A signature loan is a loan that is not backed by collateral. Its an unsecured loan and is also called a personal loan.



There are three types of unsecured loans:

A personal unsecured loan for which the borrower is individually responsible

An unsecured business loan in which the business is responsible

An unsecured business loan with a personal guarantee. With this type of loan the business is the borrower, but if the business defaults on the loan, then the individual is responsible for the loan.





The loans usually vary between $500 on up to $15,000, and the rate, terms and amount are based on the borrower’s credit rating.



Since the loans are unsecured, if the borrower should default on the loan, the person’s assets are protected and cannot be seized.



But simply because signature loans are based on credit rating doesn’t mean people with bad credit cannot get them. There are numerous lenders that will give signature loans to borrowers with poor credit.



Online lenders are, without a doubt, the best way to get personal signature loans. You can shop for the best rates, terms and payments, and fill in the application online; then just wait to get approved. What could be easier!



By checking online you can have all the information at your fingertips. Obviously the more lenders you check out, the better the chance of getting a good, lower interest loan, which can save you possibly hundreds of dollars. So don’t be in a hurry when applying for a loan. It will certainly pay off in the long run!



Signature loans can be used to consolidate debt, and often the savings will be substantial as compared to the high interest rate (usually from credit cards) that are being paid.



Another type of loan a person can get, even with bad credit, is a home equity loan. These loans are based on the value of your home.

Whereas someone with bad credit won’t be able to get as good a rate and terms as someone with good credit, nonetheless a person with poor credit will still be able to get the loan and you may find that a home equity loan is better for your current situation than a signature loan.



So the bottom line is just about anyone can get a signature loan, you just need to check around to find the best rate and terms.