Who Is Eligible for a Bad Credit Personal Signature Loan?


Quick Answer

Banks set their own requirements for personal signature loans and view bad credit applications differently depending on individual circumstances and the bank's own policies, as Financial Web claims. Consumers with bad credit should shop around for loans thoroughly and be prepared to apply at multiple banks in order to secure a signature loan.

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Full Answer

Lending criteria for bad credit personal signature loans varies tremendously based on the banking institutions that offer the loans, as Financial Web reports. Consumers may increase their chances of successfully applying for a personal signature loan with bad credit by applying for loans through the sub-prime market, obtaining a co-signer for the loan and verifying their own credit history information.

Using these strategies, many consumers successfully obtain a bad credit personal signature loan, as Financial Web reports. Co-signers allow the lender to consider another party's credit, which increases the likelihood of approval. Consumers should review their personal credit histories and correct mistakes that may lead to an unwarranted bad credit rating. Bad credit usually results in higher interest rates and fees, so many consumers pay more money for sub-prime market loans. While sub-prime loans are often more expensive than traditional banking, their credit standards are lower and application approval is more likely.

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