Image 01 Image 02 Image 03

What is a signature loan?

An online signature loan is a type of loan you can apply for online that typically requires no collateral. Loans like these allow you to take out personal loans $5000 and under over the Internet as long as you can promise to pay the money back in accordance with the terms of the lender, and this promise is backed by your signature. New developments in technology have made it possible to sign documents online using just your mouse, although there are some companies that might require you to print out the loan documents, sign them, and fax them back in. Just as it is with any type of loan, these bad credit signature loans – many with no credit check – have their share of advantages and disadvantages.

Pros of Online Loans

The main advantage of signature loans that are obtained online is that they are very convenient. No waiting in line or dealing with people in person is necessary. You can apply for the money you need in your pajamas if you want. If you have bad credit, online signature loans are also beneficial because there are many companies offering unsecured loans for bad credit. Instant decision loans are also typical to find when you apply over the Internet. You can look up the companies you are considering on the Better Business Bureau website to ensure that they are trustworthy.

Cons of Online Loans

Security is one major concern with signature loans online. Applying for a loan over the Internet means providing confidential information about yourself through your Internet connection, and many people are not comfortable doing this. With identity theft on the rise, it’s a good idea only to use lenders with VeriSign, which is one of the leading companies in Internet security. If you have bad credit, you should be very careful when applying for signature loans over the Internet. Many loan websites offering bad credit loans and quick loans for unemployed people are not trustworthy and want nothing more than to use your financial desperation to their benefit by charging illegally high interest rates.

Short Term Signature Loans – Pros and Cons

If you’re looking to borrow some money with no collateral or any other type of security without a good credit score, you might be tempted to apply for short term signature loans. However, you really need to think it through before you commit to any type of repayment plan for loans such as these. While there are several advantages to quick, unsecured loans, there are also many disadvantages.

Benefits of Short Term Signature Loans With No Credit Check

Need a small amount of cash today? You can probably get it through short term unsecured loans or signature loans online. All you have to do is sign on the dotted line and the money is more or less in hand. In most cases, loans like these don’t require credit checks . The fact that you can get the money you need quickly with no credit check or security probably makes applying for signature short term loans seem like an attractive idea.

Things to Keep In Mind Before You Apply

While it’s true that getting the money you need right away is helpful, there are plenty of consequences involved. Short term signature loans generally come with very high interest rates. You could end up paying back as much as 600 percent interest on how much you borrow. Another thing to think about is the fact that you can’t borrow a very large sum of money with loans like this. Most short term loans have to be paid back (including any interest) within a month or less. For this reason, you probably won’t be able to secure a loan for much more than $1000. Payday loans are very popular types of short term loans that the Federal Trade Commission warns consumers against, and payday loans in Georgia as well as in many other states are now illegal.

The Bottom Line

If you can find another way to get the money you need, skip the short term loans. Ultimately, the interest rates are not worth it, and there are many people who have been financially ruined as a result of continually getting money from places who offer these loans. You don’t want that to happen to you. If you only need a few hundred dollars, consider asking a friend or relative to loan it to you. You could also check with your employer to see if there would be any way to get an advance on your next paycheck.