If the term “signature loan” leaves you wondering if all you need to get a loan is your signature, you’re not alone. No matter how ambiguous they seem, signature loans offer an easy way for consumers afford anything from college expenses to new furniture. But what exactly is a signature loan, and how do you get one? Being able to answer these questions can help determine if a signature loan is right for you.

What a signature loan is.

Also known as “character” loans, signature loans used to have no other requirement for approval other than a borrower’s signature and his promise to pay it back. Well, times may have changed, but obtaining a signature loan is still possible today.

* Basic Signature Loan

Like before, signature loans are still unsecured—meaning that no collateral is required to obtain them. However, expect your credit score and salary to play a role in the amount and terms of your loan. For example, having below-average credit may increase your interest rate and lower the amount of your loan. Also, expect to have a fixed payment every month until the loan is paid off.

* Student Signature Loan

Today, there are many types of signature loans, with student signature loans quickly becoming the most popular. With better interest rates, minimal income requirements, and flexible payback terms, student signature loans offer college students the ability to finance the parts of their education that regular student loans don’t cover. As a result, student signature loans are the second most popular type of student loan available.

How you get a signature loan.

Today, there are a multitude of financial institutions that offer signature loans. Banks, credit unions, online lenders, and even student loan lenders offer signature loans with interest rates and terms that vary widely. Make sure to shop around to find a loan that best serves your needs.

Who can get a signature loan?

Students can get signature loans, provided they meet certain requirements set forth by student loan lenders. Typically, lenders require that students by enrolled in school at least half-time and meet other criteria. Requirements vary greatly, so check out all of the student loan lenders (and even other lending facilities) before you make a final decision.

Other people who choose the standard signature loan must have reasonable credit and an ability to repay the loan. After that, the sky is the limit once you determine that a signature loan is right for you.