For many people there is still a mystery around what a pawn really is.  A pawn is a collateralized loan.  In banking, the banker utilizes the 4 C’s (credit, capacity, character, and collateral) in making a loan decision.  In an initial visit to the pawn shop, the pawnbroker focuses totally on the collateral or item that the person is pawning until a relationship is established.  If the pawnbroker finds that the customer picks up their items (pays out the pawns) the pawnbroker will usually raise the pawn amount on their items on future visits realizing that the customer pays their debts.  Obviously, if the pawnbroker finds that the customer never picks up their pawns, true capitalism kicks in and the mindset of the pawnbroker is “buy low sell high”. 

What is the moral to the story?  A pawn is a great alternative to getting the money one needs regardless of their past credit history.  But, in similarity to a bank, the pawnbroker will be more liberal in lending to one that pays their pawns back just as a bank will reward a customer that pays. 

Lastly, many people think that the pawn shop wants to “buy” their merchandise rather than pawn the merchandise.  Quite the contrary.  We have a saying that “you can sheer a sheep time and time again, but you can only slaughter a sheep one time.”  What that means is we would much rather pawn or loan you time and again rather than buy your merchandise and cut off our ability to deal with you  in days ahead by buying your collateral.  We do “buy” merchandise everyday such as gold, jewelry and firearms, but we would much rather pawn your merchandise and you come back and get it.