We are planning to borrow or file a loan application in banks but our family friend is suggesting other financial companies that offers loan without collateral. I just thought that would be a good idea. I've been hearing about a personal loan and a signature loan. Which is better? Are those type of loans different? I do hope lending companies will give lower interest rates. By the way, do you know any lending organizations that could offer the best package or rather without collateral?
a signature loan is a type of personal loan, it is also know as "good faith loan" or "character loan". it can be used for any purpose the borrower chooses, although the interest rates will be higher than most forms of credit due to the lack of any real collateral.
I talked and asked for advice from one of the company lenders near our place. He explained further the signature loan and unfortunately after assessment, he mentioned that I have "Log In" primarily due to my existing unpaid credit cards. Although this does not prevent me from getting a loan, the interest is a little bit higher. Anyway, thanks for sharing your information.
@brightmind Well, lesson learned. Don't get a loan until you have a good credit standing. That's all there is to it. As for me, I'd prefer a personal loan to avoid the exorbitant interest rates. I do not have a bad credit standing and I always pay my credit card bills on time. Though I still have some unpaid dues left, I have not really exceeded my credit limit and my savings is pretty much intact. What I like about personal loans, though, is that the interests aren't that high and you can pay off your debt in no time if you're disciplined enough.
