What Is a Signature Loan? | Cleveland Bradley County Teachers Federal Credit Union

If you’ve ever browsed the loan offerings available at Cleveland Bradley County Teachers Federal Credit Union, you know there’s pretty much no financial goal we can’t help you reach. From buying a car to renovating your house, we have the options you need.

We also have one you may not be as familiar with: signature loans. While they’re not as common as the others, they provide lending that can help you meet short-term needs with little more than your John Hancock. Read on to learn more about this low-demand option.

All About Signature Loans

These really do take little more than your signature to secure. We’ll need your OK to pull your credit and some income history, which may mean you’ll need to provide W2s, pay stubs and/or tax details. Your loan officer will let you know what information you’ll need to bring.

A signature, also sometimes called a good faith or character loan, is a type of unsecured loan, which means it’s provided without the need for collateral to back it up. Because that means the lender carries more risk on this type of loan, interest rates are also typically higher than those that come with some security for the lender, with your credit history dictating the rate you pay.

The maximum amount you can borrow on a signature loan is limited as compared to other types of debt. These typically come with very short repayment periods, ranging from as short as months to as much as several years.

Funds from a signature loan can be used to meet any immediate financial needs you may have, including paying for an unexpected expense or consolidating debt to reduce payments and save interest. With the higher interest rates, these typically are only recommended for situations of necessity, rather than for splurges such as vacations.

If you need help in the form of a signature loan, we’re committed to finding an options that will work best for you. Call Cleveland Bradley County Teachers Federal Credit Union today to learn more and to get started on an application for a signature loan.