Bad credit signature loans require only the borrower’s signature as a security measure for obtaining the loan. They are provided by many financial institutions in the wake of rising competition in the market.
The borrower just needs to fulfill certain criteria for applying for such loans. The verification of the borrower’s income is needed to determine the borrower’s repayment capacity. The financial institution checks the repayment capacity to suggest an appropriate repayment schedule and interest rate to the borrower. The borrower has to be at least 18 years old and must have a fixed job for at least the last 3 months. The schedule usually varies from six months to a couple of years. The loan amount can go up to 1500$ depending on the borrower’s need.
Credit score evaluation is another major step essential in signature loan processing by financial institutions. Experian, Equifax, trans union are some of the central bureaus that can present the credit score of the borrower based on tracking the various transactions the borrower has made so far. The signature loans are applicable in general by any borrower regardless of his credit score but they especially benefit those borrowers whose credit score is below 620 FICO score and can go to a minimum of 500.
The borrower should have his income proof, personal identification, bank account details and a valid social security number as minimum criteria for obtaining the loan. The borrower need not place any asset as collateral with the money lender. The signature of the borrower is sufficient for obtaining the loan amount.
Unsecured signature loans are the results of the new initiatives undertaken by the financial institutions to survive the global competition in the market. These loans have become popular even with the borrowers having a good credit score since every time money is needed, the borrowers don’t want to enter a mortgage agreement.