Subprime borrowers who are seeking small personal loans may find 60-month loans a suitable option. 60-month loans provide personal loans for borrowers with poor credit rather than payday or title loans that are risky. However, be aware that origination fees and high annual percentage rates (APR) apply.
Since this lender’s interest rate is significantly higher than online lenders, the flexible terms allow for achievable repayment. You can cover various expenses with 60-month loans like home improvement, unexpected expenses, medical costs, and more. Furthermore, if you are unable to be eligible for other forms of financing, you can consider 60-month loans. In this article, we will explain various details you need to know about the rates, terms, and eligibility requirements of 60-month loans.
60-Month Loans Interest Rates and Fees
Fees like originations, prepayment, late payments, maintenance, minimum/maximum interest rate, and other fees should be considered before applying for a personal loan with 60-month loans. With the five-point scoring system, each of these features would be assessed. Moreover, to generate a total interest rates and fees score, the different scores were included and averaged.
The interest rates & fees offer this lender a much lower-than-average score of 2.0. This represents the mean of the subsequent measurements as 1.0 indicates extremely high origination costs, 4.0 for no prepayment costs, 3.0 standard late payment fees, 1.0 represents the maximum interest rate that can be charged, and 1.0 represents the lowest interest rate that can be charged.
60-Month Loans Eligibility Criteria
Although 60-month loans might be a little hazy, their eligibility requirements are more lenient than many lenders. When assessing your loan application, 60-month loans consider two main factors. This may include your FICO Score (according to a soft credit check) and your three months’ worth of bank statements.
However, it does not state the minimum FICO score that you should need or the specific details necessary from your bank statement. Furthermore, be sure to compare rates and terms from other lenders if the loan option provided by this lender does not meet your requirements. This is to find one that will help you achieve your financial objectives.
60-Month Loans Features
With 60 month loan, you can take out loans ranging from $2,600 to $10,000. The duration of the loan differs from 24 to 60 months, depending on the state and loan amount. Certain states don’t permit you to choose the term you want. For instance, all loans are issued with a 36-month term in California. Since there isn’t a deferment period, you’ll have to start making loan payments the month after you get the money. The funds are nearly unlimited in their uses.
60-Month Loans Benefits and Drawbacks
Because of their credit scores, borrowers who would not otherwise be eligible for a loan are served by 60 Month Loans. It might be the perfect company, depending on your credit profile. Still, consider the benefits and drawbacks listed below before deciding:
Benefits
- Borrowers with poor credit might still be qualified.
- No severe credit hit.
- Simple application procedure.
- Adaptable loan conditions.
- Given that monthly payments are reported to the credit bureaus, this could aid in credit building.
Drawbacks
- High minimum annual percentage rates.
- Imposes an origination fee.
- Not all borrowers may require loans of the same size.
- Available only in 19 states.
- Not a cosigner.
- Few options for customer service.
60 Month Loans provide a personal loan with a high maximum annual percentage rate of 24.99%, as predatory. Alabama, California, Connecticut, Delaware, Georgia, Illinois, Iowa, Kansas, Missouri, Montana, New Hampshire, New Mexico, North Dakota, Oregon, South Carolina, South Dakota, Utah, Virginia, and Wisconsin are among the 19 states in which the company is active. However, since the company’s payments are reported to credit bureaus, potentially raising their credit score, borrowers with good-to-excellent credit might prefer other options.
How to Get a Loan with 60-Month Loans
Only personal loans are available online through 60 Month Loans. Instead of going to a physical location, all you have to do is fill out an application on the company’s website. To apply, take the following steps:
Complete the application
You must first apply to be eligible for financing from 60 Month Loans. Basic details like your name, contact details, Social Security number, driver’s license number (or the number of another official ID), employment information, and annual income are requested here.
Provide bank statements
Along with your application, you must submit three months’ worth of bank statements to 60 Month Loans. You can accomplish this by sending the lender PDF copies of your statements via email or by going through an automated bank verification procedure.
Wait until the underwriter calls
An underwriter will give you a call one business day after receiving your application and bank statements to ask further questions.
Sign the loan documentation
You will electronically sign your loan documents if the underwriter grants you approval. Your money from 60-month loans will typically be deposited into your bank account as soon as the following business day. If your bank places a hold on the funds, it could take up to three business days before you can access your loan.
Start making the repayment
You will begin loan repayment approximately 30 days after you receive it. In addition, your payments will be automatically taken out of your bank account on the due dates (specified in your loan agreement).
While 60-month loans accept applicants with poor credit, applicants must meet certain eligibility criteria, including having a minimum FICO score (which is not stated by the lender). Settling large amounts of outstanding debt can improve your credit score and increase your chances of being approved for a personal loan. It can also help your debt-to-income ratio.