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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