While vehicle title loans and pawns are an excellent means of securing a loan for borrowers who own their car or motorcycle outright, those who are still making payments may feel as though they have been left out in the cold; however, signature loans are available to customers in a variety of financial situations, and they are typically much faster and easier to get than those that would be offered by a bank. Regardless of credit scores and other factors, signature loans provide borrowers with non-traditional circumstances the options that they need to achieve their goals, handle emergencies and be prepared for whatever life throws their way.
How the Signature Loan Process Works
While a variety of organizations offer signature loans, those who are in search of agencies that are willing to work with clients who present imperfect credit may wish to consider working with a company that handles title and other non-standard loans. Although the minimum and maximum loan amounts vary between lenders, clients typically borrow between $250 and $3,000 with a signature loan.
The requirements for obtaining a signature loan also tend to be a bit more lax than those required for a standard bank loan; while these also vary depending on the lender, borrowers should be prepared to prove that they have an income, show a piece of government-issued identification, and provide their active checking account information.
Finding Signature Loans Online
Many lenders providing signature loans allow customers to begin the borrowing process from their home computer or mobile device; while most require clients to appear in person to complete the steps of the lending process, the time that is physically spent in the lender’s or affiliate’s office is generally quite short. For instance, some lenders boast that clients who complete an online application and have their identification and documents in order will spend as little as 30 minutes on the premises. As with any other product or service purchased online, future borrows should take the time to familiarize themselves with the lender’s practices and determine the company’s rating with the BBB.
Regardless of whether a borrower has chosen to begin the lending process online or at a physical location, it is imperative to fully read and understand the contract before signing it. Specifics on interest rates, payment plans and other information will be described in the loan agreement, making it a very important, legally binding document.
Entering the Repayment Phase of Signature Loans
The concept of a signature loan is that the borrower’s signature acts as a promise to repay the money that is offered by the lender, and unlike payday loans, customers are not required to begin or complete the repayment process on their next payday. In fact, most lenders offer several flexible options when it comes to making payments to ensure that the borrower is successful in repaying his or her loan.
As with other loans and standard, monthly bills, it is extremely important to make regular, on-time payments after beginning the repayment phase of a signature loan. Because most lenders report to one or more of the three major credit bureaus, not paying on the schedule set forth in the contract could have a negative impact on a borrower’s credit score.
