signature personal loans
Signature Unsecured Personal Loans - Get Approved Now!
What constitutes a Signature or Personal loan, and where do consumers find reputable lenders offering these types of loan programs?
A personal loan or signature loan, by definition is generally referred to a no collateral, unsecured loan. These types of loans are offered over a specific period of time, often ranging from 12 months up to 120 months in duration, and are offered at a fixed rate of interest. The loan will most likely have a fixed rate of interest and amortize on a simple interest repayment schedule, meaning each repayment applies a specific amount towards the principal and interest of the loan.
The most common characteristic of a signature personal loan is that the borrower is not utilizing collateral to obtain the loan, they are not using real estate, jewelry, security or vehicles to obtain the financing, it is strictly based on the borrower signature and promise to repay the loan. Lenders will vary on their qualification requirements for borrowers when applying for a new personal or signature loan application, but you should assume that the lender will require you to have good to excellent credit and a steady job.
So where is the best place to go for a new personal loan? The most likely answer to this questions is a place where you have an existing business relationship and established credit profile. The challenge is that many of these lenders (banks) do not offer consumers signature loans. Credit Unions can be a good place to start, as they often have more loan programs available to consumers and are not as focused on business lending. When applying for a new signature loan, you should carefully review the paperwork to have a clear understanding of the rate, terms and disclosure if there are any pre-payment penalties associated with the loan application.
**TERMS AND DISCLOSURES**The operators of this website are not direct lenders, short term loans are an expensive form of borrowing, consumers should consider applying with a bank or credit union for a signature loan, for loan amounts over $500 and longer repayment periods
A personal loan, sometimes also referred to as a Signature Loan, is a loan that can be used for many purposes. A Signature Loan is an unsecured personal loan. It's not secured by the equity in your home (such as in a home equity loan) or by some other personal property or asset (such as a car loan). Depending on the bank or lending institution, these types of loans are commonly available for amounts ranging from $500 to $20,000.
Generally, a personal signature loan is a fixed rate, fixed term loan offering the following:
- Terms from 2 to 5 years
- Interest rates will vary based on credit score and income
- Loan Amounts up to $20,000
These types of loans can vary widely depending on the lending institution. Generally speaking, most personal or signature loans are unsecured, meaning they do not have collateral attached. Because of that, these loans will be more difficult to obtain. Lenders will require that applicants satisfy their requirements for creditworthiness. The terms and conditions of each loan will vary, but they generally offer a fixed payment and interest rate that must be disclosed before the loan is closed.
It is very important for you to know and understand all the terms and conditions of the personal loan before signing the promissory note that legally obligates you to repay the debt. If you do not understand any of the terms or conditions, you should clarify what they mean with the lending institution to ensure you are clear on the repayment terms. All information about the loan should be disclosed in writing and loan documents should not contain any blank spaces.
Personal loans may be taken out individually or with a co-signer or co-borrower. If the primary borrower fails to make regular payments, the co-signer can then be held responsible for making payments. If the primary borrower and co-signer do not make regular payments, one or both of the borrowers could receive collection calls or letters. If collection efforts do not yield payments, lawsuits, credit damage, and garnishments could result. If you choose to co-sign a personal loan with someone, make certain they he/she be able to make all the regular monthly payments.
It is never a good idea to take out a loan for someone else in your name unless they are a very trustworthy source. If you do decide to co-sign a loan for someone, make sure you could feasibly afford to make the monthly payment in place of the borrower if necessary. Thus, if you cannot afford to make the borrower’s monthly payment, it might not be a wise decision to co-sign the loan. Finally, you should always keep a copy of the loan agreement and promissory note for your reference and records.
If you are looking for a personal loan, it might be a good idea to check with your local bank or credit union first. In addition to working with an institution that you already know and trust, your bank or credit union may offer you a better interest rate or lower fees. Nearly all banks offer some form of personal or signature loan and, as always, it is a good idea to shop around to find the best loan for your needs.
Keep in mind that anytime a lender pulls your credit as part of your application, that counts as an official inquiry on your credit report. Applying for credit frequently generally lowers your credit score as it may be a sign of financial instability or over-extension.
Valley Federal Credit Union offers competitive rates on signature loans, and payments can be automatically deducted from your account. Our signature loans are a great alternative when you need a loan for things like back to school costs, family emergencies, holidays, vacations and much more.
- Loan amount primarily based on household income
- Term based on amount borrowed
Up to 60 months as low as 7.25%**
*Rates are subject to change without notice
**Certain Restrictions Apply. For more information visit our main office or our Harlingen branch.
A signature loan, also known as a good faith loan or character loan, is a type of personal loan offered by banks and other finance companies that uses only the borrower's signature and promise to pay as collateral. A signature loan can typically be used for any purpose the borrower chooses, although the interest rates may be higher than other forms of credit due to the lack of any real collateral.
To determine whether to grant a signature loan, a lender typically looks for a solid credit history and sufficient income to repay the loan. In some cases, the lender may require a co-signer on the loan, but the co-signer only signs a promissory note and is only called upon in the event the original lender defaults on his payments.
Signature Loans vs. Unsecured Term Loans
Signature loans are a type of unsecured term loan. Unsecured refers to the fact these loans are not secured by collateral like home mortgages and car loans. Term means the loan is paid off in a set period of time, usually in equal monthly installments throughout the term. Once a signature loan is repaid, the account is considered closed, and if the borrower wants to spend more funds, he needs to apply for a new loan. In contrast, if he had a revolving account such as a credit card or a line of credit, he could repay the loan and spend the money repeatedly until he or the lender closes the line of credit.
How Do People Use Signature Loans?
Borrowers use signature loans for a range of purposes including home improvements, unexpected expenses, medical bills and vacations, as well as other large expenditures. Some borrowers also use signature loans to consolidate other debts. For example, if a borrower can get a signature loan with a 7% interest rate and the balances on his credit cards have a higher rate than that, he may decide to use the signature loan to pay off his credit cards. Then, as he repays the signature loan, he ends up spending less on interest and saves money in the long run.
How Have Signature Loans Changed Over the Years?
While the purpose and structure of signature loans has not changed over the years, many financial analysts claim the profile of the average borrower accessing signature loans has changed. In the past, borrowers with poor credit scores tended to take out signature loans, but as interest rates have fallen and loan maximums have increased, many borrowers with good credit and high income have also turned to these loans.
A 1st lien loan is a quick way to get cash using your car as collateral. While InstaLoan does look at your credit score, it isn’t the only determining factor in the approval process. InstaLoan will always do everything possible to get
you the cash you need.
Getting a signature loan with InstaLoan is insta easy! You will need a vehicle with its title, a checking account, a valid government-issued ID (like a driver’s license), a paystub or bank statement, as well as a proof of residence. In about 30 minutes, you can have the cash you need!
A personal loan with InstaLoan is another great way to get the money you need. Our personal loans come with a fast approval process and you can have the cash you need in your hand in as little as 30 minutes! Let a knowledgeable InstaLoan team member get you cash today.
Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.