To qualify for a signature loan, you will need to have a good credit rating. Here's why.

A signature loan is an unsecured loan. It most often has a fixed term, and the loan proceeds are to be used for a specific purpose. Usually, you just sign the loan papers and the loan is yours.

But no bank or other financial institution is going to lend you money, especially unsecured money, if it believes the loan won't be repaid. So they'll check your credit, and if your credit isn't good, you'll have a harder time obtaining a signature loan.

So its important to have a good credit rating. If you're not disciplined enough to create a workable budget and stick to it, can't work out a repayment plan with your creditors, or can't keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But be aware that just because an organization says it's "nonprofit," there's no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, which may be hidden, or pressure consumers to make large "voluntary" contributions that can cause more debt.

Before selecting a company to get your signature loan, it is best to compare different loan plans. Services and fees vary greatly, as do interest rates, so compare as many programs as you can.