Pawn shop loans are a type of secured loan that involve pawning something you own — often jewelry or tools, but also electronics, collectibles and other items — in exchange for cash. The pawnbroker gives you a percentage of the item’s value and you have a short amount of time to pay back the loan, plus interest (the rates vary). If you don’t, the pawnshop keeps the item and sells it in order to recoup their losses.

The average pawnshop loan is about $150, and it typically lasts about 30 days. Pawn shops offer more money to outright purchase items than they lend against them, because they can easily project their profit margins for reselling the item. Unlike other types of loan, pawnshop loans do not get reported to credit reporting agencies and they do not impact your credit score.

Pawn Stores: What to Look for in a Trusted Pawn Shop

While a pawn shop loan can seem like an attractive option for quick cash, there are some important things you should keep in mind. The first is that pawnshops charge relatively high interest rates compared to the value of the item you’re pawning.

Another thing to consider is that if you default on the loan, it will likely show up on your credit report. This can be a problem for those who may not be able to afford to pay back their loans. However, a pawnshop loan is different from most financial products in that it doesn’t require an application or a pull of your credit report, and you can usually get the cash you need in the same day.