Signature Loans — The Simple, No-Hassle Lending Solution

Money does not grow on trees. However, there is one way to obtain money immediately that is almost as quick as plucking it from a branch — signature loans.

Signature loans (aka, personal or unsecured loans) offer borrowers funds for any purpose: vacations, home or vehicle repairs, to pay off expenses, emergencies, etc. The primary benefit of a signature loan is there is no collateral required. In addition, the application and approval process takes just a few minutes.

Many financial institutions offer signature loans. Consumers may usually borrow as little as $500, and up to $25,000, depending on the credit union or bank. Terms are typically up to one year.

Signature loans differ greatly from payday loans, which have become a last-resort option for some consumers who need fast cash. There are several benefits of signature loans over payday loans:

• Signature loan terms may be up to one year.  Payday loan terms usually max out at one month (extensions are considered for new loans), and are usually two week terms.
• Signature loan fees and interest rates are significantly less than payday loans.
• There is no security or collateral required for a signature loan. Payday loans require income verification and a pledge to re-pay by the next paycheck.
• Timely payment of signature loans can help to improve your credit history. Payday lenders only submit negative payment information to the credit bureaus, so prompt payment of payday loans does not improve one's credit rating.

The interest rate on a signature loan is slightly higher than a secured loan because there is no collateral offered to back the loan. Oftentimes, even consumers with fair or poor credit can obtain a signature loan because the financial institution may adjust the rate according to the applicant's credit.

Some financial institutions such as AltaOne create uniquely packaged signature loan products. For example, AltaOne offers special holiday loans or summer getaway loans to help its members seeking extra financing for vacations or holiday expenses.

The bottom line— if you are looking for a "money tree" to take care of a wide variety of financial needs, look no further than AltaOne's signature loan product.

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Budget for Summer Vacation: Plan Ahead

Despite challenging economic times, most Americans will still venture out for some fun in the sun this summer. Whether planning a vacation abroad, an adventure in another part of the country or some local beach time, it is always a drag to pinch pennies while traveling.

It is too easy to fall into the credit card trap while on vacation. Budget well before you vacation to prevent the stress of soaring credit card balances. Check out these smart vacation-planning pointers:

Plan Ahead

Plan early and set aside a little less than 10% of your annual discretionary income towards your vacation fund. Find a balance between the cost of traveling to your destination and the cost of enjoying yourself while you are there. It is easy to fantasize about all the fun vacation activities, but forming a solid budget may be a challenge. We do not always foresee the jellyfish sting, the lost sunscreen or the mini bar tab — among other budget-breaking items. Use a travel calculator ahead of time to determine a real sense for travel costs, including some of the forgotten amenities. It is always best to “over-budget” and factor in unanticipated expenses before you hit the road. That way, you may be pleasantly surprised when you return home with extra cash.

Open a sub-share savings account: a special account reserved for your vacation savings contributions. You can also supplement your vacation savings and trim your vacation expenses by reserving your credit card rewards for travel costs.

Daily Cash Allowance

Anyone can write out a vacation budget, but it can be quite a feat to stick to it once you are in paradise. Plan out how much you want to spend each day on food, drink and activities, then place it in separate envelopes labeled for each day of the trip. Many tourists are tempted to spend foreign currency carelessly, due to its unfamiliarity. Also remember to factor in foreign exchange rates. When traveling abroad, mark each envelope with the equivalent USD amount, keeping track of each purchase. You can still keep a credit card handy in case of emergencies, although it is much better to have an emergency fund already established.

Don’t be the Giving Tree

Shopping abroad is fun. We all love to spoil our family and friends. They will probably appreciate it more, though, knowing you did not break the bank on gifts. Plan out your souvenirs ahead of time and make a list of how much you plan to spend on each relative or friend. Take advantage of local markets, where you can often negotiate the price. Beware! Souvenir shops and malls often jack up prices for tourists. If money is extra tight, you can often find specific discounted souvenirs -- like Mickey Mouse ears or Margaritaville shot glasses -- online and order them to arrive when you get home. 

Eat Local

Whether flying or driving, avoid wasting precious money on inflated airport and rest stop snacks. Pack your own snacks from home. Once you arrive, immerse yourself in the cultural cuisine. Eating local fare or street food can help you avoid the over-priced meals at commercial and hotel restaurants. Also, be sure to check out “Happy Hour” prices and other specials at the local restaurants and bars.

Pack Smart

You may forget some toiletries or other necessities. Research the weather and your activities -- and pack appropriately. If you spend your vacation funds on new sandals or sweatshirts, you will have less money for snorkeling, site seeing and souvenirs.

Make your vacation fun and hassle-free. Do not bust your budget during your summer vacation, and you will return debt-free, relaxed and recharged.

Cait Klein, NerdWallet

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