what is a signature loan 
a signature loan also known as a good faith loan or character loan is a type of personal loan offered by banks and other finance companies that only requires the borrower s signature and a promise to pay rather than physical collateral such as a car title or a home a signature loan can typically be used for any purpose that the borrower chooses interest rates may be higher than other forms of credit due to the lack of collateral but may be lower than other forms of unsecured credit such as credit cards 1