Get a $60,000 loan

How to get a $60,000 loan

Before you fill out a loan application for a $60,000 personal loan, it’s a smart move to get prepared first.

1. Calculate what you can afford. Take a hard look at your budget and see how much cash per month you have to allocate to repay a $60,000 loan.
2. Identify lenders. Look at lenders who deal in $60,000 loans. You may also want to identify ones that handle loans with your purpose in mind. For example, for renovations on your home, find lenders that specialize in that type of loan.
3. Compare lenders. Once you’ve identified lenders that meet your basic needs, start comparing interest rates, loan terms, minimum credit requirements and other criteria.
4. Get prequalified. Pick a few lenders and get prequalified for the loan. Preapproval gives you an idea of the interest rate you can qualify for and can help you narrow your search. While you’re at it, inquire about the documentation you’ll need to provide when you apply.
5. Apply for the loan. Once you’ve picked a lender, follow the instructions to fill out a loan application and supply the necessary documents. Depending on the lender you choose, the process can be done online, in person or over the phone. In most cases, you’ll have an answer by the next business day, if not sooner.

Eligibility requirements for a $60,000 loan

Lenders vary in their requirements to qualify for a $60K loan but are mostly concerned with your credit history and income.

• Good credit score. Higher amounts, like $60,000 loans, usually require a credit score of at least 670, but some lenders work with lower scores. Lower credit scores generally equate to higher interest rates.
• Low DTI. Your debt-to-income ratio (DTI) describes your income in relation to your debt, and you can calculate yours by dividing your monthly debt payments by your gross monthly income. For a $60K loan, lenders like to see a DTI of 35% or less, but you might get by with a DTI of up to 43% or more.
• Proof of income. Whether you have a regular job, work for yourself or have other means of support, lenders need to see a steady stream of income. And you’ll need to prove it by providing documentation such as W-2s, paystubs, 1099s, bank statements or tax returns.
• 18 and US resident. In most cases, you need to be at least 18 years old and be a citizen or permanent US resident to get a $60,000 personal loan.

How to increase your chances of loan approval

One of the best ways to boost your chances of approval is to raise your credit score. You can do this by reducing your existing debts, not taking on new debt and getting a copy of your credit report to look for mistakes. You may also want to consider enlisting the help of a credit repair company.

If you think your income and credit score won’t be enough to qualify for a $60,000 loan, you might want to consider getting a personal loan that allows cosigners. However, if you can’t repay, the lender holds your cosigner responsible for the loan.

Can I get a $60,000 loan with bad credit?

To qualify for a higher loan amount of $60,000, lenders typically want a credit score of 670 or more — even better if you’re in the 700s. The higher the loan amount, the riskier it is for the lender, so they want to see a history of responsible credit usage.

However, some lenders, like Credible, may offer loans to borrowers with lower scores. Just keep in mind that you’ll likely qualify at a higher interest rate than those with better credit. But if you have a relatively high income plus a low DTI, those factors can help offset poor credit scores.

How much does a $60,000 personal loan cost?

Interest rates on personal loans can range from about 6% to 36%, with the lowest rates going to borrowers with the best credit scores. And for a $60K loan, if you have excellent credit, a healthy income and a low DTI, you could potentially qualify for an interest rate on the lower end of that scale.

In addition to interest, you may have to factor in the cost of an origination fee, which could reach as high as 10% of the loan. In most cases, the lender deducts the fee from the loan proceeds and gives you the difference. Some lenders don’t charge origination fees, but they might make up for it with a higher interest rate.

It’s also smart to be aware of any other charges that could add to the total loan cost, such as late payment charges or fees for insufficient funds if your check bounces. Plus, if you have any plans to pay the loan off early, make sure the lender doesn’t charge prepayment penalties.

Calculate your $60,000 loan payment

Use this calculator to compare monthly loan payments on a $60,000 personal loan by plugging in different interest rates and loan terms.

5 tips to get a lower rate on your loan

Here are a few tips to score the lowest interest rate on your loan:

1. Boost your credit score. A higher credit score is one of the most important factors in getting a better rate.
2. Request a shorter loan term. If you can manage the larger monthly payments, short-term loans generally come with lower interest rates.
3. Compare multiple lenders. The personal loan market is very competitive — be sure to look around to find the best deal.
4. Enlist a cosigner. If you know someone with excellent credit who is willing to cosign with you, you’ll have a better chance of getting a more competitive rate.
5. Consider a secured loan. Loans secured with collateral usually have better interest rates than unsecured loans.

How to pay off a $60K loan

Consider these ways to repay your $60,000 loan faster and save on interest charges.

• Increase your monthly payments. Anything extra you can add to your regular monthly payment will save you on interest charges and shorten the life of the loan.
• Split payments. If you pay half of your monthly payment 15 days before the due date and the other half on or before the due date, you can save on interest without shelling out any extra cash.
• Use windfalls to reduce your principal. Did you get a holiday bonus or receive a tax refund? Allocate half of any windfall money to your debt and watch the balance shrink.
• Refinance. If interest rates drop, you might be able to refinance your debt at a lower rate. Just be sure to factor in any fees involved to make sure it’s worth it.

Alternatives to $60,000 personal loans

A personal loan isn’t the only way to get your hands on $60,000.

• Use your home’s equity. If you own your house and have enough equity, you might be able to borrow against it and get access to $60K with a home equity loan or home equity line of credit.
• Consider a business loan. If your purpose for the $60,000 loan was to start or expand a business, you might want to check out some business loan opportunities.
• Look into peer-to-peer (P2P) loans. P2P lending might be an option if you don’t qualify for a $60,000 personal loan.
• Borrow against retirement. Are you years away from retirement age and have a hefty 401(k)? Consider borrowing against your retirement account to fund your project. Keep in mind that the maximum loan from retirement plans is $50,000.⁽¹⁾