Signature loans - the key to the vault
Written by: Karin Boode
Here is another passport to success in taking advantage of a
good deal or profitable transaction when it passes your way.
"Signature loans are your key to the vault", and because they
are based on your signature alone, they are also known as
"Character Loans". No co-signer or collateral is involved in a
real signature loan.
With pen in hand, based on your prior credit history and also
your own experience with the bank, your signature can draw from
$1,000.00 to $250,000.00. It all depends on your ability to pay
the money back.
Once you get your first signature loan with a bank, walk in on
the day it is due and pay it off with two cashier's checks or
with two different stacks of money. The first check or money
stack will be to cover the principal of the loan. Be sure to
tell him how well you did for yourself as you hand over your
payment. Tell him not to make any plans for the money as you may
need to rent it again soon. As you pay back the interest portion
of the loan, remind the loan officer that your good performance
and his smart decision to give you a loan in the first place was
a profitable experience for the bank as well. Remind him that
it's the rent paid on these loans that keeps the bank in
Now, let's suppose that your original loan was for $3,000.00. As
you get up to leave the bank, turn to him and say, "Oh, by the
way, I may want to rent $5,000.00 in a couple of weeks. Will you
hold on to $5,000.00 for me?" What you are doing is
pre-qualifying for a $5,000.00 loan. You are saying, "Hey, Mr.
Loan Officer, are you going to raise my next signature loan to
$5,000.00 or is $3,000.00 the limit?" What can he say? You have
just paid off the $3,000.00 loan, and the rent for the loan, and
you have just reinforced the point that the rent, or interest,
on the loan is what keeps the bank in business and pays his
salary. If he answers with something like "We'll see.", sit back
down at his desk and say, "You mean you're not sure? What seems
to be the problem?"
It is very important at this point that you get some kind of
answer from him in advance. It is very unlikely that a "Yes"
will come forth, but a "sure" or "I suppose" will do. Do not
leave the bank until he commits to the next loan. With each new
loan, raise the dollar amount by $2,000.00 increments, until you
have reached $10,000.00.
At that point, you will be able to raise the amounts of future
loans in $5,000.00 and $10,000.00 increments. When shopping for
aggressive banks, ask the loan officer you are dealing with if
they are a "commissioned" loan officer. They are the most
aggressive as they are paid a commission on all the loans they
write. These people will be more eager to make you a loan.
About the author:
Karin Boode is the founder of the Loan Info Center, who strives
to provide valuable information regarding any type of loan via
the http://www.loan-infocenter.com website.
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