How To Find Signature Loans
People with bad credit have been applying for record amounts of signature loans lately. Anytime that the nation is suffering major job losses you will see this. When this happens signature loans become very popular.
You might be wondering why signature loans? Why does this happen? Basically this occurs because when you get a regular loan like a car loan a business loan or even a home loan the bank or lending institution has collateral to go after.
Typically you will get a signature loan when you need just a few hundred dollars to pay the bills, buy food, or pay the mortgage. In other cases they need one because they are starting a new job and need money for the net few weeks.
Signature loans on the other hand do not require any collateral at all. In fact they get their name because all that is required is your signature saying that you will pay the money back. Aside from that all you will need is a valid form of identification.
Think about how great that is. Not needing collateral means that anyone that might be able to pay back the loan can get one. You don't need to own a home or even a car to get a signature loan. Usually you only need a valid for of identification.
Obviously this is why signature loans require such high interest rates. Because of the default rate they charge a decent amount. But since the money is for a short term loan you don't actually pay all that much.
This is the reason that signature loans typically come with such high interest rates. In order to get paid for the potential risk lenders will charge you more.
Of course you don't want to get stuck using signature loans for trivial stuff like dating or fancy restaurants. Instead use them only for real financial emergencies.
You might be wondering why signature loans? Why does this happen? Basically this occurs because when you get a regular loan like a car loan a business loan or even a home loan the bank or lending institution has collateral to go after.
Typically you will get a signature loan when you need just a few hundred dollars to pay the bills, buy food, or pay the mortgage. In other cases they need one because they are starting a new job and need money for the net few weeks.
Signature loans on the other hand do not require any collateral at all. In fact they get their name because all that is required is your signature saying that you will pay the money back. Aside from that all you will need is a valid form of identification.
Think about how great that is. Not needing collateral means that anyone that might be able to pay back the loan can get one. You don't need to own a home or even a car to get a signature loan. Usually you only need a valid for of identification.
Obviously this is why signature loans require such high interest rates. Because of the default rate they charge a decent amount. But since the money is for a short term loan you don't actually pay all that much.
This is the reason that signature loans typically come with such high interest rates. In order to get paid for the potential risk lenders will charge you more.
Of course you don't want to get stuck using signature loans for trivial stuff like dating or fancy restaurants. Instead use them only for real financial emergencies.
About the Author:
Ryan teaches about bad credit new home loans, personal loans poor credit history, and other types of loans for people with bad credit.
posted by Credit Counseling at
5:44 PM
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