A signature loan can be used for many different purposes. Often they are used to pay for a vacation, perform some major car or home repairs, or just about any other purpose you can think of. Most people don't know it, but the student loan is a signature loan.

To qualify for a signature loan, you should have good credit. Any financial institution will want some assurance that the loan will be repayed. The credit standing is their assurance because signature loans aren't secured with any asset.

You may want to consider credit counselling if your credit is damaged. Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

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.