- May 31, 2017
- By: Greenpath Financial Wellness
Signature loans are unsecured personal loans. They are not backed by property. They can be used for many purposes. Amounts can vary from a few hundred to tens of thousands of dollars.
They can be used for any purpose, from consolidating debts to paying for a vacation or wedding.
Getting a Signature Loan
Nearly all banks offer some form of signature loan. So it is a good idea to shop around to find the best loan for your needs. Check your local bank or credit union first. They may offer you better terms than others.
When you apply for a personal loan, the bank will check your credit. This counts as an official inquiry on your credit report. Just be aware that applying for credit too often can actually lower your credit score.
Know the Terms
Anytime you borrow money, you need to know what you’re agreeing to. Read the contract carefully. Make sure you understand the term, interest rate, and repayment schedule. Ask questions if anything is unclear.
You can take out a signature loan by yourself, or with a co-signer. Just remember that if a borrower can’t make their payments, the co-signer is legally responsible to pay the loan.