A pawn is a short term loan with no credit check. Pawns do not affect your credit because you leave an item of value as collateral for the cash. When you pawn an item, you can come back within the agreed upon time frame to pick up your item. Simply pay the interest and principal and your item is returned to you. If you are unable to come back within the agreed upon time, you may be able to extend the term of your loan by paying the interest before your loan tem expires.