What Are Pawn Loan Default Rates?
Redemption rates average 70-85%, meaning 15-30% of loans result in forfeiture.
How often do customers redeem items?
70-85% of pawn loans are redeemed, reflecting the personal value customers place on pawned items.
What happens when loans aren't redeemed?
The pawnbroker takes ownership and sells the item. This is non-recourse - no credit impact or collections.
How do these rates compare?
Pawn forfeiture rates of 15-30% are lower than payday loan defaults (20-30%) and don't impact credit scores.