Bad Credit Signature Loan

A bad credit signature loan is easily available for people who have a less than sterling credit history. You'll find many companies advertising and offering a signature loan for the borrowers. Lenders who are offering this type of loan don't worry about a borrower's previous history because they will receive their money within one month to five years.

If you have a bad credit history there are two kinds of bad credit signature loans that are available :

1. A Non-Secured Loan:
If you opt for a non-secured bad credit signature loan, you will not be required to offer any form of collateral. At this point, your signed promise to repay the loan, is what the lender is counting on. However, if you are not able to honor this promise, the lender will have no other choice than to engage a collection agency to recoup the money.

This is not something you want to experience so it pays to analyze your committment and make sure you can honor it.

Since there is a higher than average risk of losing money, the interest rate on a non-secured bad credit signature loan will often be set to the maximum allowed. Each State has its own consumer loan laws.

2. A Secured Loan:
In this scenario, a borrower is required to pledge personal assets against the loan. This can take the form of a car, furniture, property etc. In this case, the interest rate for this type of loan will likely be less, however, should the borrower default on the payment, the lender can then claim the assets to help pay for the outstanding balance of the loan.


You are not restricted in how you use the loan. Whether you need to make a car purchase, pay off other debts, fix your home, or take a vacation, it is up to you..

Many companies can be found offering a bad credit signature loan application online. This is a good place to start researching your options because you'll save time and you will have many offers to compare!

Because loans of this type are short-term, make sure to assess the repayment schedules. Don't put yourself in this situation unless you can handle making the payments.