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Author:
Bob Buckham
Web Site: http://www.best-choice-loans.com
Signature
Loans: Available, but not as common as
before
In
years gone by it would not be uncommon for
a client to walk into their local bank and
ask to borrow a couple of hundred dollars
for a house repair. The bank manager would
commonly give the client the money based
on their 'character' or 'signature', which
is where the term signature loan comes
from. We now call this type of loan an
unsecured loan.
A
signature loan is a loan where the
borrower does not have to put up any
collateral to back the loan. The lending
institution simply lends the borrower the
money on the pretense that the borrower
has good character or a previously good
borrowing record, and trusts that they
will be repaid as per the loan agreement.
In
many cases today, the number one type of
unsecured credit is in the form of credit
cards. But signature loans are still out
there at banks and credit unions for
people with a sudden need for money and a
clean credit history, established
employment and residency, and a low
debt-to-income ratio. They are sometimes
even there for a friendly local face the
bank manager knows and just plain trusts.
And
a signature loan is also available for you
on the Internet.
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