A signature loan is a personal loan secured only by the borrower’s signature. A personal loan secured solely by a signature or one that is unsecured does not contain any collateral, such as a home or a vehicle, regardless of the lending institution’s name. On the other hand, payday loans are a generic word for various short-term credit choices, such as check loans and cash advances. Payday loans are viable for borrowers with poor credit who have no other financial resources to turn to.