Signature loans are a type of unsecured loan that are backed by the customer's signature. Sometimes these loans can also be known as a "good faith loan" or a "character loan" because they are backed more by the character of the customer than traditional loan collateral.
Because this is a more high-risk loan type, it might be difficult to qualify for a signature loan or avoid higher interest rates. Not all loan providers offer them, but when they do, they might have customer requirements like several forms of contact information, government identification, proof of income, proof of address, and even character references.
To get a signature loan, you first need to find a loan provider that offers them.
Once you find a loan provider, you'll have to meet whatever requirements and qualifications they might have for this loan type.
These requirements might include proving your identity and your trustworthiness with contact information, credit history, and even personal references.
If you meet all of their requirements and your application is accepted, then take out the loan usually by signing some papers or a post-dated check to act as your collateral or loan payment.
Like many other kinds of high-risk loans, signature loans can be expensive. To compensate for the higher risk they take, loan providers might require more qualifications when applying for this loan type and a higher interest rate.
Despite the cons, there are still pros to consider.
Signature loans can have a quick application and funding process so long as you get approved. This can help you get the funds you need faster.
This loan type can offer quick access to the funds you need in an emergency like your car breaking down or bills being overdue. It could also make up the difference you need to pay for something important.
Revolving credit is like a continuous line of credit. Rather than taking out a set loan amount and paying it off with a fixed payment plan, revolving credit gives you access to a continuous credit amount you can use.
Credit cards are a type of revolving credit. They offer access to a set amount of credit (also known as a credit limit) and you don't have to reapply to regain access to that same credit amount. You always have it so long as you have the credit card account.
Revolving credit differs from a signature loan because signature loans are not a line of credit. Instead, they are a one time loan you apply for, receive, and payoff. If you want more credit from a signature loan, you'll need to reapply for another individual loan.
Signature loans and installment loans are more similar in that they are both a single use credit option. Both come with requirements, applications, and set payment plans. They also can both be used for personal reasons, unlike other loans (like a mortgage) that are only taken out for one purpose (to buy a home).
But signature loans are not the same as installment loans. Usually installment loans offer larger loan amounts than signature loans, which usually offer smaller loan amounts. Signature loans usually come with a shorter loan term and a shorter payment plan.
Because the nature of each loan type is different, they will also come with different terms and conditions, rates and fees, qualification requirements, and application process.
The details of your loan agreement will depend on the lender and the way they have their loan products set up.
Check City lives to make the lives of our customers easier. That's why we put extra time and care into making our loan process simple and quick.
To get a signature loan, you'll need to fill out an application, provide the Signature Loan requirements, and wait to get approved.
Because this financial product isn't backed by traditional loan collateral, you'll need to meet different qualifications in the application process for this loan. Basically, qualifying for this loan boils down to proving you can repay the loan and proving you are likely to be a responsible borrower and repay the loan.
If you have bad credit and need a loan, you're probably looking for loans that don't require credit checks as part of the collateral.
Unfortunately, it's very common for most loans to have some kind of credit check involved in the application process, even many signature loans out there.
Luckily, there are many things you can do to increase your credit score so you can more easily apply for whatever financial services you need.
Signature loans can be really helpful for borrowers who need a simple, small loan. At Check City we understand that sometimes you just need a helping hand to get back on your own two feet financially.
We also understand that sometimes what you need isn't a giant bank loan, but a small loan from a short-term lender like us. Visit Check City online and in stores today to learn more about the Check City Signature Loan and other financial solutions available to you.
Payday Loans are also commonly referred to as Cash Advances, Payday Advances, Payday Advance Loans, and Fast Cash Loans. Check City does not usually utilize traditional credit checks as part of the payday loan approval process. However, Check City may, at its discretion, verify application information by using national consumer loan underwriting databases that may include information relating to previous cash advance transactions that Check City may take into consideration in the approval process. Actual loan amounts vary. See Rates and Fees for specific information and requirements. Products or services offered to customers may vary based on customer eligibility and applicable state or federal law. Some customers applying for payday loans or installment loans may be required to submit additional documentation due to state law and qualification criteria. CheckCity.com provides loan services in: Alabama, Alaska, California, Hawaii, Idaho, Kansas, Missouri, Nevada, Texas, Utah, Washington, Wisconsin, and Wyoming. Customer Notice: A single payday advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive. Payday advances are not recommended as long-term financial solutions. Loan proceeds issued through our website are generally deposited via ACH for next business day delivery if approved by 8pm CT Mon. – Fri.
Check City acts as a credit services organization/credit access business (CSO/CAB) in Texas.
This is an invitation to send a loan application, not an offer to make a short term loan. This service does not constitute an offer or solicitation for payday loans in Arizona, Arkansas, Colorado, Georgia, Maryland, Massachusetts, New York, Pennsylvania, or West Virginia. Tosh of Utah, Inc. dba Check City Check Cashing, a payday lender, is licensed by the Virginia State Corporation Commission. License #PL-57 Anykind Check Cashing, LC. dba Check City, a payday lender, is licensed by the Virginia State Corporation Commission. License #PL-21 Maximum funded amount for payday loans or installment loans depends on qualification criteria and state law. See Rates and Terms for details. Utah Customers: For consumer questions or complaints regarding payday loans and/or title loans you may contact our Customer Service Department toll-free at (866) 258-4672. You may also contact our regulator The Utah Department of Financial Institutions at (801) 538-8830.
Please see Rates and Terms to check the availability of online loans in your state. Check City does not provide loan services in all states.