What can be used as collateral for secured loans at a pawn shop?

When considering what can be used as collateral for secured loans at a pawn shop, personal property is the most common and relevant option. Pawn shops typically accept items of value—such as jewelry, electronics, firearms, collectibles, and musical instruments—as collateral. This allows the pawn shop to secure the loan with tangible assets that can be sold if the borrower fails to repay the loan.

While cash is a form of currency for transactions, it is not a type of collateral; instead, it is the means by which one can pay off existing debts. Property deeds, though a form of ownership, are not generally accepted in pawn shops, which focus on physical items that can be easily appraised and sold. Bank loans, similarly, do not serve as collateral; rather, they are credits extended to borrowers, requiring different forms of security.

Therefore, personal property stands out as the appropriate and practical choice for securing loans at a pawn shop, aligning with the common practices of pawnbrokers.