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 always hold ourselves to the highest possible standards of customer satisfaction and service.
- We take pains to ensure that every lender or lending partner with whom we work is completely reputable and engages in responsible lending practices.
SignatureLoan.com only works with professional lenders and lending partners who engage in responsible lending practices and are authorized to lend money in the form of signature loans to consumers. Once you are paired with a lender or lending partner, we strongly suggest that you look up the specific details on said lender or lending partner so that you are aware of how to get in touch with them in case you have any concerns or questions. Each lender or lending partner 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 or lending partner’s specific terms and conditions.
Your Credit Score
One of the first and most important things to understand as a borrower is that being late on a payment, missing a payment or rolling over a payment may negatively impact your credit score. Your credit score is a numerical expression of your credit worthiness based on an analysis of your credit files. A credit score is primarily based on credit report information typically sourced from credit bureaus. Failing to pay on time may negatively affect this score and make it harder for you to do things like take out a credit card or get a loan. While less than perfect credit will not necessarily prevent you from being able to receive a loan, all loans are subject to credit approval. As such, the lender or lending partner that you are connected with may run a credit check with one or more credit agency. If you have had many credit checks in a given period of time, it is possible that this check may negatively affect your credit score. But, if you are able to make all of your payments on time, the process of taking out and repaying a loan may improve 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 or lending partner 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 or lending partner immediately to establish a new payment arrangement. If your loan payment is rejected for any reason by your banking institution, the lender or lending partner may initiate collection procedures and you will not be able to receive future loans from the lender or lending partner 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 or lending partner that you are connected 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 or lending partner that we work with has their own terms and conditions regarding the specific implications of missing a payment with them. However, if the lender or lending partner 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 or lending partner. 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 or lending partners, 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 or lending partners, 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 or lending partner will have to begin a collection process to recoup the amount owed. Each lender or lending partner will have their own specific policy with regard to this, so it is important that you carefully read and understand your lender or lending partner’s policy.
In general, a lender or lending partner will take payment directly from your bank account when it is due. However, each lender or lending partner whom we work with has their own terms and conditions, and you should make sure you understand these for your individual lender or lending partner. If you miss a payment on your loan and do not contact your lender or lending partner 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 or lending partner will most likely use an outside collection agency to collect the debt. These specifics will differ from one lender or lending partner to another, so it’s important that you be sure to read and understand your particular lender or lending partner’s terms and conditions. Also, remember that it’s always in your best interest to pay back your loan on time whenever possible.