If you’re in a pinch and need cash fast, a pawn shop loan is a quick option. But it’s not without its risks.

The premise behind a pawn shop loan is that you bring in an item you own and leave it as collateral in exchange for a certain amount of money. This can be anything from jewelry to electronics, furniture, collectibles or even musical instruments. Unlike a bank loan or even some app-based loans, a pawn shop loan doesn’t require a credit check. This allows borrowers to get paid quickly, but it also means you’re going to pay a lot in interest rates and fees.

Understanding Pawn Shop Loans: What You Need to Know

As a result, these loans often have much higher APRs than other types of loans. They can range anywhere from 12% to 240%. In addition to high interest rates, pawn shops are required by law to state that if you fail to repay your loan within the period agreed upon, you will forfeit the collateral. This is a big reason why it’s important to only put up items you’re comfortable losing, or you might end up digging yourself into an even deeper hole than you were before.

Once you’ve repaid the loan, you can return to the pawn shop and retrieve your item. This is possible 85% of the time, according to the National Pawnbrokers Association. If you don’t, however, the pawn shop will keep your item and sell it to recover its cost. It won’t report the default to the credit bureaus, so it won’t have a long-term impact on your credit.