Bad Credit Signature Loan

A bad credit signature loan may be the last resort for the person who cannot get credit under any other circumstance. This type of lending agreement is for the borrower with bad credit and does not have any collateral to back up the loan agreement. This is not the kind of lending agreement that a local bank would typically underwrite because the stockholders do not possess this kind of high risk threshold. This kind of lending agreement is more likely to be offered at strip mall loan companies that may be nationwide in scope. These companies are niche lenders with the willingness to take on high risk borrowers with a simple signature on a lending agreement. 

A bad credit signature loan will always be a high interest rate lending agreement, probably nearing the twenty to twenty five percent interest rate range, depending on the limits of the law in which the company resides. They are not necessarily predatory lenders, for these lending companies will generally have all of the figures clearly stated, but they are high risk financial managers and will quickly turn a bad account over to bill collectors if a payment is missed. The reason for the high interest rate is fairly obvious; the borrower has nothing to back up a promise to pay back the lending agreement. For many lending agreements with lower interest rates, a car, furniture, jewelry or other valuables can serve quite nicely as collateral for a loan, but a bad credit signature loan has no handrails on which to hold for the lender, thus the higher rates.

Who are most likely the candidates for such a signature lending agreement? Surprisingly, the answer would be not necessarily those with bad borrowing history! Instead, the answer often is those with no borrowing history at all. Consider for example, the plight of college students who need money for educational expenses. With no prior history, unless the students have a car of any value, they have no collateral to offer as a safeguard to completing the lending agreement. If the student is not eligible for a government lending agreement, a bad credit signature loan may be the only answer. "Bless the Lord, O my soul. O Lord my God, thou art very great; thou art clothed with honor and majesty." (Psalm 104:1)

With many companies that offer a bad credit signature loan, the first requirement is that the potential customer be employed at the same job for at least two years. In addition, the potential customer cannot have any outstanding credit card payments. For many lenders, a certain credit score is required before the lending agreement is approved. Knowing one's credit score is an absolute necessity before even considering such a lending agreement, because that will be the first death knell in the process. A person has to prove that good faith was shown during their financially bad times. Keeping in contact with all creditors, returning phone calls and making payment attempts with at least partial payments can all help in proving trustworthiness in receiving more credit. 

Typically, a secured lending agreement, using collateral that the borrower has to get needed funds from a bank takes from ten to fifteen days to secure. In the case of a dire emergency, this could be a tough situation for the borrower. For instance, if a middle aged couple is taking care of an elderly parent and the air conditioner goes kaput. Because the elderly parent has asthma or emphysema and the air conditioner is a must, a personal lending agreement or bad credit signature loan could provide the funds as quickly as twenty four hours for a new air conditioning system. Getting a secured lending agreement such as a home equity loan could take several weeks as opposed to a day or two with the signature lending agreement.

In an increasingly expensive world, fewer people have the financial resources to absorb sudden financial emergencies such as the one mentioned previously. Many families live paycheck to paycheck and have little or no disposable income, so a bad credit signature loan, also known as a personal lending agreement can be the only alternative. If such a lending agreement is sought from a company online or with any bank or business, remember that it is illegal to ask for fees in advance of a lending agreement. Never send anyone money for a processing fee or handling fee before receiving the lending amount. That request is a sure sign that a scam is being played out on an unsuspecting person. A good idea before signing a lending agreement is to have an attorney or someone with a solid financial background to look over the contract for any hidden fees or disclaimers.

It's a pretty powerful thing to put one's signature upon a piece of paper. Armies have been deployed, bombs have been dropped, marriages have been legalized, records have been verified, checks have been written, autographs have been sold and lives have been forever changed just because of a signature on a piece of paper. When a creditor writes across a bad credit signature loan, "paid in full," and then signs his/her name, a great sigh of relief can often be heard from the debtor. No more worrying about owing, no more fearing the phone ringing with reminders of payments that are late, the debt has been totally paid. Because God has declared the entire world as being up to its neck in debt to Him because of sinful acts and thoughts, He allowed Himself to be nailed to a cross and then bled and died. For every person that takes that selfless act as the payment for his or her sin, God declares that their account with Him is paid in full.