Bad Credit Signature Loans
The typical signature loan is for someone with good credit that is in good standing with their bank. If you are in between jobs or have an emergency then go to your bank and they will likely lend you the money.
Loans that are for people with bad credit usually do not require any type of collateral - hence the name signature loan. Instead they only require that you have a valid form of identification and your signature. Signature loans can be used for almost anything that you want. You can pay for emergency medical bills, birthday parties, school tuition, home payments, or even car payments. Basically you can use it for anything that you want that doesn't require too much money.
Most of the time when applying for a signature loan you will be trying to borrow two hundred to maybe two thousand dollars. On average people borrow five hundred. In most instances if the lender is private and not your bank they will ask you if you are employed or at least how you intend to pay back the loan. They want some type of assurance that they will get their money back.
Someone with bad credit usually has a score below five hundred and fifty. Anything less than six hundred is pretty weak and you will want to work on that. If you are lucky and you have good credit you will be able to get a low interest rate.
If you cant get a signature loan from your bank you will want to try a pawn shop or a pay day loan shop or even a check into cash shop. A lot of these businesses will offer signature loans. Some banks offer bad credit loans but most of the time if your credit is shot then your bank will ignore you.
The last few years has seen a huge influx of private lenders in the signature loan market place. Banks in general are trying to lower their risk profile which stops them from offering many bad credit loans.
Once you know that you need a bad credit signature loan your next step is to call up several banks and credit unions and see what type of interest rate you can get. If you can get a low one then good for you but if it is higher you will have to deal with it.
Once you have shopped around for a decent interest rate you just need to go in and fill out an application. You can then use the money for whatever you like. But remember that you still need to pay the money back so don't spend it on trivial items.
Loans that are for people with bad credit usually do not require any type of collateral - hence the name signature loan. Instead they only require that you have a valid form of identification and your signature. Signature loans can be used for almost anything that you want. You can pay for emergency medical bills, birthday parties, school tuition, home payments, or even car payments. Basically you can use it for anything that you want that doesn't require too much money.
Most of the time when applying for a signature loan you will be trying to borrow two hundred to maybe two thousand dollars. On average people borrow five hundred. In most instances if the lender is private and not your bank they will ask you if you are employed or at least how you intend to pay back the loan. They want some type of assurance that they will get their money back.
Someone with bad credit usually has a score below five hundred and fifty. Anything less than six hundred is pretty weak and you will want to work on that. If you are lucky and you have good credit you will be able to get a low interest rate.
If you cant get a signature loan from your bank you will want to try a pawn shop or a pay day loan shop or even a check into cash shop. A lot of these businesses will offer signature loans. Some banks offer bad credit loans but most of the time if your credit is shot then your bank will ignore you.
The last few years has seen a huge influx of private lenders in the signature loan market place. Banks in general are trying to lower their risk profile which stops them from offering many bad credit loans.
Once you know that you need a bad credit signature loan your next step is to call up several banks and credit unions and see what type of interest rate you can get. If you can get a low one then good for you but if it is higher you will have to deal with it.
Once you have shopped around for a decent interest rate you just need to go in and fill out an application. You can then use the money for whatever you like. But remember that you still need to pay the money back so don't spend it on trivial items.
About the Author:
Josh instructs about the best way to find good mortgages for people with bad credit and signature loand for people with bad credit.
posted by Credit Counseling at
1:25 AM
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