A signature loan is basically just an unsecured loan. This means that you can get one with proof of steady income, bank statements, a credit check, and your signature. Since it’s an unsecured loan you won’t be required to offer any collateral. Signature loans are offered based on your financial situation and a signature, which acts as a promise to repay.
There are a number of different types of signature loans. You may know them as unsecured personal loans. Personal installment loans and payday loans are a couple of the most common types of signature loans. These are short-term financial solutions that help lower-credit borrowers dealing with financial emergencies.
The process for getting a signature loan is usually the same as many other types of loans. You can find a lender online or at a storefront location. Once you find the right lender for you, you’ll be required to fill out an application. In order to be considered for a signature loan the lender will likely want to check your credit score or credit history, see proof of income, and potentially check your bank account to see if it’s in good standing.
Once all of these tasks are completed, the lender will decide whether or not to offer you a loan. If you have a fair credit history, steady income, and a bank account in good standing then you may be approved for a loan. If approved, the lender will provide you with a loan. They may directly deposit the money into your account, or provide you with a check.
At this point, you can use the funds for whatever you need them for. Your payments will begin on the agreed-upon date, and you’ll begin to pay off the loan. With a payday loan, you’ll likely only make one lump-sum payment at the end of the loan term (usually two weeks).
If you do choose a signature loan, make sure you’re prepared to make on-time payments and to pay off the entire sum by the due date. This is very important for your credit score and your financial future.