Not paying off a loan won't hurt a borrower's credit score. The shop will simply keep the borrower's property and sell it. While pawn shops offer fast loans to people who need help, it's also important to look for alternative sources of money that may be less expensve in the long run. Often, people who get this type of fast loan find themselves caught in a cycle of interest that stretches on and on because they never scrape together enough money to reclaim their property.
Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows. Were Committed To Service, Speed Security. Connect with a Helpful Lender.
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