If you’re in need of fast cash, a Best Pawn loan might seem like a lifesaver. These loans don’t require a credit check, so you don’t risk taking a hit on your credit score like you would with a personal loan or a credit card.

Instead, pawn shop loans rely on the value of an item as collateral. A pawnbroker will appraise your belonging, considering its condition, age and the local market for similar items in that area. You’ll get a percentage, usually no more than 60%, of the item’s resale value. If you don’t pay back the pawn loan, the pawnbroker will sell your item to recoup the money it lost on your loan.

Best Pawn Loan: Find the Top-Rated Pawn Shops Near You

While every state has its own laws and regulations regarding pawn shops, the process for getting a loan is generally the same. You bring an item of value to the pawnbroker, and they give you cash on the spot. You have a set amount of time to repay the loan plus interest, or else you forfeit your item.

Many people turn to pawn shop loans for quick access to cash, especially if they have bad credit or don’t have a co-signer to act as a guarantor on a more traditional bank loan. However, it’s important to understand that a pawn loan is often more expensive than other financing options. If you’re thinking about pawning something, consider alternatives like selling your items online through websites like Amazon, eBay, or Facebook Marketplace.