How To Get a $60,000 Loan

A personal loan is a flexible financial tool that can be used for nearly any purpose, from consolidating debt to renovating your home to getting through a financial rough patch. 

But because a $60,000 loan is relatively large, lenders may have stricter qualifications. By taking the right steps upfront, however, you can set yourself up for success in your loan search.

What to consider before taking out a $60,000 loan

Here’s what you should consider before applying for a $60,000 loan.

1. Know your credit history: Because $60,000 is such a large sum of money and there are fewer lenders that offer such large loans, you’ll find it’s harder to qualify for. You’ll typically need good or excellent credit (a FICO score of 670 or higher) and may need to meet certain income requirements. You should also make sure there are no delinquent accounts or recent missed payments on your credit report. You can visit AnnualCreditReport.com for free credit reports.
2. Check your budget: Personal loan terms typically range from as short as 1 year to as long as 7 years. As a result, even with a long loan term, you should expect a large monthly payment. Check your budget ahead of time to ensure you can fit the payment in with your other expenses.
3. Run the numbers to ensure a personal loan is the right option: Personal loans are flexible and can be used for many purposes, but it’s important to consider all of your options before borrowing. Consider whether home equity loans or lines of credit, for example, might be more cost-effective. Just remember that those loans are secured by your home, so you could face foreclosure if you can’t make payments.
4. Compare your options: Shop around and compare your options before choosing a loan. Many lenders allow you to prequalify, which won’t impact your credit score.

Where to get a $60,000 loan

When shopping around for personal loans, you can generally choose from dozens of options, including traditional banks, credit unions, and online lenders. However, many lenders have a maximum amount of $50,000 — or even lower, for some. As a result, you’ll have fewer options when seeking a $60,000 loan.

The good news is there are still a handful of online lenders that offer $60,000 loans. The table below breaks down three different lenders’ loan options so you can find one that works for you.

Learn More: Where Can I Get a Personal Loan?

Pros and cons of a $60,000 loan

A $60,000 personal loan can be an excellent idea in some situations, but they definitely carry some downsides. Here are some pros and cons to keep in mind:

Pros:

• Can be used for almost anything: One of the key benefits of personal loans is they can be used for nearly any legal purpose. Though some lenders have some restrictions, you can typically use them for debt consolidation, large purchases, financial emergencies, and more.
• Lower APRs: Personal loans generally have far lower annual percentage rates (APRs) than credit cards. The APR is the total cost of borrowing, including the interest rate and upfront fees the lender charges you. It gives you a better sense of how much you’re borrowing compared to just the interest rate. Whether you’re making a large purchase or considering consolidating your credit card debt, you can save a lot of money by choosing a personal loan.
• No collateral required: Personal loans are typically unsecured, which means they don’t require collateral. This makes them a good alternative to home equity loans and other secured loans, since you aren’t putting any of your assets at risk.
• Possible positive impact on credit: Despite the initial slip your credit score can take due to the hard inquiry required to get approval, a large personal loan could positively impact your credit over time. First, if you’re consolidating credit card debt, you may immediately see a jump by paying off your credit card balances. And in the long run, you’ll likely see your score increase as long as you make consistent, on-time payments.

Cons:

• Fewer lenders to choose from: There are only a handful of lenders that offer personal loans of more than $50,000. This could make it more difficult to find one that fits your needs.
• Requires good credit: In almost all cases, you’ll need good or excellent credit to qualify. Though some lenders offer personal loans to borrowers with bad credit, they generally don’t offer loans as high as $60,000.
• May take longer to repay: A $60,000 loan will result in significantly higher monthly payments than a smaller loan. As a result, you may need to choose a longer repayment term, which means it could take longer to pay off the debt.
• Negative impact on credit: Though a large personal loan can improve your credit score, it can also hurt it, especially right away. Not only do lenders perform a hard inquiry when you apply, but you’ll also be adding a new account with a high balance to your credit report.

How much will a $60,000 loan cost?

The cost of a $60,000 loan depends on your interest rate, any fees, and the repayment term. Your interest rate can be affected by several factors, including your credit score, debt-to-income ratio (DTI), and more. However, the most important factor is your credit score. The higher your credit score, the lower the interest rate you’re likely to be eligible for.

A good credit score can save you hundreds of dollars per month in interest, especially on a large loan, potentially saving you tens of thousands of dollars over the life of the loan.

The table below breaks down the estimated cost of a $60,000 loan with a three-year repayment term based on various credit profiles.

Note: This table is based on interest rates alone, not the loan’s APR — the interest rate and any upfront fees the lender charges, such as origination fees — so the overall cost may be higher. It’s wise to look at the APR when comparing loan products.

Your repayment term will also have a major impact on your loan costs. The longer your loan term, the lower your monthly payment is likely to be. However, you’ll also pay more in interest over the entire term. A short term, on the other hand, results in a higher monthly payment, but a lower overall interest cost.

For example, if you choose a seven-year loan term instead of a three-year one, you would pay between $1,098 and $1,782 per month and between $32,209 and $89,708 in overall interest costs, based on the highest and lowest credit profiles and interest rates above.

Personal Loans Calculator

If you decide to take out a personal loan, use a personal loan calculator to determine interest charges over time.

How to get a $60,000 loan

Getting a $60,000 personal loan takes a few relatively simple steps. Here’s how to get started:

1. Check your credit score: As we mentioned previously, you’ll need good or excellent credit to qualify for a $60,000 personal loan. Check your credit to ensure you have good chances of qualifying. If your credit isn’t high enough to get a loan by yourself, consider asking someone to cosign your loan. A cosigner is equally responsible for the loan if you’re unable to make payments, so keep them in the loop if you’re struggling.
2. Get prequalified: Depending on the lenders you’re considering, you may be able to prequalify for a loan to determine your eligibility without impacting your credit. Keep in mind that prequalification doesn’t guarantee approval, but it can give you a good idea of your chances. It’s also not an offer of credit, and your final rate may differ.
3. Complete your loan application: Once you’ve chosen a lender, it’s time to complete your application. You’ll have to provide personal information such as your contact information and Social Security number. You’ll also have to provide information about your employment, income, and more. Once you submit your application, the lender will perform a hard credit inquiry, which will temporarily knock your credit score down a few points.
4. Additional documentation: Your lender may ask for additional information to determine approval, such as pay stubs or W-2s.
5. Receive your loan funds: Depending on your lender, your loan application could be approved right away. And once you’ve been approved, you could receive your funds as quickly as the same or next business day, or up to a week.

Learn More: How Long Does It Take To Get a Personal Loan?

Read More:

• What To Know About Long-Term Personal Loans
• How Much of a Personal Loan Can I Get?
• Best Personal Loans for Fair Credit
• Best Personal Loans for Good Credit
• Best Personal Loans for Excellent Credit
• Best Banks for Personal Loans
• Best Credit Unions for Personal Loans