Instant Access to Your Items – How Pawnbroking Works

By H&T Pawnbrokers Mon, Aug 01, 2022

Intrigued about pawn loans but don’t fully understand them? You’re not the only one. For decades pawnbroking has been portrayed in media and popular culture as an expensive and unfavourable way to borrow money, but in 2019 that could not be further from the truth.

If you’re nervous about how pawnbroking works and wonder whether you’ll ever get your valuables back in one piece, read on – the world of pawn loans has changed a lot over the years and it’s now a safer and more viable borrowing option than ever before. What’s more, compared to other loan types, applying for a pawn loan is easy:

What you need to apply for a pawn loan

When you apply for a pawn loan, you’ll need three basic things:

  • Yourself
    You cannot apply for a pawn loan on behalf of anyone else, and you must be the legal owner of the item you are borrowing against, so you must be present during the application process.
  • Documents to prove who you are
    We’ll need to verify that you are who you say you are – this is standard procedure and helps us to protect ourselves and our customers from fraud and financial crime. A form of ID such as a passport or driving licence is required, along with a utility bill or similar formal letter as a proof of address.
  • A valuable item to pawn
    You can’t take out a pawn loan without bringing an item of value to use as collateral. You may want to pawn a luxury watch or piece of precious jewellery – these are our more commonly pawned items. Alternatively, we can also accept designer wares, art, antiques etc. You can pawn one item or multiple items at once.

Pawn loans are secured loans, which means that the risk is offset - not by the credit rating of the customer - by the value of the pawned item. Due to this, your credit score will not be checked as part of the application process, and any pawn loan activity will not register on your credit history, whether it’s positive or negative.

Unlike other loan types, we also don’t ask to see your bank statements or proof of income, as we make a loan offer based on the value of the asset. We offer highly flexible payments to make it as easy as possible for our customers to manage their loans, and the vast majority pay in full and have their items returned.

The loan term

The loan term is 6 months and the final payment deadline will be made clear to you before you sign on the dotted line, so you can work out whether it’s a manageable loan for you. By this final date, you must have repaid your balance plus interest, which will have been agreed when you apply. The repayment figure you are given will not change so you always know where you stand.

During the loan term your item will be held safely within your local H&T branch, so you will always know exactly where it is. We do this to eliminate the risk of anything being lost in transit, to limit the time in which the item is not secure, and to ensure that it’s available to the owner as soon as the loan is paid off. Every item is stored within a high security safe and will be protected from light, dust, moisture, and extremes of temperature, as well as theft and physical damage. It’s also fully insured for the duration.

Of course, you may find that you situation changes within the 6 month loan term, allowing you to pay off your loan before the deadline. In this case, you’ll get your item back straight away and you will not incur any additional charges or fees for paying early. You do not need to let us know in advance that you plan to complete the loan ahead of time – simply visit your local branch to pay the balance and you’ll get your item returned to you on the spot. It’s as simple as that.

As well as being able to pay off the loan early, you may also pay the balance in installments throughout the loan term. These do not have to be set amounts on agreed dates, but is instead an open option for those who prefer to pay as they go. If you’re paid weekly, for instance, you may find it easier to pay off a little bit each time you’re paid, which you’re more than welcome to do – again, without incurring any additional charges or fees.

Making the most of your assets

Once you have pawned an item, paid off the loan and received it back, you are then free to do the same thing again – there is no limit to how many times you can pawn the same item. This means that, by holding onto a successfully pawned valuable, you will always have an asset that you know you can borrow against in the future. Having something like this to fall back on in case of emergency is very useful and could prevent you from having to make a more difficult financial decision at the time.

It’s important to remember however, that some items may fluctuate in value over time, particularly if they are made of gold or other precious metal. This means that depending on the markets, you may be offered a bigger loan one day than on another. For this reason, it’s always worth keeping your eye on the gold price, for example.

Come and visit us at any time for an informal chat about what we can do for you. You don’t need an appointment, and our loan application process is quick and simple if you decide you want to go ahead.


Pawnbroking Loans are secured on your items, if the loan is not repaid it will be sold to pay the debt.