good faith loan<\/u><\/a>,\u201d is categorized as an unsecured personal loan.\u00a0<\/b><\/p>Unlike a secured loan, this type of loan does not require security, such as an asset or home that the lender can foreclose if you don’t pay it back.\u00a0<\/b><\/p>
Instead, the loan is backed by your signature, which is a legitimate promise to repay the loan amount.<\/b><\/p>
To determine whether to lend a signature personal loan, lenders typically look for solid credit history and sufficient income to repay the loan.\u00a0<\/b><\/p>
In some cases, a lender may require a loan guarantor, but a guarantor is only contacted if the primary borrower defaults on the loan.\u00a0<\/b><\/p>
Unsecured refers to the fact that these loans are not secured by any form of physical security, unlike auto loans and mortgages. Signature personal loans are amortized over a set period and paid back in equal monthly payments.<\/b><\/p>
When you apply for this type of, lenders take into account factors such as your credit history, income, and credit score to determine if you qualify for the loan.\u00a0<\/b><\/p>
These factors also help lenders determine the interest rate and loan amount that the borrower qualifies for.\u00a0<\/b><\/p>
If you are approved for this type of unsecured loan, the lender will transfer you a lump sum in cash.\u00a0<\/b><\/p>
You then pay off the loan with interest over a fixed repayment term, usually 24 to 60 months or longer.<\/b><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t