Best Lending Practices
SignatureLoan.com strives to protect borrowers from illegal and unfair practices in the signature loan industry. To assist us in our goal of protecting you and helping you make a fully informed decision regarding signature loans, we adhere to the following code of conduct:
- We ensure that our customers are thoroughly informed about the process of taking out loans, about their responsibilities as loan borrowers, and about the repercussions of failing to pay back loans on time.
- We always provide clear, transparent information to our customers and treat them with the utmost courtesy and respect.
- We assess customers to make sure they will be able to afford to pay back the money that they may borrow from one of our affiliate lenders.
- We always hold ourselves to the highest possible standards of customer satisfaction and service.
- We take pains to ensure that every lender with whom we work is completely reputable and engages in responsible lending practices.
SignatureLoan.com only works with responsible lenders who are licensed in their respective state(s) to lend money in the form of signature loans to consumers. Once you are paired with a lender, we strongly suggest that you look up the specific details on said lender so that you are aware of how to get in touch with them in case you have any concerns or questions. Each lender also has their own terms and conditions regarding loan interest rates; the requirements for repayment; and the repercussions of being late on, missing or rolling over a payment. You should make sure you are aware of your lender’s specific terms and conditions.
Your Credit Score
One of the key things to remember as a signature loan borrower is that being late on, missing or rolling over a payment will all adversely impact your credit score. That score is a numerical expression of your creditworthiness based on a thorough analysis of your credit files. A credit score is mainly based on credit report information typically derived from major credit bureaus. Failing to make a loan payment on time will hurt this score and make it more difficult for you to do things such as obtain a credit card in your name or a loan from another source in the future. While less-than-perfect credit will not necessarily hinder you from being able to receive a loan through SignatureLoan.com, all loans are subject to credit approval from lenders. As such, the lender that you are matched with may perform a credit inquiry with one or more credit bureaus. If you have had many credit inquiries in a given period of time, it is possible that this inquiry may negatively affect your credit score. On the other hand, if you are able to make all of your payments on time, the process of taking out and repaying a loan from one of our affiliate lenders may actually increase your credit score.
The single most important thing that you must understand as a borrower is the effect of making late payments on your loan. Although each lender whom we work with has their own terms and conditions for the loans they offer and the repayment of such, there are some general late-payment repercussions that you should understand. First, there will likely be charges assessed if you make a late payment. Furthermore, if you extend a loan, the finance charge for the original loan needs to be paid on the original due date. Then your loan principal amount will be deferred with an extra finance charge. We advise that you pay as much as possible toward your original due date in order to further reduce the charges that you incur. Should you intend to deviate from your payment plan, make sure that you contact your lender immediately to establish a new payment arrangement. If your loan payment is rejected for any reason by your banking institution, the lender may initiate collection procedures and you will not be able to receive future loans from the lender until all of your payment obligations are fully met. It is important to remember to read about the penalties and payment options for the specific lender that you are matched with and to make sure that you completely understand their policies. Finally, keep in mind that signature loans are intended only to be used for short-term financial needs; they are not meant to be a long-term financial solution. In general you should always make sure to pay all of your outstanding loans/bills/debts in a timely fashion.
Missing a Payment
SignatureLoan.com recommends that you pay all of your outstanding loans/bills/debts when they are due and no later. By paying everything in a timely fashion, you will ensure that you have a positive payment record and will minimize negative repercussions. Each lender that we work with has their own terms and conditions regarding the specific implications of missing a payment with them. However, if the lender doesn’t receive a payment the likely result is that they will file collection procedures against you and you won’t be able to receive any more loans from the lender. Therefore, it is crucial for you to both understand the specific requirements when it comes to repayment and the repercussions of missing a payment. And again, we strongly urge you to pay all outstanding loans/bills/debts when they’re due.
Rolling Over a Payment
With some of our affiliate lenders, it may be possible to roll over payments if you find that you can’t make a scheduled payment date. However, please note that, as is the case with missing a payment or being late on a payment, rolling over a payment will negatively impact your credit score. Also, please understand that the interest you pay will be the same with the rolled-over payment as it is with the missed payment.
Types of Renewal Policies
SignatureLoan.com works with a number of different lenders, each of whom has their own individual renewal policy. As a general rule, however, there are two different kinds of renewals, and they are as follows:
- Unlimited renewals — These enable you to continuously renew and are the most risky for loan borrowers.
- Automatic and borrower-initiated renewals — These renewal types are not unlimited and are subject to specified time limits.
It is important to understand that once a loan is no longer able to be renewed by a borrower, the lender will have to begin a collection process to recoup the amount owed. Each lender will have their own specific policy with regard to this, so it is important that you carefully read and understand your lender’s policy.
In general, a lender will take payment directly from your bank account when it is due. However, each lender whom we work with has their own terms and conditions, and you should make sure you understand these for your individual lender. If you miss a payment on your loan and do not contact your lender to arrange other repayment options, your loan will likely be subject to collection. You will usually be contacted via telephone, email and regular mail. If you continue to not respond, the lender will most likely use an outside collection agency to collect the debt. These specifics will differ from lender to lender, so it’s important that you be sure to read and understand your particular lender’s terms and conditions. Also, remember that it’s always in your best interest to pay back your loan on time whenever possible.