Everything You Need To Know About Signature Loans in Memphis, TN

When unexpected expenses come up or you need access to fast cash, a signature loan can be an option worth considering Signature loans provide a way to get money quickly without collateral If you live in Memphis, TN, you may be wondering where to turn for a signature loan and what you need to qualify. This comprehensive guide covers all the key details about signature loans in Memphis, TN.

What is a Signature Loan?

A signature loan is a type of personal loan that is approved and funded based mainly on your creditworthiness. With a signature loan, you don’t have to put up any collateral or assets to secure the loan. The lender is essentially relying on your “signature” and promise to repay.

Signature loans are unsecured, meaning you don’t have to put up property like a car or house if you were to default. They are frequently used for consolidating high-interest debt, financing major purchases, covering emergency costs, or accessing extra cash

How Do Signature Loans Work?

Here is an overview of how the signature loan process typically works:

• You fill out a loan application with personal information and requested loan amount.

• The lender reviews your credit history, income, and existing debt obligations.

• If approved, the lender provides you with a loan offer detailing APR, repayment term, etc.

• You accept the offer if the terms are agreeable.

• The lender disburses the loan funds directly to you in a lump sum.

• You repay the loan in monthly installments over the set repayment term until paid in full.

Signature loans tend to have higher interest rates than secured loans since they are riskier for the lender. Terms are often 2-5 years. The faster you repay, the less interest you pay overall.

Benefits of Signature Loans

There are a few advantages that signature loans can offer compared to other financing options:

• Fast funding – Money is deposited directly often within a day of approval.

• Fixed payments – You have a set monthly payment amount for predictable budgeting.

• Simple application – Does not require lengthy paperwork and documentation.

• Unsecured – No need to tie up assets as collateral.

• Consolidation – Can roll multiple debts into a single payment.

• Many uses – Funds are very flexible in how they are used.

What Credit Score is Needed?

Signature loan approval is primarily based on your creditworthiness. Many lenders look for a minimum credit score in the 660-680 range. The higher your score, the lower interest rate you can qualify for. Additional factors like your income, existing debts, and employment status are also considered.

Having excellent credit in the 740+ range can maximize your chances of getting approved and scoring the lowest APR. But those with fair credit in the 580-619 range may still be able to qualify with some lenders. Each lender has their own approval criteria.

Where to Get a Signature Loan in Memphis

There are many options for where to get a signature loan in Memphis. Here are some of the top places to consider:

• Online lenders – Companies like LightStream and SoFi offer online loan applications with fast funding. Ideal for those who want a convenient digital process.

• Banks and credit unions – Local banks and credit unions like First Tennessee and Memphis Area Teachers Credit Union are go-to sources for personal loan financing. Already having an account can improve approval odds.

• Peer-to-peer lenders – Sites like LendingClub and Prosper allow you to borrow from individual investors. Offers alternative credit data consideration.

• Retail lenders – Stores like Best Buy or jewelry stores may offer financing that functions like a signature loan. Makes it easy to finance specific purchases.

• Alternative lenders – Companies like Opploans or CashNetUSA cater to borrowers with fair credit. Provides higher approval chances if your score is on the lower end.

Be sure to compare interest rates and fees across multiple lenders to find the best offer. Consider both online and local brick-and-mortar options.

Top Signature Loan Lenders in Memphis

Based on customer reviews and ratings, here are some of the top recommended lenders for signature loans in Memphis and nationally:

• Lightstream – Offers fixed rates as low as 5.99% APR with no fees. Minimum credit score of 660. Fast funding as soon as same day.

• SoFi – Provides rates starting at 7.99% APR with unemployment protection. Prequalification available. Minimum credit score of 680.

• Upgrade – Installment loans up to $50k for those with a 640+ credit score. Check rate without a hard credit inquiry.

• Best Egg – Personal loans up to $35k with APRs starting at 5.99%. Minimum credit score of 640. No prepayment penalties.

• LendingClub – Personal loans up to $40k for borrowers with 600+ credit score. Origination fee ranges from 3-6%.

• Prosper – Personal loans up to $40k starting at 6.95% APR. Minimum credit score of 640. Loans funded by investors.

What is Needed to Apply?

When applying for a signature loan, most lenders will ask for:

• Personal information – Name, date of birth, Social Security Number, contact details.

• Income details – Your current income sources, employment status, pay frequency.

• Loan amount – The loan amount you wish to borrow.

• Credit history – Permission for lender to access your credit reports.

• Bank account information – Account and routing number so funds can be deposited.

Having pay stubs, tax returns, bank statements, or other financial documents available can help facilitate and speed up the application process.

Tips for Getting Approved

Here are some helpful tips for boosting your chances of getting approved for the best signature loan:

• Check your credit – Review reports and pull your credit score so you know where you stand.

• Pay down balances – Lower credit card balances to reduce your debt-to-income ratio.

• Hold off on new credit – Don’t open or close accounts as this can lower your score.

• Verify your income – Make sure information matches your pay stubs and tax returns.

• Explain any issues – Be ready to clarify late payments or other red flags if needed.

• Compare loan offers – Apply with multiple lenders to find the best rates and terms.

Alternatives to Consider

If you are not approved for a signature loan, here are a few alternatives worth considering:

• Ask a family member for a personal loan
• Take out a credit card cash advance
• Apply for a secured loan using collateral
• Seek financing from your 401(k) or life insurance plan
• Request an advance on your paycheck from your employer
• Put expenses on a 0% APR credit card

Don’t turn to risky options like payday loans or auto title loans that can lead to extraordinarily high interest rates and balloon payments. Avoid companies promising guaranteed approvals no matter what – this is often a sign of a predatory lender.

The Bottom Line

Signature loans can provide fast access to cash when you need it. Just be sure to compare multiple lenders to find the best rates and terms for your situation. Maintaining excellent credit and steady income are key to getting approved and securing lower interest. Seek out reputable lenders and weigh the costs before committing to ensure a signature loan is the right financing option for your needs.