Lenders can check credit when determining applicant eligibility for a signature loan.  A signature loan, also known as an unsecured loan, considers the applicant’s signature as a promise to repay the loan without needing to put up any collateral. Since there are no assets tied to the agreement, lenders typically rely heavily on the borrower's creditworthiness when assessing their eligibility to repay a loan. This includes evaluating the borrower's credit history, credit score, income, debt to income ratio, and any other relevant financial factors. The credit check helps the lender determine the terms and conditions of a loan proposal, including the interest rate, loan amount, and repayment period. While a higher credit score can certainly help obtain a loan with more favorable terms, there are some lenders willing to extend offers for signature personal loans for bad credit borrowers.