Signature Loans – What You Need To Know about Unsecured Loans
Did you know that there is such thing as signature loans? From the name itself, this type of loan only requires your signature as the collateral to get cash.
What is an Unsecured Loan?
Unsecured loans refer to loans that do not require the borrower to surrender a collateral (such as a property, assets, goods, among others).
With that being said, unsecured loans are not offered by banking institutions. But you do not have to worry about that, here in Citrus North, we offer unsecured loans such as this one (and many other financial solutions services for you!) online.
All you have to do is to fill up the application form above to request for our unsecured loans. We have a network of reputable lenders who can offer signature loans that is suitable for your financial capacity. The payment of this loan is done in fixed monthly installments over a specific period of time.
- Competitive interest rates
- A borrower may get loans of high amounts.
- The loan application process is quick and easy. Once the borrower receives a loan approval, the unsecured lender disburses the loan fund directly to your bank and/or checking account.
- The borrower saves on interest as the payments can be done without any penalties.
- A borrower’s personal credit score standing may lower your chances of obtaining unsecured loans. Should they send payments late or default on paying their past and current loans.
An unsecured loan for people with bad credit such as signature loans, is one in which there is no guarantee or ‘security’ for it in the form of a collateral (borrower’s property, assets, goods, etc.).
With that being said, this type of loan is risky to the lender as there is no property that they can sell in case a borrower defaults (misses) a payment.
The options that they may choose so as to get back their money is garnishing the wages or taking legal actions against the borrower. On the other hand, the borrower may opt for this type of loan as it has lesser risks.
This is because they do not pledge any of their property, goods, assets, among others as collateral. Individuals with bad personal credit scores are not left out as it is still possible to get unsecured loans. However, it will be a difficult process and they will get the not-so-attractive terms and conditions.
What is a Signature Loan?
A signature loan, also called a character loan and/or a good faith loan, is a type of unsecured loan that is borrowed from an individual’s bank or credit union using a personal loan. This type of loan is a peer-to-peer (p2p) unsecured loans for people with a bad personal credit score. Lending companies usually offer this type of loan on-site and online.
Signature loans require the borrower to provide a written agreement which contains his promise to pay, together with his signature (electronic signature if done online such as here on Citrus North) as the sole collateral, hence the name.
As a borrower, you are free to use the loan funds as you please. However, do take note that signature loans come with high interest rates, annual percentage rates (APRs), and fees than other loans. This is because there is no physical collateral (such as the borrower’s property, goods, assets, etc.) that you need to surrender in a signature loan.
- Signature loans help the borrower to build their credit score
- No physical collateral required
- A borrower with a bad credit score may not get to enjoy lower interest rates. Nonetheless, it is still possible to get an approval for bad credit installment loans.
Requirements and Qualifications
To qualify for a signature loan, you must have the following requirements and qualifications below:
- Latest payslip to prove that you have a steady source of income
- Certificate of employment (COE) to prove that you have a stable job
- Copy of your personal credit score
- Copy of your credit history and reports
- Co-maker, co-guarantor, co-signer – In some cases, a signature lender requires the borrower to bring a co-maker to sign a promissory note. In case you didn’t know, a promissory note is a signed legal document with the written promise to repay a stated sum to a specific person or co-maker at a specific date. Provided that, the lender contacts the co-maker if ever the borrower defaults or fails to repay the loan on the maturity date (due date).
Signature Loans for Students
In case you did not know, there are also signature loans that are exclusively for students. With that being said, student signature loans are unsecured personal loans which are borrowed by students for the purpose of funding their education.
The student signature loan is for students who struggle with their educational expenses. Without further ado, here are the advantage and disadvantages of signature loans for students:
- Bad or poor personal credit scores are welcome
- There is a grace period
- No security down payment
- No physical collateral required
- Low-interest rates
- Flexible payment options
- Flexible repayment methods
- This type of loan is accessible to students only (not even the parents)
Unsecured personal loans such as signature loans offer borrowers who have a perfect or good personal credit scores to have access to funds. On the other hand, applicants who have bad personal credit scores may get the attractive terms and conditions being if only they improve and rebuild their score.
This can be done by getting a small loan and then securing it with cash in the bank. Having said that, unsecured loans offer borrowers flexible payment options and schedules. Also, the amount that a borrower pays these loans are relatively lower than what they pay on payday loans.
In the final analysis, even though these loans are tag as “unsecure”, here in Citrus North we guarantee solid security to our clientele. We make our signature loans (and other kinds of loans) convenient for you because the entire process is purely online.
Simply fill up the application form to request for a loan. You can also call us to know more about how we can help you financially today.