Finding a Signature Loan in Oklahoma City
Thursday, Apr 16 2020
Looking for a loan that’s easy to obtain with few limitations? A signature loan in Oklahoma City, may be the answer. A signature loan may also be referred to as a character loan or a good faith loan. Signature loans require less qualifications, but more trust. If it sounds too good to be true, it’s not. This loan could be the answer to your financial troubles and is a great option when you need cash. Just be sure to educate yourself on all the ins and outs of this loan option. Read on to learn everything you need to know about signature loans.
What is a Signature Loan?
For readers unfamiliar with signature loans, this option allows individuals to borrow cash from a lender (in this case, Focus Federal Credit Union) without collateral. It is a good faith loan that requires a signature and a promise to repay the loan. No need to trade valuable jewelry, belongings, drain home equity, or trade a vehicle for cash. No need to worry about losing those precious items when payments become outstanding or delinquent either.
Focus Federal simply requires monthly installments until the loan is paid off. After paying in full, Focus Federal closes the loan and the borrower still gets to enjoy the full benefits of being a member like high interest checking and auto loan discounts. For future signature loans, borrowers must re-apply, but as a member of Focus Federal Credit Union, the process is easy.
Signature loans in Oklahoma City are often available between starting at $500 and up depending on your credit worthiness and ability to pay. This allows the average borrower to receive the amount the funds needed, without collateral.
These loans rely on income, credit history, and credit scores rather than physical collateral.
In summary, signature loans are term loans, and term loans require monthly installments to recoup payment. Most are short term, yet this loan can last as long as five years. Signature loans are considered unsecured loans which don’t rely on collateral to collect payments.
What if you don’t make your payments?
So, what happens if you are unable to make payments since there’s no collateral? That’s a great question. Though there is no collateral for this type of loan, it is still a legally binding agreement. If you default on your loan, the lender can take the borrower to court for missed payments and may be turned over to a collection agency to collect payments. Furthermore, any missed payments can be reported to the credit bureaus and your credit score can take a hit as a result. The blemish will remain on your report for 7 years. After defaulting on a loan, it will take quite some time to secure another loan.
Our goal at Focus Federal is to help our members with a solid financial signature loan.
When a signature loan requires a co-signer, they become the responsible party if the borrower defaults on the loan. If the co-signer doesn’t pay the balance, the lender can also pursue the co-signer through collections and court proceedings. The co-signer’s credit history and credit score could also have a negative impact.
If this has been an issue for you in the past, we offer fresh start loans to our members. The purpose of these types of loans are to help you build a stronger financial future by building your credit on a solid foundation.
The fine print of a Signature Loan
Focus Federal encourages approved borrowers to read the fine print no matter where you apply for a personal loan. There are nuanced details potential borrowers need to know about signature loans in Oklahoma City. One, a signature loan has interest rates like any other loan. The difference is the interest rate could be higher on signature loans than other loans. This is the result of no collateral as a loan requirement. Two, because signature loans are lenient in requirements, approval for the loan isn’t always automatic. Trust between parties is difficult to establish in a first impression. Third, fees may apply. Look for penalties, late payment fees, origination fees, automatic withdrawals, and additional costs that may not be advertised. You won’t have to worry about hidden fees with us, we always treat our members with the respect they deserve, but you need to be aware of pitfalls when looking for a signature loan in Oklahoma City.
Quick history of personal loans
Historically there was a stigma associated with the need to apply for a personal loan. People with poor credit scores were predominantly those who were applying and securing the loans. They were formed from a necessity to climb out of debt on credit cards, mortgages, third-party loans, and medical bills. Interest rates have fallen since then, and now people with good credit histories and good credit scores applied and obtained this loan. Debt payment is one way to use the money from a signature loan today as borrowers use the money depending on need. Examples are vacations, debt consolidation, home improvement, big ticket expenses, car repair, weddings, and unexpected emergencies.
There’s no demographic who hasn’t obtained and secured this loan.
This is also one of the reasons we offer many different types of personal loans. We offer our credit builder loan, a fresh start loan and then a more traditional personal loans that we offer. We want to make sure our members are taken care of at every step of their financial journey.
How to apply for a loan with Focus Federal Credit Union
The first step in qualifying for a signature loan is to become a member of Focus Federal Credit Union. It’s a simple process that only takes a few minutes. Next, a loan application is required and can be completed in person, over the phone or online. Information on the form includes income, social security number, contact information, and a signature. After submitting the application, our team will review your application, credit history, income, and credit score. Keep in mind, there are many paths to qualifying for this loan and we may recommend our credit builder or fresh start loan, if needed. Applicants with poor or bad credit may require a co-signer. Pre-qualification can be an option for some applicants.
Applying is easy using our 3 step application process
In just a few days, applicants know whether the application is approved or denied. Focus Federal will notify approved applicants with next steps. Both parties will discuss the pre-determined interest rate (based on credit score) and the monthly payment amount. Borrowers with poor or bad credit will pay a higher interest rate. After finalizing term limits, the borrower will receive the money. Any applications denied are welcome to receive free credit counseling from one of our knowledgeable Financial Services Representatives.
Focus Federal makes payments easy by offering an e-bill option or borrowers can send payment through the mail. Simply pay the bill each month until payments are complete.
Ready to get started?
Now that you understand how signature loans work, do you think it’s the right fit for you? Please feel free to contact us with any further questions you have about qualifying for a signature loan in Oklahoma City and we will answer any questions and concerns you may have.
The Focus Federal Credit Union has been in business for 65 years and we take great pride in being a solid financial resource, educating our community and members on all things related to personal finance.