Ways to Borrow Money with Bad Credit

February 03, 2020 - Pawn Resources

Looking for ways to borrow money with bad credit?

Pawning allows you to borrow money with bad credit. A credit check isn’t required to pawn an item as collateral for a loan, and neither is a bank account. Better yet, your loan comes in the form of cash—and you can get it in-hand today from a pawn shop.

You might be asking yourself, “what is a pawn shop?” If you have ever seen some storefronts in your town with signs that mention buying and selling gold, jewelry, etc. these are most likely pawn shops.

How do Pawn Shops Work?

Cash Loans for those with Bad Credit

Once of the most popular ways to borrow money with bad credit is to bring an item of value to a pawn shop.

Pawn shops accept items of value from their customers and give them a cash loan in return for the present value of that item. They get to keep your item if you don’t pay the loan back by a certain date.

The most common pawn loans need to be paid back, plus interest and fees, within 30 days. Some pawn shops offer longer terms. However, pawn shops are in the business of short-term loans. So you shouldn’t expect to be able to pay the shop a year after you pawned an item. You simply won’t get your item back.

Despite this being one of the best ways to borrow money with bad credit, it is important to understand the terms of the loan that you agree to. Beware of the interest and fees involved.

If you feel there is a chance you won’t be able to repay the loan within the defined time period, you need to be prepared to part ways with your item. It shouldn’t be an item that you absolutely cannot do without.

Selling for those with Bad Credit

There is another common scenario for pawn shop customers who need to make cash quickly.

This is for people who want to sell their item outright for cash—meaning they’re not borrowing cash, they’re just permanently parting ways with their item for money. This is also an option for you if there is something laying around your home of value that you don’t need anymore.

With these two ways to borrow money with bad credit—or no credit—you won’t have to worry about being denied a small short-term loan ever again.

What do Pawn Shops do with the Items they Take?

Pawn shops will resell pawned items for loans that borrowers default on. For instance, if you pawn a TV and don’t pay the loan back in time, the pawn shop will take full possession of it. But what good is the TV to the pawn shop if they don’t sell it for cash and make a profit?

This means that the pawn shop will then resell your TV to the general public, or anyone that comes into their shop and wants to buy it.

They operate as a shop where people can get great deals on goods such as used jewelry, electronics, power tools, sporting equipment, firearms and more. Keep in mind that pawn shops are businesses, and they need to turn a profit. This means that when a customer sells an item to them, they are going to give you a bit less than what it is worth.

However, they are doing you a favor. Whom else is going to buy your used junk and give you cash in hand for it that day? Many pawn shops are fair on pricing, too.

Power Tools

See how to pawn tools for top dollar and which tools get you the most money at a pawn shop.


Learn how to pawn jewelry including watches, earrings, bracelets, necklaces and rings.

iPhones & Smartphones

Understand how to pawn an iPhone for top dollar and smart preparation steps for doing so.

iPads & Tablets

Learn how to pawn iPads and other tablets for the most money possible and see how much you can get for an iPad at a pawn shop.

MacBooks, Laptops & Desktop Computers

Read how to pawn a laptop and get the 2016 prices for pawning a laptop of various brands.


Get tips for how to safely pawn a gun and what you need to do before you bring the gun to a pawn shop.


Here are some other types of items you can pawn or sell. This list is not exhaustive!

Now that you know the best ways to borrow money with bad credit, you can pawn an item now and get cash-in hand today with PawnGuru! We allow you to list the item you’d like to pawn online, free of charge. Then, you watch offers roll in from your nearby pawn shops. It’s that easy!

David Stiebel

David Stiebel is one of the cofounders of PawnGuru. David was educated at MIT, where he studied Math. He subsequently worked at Bain as a data scientist before starting PawnGuru in 2015. He started PawnGuru to build a better tool for pawn shops and consumers to connect.

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