If you have poor credit or no credit, your options in a financial emergency are somewhat limited. This leads to the common question of whether you can get signature loans with bad credit.
The short answer is that yes, bad credit personal loans for Idaho and Utah residents can include signature loans. That being said, not all lenders will offer this type of loan to those with poor credit. Take a closer look at what signature loans are and what they involve to better understand why the best lenders offer this type of personal loans in Utah.
What Are Signature Loans?
Signature loans are a type of unsecured personal loan. Because they are unsecured, you don’t have to use collateral to get the loan. This contrasts with secured loans, such as auto title loans in Utah. In fact, this is the biggest difference between signature and title loans in Utah and Idaho.
Instead of requiring collateral, you just sign a document for a signature loan. This is where the name comes from.
To make up for the fact that your signature loan is unsecured and doesn’t require collateral, you should expect to have a higher interest rate. This is because lenders commonly increase the interest rate on a loan as a way to reduce their risk if you do not pay. At the same time, unsecured loans are riskier than secured ones. In other words, while you won’t have to put your car, home, or other expensive item as collateral for these types of small personal loans Utah, you should expect a slightly higher interest rate. Even so, the rates should be less than those for payday loans in Utah.
Are Signature Loans Called Anything Else?
You may also hear signature loans called by a few other names, including:
- Personal loans(or unsecured personal loans)
- Good faith loans
- Character loans
What to Expect from a Signature Loan with Bad Credit
When you apply for a signature loan, two of the biggest factors affecting your interest rate will be your income and credit. This means that while you can get one of these loans with poor credit, you should expect to have a higher interest rate than someone with good credit would. Remember that by charging a higher interest rate, the lender offsets their risk somewhat.
If you need bad credit personal loan in Utah or Idaho but have a good income, your income may mean that your interest rate is more competitive.
Not All Lenders Will Offer Them
It is also important to note that while you can get a signature loan with bad credit, it will depend on the lender. Many see poor credit as too high of a risk and will refuse any loan. Others will only refuse unsecured loans to those with bad credit and offer car title loans or other secured ones.
1st Choice Money Center proudly offers signature loans without credit checks. As such, we accept you regardless of your credit situation. Contact us today to start the process of applying for your loan.