How Does a Signature Loan Work?

Traditional banks and other borrowing options have given you the cold shoulder, but you still need money fast–what do you do? In this situation, a signature loan might be your best bet, since you don’t need to put up any collateral for this type of unsecured personal loan. Basically, your “signature” is your promise to repay the loan back on time, and can be a much easier way to get funds for an emergency–or any other–expense, without the hassle and red tape of other loans.⁵

Max Cash^? is here to break down how signature loans work and to show you how you can get back on your feet financially through signature loans.^{2 5}

How Much Can You Borrow on a Signature Loan?

The amount you may qualify for with a signature loan is based on factors such as your income, creditworthiness, and the particular direct lender’s requirements.⁵ The main thing to understand with signature loans is that your creditworthiness often plays into how much you can be approved for, but you can potentially receive up to $1,500 without jumping through a lot of hoops that can come with more traditional loans.¹

Again, your credit score is something that lenders will look at during your loan inquiry, as well as your financial history, so it makes sense to check your credit report (you can get a copy of it for free, every 12 months) to see if there’s any inaccuracies or errors. Lenders also want to see your debt-to-income ratio (DTI) to be no more than 36%, or max 50%.

A discrepancy on your credit report can affect this number, so checking it before applying is still a good idea.

If you want to find out how much you may potentially qualify for through personal loans, call Max Cash today at 833-207-9052. By calling to speak with a knowledgeable loan representative, 24/7, you can understand more about signature loans.^{2 5} Loan agents are happy to walk you through the process. Getting the information you need to make an informed decision doesn’t have to be complicated!

Is it Hard to Get Approved for a Signature Loan?

Although lenders have their own unique requirements, signature loans are still typically easier to qualify for than other types of financing and can be the fastest way to borrow funds when you need to deal with a large purchase, or other unexpected cost without using a major asset like a vehicle or house to obtain the loan.^{1 5}

Traditional banks, for the most part, tend to only work with borrowers with good credit, but if you have bad credit, lenders may still approve the loan since with your signature, you’re promising to repay–in good faith, something a brick and mortar bank might not ever consider.

Do Signature Loans Hurt Your Credit?

As with most personal loans, signature loans can affect your credit, but whether positively or negatively depends on how you choose to manage it. When you take out a signature loan, the lender/loan servicer may report your positive–or negative–activity to one or more of the major three credit bureaus (Experian, TransUnion, and Equifax). 

This can be a good thing if you’re making your loan payments on-time and may even gradually boost your score. However, if you miss several payments or default altogether, your score can drop.

In short, if you can make your loan payments consistently, on-time, every time, you can avoid a negative impact on your credit score. One easy way to ensure you stay on top of your loan payment due date is by setting up autopay, or even just a simple calendar reminder on your phone so you never miss a payment.

If you already have a personal loan and want to refinance to lock in a different rate, with the same or different lender, or even consolidate debt, Max Cash has the resources and know how to get you where you ought to be financially.^{2 4 5} Just call 833-207-9052 to speak with a loan agent to potentially get the ball rolling to have a little more cash in your corner.⁵

How Do Signature Loans Work?

To recap, you can think of a signature loan as like a handshake deal, backed by your signature as a promise to pay instead of a big, costly asset to secure the loan. The best part is that you can use the money to pay for any personal expense you see fit without getting the third degree from a suit at a traditional bank.⁵ Applying for signature loans is also surprisingly easier than you may think:

1. Start online or by phone! It may only take a few minutes to fill out our easy application with information about your income, proof of address, and a valid, government-issued ID.
2. Once submitted, we will then match you with one of our vetted, trusted lenders who offer the most convenient loan terms and repayment plan that best suits your financial needs.^{4 5}
3. Simply choose to accept the loan offer, review and sign your agreement contract and decide how you’d like to receive your funding if the lender has multiple disbursement options!⁵

Why Choose Max Cash to Find Signature Loans?

Whether you’re rebuilding your credit, covering unexpected bills/repairs, or just funding something big, a signature loan might be what you’re looking for! Best of all, there’s no need to put down heavy collateral to secure the loan. Max Cash has been a leader in the national loan marketplace since 2010 helping over 18 million people find loans through a vast network of lenders with 24/7 support.^{2 5}

Don’t wait! Talk to a loan agent at 833-207-9052 to walk you through the application process and start funding your future today!^{2 5}