doesn’t negatively impact your credit score.

However, if you’re considering pawning your personal belongings for a quick cash infusion, it’s worth bearing in mind that this is a very high-risk way to get money. If you default on your pawn loan, the pawnshop can sell your item for much less than its true value. It’s also worth noting that you can often get more cash for your items by selling them online, through marketplaces like eBay and Facebook Marketplace or through consignment shops.