Guaranteed Signature Loans

by Gray Peters

By definition, a signature loan requires nothing more than your name on the dotted line for approval. But “nothing more than your signature” means “we’re not asking for collateral.” A signature loan doesn’t require collateral. But why doesn’t it require collateral? Because the applicant’s credit score and credit history are so good that the lender isn’t concerned about losing his money. Your word and your track record are enough to give him that peaceful feeling that he’s going to get back all the money he lent you, plus a healthy amount of interest.

In other words, getting a guaranteed approval signature loan requires good credit AND a well-established history as a borrower. If that’s not you, well, you’re going to find it nearly impossible to get a guaranteed signature loan (or any loan). We are NOT talking about guaranteed loans for bad credit no fees.

How much could you borrow with this kind of loan? Assuming you have great credit, the amount you can borrow will be based strictly on your income and debt to credit ratios. More income, bigger loan. More income, lower total debt in your name, bigger loan. Average income, higher credit balances, smaller loan.

The more debt you have, the more your current payments eat up your income. If a lender is going to guarantee approval of a signature loan, they’re going to have to see that the payment on the new loan, combined with your current loan payments, won’t take you into the red and jeopardize your ability to make payments on time. See, these kinds of lenders know the payment on your newest unsecured loan will be the very last one you think about paying if you experience a serious downturn in your finances. Before you bother with them you’re going to make sure you keep your house and car payments as current as possible. Then you’ll take care of your credit cards (because you don’t want them closed), and then finally you’ll think about these outstanding personal loans.

All of that makes the lender very nervous about you, and the only way to calm their nerves is to show that not very many people are ahead of them in line when it comes to monthly payments. Lenders typically want to see that your new payment, combined with all other monthly loan payments, total less than approximately 40% of your gross income. Do the math yourself before you go apply. If you find your income isn’t going to be high enough to meet their requirements given your debt load, don’t bother with the application. After all, maybe it’s a clue as to whether you should be guaranteed loans no credit check at all if the bank isn’t very excited to lend you the money.

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