Are you looking signature loans? Do you need $1000 cash fast? Or maybe even $5000, or even $25,000 ? Signature loans can be used for any purpose, whatsoever, including fast cash or personal loans to finance purchases, like home appliances. You can use the money obtained from signature loans for anything that you want. Signature loans for those of you with bad credit are also available, however the interest rates will likely be higher.
If you need cash now and want to get the lowest possible interest rate, we suggest that you consider secured personal loans rather than trying to obtain unsecured signature loans. When you need financing for those types of purchases, your house or other property is used as collateral to obtain the money. Signature loans are typically used for more modest sized personal loans — in the $100 to $5000 range.
In today’s economic climate, you would think that it is difficult, or nearly impossible to be able to secure such financing. This is not the case. Many lenders are still offering and funding fixed rate signature loans and home equities loans. Besides the major lending institutions, check with your local area community banks and credit unions. These lenders indicate that are doing quite well despite the current market conditions.
Sure there are signs of recession everywhere, but various lenders are still functioning well. However, due to the economic slowdown, people are being laid off from their jobs. This loss of income makes it very difficult for people to make ends meet. They then are unable to pay their bills, and make their loan payments. This creates delinquencies. When times are tough, people need to use some of their savings. This will ultimately adversely impact their retirement plans. During the economic boom period that was just completed, people spent freely. The average savings rate was, and continues to be negative. That means that the average person has been spending more than they have been making. This lack of foresight to save for retirement and for rainy days means that they do not have cash to weather the tough times, like now.
Besides thinking to themselves, “I need cash now,” people are really concerned about the economy at large. In times of economic recession, people are not looking for signature loans to borrow money. They are fearful that they may lose their jobs and then not be able to repay their outstanding debts. So today, the demand for loan has decreased. We anticipate that in the first quarter of 2009, there will be even less of a demand for signature loans.
Financial institutions only want to lend money to people who need cash now and that they believe can afford to repay the loans. Depending upon the area of the country you are in, you will see different recession levels. Areas that have fast economic growth have been hit the hardest – places like California and Florida. However, if you need cash now and live in an area where economic growth and housing prices increase slowly and steadily throughout history, you may not see economic impacts to your areas. Thus lenders may still be making signature loans.
The current recession may well take a lot longer to recover from. This recession is completely different than anything prior. During the late 1970’s and early 1980’s interest rates were as high as 22%. Large lenders are having a difficult time handling these times.
Credit unions offering signature loans are different. They are financial cooperatives, owned by their members, and as such are run in a more democratic manner. Each and every member of the credit union is a shareholder of that organization. As such, they all have a vote in how credit union is run. They also tend to be not-for-profit organizations. This makes it much easier for them to offer signature loans.
They are usually run conservatively. Typically, more than half of the loans that they make are for vehicle loans and small personal loans. This hold true today as well. Credit unions see that their members need cash now. They are seeing a lot of their members purchasing cars and looking to consolidate their credit card debt through fixed rate signature loans or via home equities.
With credit card rates increasing, people are looking to consolidate their credit cards and need cash now so that they can try to pay off their balances through signature loans acting as debt consolidation loans instead of just making the minimum payments which results in continually making payments for many, many years.
Today people are scared. They feel that they need cash now, and are taking their money out of the stock market and looking for the safety of banks. Of course with so many banks failing, this increases people’s fears.
Your searching for, are interested in, and the ability in securing signature loans should not be limited to major lending institutions. If you are saying, “I need cash now,” then you should consider local community banks and credit unions when applying for signature loans.
Do You Have Bad Credit?
- Charge you late fees
- Send your account to a collection agency
- Report your information to a consumer reporting agency, which may negatively affect your credit score
- Offer to renew, extend or refinance your loan, which may cause you to incur additional fees, charges and interest