The Step-By-Step Process to Apply For a Signature Loan

October 14, 2011 by  Filed under: Loans 

As we all know, a signature loan is type of personal loan that only uses the individual’s signature as well as the promise to pay as its collateral. It is a financial agreement that has been made between the lender and the borrower offered by banks as well as by other lending institutions that we know, that simply requires the signature of the borrower as a form of guarantee that he or she will repay the loan in time as stated in the contract or in their agreement.

This is the type of loan, which are commonly referred to as unsecured loan, does not require the debtor to put up any collateral such as automobiles and mortgages as a security for the loan. Because there is no collateral needed, which is why they are commonly referred to as “good faith loans.” Signature loans will have a fairly high interest rates compare to a secured loans, since it do not require any piece of property or collateral for it to be approved. It can be used for any purpose the borrower chooses, although the interest rates will be higher than most forms of credit due to the lack of any real collateral.

If you decide to apply for a loan, here are the steps you need to follow.

· First, secure a copy of your credit report and score. You can secure a credit report from an Annual Credit Report website. You are entitled to three free copies of your credit repor, a single copy from each major credit reporting bureau every one rolling year. After you received the credit report, follow included instructions for ordering your credit score separately for a fee from one of the credit reporting agencies.

· Make sure to pay outstanding balances to bring your accounts current. Review your credit report for account that may already be reporting as past due.

· Review your credit score and make sure to compare your credit score to the accepted standards for good credit score. Signature loan approval can be made possible with a credit score that is satisfactory.

· You will need to be 18 years old and above if you want to apply for a signature loan. Most loans are only available to adults.

· Have reference from current and/or previous employers, and from friends and make sure that you are well aware about all the facts about the loan before you go in.

Nancy Harris works for a Utah-based lender who has been in the business for over 16 years. Nancy understands the challenges of title loans, payday loans, credit loans, and the like. That is why a $500 signature loan is what she’s offering on a silver platter. Learn more about a signature loan with Nancy Harris. Call +801-990-7437 today.

Article Source:
http://EzineArticles.com/?expert=Nancy_L_Harris

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