If you are looking for signature loans, you must be aware of the following facts (unless of course you want to sign up for a bigger financial mess):
First things first, you must understand what a signature loan essentially is! This kind of a loan is unsecured and is approved for a fixed term. Unlike payday loans, you can apply for larger sums here. This loan can be repaid in monthly installments.
Why the name you wonder? Signature loans get their name from the fact that you have to sign a guarantee that you will be repaying the loan within the pre-determined time frame.
To avail of signature loans you have to be prepared to pay a very high rate of interest or get a friend or relative with a good credit score to co-sign your loan. UK Credit is a trusted UK Credit money lender in Singapore and they offer signature loans just as other types of loans. You can visit their website to learn more about the rates.
The next question is, in which situations should you apply for a signature loan? Ideally, when you know exactly how much money you need and have a plan and resources in place to repay the borrowed amount.
Signature loans can prove to be a boon in times of need. However, what you must remember is that since the loan is unsecured you have an obligation to repay it. Non-payment would lead to an even lower credit score thus making you completely ineligible for any future loans. The result? A far deeper and murkier financial mess!
A common question that a lot of people ask, while applying for signature loans for people with bad credit is, whether or not refinancing options are available. The answer- in most cases yes, but usually there is a cap on the amount. Also, most lenders will require you to borrow an additional sum of money (over and above your loan and interest amount) when you refinance, so your overall interest rate too will go up!