We are now living in a fast-paced modernized world. Technology gets better every day. Most aspects of our lives are now moving online. You can send an e-mail to your friends from the other side of the world, go shopping, and do your banking and even earning money without leaving the comfort of your home.
Once upon a time, applying for a loan meant visiting and waiting for long lines in a bank, filling up forms after forms before you can get your hands on the money loans you needed for a new car, or a planned vacation, or a real estate property. From home loans to fast cash personal loans and everything in between, such services must be processed on a daily basis.
Usually, collateral is a requirement if you’re going to loan a large amount of money. This can be in the form of a vehicle or your home, pieces of jewelry, or estate properties. A number individual doesn’t agree with this requirement, and place their valuable assets at risk because of a loan.
Nowadays, money loan is possible even without of such requirement and security. Your signature is all you will need for a fast loan and a good assurance of paying back the loan, this can come in handy for emergency personal loans as well.
Signature Loan defined
Signature loan is also known as character loan or “good faith loan”, is a type of personal loan that is offered by banks and other finance companies using only the borrower’s signature and a “promise to pay” as collateral. You can borrow a larger amount of money in longer term than a payday loan can provide. Signature loans provide funds at a reasonable cost and carry a fixed rate. It can be typically used for a wide range of purposes the borrower chooses. Whether you want to pay for debt consolidation, fudning education, going on a vacation, or redecorating your home, a signature loan may be exactly what you need. However, due to lack of any real collateral, the interest rates may be higher than other forms of credit.
How do I take out a Signature Loan?
The first thing to do in requesting a signature loan is to assess your financial situation. Determine what you need the loan for and selecting a loan amount that reflects that. Consider how this loan will impact your finances and if you will be able to make the needed adjustments to make way for your loan payment. Most people are looking for too much but do not have the credit history or income to qualify to cause them to be denied a loan. To complete a loan request form, make sure to have your personal and bank information.
Once you are talking with a lender, look thoroughly at the APR or Annual Percentage Rate attached to a loan offered. It indicated the real cost of a loan based on monthly fees, interest rates and other charges. Assess your future payments and once you’re absolutely certain that you will be able to repay the loan, read through the loan contract very carefully and be especially aware of any probable consequences of the steps you are taking before formally accepting the offer.
When do I request a Signature Loan?
Requesting for a signature loan is a matter of your own personal call; after all it is a type of a personal loan. Meaning, as long as you can meet the lender’s conditions, you can request a signature loan in any circumstances.
There are many circumstances when requesting a signature loan makes a good sense. Especially, when you require cash loans within a few days or a few weeks. Signature loans represent a fairly swift source for funds, and when you have to pay for old debts or urgent expenses then these loans can absolutely fit the bill. You might be thinking about getting a signature loan to help support a wedding, pay school tuition fees or medical bills, or go on a long-planned vacation. Signature loans are more helpful for bigger expenses since you are permitted to borrow a larger amount than you can from a payday loan.
Also when you want to be able to borrow funds conveniently and securely, requesting for a signature loan is the right thing to do, as filling out a pile of paperwork and setting up an appointment with a bank representative won’t be a requirement in the loan request process.
Why do I need a Signature Loan?
Signature loans can be used for anything you want or choose and because of this flexibility, the reason why you might want to require one of these loans varies quite a bit.
Furthermore, there are quite a few things that borrowers tend to use signature loans for more than others, and you could easily find yourself needing a loan to help you with one of these items. Among these are automotive or emergency medical expenses, home improvements, paying off debt, moving or vacation expenses, major taxes and purchases.
The bottom line is that if you want something, and you need fast, hassle-free financial support to pay for it, a signature loan can be just what you need.
Benefits of Signature Loans
- Borrow a larger amount with lesser interest than payday loans and credit cards. Although credit cards and payday loans provide an almost instant access to emergency funding, the maximum amount that you can borrow may not fit your needs.
- More manageable and affordable payments for Signature Loans. Payments for these loans are spread out evenly into installments over the agreed loan term making it more budget-friendly. No need to make a huge financial sacrifice at one time but instead you can make smaller ones over a period of time until the loan term is over.
- No collateral required. Presenting any asset to qualify for a signature loan is not necessary. For the funding you need your signature is enough. You get to keep your car or house and still get the loan with no problem.