What is a Signature Installment Loan?

Anelle Valdes
Anelle Valdes
a person reviews personal loan agreement contract

What is a Signature Installment Loan?

Signature loans get their name from the fact that they don’t require any collateral—it’s the signature alone that secures it. While there’s more to it than simply signing a paper, signature installment loans are often easy to apply for and can get you cash quickly. Many options won’t even require good credit, which can be a lifesaver when you’re caught in a tricky financial emergency with bad credit. 

We cover more information about signature installment loans below, including what they are, when you should apply for them, and what you should look for when you do.

Personal Installment Loans

Installment loans use multiple payments across the life of the loan to pay it off. These are typically fixed monthly payments, but rates and payment frequencies vary according to the terms of the loan. Multiple types of loans can be installment loans (many commercial loans are), including mortgage loans, car loans, and personal loans.

Because they don’t have any collateral attached, signature installment loans tend to have higher interest rates. On the plus side, there are many options available to those with bad credit. When you need money between paychecks, for example, personal installment loans can be a reliable payday loan alternative. They can also help you manage an otherwise impossible medical expense or emergency car repair right when you need it.

How Installment Loans can Build Credit

Whether you’re hoping to get a better credit score as soon as possible or are looking down the road to improve your financial situation, there are many options that loans can open up for you. We’ll start with the basics so you’ll understand what a loan can do for your credit.

Know your credit score: The most reliable method you can use is to visit mycreditscore.com and request your free annual credit report directly. Once you receive your report, you’ll not only know your exact score — you’ll also be able to check it for any mistakes or discrepancies. Even small details can affect your score, so making fixes as soon as possible can help bump up your score for better interest rates on the loan you’re hoping to apply for.

Consolidate Debt: Besides addressing financial emergencies and helping you get to your next paycheck, installment loans can also help you pay off various debts so you’re not overwhelmed by multiple sources of late payments and compounding interest. That means less damage to your credit score every month.

Build Credit with Regular Payments: Simply paying your installment loan payments on time will help you build credit. Some businesses, like Wise Loan, may also sweeten the deal with cash rewards you can use or put toward paying back your loan.

Finding the Best Signature Installment Loans

As you search for an installment loan to suit your needs, you’ll find that there are many factors that play into competitive interest rates, such as the location (rates vary across states), the size and duration of the loan, the weight of your credit score, and the inclusion or exclusion of collateral. Many people make the mistake of assuming that their bad credit will only get them small loans of a few hundred dollars when that’s often not the case.

Wise Loan makes it easy to apply for a loan and even provides same-day services for clients who visit before 11 AM. We also offer instant funding for those who qualify. You’ll be able to find flexible options at competitive rates that make for a great payday loan alternative while getting a cash reward for the investment in yourself. Apply today to see how our installment loans can help you regardless of your credit situation.

The recommendations contained in this article are designed for informational purposes only.  Essential Lending DBA Wise Loan does not guarantee the accuracy of the information provided in this article; is not responsible for any errors, omissions, or misrepresentations; and is not responsible for the consequences of any decisions or actions taken as a result of the information provided above.

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