Sometimes, when you apply for a bank loan, you have to agree to put up some type of collateral. This is can be your home, your personal vehicle, your retirement accounts, or any stocks and bonds you may have. Taking out a loan with assets like these as collateral means that the lender can take possession of those assets if you fail to repay your loan. Understandably, However, not all people are willing to or able to risk all of their possessions and would rather not put their hard hard-earned assets at risk just for a personal loan.
This can be your home, your personal vehicle, your retirement accounts, or any stocks and bonds you may have. Taking out a loan with assets like these as collateral means that the lender can take possession of those assets if you fail to repay your loan. Understandably, not all people are willing or able to put their hard-earned assets at risk just for a personal loan.
With a signature loan, it is possible to borrow the money you need without risking any of your assets. If you meet the lender’s underwriting criteria, all you need is your signature and the good faith to pay back the loan on time.
What is a Signature Loan?
A signature loan or a personal loan can also be referred to as a loan of good faith since the lender relies solely on your good faith to pay back the loan. With a signature loan all you need to qualify, assuming you meet the lender’s underwriting criteria, is your signature, your banking information, and the agreement that you will repay the loan under the predefined terms. A signature loan typically allows you to borrow more money than a payday loan and you can pay it back over a longer period of time and once you are approved, you can use the funds for any purpose you like.
The Many Benefits of Signature Loans
No Collateral is Needed
Signature loans do not require you to risk any of your collateral. So, you don’t have to show proof of any assets, or risk your house or car, to qualify for a signature loan. Just your signature is enough to get the funding you need.
Custom Payment Plans
Payment plans for signature loans are usually consistent – spread out into equal installments over the entire agreed term of your loan. This simple payment structure makes the loan payments easy to understand and budget-friendly for everyone.
With fewer application requirements than other loan types, signature loans are easy to apply for, and the approval process is usually fast. In some cases, you can get approved in just a few hours.
Risks of Signature Loans
The absence of collateral means that lenders are taking more risk. To offset this risk the interest rates are typically higher than the interest rates on traditional secured loans. However, the rates of personal loans offered to qualified, prime borrowers are still usually lower than most credit cards rates and payday loan rates.
Even though there is no collateral, any late or missed payments can still negatively impact your credit score. The lender may also reserve the right to take certain actions if you default on your loan: they could charge late fees, send your account to a collections agency, accelerate the entire loan balance, or even take legal action against you. Be sure to make your payments by your scheduled due dates to prevent any issues. Make sure to read your loan documents before you sign, ask your lender to clarify anything you are uncertain about upfront, and don’t take out a loan if you can’t agree to all of the terms.
How to Get an Online Signature Loan
Lenders like Uprova are an easy to use online resource for signature loans that help people with emergency cash-flow needs quickly and easily. Uprova’s signature loans offer a fast alternative to payday loans, even if you have no credit or bad credit.
A personal signature loan with upfront terms provides cash to pay for debt consolidation, purchases, or other emergencies. If you have high-interest debts and you want to consolidate, then apply online for an affordable online signature loan. The online application is easy and only takes a few minutes to complete; you could receive your approval in as little as a few hours!
Signature Loan Requirements
Signature loan lenders will have different requirements for their loan applications, but some are fairly common. Most lenders will require you be at least 18 years of age, have an active bank account (some lenders will specifically insist on a checking account), and be employed. Some lenders will require a phone number for verification, or that you submit documents to prove your identification, employment, or income level.
All lenders will do some kind of underwriting on your application and information you provide, to make sure you meet their criteria to borrow. Lenders will generally process the applications immediately and get back with a decision the same day and in some cases in as little as a few hours. Then you will get the borrowed funds deposited into your account within a few hours or by the next business day. Getting approved for a personal loan has never been easier!
What Can I Use my Signature Loan For?
Some loans only allow you to use your funds for specific things that you applied for. Usually, with a signature loan, you can use the funds in any way you choose to. Once you have been approved and your signature loan funds have been deposited, the money is yours to do what you want. Some good uses of signature loans are;
- Major Purchases
- Medical Emergencies
- Unexpected Expenses
- Home Improvement Projects
- Auto Repairs
How Do Signature Loans Work?
Signature loans work by using only your signature as collateral for the loan instead of risking liens on your assets. That means the lender solely relies on your promise to pay back the loan.
You will work out with a payment schedule and loan term with the lenderThe payment schedule and loan terms will be set by the lender, and you’ll be able to review them before you obtain your funds. You then pay off the loan in small payments on a regular basis until the loan is paid off in full. Each time you make a payment, you are paying a portion of the interest and a portion of the principal amount.
Getting approved for an online signature loan is a relatively quick process and a great alternative to payday loans. You just need to fill out the basic online loan application and show that you meet the minimum requirements. Uprova will verify your information and if your loan is approved and you accept the easy loan terms, you could have funds deposited into your bank account as soon as the next business day. No credit check required even if you have bad credit or no credit.
Our signature loans are designed to be paid back in installment payments on a regular set schedule that works with your budget. Once you’ve taken out a signature loan, it’s important that you pay back the entire agreed-upon amount plus any interest. You should never borrow more than you need and always make sure that the payments will fit into your budget before you accept any loans. Once you’ve successfully paid off your Signature signature loan, you may be eligible to take out another one anytime you have a need.
When Should You Get a Signature Loan?
When you’re faced with a large, necessary purchase or an unexpected financial burden, a personal loan might be the perfect solution to get you the funds you need quickly and easily. A fixed-term personal signature loan can be used to finance anything you like and then you only have to pay a small monthly payment until it is paid off. Signature loans are easy to apply for, fast, and convenient.
Consider getting a signature loan to help finance emergencies, unexpected bills, or auto repairs. Since you are allowed to borrow a higher amount than you can from a typical payday loan, signature loans are a great solution for these types of big-ticket expenses.
Getting Signature Loans with Bad Credit and Bankruptcy
Signature loans are not just for people with perfect credit scores either. In fact, many lenders acknowledge that people with less than perfect credit score are underserved so they have made signature loans available to them as well. Even if you have declared bankruptcy in the past, you may still qualify to get a signature loan, although certain conditions may apply.
Just make sure to satisfy the conditions required by your lender, and make your payments on time and you may be eligible for better deals and more favorable interest rates on your next signature loan.
Get Your Signature Loan Today
We believe that getting an online signature loan should not be complicated or time consuming.
Uprova prides itself in offering fast, convenient, and secure financial solutions for signature loans. Uprova can provide short-term signature loans to people who needed help with the unexpected. Apply for your signature loan today and get the money you need!