What is a signature loan? A Signature Loan is a unsecured loan (no collateral), also referred to as a personal loan, good faith loan, or character loan. At PACE Resources Federal Credit Union, a Signature Loan and a Signature Line of Credit. Read below to find out which one is right for you!
A Signature Loan is an unsecured loan where you receive one lump some of money.
A Signature Line of Credit is an unsecured loan where you have the ability to make advances during the duration of your loan without having to apply for a new loan, similar to a credit card.
For example, you can take out a Signature Line of Credit for $10,000 but at the time of applying for the loan you only want to use $2000 to pay for vehicle repairs. In two months you need another $600 to purchase a new appliance, instead of refinancing your Signature Loan, you can take out an advance against your Signature Line of Credit.
The maximum amount you can apply for is $10,000 unless you already have an existing loan with us. Please check with the Credit Union if you already have a current loan.
Stop in at any of the Credit Union Offices. We will print out a form for you and the comaker/cosigner on the loan to sign. The minimum advance amount is $500.
The rate for a Signature Loan is higher than other loans because collateral is not being used for the loan, whereas a Vehicle Loan would use the vehicle being purchased/refinanced as collateral.
Fill out a loan application and submit it to any other the Credit Union Offices along with a copy of your ID and most recent paystub. You can bring it in person, fax or email it. Phone applications will not be accepted.