Do you know what a signature loan is? As the name implies, signature loans are debts that made based entirely on your signature. There is absolutely no collateral necessary to be to obtain these loans.

There are several varieties of bad credit signature loans. Some signature loans are smaller in size, $1500 and less. Some are mid-sized, usually up to $5000. And some are very large, up to $10,000 or even $25,000. The smaller loans, those up to $1500, are often called payday loans. These loans let people borrow for a very short time to meet their obligations in between paychecks. The money received from the various types of signature loans can be used for any reason whatsoever. People usually use payday loans to pay their short term debts, like rent that are due before their next paycheck. Many payday loan lenders specialize in offering signature loans for bad credit individuals.

As banks are loaning you money that is insured by nothing more than your signature, they need to have the strong belief that you will repay it. Lenders will examine your FICO score (credit score) to check to see your credit history. The better your credit score, the more likely it will be for you to secure a loan. Also, the better your FICO score, the lower you interest rate will likely be. After all, if a lender is going to loan money to someone with a poor credit score, they borrower is less likely to repay the loan and so the lender needs to increase their return on the chance that the borrower doesn’t pay back their loan.

It difficult economic times, it is harder to find banks willing to loan money to you. Even people with great credit sometimes have a tough time finding a bank willing to lend money to them. There are other options

Consider peer lending. These loans, also known as social loans, are made by individuals like you and me. You don’t go to the bank and borrow money from your peers directly. Not quite directly. The individuals all go through a website, so you don’t actually interface with one another. This service will increase your chances of getting a loan, and it will likely be at a better interest rate.

So if are having financial difficulties, and unfortunately, many people are today, and you are looking for financing. A signature loan is an excellent option for you to consider. There are various types of unsecured signature loans. There are short-term payday loans to help you make it until your next paycheck, there are larger unsecured signature loans which may be more difficult to obtain if your FICO score is poor, and there are peer-to-peer loans which allow you to bypass the lending institutions completely and get money from other individuals. Find the loan that’s right for you.

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