We cannot give quotes on pawn loans over the phone – you’ll need to bring your merchandise in and let us assess the value. Below are answers to some common questions concerning pawn loans that should give some more information. Feel free to contact us at 606.780.7296 if you have further questions.

What is a pawnshop?
A pawnshop is basically a retail store that is authorized to give you fast loans using your merchandise as collateral. You also have the option of selling your used merchandise outright for cash or store credit, or trading it for other merchandise in the store. Bypass Pawn LLC is a fully-licensed pawnshop, as well as a Buy-Sell-Trade store.

Pawn Brokering is not a new business — history shows that pawn lending has roots going back nearly 3000 years. In the late 15th century, as the story goes, Queen Isabella of Spain pawned the crown jewels to finance Columbus’ voyage to America. Though it has changed in practice over the years, the idea is still the same: a pawnshop will either buy or loan you money for your valuable items.

Why would a person use a pawnshop for a loan?
Pawnshops offer the consumer a quick, convenient, and confidential way to borrow money. There is no credit history check before we give you a loan — your merchandise alone determines your credit. A customer receives a percentage of the value the pawnbroker believes the collateral would bring if sold. Although the loan to collateral ratio varies over time and across pawnshops, a loan of about 30 to 50 percent of the resale value of the collateral is typical.

How does a pawn loan work?
Loans are based on the value of your collateral, not your credit rating or pay schedule. Typically, loans are small — the average pawn loan nationally is around $80.00 — but can reach as high as a thousand dollars or more depending on the value of the collateral. Subject to Kentucky law, a typical pawn loan has a term length of 30 days/one month, plus a 60-day/two month grace period. If you cannot pay back your loan in full, including any applicable grace period, we offer extensions/renewals (see below) to give you extra time. You may also choose to surrender your collateral as payment in full.

What are the requirements to obtain a pawn loan?
You must be 18 years of age or older and possess a valid photo ID. That’s it. Simply bring us an item of value and we’ll get you cash on the spot after your loan is approved.

What are the charges/interest on a pawn loan?
Pawnshop interest rates and other charges, such as storage or insurance fees, are regulated by the state. Kentucky  limits the total percentage charged to no more than 20% per month.

What is an extension/renewal?
If you are unable to pay back your loan in full on its due date, you may get a renewal. With a renewal, you pay the interest that has accrued on your loan or even pay in advance.

How many pawning customers lose their merchandise?
The vast majority of our customers repay their pawn loans and pick up their merchandise. The national average shows 70 to 80 percent of all pawn loans are repaid.  If a customer chooses not to repay the loan, the merchandise/collateral for the loan is forfeited.

How do you determine the value of my collateral?
We base pawn loan amounts on the value of your item — its current estimated value, condition, and our ability to sell the item. We use all the research tools we have at our disposal to determine an item’s value and get you the most money we can. The appraisal process varies depending on the type of item. For example, jewelry is evaluated differently than a DVD player which is evaluated differently than a table saw, etc. In addition, items such as gold, coins, and jewelry maintain their value over a reasonable period of time, while items like computers and electronics depreciate much quicker, all of which is taken into account.

How do you determine the condition of an item?
The condition of an item is always taken into account during the appraisal process. For example, if two televisions come in and one looks nearly unused and the other has a crack in the side, we will loan more on the TV that’s in better condition. When it’s general merchandise you want to pawn, we test each item to ensure it is in good working condition. This includes, but is not limited to, a visual inspection, plugging an item in and turning it on, and noting if any necessary accessories (such as remote controls) and manuals are included. The better the condition of your item, the more money we can loan you. This is true for any collateral.

How do you determine the value of jewelry?
When jewelry is the collateral we test the precious metals and diamonds to determine its worth. We have employees who have been working with jewelry for many years and are quite knowledgeable. The diamond testing includes a visual inspection using a jeweler’s loupe, weighing the item, sizing (determining carat weight) any stones, and noting the cut/color/clarity of each. Current market values of precious metals will also affect the value.

How do you determine the price of gold or other precious metals?
The price of gold, silver, platinum and other precious metals is based on market values, the price for which is reviewed and updated daily. Prices can vary greatly as the loan amount for 22K gold, for example, is significantly higher than that of 10K gold.

Can you give me a quote on an item over the phone?
Unfortunately, we cannot give quotes over the phone because loan amounts vary greatly depending on the condition of an item. For general merchandise, we test each item to ensure it is in good working condition. The better the condition of your item, the more money we can loan. And for jewelry, we test to ensure diamonds and gold are genuine.

Where is my collateral kept while in pawn? Is it safe?
While your item is in pawn, you still own it. When you give us an item for pawn, we keep your merchandise — along with all accessories (remotes, cables, etc.) — in a secure area accessible to authorized employees only until you come back to pay your loan in full and claim your merchandise. We have state of the art alarm, motion, video, and audio surveillance working 24/7.

Are pawnshops regulated?
Yes. States have regulated the pawn industry for decades, and Kentucky pawn shops are licensed and regulated by the Kentucky Government. Additionally, we are subject to Federal Laws and regulations such as Truth In Lending Act, Equal Credit Opportunity Act, Fair Credit Reporting Act, Patriot Act, and Federal Trade Commission Rules on Data Privacy and Security Transfer. We are also regulated by the Federal Trade Commission (FTC), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Treasury Department.

How much stuff in a pawnshop is stolen?
Contrary to popular belief, pawnshops are actually the worst place to try and get rid of stolen merchandise. In fact, less than 1/10th of 1 percent of items are identified as stolen goods, and most of those are identified and reported to the authorities before being offered to the public in any way. In addition, while being highly regulated (see previous question), we also work very closely with local and federal law enforcement officials. Our staff is trained to be on the lookout for and identify stolen property.

Can I buy/sell/pawn a gun?
Yes! We can accept both handguns and long guns from you as collateral. We also offer handguns and long guns for retail sale. Kentucky law states that you must be 18 to buy a long gun (rifle or shotgun) and 21 to buy a handgun. This age restriction applies to the return of pawned firearms as well. You will be subject to a NICS (FBI) background investigation before a gun can be transferred to you, whether it is purchased or being redeemed in a pawn transaction. Guns must be picked up by the person who pawned them.

Site Map

We take Firearms!

Vehicle Loans

Follow us on FaceBook