There are many uses for a $60,000 personal loan. You can use it to refinance credit card debt, pay for an emergency, renovate your home, purchase several expensive items and more. In fact, it can even be used to pay for educational expenses, depending on the lender.
However, getting a personal loan may be difficult if you aren’t aware of lenders’ requirements or don’t understand the application process. You can typically get a $60,000 personal loan from banks, credit unions or online lenders, but ultimately, whether you can get this amount will depend on your credit history. If you don’t have a strong financial history, you might not be eligible for this loan amount.
To determine if a personal loan is the best option for you, it’s important to understand the advantages and disadvantages of a $60,000 personal loan.
You can use a $60,000 personal loan for a variety of purposes, like funding emergencies or large purchases, as well as consolidating debt.
Banks, credit unions and online lenders can provide you with a $60,000 personal loan.
Managing a $60,000 personal loan properly can help you build credit and distribute the cost of large expenses over time. However, the opposite can happen if you fail to pay it back on time or default on the loan.
Pros & Cons of a $60,000 Personal Loan
While personal loans can help you out if you’re in a bind, there are pros and cons to obtaining one. Knowing both will help you determine if a $60,000 personal loan is suitable for your circumstances.
Advantages of $60,000 Personal Loans
- It can be used for almost anything: A personal loan can help pay for a renovation project, a medical emergency, credit card debt, etc. Some lenders place restrictions on the usage of funds, so it’s important to check with your lender about any limitations before you apply.
- It can extend payments for large purchases: It’s possible to pay back personal loans over a long period of time, making it ideal for expensive purchases, like home renovation projects, furniture, vacations or events.
- It can consolidate existing debt: If you owe money on credit cards or other loan products, you may be able to take out a personal loan to pay them off at a lower interest rate.
- It can help you build credit: Making timely and regular loan payments can help you improve your credit rating.
- It can offer lower interest: Compared to credit cards, personal loan terms may come with lower interest rates, depending on your credit score.
Disadvantages of $60,000 Personal Loans
- It may require collateral: Some personal loans, like secured loans, require collateral. This gives lenders more security, but can be challenging to provide if you have no assets.
- It locks you in a contract: Loans lock you into a payment schedule for a set period of time. While you may be able to pay it off earlier, you might have to pay a prepayment penalty fee.
- It may be difficult to get: Credit history is a major factor when it comes to obtaining a personal loan. You may struggle to obtain a $60,000 personal loan if you have a poor credit history or don’t have a co-signer.
- It increases your debt: Depending on how you intend to use it a $60,000 personal loan may put you further in debt. If you aren’t prepared to take on the financial responsibility to repay it, you may want to reconsider your options.
- It could negatively affect your credit score: Failure to make timely payments will negatively impact your credit score, making it difficult to apply for other lines of credit in the future.
There are predatory lenders who will take advantage of borrowers. Your lender may be taking advantage of you if you observe any of the following:
- The offer seems too good to be true
- They don’t evaluate your credit score or financial history
- They use aggressive marketing tactics
- Their fees are often excessive or not disclosed
- They do not provide an estimated interest rate before you apply, or they offer inflated interest rates
- There is a steep penalty for prepayment
- They offer refinancing as a solution for future problems
$60,000 Personal Loan Lenders
You can obtain a $60,000 personal loan through a bank, credit union or online lender. Each lender has slightly different requirements, so it’s important to compare rates, eligibility criteria and loan terms to find the best one for your needs.
Several lenders operate entirely online. This means that the entire loan process, from application submission to approval, will occur exclusively over the web.
In terms of requirements, online lenders may require the usual documents, like proof of income, personal information and credit history. However, some online lenders may not require these documents and others feature a more modest credit score requirement.
While its less stringent requirements make its loan products available to more borrowers, online lenders typically offer lower personal loan amounts than banks or credit unions. Furthermore, it may be difficult to judge if the lender is reputable. To ensure the lender is legitimate, you should carefully read any available online reviews.
Although banks are the most common place to get a personal loan, they typically have more strict requirements in comparison to online lenders. Furthermore, credit histories usually play a significant role in the underwriting process for banks. Prior to giving you an offer, they will conduct a hard inquiry of your credit report and determine your terms based on what they receive. Because of this, those with poor credit histories may want to consider applying with an online lender.
It’s important to look for lenders who offer prequalification, so you can receive an estimate on your interest rate and calculate your approximate monthly payment. If you are interested in finding out what other customers think about a bank, you can also read online reviews.
In comparison with banks, credit unions offer personal loans with more flexible requirements, rates and terms. Credit union membership is required to access these, however, and not all memberships are easy to get.
That said, if you’re considering joining a credit union to take advantage of low personal loan terms, you need to take a look at their services, perks and online banking capabilities. Unlike online lenders or banks, credit unions are more limited with their financial services and benefits.
Before applying for a $60,000 personal loan, you should compile all the necessary paperwork and information. In general, you may need the following paperwork to apply with any lender:
- Your personal identification with a photo, like a driver's license or passport
- Proof of your earnings, such as your W-2 forms and tax returns
- Information about your current and former employers, including names and contact information for managers and HR
- A lease, utility statement or other document that proves your residency
- Your co-signers information and relevant documents, if applicable
How to Apply for a $60,000 Personal Loan
Know what to expect if you are applying for a $60,000 personal loan. While the application process itself varies from lender to lender, the following steps generally apply when trying to get a personal loan.
Check your credit score
Your credit score will significantly impact your eligibility for a $60,000 personal loan. If your credit score is poor and you aren’t actively taking steps to improve it, you may reconsider applying for a personal loan.
The best way to assess your loan eligibility with a specific lender is through its prequalification process. During this step, lenders will give you an idea of the rates and terms that you’ll receive. However, it’s important to note that these terms are subject to change when you actually apply.
Before applying, you should carefully consider lenders for their interest rates, repayment terms and fees to find the best fit and deal for your situation.
Choose a loan offer
After you’ve identified all of your lender options, you can pick the one that works best for you. Ensure that you meet the lender’s eligibility criteria and that you understand all the terms of your loan agreement.
Once you’ve chosen a lender, it’s time to submit your application. This can be done either online, in person or over the phone, depending on the lender you choose. To expedite the application process, you should have all the required information and documents prepared in advance.
Receive and use funds
After your loan application is approved, your funds will be disbursed at the discretion of your lender. Some lenders disburse funds the same day, while others may take up to a few weeks.
- Identify key loan features: Compare lenders for key features of their loan products, like interest rates, repayment periods, loan amounts and borrower requirements. Some lenders only offer online services, so if in-person lending is a priority, you may want to opt for a different lender
- Check out the financial institution's further services: Review lenders for added perks, like discounts for making automatic payments or prior membership. If two lenders offer similar loan products, a seemingly small bonus, like a minor rate discount, may help you decide between them
- Include fees in your comparison: Some lenders charge fees for loan origination, prepayment or late payments. While these may seem minor at the time, they can add up over the life of your loan. Account for these fees when estimating the cost of your loan with each lender to get an accurate idea of how much you’re really paying
Frequently Asked Questions About $60,000 Personal Loans
Depending on your loan terms, a $60,000 personal loan may take several years to repay, and failure to repay could spell negative consequences for your financial future.
At MoneyGeek, we strive to provide borrowers with the knowledge needed to confidently undertake this financial commitment. That’s why, in addition to our guide, we answered the most commonly asked questions about personal loans.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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