Grace Enfield, Content Writer
@grace_enfield
A signature loan is a type of personal loan. The difference between a signature loan and other types of personal loans is that a signature loan is unsecured, while some other personal loans may be secured by collateral, such as a car title or money in a bank account. A signature loan is backed by nothing more than a signature and the borrower’s promise to repay the loan.
Getting a signature loan may be difficult because it is risky for lenders to offer them due to the lack of collateral. To qualify for one, you’ll need to be at least 18 years old, have a 580 - 700+ credit score, and earn enough income to make monthly payments.
If you’re ready to start comparing options, check out the top-ranked signature loans and other personal loans on WalletHub. You can also pre-qualify with multiple lenders using WalletHub’s free pre-qualification tool.
People also ask
What is a signature loan?
A signature loan is an unsecured personal loan that does not require any collateral other than your signature. Your signature represents your promise to repay the loan and makes the loan agreement a legally binding document.
Key Things to Know About Signature Loan
- Signature loans have borrowing amounts from $1,000 up to $100,000
- The best signature loans have APRs as low as 4.99%.
- Signature loans often have origination fees of...
Is a signature loan a good idea?
A signature loan is a good idea if the loan is inexpensive compared to your other options and affordable based on your current budget. It’s also best if the expense you’re getting the signature loan for is truly necessary, as you don’t want to take on debt without good reason.
A signature loan is a loan that doesn’t require any collateral other than your signature. You can learn more about when getting a signature loan...
read full answerDid we answer your question?