Lenders today have become more consumer-centric; there has been a dramatic shift with the consumer’s market getting more leverage, what with lenders offering higher loan amount, some of them even going up to $50K as personal loans for consumer online. People with average credit scores can also qualify for these personal loans and there is no need for credit check as well.
A personal loan or signature loan is a good solution for people to get themselves out of the sticky situation of continual debt. In this kind of loan, the lender does not look into the credit history of the borrower. As for the borrowers, they are happy to use the much needed funds which consolidate the debts owed to many creditors.
There is a difference between payday loans and personal loans; in payday loans, the amount lent may be smaller in size and the repayment has to be faster while in personal loans without security, the amount can be higher and stretched over a longer period.
With the personal loans that are available at your disposal, you can use the funds for many opportunities including paying off bills, consolidating debt, making a major purchase, funding for travel etc. All you have to do is fill up a simple online application and get qualified through the lender directly.
Since signature loans are without any collateral, the lender relies on the commitment on the part of the borrower to pay the money back. The interest loans are higher in a signature loan, because there is no security here. The borrower agrees to spread payment over an agreed period and penalties can also apply in case the person wants to repay the loan before the time.
In order to get personal loans or no collateral signature loans, the individual has to make a request for it online, over the telephone or at the financial institution. Applying online is a faster method because of the time saved and the costs that are reduced in processing the data. In the loan application, the applicant must mention his or her full name, date of birth, address and Social Security Number, source of income, the length of employment, monthly take-home salary and proof of income. The proof of income can include paycheck stubs, W-2s, legal documents and copies of income tax returns. The bills that you pay on a monthly basis may compare against your monthly income to find out your eligibility to repay the signature loan.
Once the application for the signature loan is approved, the financial institution issues a check to you. The first payment is due the next month, following the day when the loan was issued to you. The usual time frames for repayment of signature loans include 12 to 48 months. You can choose to either pay back in checks or have the amount debited from your checking account or saving account. Once the loan amount is paid in full, the person can receive the copy of the original contract with an authorized stamp which says ‘paid in full’.