If you decide not to, or are not able to, redeem your pawned item before the loan term ends, you have the option to forfeit the item.  Choosing not to redeem the item means you won’t need to repay the loan, and there are no additional obligations on your part.  The pawn shop will retain ownership of the item, and it will be used as collateral to recoup the loan amount. It’s important to remember that forfeiting your item does not have any adverse impact on your credit score or financial history, since pawn loans are collateral-based and don’t involve credit checks.