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What is a Signature Loan?

You need urgent funds and are considering loan options. That’s where signature loans come in.

Signature loans are personal loans that are typically easy to apply for—often requiring only your signature, a few pieces of documentation, and promise of repayment. Signature loans don’t require collateral like a car or home and can have advantages over other types of loans.

What Can You Use a Signature Loan For?

Signature loans can be used for a variety of reasons. Common uses for signature loans include emergency expenses, medical bills, and home repair projects. Depending on your circumstances, signature loans might also be used to consolidate debts, allowing you to manage multiple repayments through one convenient loan.

How Do Signature Loans Work?

Signature loans are typically repaid in installments over a period of time, ranging from months to years. Since signature loans aren’t secured by a car title or mortgage — they may come with higher interest rates and/or penalties and fees when you miss a payment.

What Do I Need to Apply for a Signature Loan?

Signature loans often require proof of stable income and other supporting documentation. However, perfect credit is not usually required. Advance America signature loans, commonly called installment loans, require a government issue ID, Social Security Number, proof of income, active checking account with personal check if you come into our store and an active email address. Signature loans often have a fast application and approval process and can be applied for online or at a lender’s location.

Comparing Signature Loans with Other Loan Types

Signature loans can have relatively flexible repayment terms built to meet your needs. Compared to payday loans, signature loans may also allow for larger dollar amounts and are sometimes referred to as installment loans.

Benefits of Signature Loans

Signature loans come with several benefits:

  • Signature loans are fast and convenient.
  • Signature loans are unsecured, meaning you’re not putting any of your assets up for collateral, reducing your risk of losing an asset.
  • Signature loan rates are sometimes lower than they are on other unsecured loan options, like payday loans
  • Many signature loans do not require excellent credit, but instead rely on your ability to repay the loan to earn approval.
  • Without providing collateral, signature loans can often include competitive interest rates when compared to credit card rates or credit card cash advance rates.
  • Signature loans can be used for any purpose you like, typically without any restrictions. Considering the quick application and approval process, this can make signature loans a perfect solution for sudden emergencies like car or home repairs or medical bills.

Types of Signature Loans

Advance America offers three basic types of signature loans that do not require a secured asset like your home or your car.

  • Payday loans require proof of income and are backed by your commitment to repay the loan as scheduled.
  • Lines of Credit look at your credit history and income to determine your credit limit and allow you to withdraw funds up to that limit only as you need.
  • Advance America’s Installment Loans consider your credit history and income to measure your ability to repay the loan at the amount you request.

Notice: Information provided in this article is for informational purposes only. Consult your attorney or financial advisor about your financial circumstances.