Eligibility Factors of Signature Loans

When you find that you are a little short on cash or that you have an item that you need but don’t have the cash to purchase it, it might want to consider a signature loan.

Normally you can apply for the loan rather easily and quickly. And one of the best features is that you can get some signature loans with no credit check, especially if you have worked with the lender in the past and have a good history with them.

What is a Signature Loan Used For

A signature loan is normally a loan in a smaller amount than other types of loans such as a car loan or a mortgage. Often times the minimum amount that you can borrow is $1,000 and the maximum is around $35,000 and you can use that money for anything that you choose. Most consumers use a signature loan to pay for an unexpected expense such as a car repair or emergency travel, but they are also a good way to consolidate other bills which carry a higher interest rate. Some of the other loan terms include a minimum loan time frame of three months and usually, a maximum length of six years and that depends on how much money that you are borrowing. Currently, you can expect the interest rates to begin at around 7%.

Other Great Benefits

There are a lot of reasons that consumers favor using a signature loan when they need to borrow money. First, it is a very easy process to apply. In many cases, you can apply online and never need to leave your home or office to complete all of the application processes. Once your application is completed you can also be approved in just a few minutes. This is very helpful if you are trying to work through some financial issues and want to get your loan activated fast so that you can begin to repair credit or just stop paying very high-interest rates on other loans. In addition to the fast approval process, the funding process is also very quick. You will normally have the funds in one to seven business days. You can elect to have the funds electronically transferred to your bank account, you can have a physical check mailed to you or sometimes you can even go to the office and pick up the check in person. Finally, this is a great way to be able to get a loan and begin to establish your credit history if you are young and have no history or to begin to correct bad credit issues from your past.

Who Is Eligible?

There are a few general eligibility requirements that you will need to meet to get the signature loan. First, you must either be a US citizen, a permanent resident or in the country on a long term visa. In addition, you must be 18 years of age or older and have a valid bank account. And finally, you need to have a verifiable income each month. In some cases, there is a minimum that the lender will accept for all loans and others have a sliding scale that is determined by the amount of the loan that you are requesting.

What You Need to Get Started

When you sit down to complete the application process there is some information that you will need to have available. Personal information such as your name, date of birth and social security number are required as they are with just about any type of application. You will also need to provide contact information such as phone number, address and email address. Next, you will need to give some information about your employer which would include the name of the company and their phone number as well as how long you have been employed there. Details from your driver’s license and bank account will also be needed.

What Gets You Approval

Unlike some loans where there is a lengthy examination of your credit and payment history, a signature loan is not looking at those factors with the same scrutiny. One of the biggest factors is your current income level. The lender wants to be certain that you can actually afford to make the payments each month. That also carries over to the second factor which is your debt to income ratio. This means that they need to see that you earn enough each month to pay your other bills and then still be able to repay the loan that you are asking for. You bankruptcy history is also taken into consideration. Even though it is never good to have declared bankruptcy, it can only be done once each seven years and that can help you a little bit. Your current and future overall financial situation are also a factor. This means that if you have debt but are paying it down, you will be in a more stable financial place in the future. This is a good thing in that it shows responsibility and maturity. It also shows your effort and determination to eliminate your debt. These five factors all revolve around your finances but the sixth factor that is taken into consideration is your level of education and how that pertains to your job. Having a college degree or other formal education or job training is a sign of stability. It shows that you are in a job that is more likely to be long term and more of a career than just a short time gig. This makes you a much better risk in the eyes of a lender.

A Good Solution

Signature loans with no credit check are a great way to begin to establish credit or repair your bad credit. Getting the loan is fast and easy and you can have the funds in just a short time. When you decide that you are ready to make a change, consolidate your debt or just want a lower interest rate, this is a smart financial tool for you to use.

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