On the surface, a signature loan may not seem like such a good deal, but think again. There are a few factors that work in the favor of the person applying for this kind of loan.

First of all, you have to think about the competitiveness of the credit marketplace. Although with most of these kinds of loans the banks won't have collateral to secure your loan with, they are still looking to profitably lend as much money as they can, because that's where all their profit comes from.

The competitiveness of different lending institutions also works in your favor because it can keep fees and interest rates low for you. When you're in a tight spot financially the last thing you want is to shell out a bunch of money for interest and fees. Lenders understand that often in this situation you're desperate, and if you are not careful, they'll take advantage of the situation. It is especially important to keep a close eye on the fine print in a situation like this.

There are nearly unlimited reasons people might need a quick overnight loan. You might have car repairs that are essential to your ability to get to and from work. Or maybe the heater in your house goes out and you're looking at some freezing nights unless you get some quick cash.

Whatever the reason, there are times that taking out this kind of loan will be justified. Just make sure you understand what you're getting into when you borrow the money. The bank is going to want repayment, and if you can't get them their money they will ruin your credit - or worse.

If your credit just isn't good enough to get a signature loan overnight, you may need to pursue other avenues. One would be to get a secured loan.

With a secured loan you would provide the lender some kind of collateral. It might be your car, or an investment account you own. Giving them this collateral protects them in the event you can't make your payments, and it allows you to get the cash you need for your emergency.