Considering a personal loan from 60 Month Loans? This online lender offers loans up to $10,000 with repayment terms ranging from 1 to 5 years, targeting borrowers with poor or fair credit scores by evaluating income and cash flow instead of just credit reports. While their streamlined application process and accessibility to non-prime borrowers are advantages, the major drawbacks are potentially high interest rates up to around 70% APR and upfront origination fees around 5%.
The article reviews:
- 60 Month Loans’ lending process
- Eligibility criteria
- Pros and cons
- How they compare to top competitors like LendingClub and Best Egg
- Which borrowers they may be most suitable for
What is 60 Month Loans?
60 Month Loans is a online lending platform that offers personal loans ranging from $2,600 to $10,000 with repayment terms of 1 to 5 years. As their name suggests, their loans can have lengths up to 60 months or 5 years.
They position themselves as a flexible financing option to address a variety of needs for different types of customers. Their loans can be used for things like credit card consolidation, car repairs, emergency cash, home repairs, major life events like moving or weddings, and even medical bills.
A key selling point is their accessibility – they claim to accept poor and fair credit scores by using a bank statement review process rather than just a credit check. No collateral is required either. The application is 100% online and can be done on a mobile phone or computer.
Another promoted benefit is speed and ease of funding. 60 Month Loans states their application only takes 5-10 minutes, with a decision in 1-2 business days and funding as soon as the next business day in many cases. They also offer the ability to pay loans off early without any prepayment penalties.
Not so sure about 60 Month Loans? There are other online lending platforms you can consider. Read these articles to know more about them.
How Do 60 Month Loans Work?
The Application Process
Everything starts with an online application that 60 Month Loans states can be completed in just 5-10 minutes on their website or mobile app. After submitting the initial application, you’ll need to provide your last 3 months of bank statements.
This can either be done through an instant bank account verification process or by emailing PDF copies of your statements directly to 60 Month Loans. Providing these bank statements allows their underwriters to review your income and cash flow as part of the approval process.
The Underwriting and Approval
Within about 1 business day, the underwriters at 60 Month Loans review your submitted bank statements and any other information needed. An underwriter will then give you a call to go over any final questions before providing your loan offer details.
Unlike many lenders that rely solely on credit reports and scores, 60 Month Loans takes a more holistic approach by evaluating overall income and finances. This allows them to approve applicants with poor or fair credit that may get denied elsewhere.
If you accept the loan terms and e-sign the agreement, the funds can then be deposited directly into your bank account.
Receiving Your Loan Funds
One of the key benefits highlighted is how quickly borrowers can get access to funds from 60 Month Loans after approval. Many customers reported having the money disbursed in just 1 business day after signing the loan documents.
However, they note that any loan agreements e-signed after 4:30pm CT will likely mean funding doesn’t arrive until the following business day. In most cases though, qualified borrowers can expect to receive their loan proceeds within 1-3 business days from first applying online.
The Repayment Process
60 Month Loans personal loan repayment terms range from 12 months up to 60 months (5 years). The monthly payment amounts are determined by the final loan amount, interest rate, and repayment term.
Payments are automatically debited from the borrower’s bank account on the scheduled due dates according to the repayment schedule outlined in the loan documents.
The company does not charge any fees for paying loans off early. In fact, they encourage making additional payments to pay less total interest by using a simple interest model rather than compounding interest.
Each month, 60 Month Loans reports loan payment activity to the major credit bureaus. So taking out a 60 Month Loans loan and making on-time monthly payments can help establish or rebuild credit histories over time.
Eligibility Criteria for 60 Month Loans
Here are the key eligibility criteria to qualify for a personal loan with 60 Month Loans:
- Credit Score Requirements: As a lender that specializes in non-prime borrowers, 60 Month Loans does not have a strict minimum credit score cutoff for approval. However, applicants with higher credit scores will generally qualify for lower interest rates, while those with very poor credit can expect rates towards the higher end of 60 Month Loans’ APR range up to around 70%.
- Income Requirements: 60 Month Loans does not publicly disclose a minimum income requirement. However, they do evaluate each applicant’s income sources, frequency, and overall cash flow during underwriting to determine ability to afford the proposed loan’s monthly payments based on income.
- Employment Requirements: There are no stated employment requirements in terms of job tenure or occupation. However, 60 Month Loans will verify your income sources and amounts as part of the approval process through reviewing bank statements.
- Age Requirements: Borrowers must be 18 years of age or older to apply for a personal loan with 60 Month Loans.
- Residency Requirements: 60 Month Loans is currently available to borrowers residing in the following states: Alabama, California, Delaware, Georgia, Idaho, Illinois, Missouri, New Mexico, North Dakota, South Carolina, Utah, and Wisconsin. Residents of other states are ineligible at this time.
- Debt-to-Income (DTI) Requirements: While no strict DTI ratio is published, 60 Month Loans will assess your existing debt obligations compared to income to evaluate repayment ability through cash flow analysis using provided bank statements.
- Credit History Requirements: An established credit history is generally required to get approved, though 60 Month Loans does not have a set minimum length of credit history required. Overall credit profiles including any delinquencies are evaluated.
- Other Criteria: 60 Month Loans may also consider liquid assets, down payments if applicable, and any other sources of funds an applicant wishes to supply during the underwriting process. However, income is a critical factor.
Pros and Cons of 60 Month Loans
| Pros | Cons |
|---|---|
| Accessibility: 60 Month Loans prides itself on accepting applicants with poor or fair credit scores that may get denied elsewhere. They look beyond just credit reports through bank statement reviews. | High Interest Rates: The rates on 60 Month Loans personal loans can be quite high, with APRs potentially ranging from 19% up to around 70% depending on your creditworthiness. |
| Speed: The application process is fast, with decisions often coming within 1-2 business days after applying online. Funding can arrive as soon as the next business day. | Origination Fees: There are upfront loan origination fees, usually around 5% of the loan amount, that get deducted from the funded amount. |
| Flexibility: Loan amounts range from $2,600 to $10,000 with repayment terms between 1-5 years to suit different financial needs and budgets. | Limited Loan Amounts: While flexible, the maximum loan size tops out at $10,000, which may not be enough for those with higher borrowing needs. |
| No Prepayment Penalties: You can pay off the loan early or make extra payments without any added fees to reduce your total interest paid. | Customer Service Issues: Some customers reported problems getting issues resolved when reaching out to 60 Month Loans’ customer support lines. |
| Credit Building: 60 Month Loans reports to major credit bureaus, so making on-time payments can help improve your credit score over time. |
60 Month Loans Review
The Good
The Accessibility
One of the biggest positives highlighted in reviews is how accessible 60 Month Loans is for borrowers with poor or fair credit scores. Unlike many other online lenders, they don’t just rely on credit reports and scores to make lending decisions. 60 Month Loans looks at overall income and finances through reviewing several months of bank statements.
This approach opens up personal loan options for those who may get denied elsewhere due to a imperfect credit history. Customers praised 60 Month Loans for giving them a chance when other lenders wouldn’t due to low credit scores.
The Speed
Another major pro that comes up repeatedly is how fast and easy the lending process is with 60 Month Loans. Many borrowers highlighted getting funded in just a couple business days after first applying online. The initial application itself can be completed in around 10 minutes.
Customers appreciated the efficiency of submitting bank statements, getting approved, e-signing documents, and having money deposited into their accounts in a matter of days with little hassle. The speed allows 60 Month Loans to truly provide emergency cash when needed.
The Flexibility
While 60 Month Loans’ loan amounts max out at $10,000, reviews indicate their product meets the needs of many borrowers. Loan terms ranging from 1 to 5 years provide flexibility to customize affordable monthly payments based on individual finances and income.
People used 60 Month Loans loans for everything from consolidating high-interest credit card debt to covering emergency expenses, major life events, repairs, medical bills and more. The versatility of their loan amounts and terms earned praise.
The Bad
The High Interest Rates
One of the biggest knocks against 60 Month Loans cited in reviews is the high interest rates attached to their personal loans. With APRs potentially ranging from 19% all the way up to around 70%, these are expensive borrowing options.
Many customers expressed sticker shock at the high interest rates they qualified for, even if their credit wasn’t pristine. Reviews indicate the rates can make the loans unaffordable for some budgets unless paid off very quickly.
The Fees
Contributing to the high overall cost are the upfront origination fees charged by 60 Month Loans. These fees, typically around 5% of the loan amount, get deducted from the funds the borrower receives.
For example, on a $5,000 loan there could be a $250 origination fee, so the customer would only get $4,750 deposited after fees. Several reviewers felt these fees were excessive on top of the already-high interest rates.
Customer Service Frustrations
Customer reviews were quite mixed when it came to 60 Month Loans’ customer service. On the positive side, many borrowers complimented the knowledgeable, friendly service representatives that guided them through the lending process and had their loans funded quickly.
However, other customers expressed frustrations with the lack of responsiveness, communication breakdowns, little recourse for mistakes on 60 Month Loans’ end, and an overall inability to get issues properly resolved by customer support at times.
Customers also expressed experiencing communication issues with 60 Month Loans when needing to delay or adjust scheduled payment dates in times of financial difficulty. More transparency and better systems around temporary payment plans may be warranted.
The Bait-and-Switch Feeling
Another recurring complaint ties into the transparency and clarity around loan pricing. Some borrowers felt they received a bait-and-switch after being initially pre-qualified for one loan amount and rate, only to end up with a substantially different, worse offer later in the process.
Reviews suggest there may be some disconnect in how 60 Month Loans presents their best “prime” rates versus what customers ultimately get approved for based on their financial profile review. This led to frustration for some expecting one thing based on a pre-qualification tool.
The Bottom Line – Is a 60 Month Loans Right for You
60 Month Loans can certainly be a viable option for those struggling to receive financing approval from other more mainstream lenders due to credit issues. Their approach of holistically reviewing income and bank statements rather than just credit reports and scores opens more borrowing opportunities.
The streamlined online process is also undeniably fast and convenient. Qualifying borrowers can have cash in their accounts within just a couple business days to handle emergencies or wherever funds are needed quickly.
However, the elevated interest rates and fees simply cannot be ignored. With APRs potentially reaching as high as 70%, these are extremely expensive loans from a pure cost perspective compared to pricing from other reputable online lenders and traditional banks. The origination fees only compound that high borrowing cost.
So for borrowers with reasonably good credit who qualify for lower rate personal loans elsewhere, 60 Month Loans would be an overpriced option to pursue only if truly pressed for time. The high interest charges would make little sense compared to cheaper alternatives.
But for those with very poor credit and limited options, the accessibility of 60 Month Loans does provide needed funding at a cost. As long as expectations around the steep interest rates and fees are set properly, their loans can make sense as an absolute last resort.
The key is having the ability and plan to pay the loan off as quickly as possible before excessive interest has a chance to accrue. The no prepayment penalty policy at least allows aggressive early paydown. Establishing or rebuilding credit through on-time payments is also a potential upside.
Who is 60 Month Loans Best for?
60 Month Loans is best suited for borrowers who:
Have Poor or Fair Credit
One of the biggest advantages of 60 Month Loans is their willingness to lend to non-prime borrowers with poor or fair credit histories. By evaluating income and bank statements rather than just credit reports/scores, 60 Month Loans opens up personal loan options to those who may struggle getting approved elsewhere due to imperfect credit.
However, this increased accessibility comes at a cost of higher potential interest rates of up to around 70% APR for lower-credit borrowers. But for those with limited options due to bad credit, 60 Month Loans provides a funding path.
Need Funds Quickly
Speed is another forte of 60 Month Loans, with many customers praised the fast application, approval, and funding process that can disburse loan proceeds in just 1-3 business days after first applying online in some cases. This makes them a viable option for those who need cash relatively quickly for emergencies or time-sensitive expenses.
Don’t Qualify for Lower Rates
With APRs potentially reaching as high as 70% APR, personal loans from 60 Month Loans are undoubtedly an expensive borrowing option compared to what prime borrowers with higher credit scores may qualify for at other online lenders or traditional banks. Their rates and fees make 60 Month Loans best suited for those who cannot secure lower-rate loans elsewhere due to their credit profile.
Can Payoff Loans Very Quickly
While 60 Month Loans has high borrowing costs, they do allow borrowers to pay off loans early with no prepayment penalties. So for those with the ability to aggressively pay down their balances ahead of schedule, the overall interest costs can be minimized. 60 Month Loans uses a simple interest model rather than compounding interest as well.
Need Loan Amounts Under $10,000
With loan amounts capped at $10,000, 60 Month Loans may not be an ideal fit for those seeking to borrow significantly larger sums. Their loans are better aligned with borrowers who have relatively smaller personal loan needs that fall within their $2,600 to $10,000 loan range.
How 60 Month Loans Compares to Top Competitors?
| Feature | 60 Month Loans | LendingClub | Upgrade | Best Egg | LightStream |
|---|---|---|---|---|---|
| Max Loan Amount | $10,000 | $40,000 | $50,000 | $50,000 | Varies |
| Target Borrowers | Non-prime | Stricter credit | Stricter credit | Broader evaluation | Strict credit |
| APR Range | Up to ~70% | Up to 35.99% | 8.49-35.99% | 8.99-35.99% | 7.49-25.49% |
| Origination Fee | ~5% | 3-6% | 1.85-9.99% | 0.99-8.99% | No origination fees |
| Additional Products | None | None | Credit cards, banking | None | None |
| Funding Timeline | ~3 business days | ~1 business day | ~1 business day | 1-3 business days | ~1 business day |
60 Month Loans vs LendingClub
When comparing 60 Month Loans to LendingClub, a key difference is the maximum loan amounts offered. LendingClub provides higher loan limits up to $40,000, whereas 60 Month Loans caps their loan amounts at $10,000. LendingClub also appears to have stricter credit requirements for approval compared to 60 Month Loans, which specializes in lending to non-prime borrowers with poor or fair credit scores.
However, this increased accessibility at 60 Month Loans comes with higher potential interest rates ranging up to around 70% APR, while LendingClub’s rates top out at 35.99% APR. Both lenders charge origination fees, though 60 Month Loans’ fees tend to be slightly higher at around 5%. Despite the pricing differences, the two companies are similar in advertising fast funding timelines after loan approval.
60 Month Loans vs Upgrade
Upgrade offers a broader suite of financial products like credit cards and banking in addition to personal loans, whereas 60 Month Loans focuses solely on lending. Upgrade provides higher maximum loan amounts up to $50,000 compared to the $10,000 cap at 60 Month Loans.
Credit requirements also tend to be more stringent at Upgrade. When it comes to costs, Upgrade’s possible APR range of 8.49%-35.99% is lower than the higher rates at 60 Month Loans, though both charge origination fees in a similar range. Like 60 Month Loans, Upgrade markets fast funding timelines for approved borrowers as a key advantage.
60 Month Loans vs Best Egg
Similar to other competitors, Best Egg surpasses 60 Month Loans in the maximum loan amount offered at $50,000 versus the $10,000 cap. Best Egg does evaluate more aspects beyond just credit scores when making lending decisions, similar to the approach at 60 Month Loans.
However, Best Egg’s top APR range of 8.99%-35.99% undercuts the higher potential rates at 60 Month Loans. Best Egg charges origination fees ranging from 0.99%-8.99%, while 60 Month Loans charges around 5%. Both lenders advertise the ability to fund some borrowers within 1-3 business days after approval.
60 Month Loans vs LightStream
LightStream has very strict credit standards that must be met for loan approval, unlike the more accessible underwriting process at 60 Month Loans for non-prime borrowers. This allows LightStream to offer significantly lower potential APRs in the range of 7.49%-25.49% compared to 60 Month Loans.
LightStream also has the advantage of no origination fees, whereas 60 Month Loans charges upfront fees of around 5%. However, LightStream does provide higher maximum loan amounts and lines up with 60 Month Loans in promising fast funding timelines around 1 business day for some borrowers.
Conclusion
60 Month Loans fills a niche for borrowers with poor or impaired credit histories who may struggle to get approved for personal loans elsewhere. Their willingness to look beyond just credit scores and evaluate overall income and cash flow provides much-needed accessibility. The expedited online application and funding process is also a major plus for those needing cash quickly.
However, the high interest rates and fees mean 60 Month Loans should really only be considered as an option of last resort. Borrowers with good credit who can qualify for significantly lower rates from other top lenders would be better served exploring those alternatives first.
But for non-prime borrowers with limited options, 60 Month Loans offers a potential lifeline as long as expectations around the expensive borrowing costs are set properly and the loans can be paid off aggressively before excessive interest accrues.
Frequently Asked Questions
1. What credit scores does 60 Month Loans accept?
60 Month Loans stands out by lending to non-prime borrowers across a wide range of credit scores, including poor and fair credit. Unlike many other online lenders, they don’t simply deny applicants based on low credit scores alone. 60 Month Loans takes a more holistic underwriting approach by closely evaluating your income sources, cash flow, and overall financial profile through reviewing recent bank statements in addition to your credit report.
2. What are the interest rates charged?
Due to their focus on non-prime borrowers, 60 Month Loans does charge relatively high interest rates compared to other lenders that only approve prime customers. Their rates can potentially range from around 19% APR on the lower end up to as high as 70% APR for those with the poorest credit profiles. These elevated rates help offset the increased risk of lending to bad credit borrowers. However, 60 Month Loans does provide an avenue to accessible personal loan funding for this segment.
3. Do 60 Month Loans charge any fees?
Yes, in addition to the high interest charges, 60 Month Loans also requires borrowers to pay an upfront origination fee at the time of loan funding. This fee typically amounts to approximately 5% of the total loan amount and is deducted from the overall loan proceeds disbursed to the borrower. For example, on a $5,000 loan there would be a $250 origination fee. While disclosed upfront, these fees do add further costs onto what are already high APRs.
4. How much can I borrow?
The loan amounts offered by 60 Month Loans range from $2,600 up to a maximum of $10,000. While this $10,000 cap may seem low compared to some other personal loan lenders, it aligns with their positioning of offering smaller personal loans designed to meet temporary cash needs, cover emergency expenses, consolidate smaller debt obligations, or fund minor purchases and projects.
5. What are the repayment terms?
60 Month Loans provides their borrowers flexibility by offering repayment terms between 1 year (12 months) up to 5 years (60 months). Having these varying term options from short to long allows borrowers to tailor their monthly payment amounts to best fit their respective budgets and cash flows. Longer terms mean lower monthly payments, but also mean paying more total interest over the lifetime of the loan.
6. How quickly can I get funded?
One of the key advantages of 60 Month Loans is their fast funding timeline after loan approval. Many qualified borrowers can have their loan proceeds deposited directly into their bank account as soon as the next business day in some cases. Their overall turnaround advertises funding within 1-3 business days from first completing the initial application, including time for underwriting review and final approval.
7. Does 60 Month Loans allow co-signers or co-borrowers?
No, at this time 60 Month Loans does not permit the addition of co-signers or co-borrowers on their personal loan applications. The loan decision is based solely on an individual applicant’s creditworthiness, income, and ability to repay according to 60 Month Loans’ underwriting criteria. Not allowing co-borrowers helps streamline their application process but limits options for those who may want to leverage another’s income or credit profile.
8. Can I pay off my loan early?
Yes, 60 Month Loans does allow borrowers to fully prepay and pay off their outstanding loan balance at any time, even soon after funding, without incurring any prepayment penalties or fees. This provides flexibility to borrowers whose financial situations may improve to aggressively pay down their loan ahead of schedule if they wish to minimize interest charges over the full repayment term. 60 Month Loans utilizes a simple interest accrual method rather than precomputed interest.
9. Do you report payments to the credit bureaus?
Yes, as an added benefit for borrowers seeking to build or improve their credit, 60 Month Loans does report each customer’s payment activity to all three of the major national credit bureaus (Experian, Equifax and TransUnion) on a monthly basis. By making all loan payments on time each month as agreed, borrowers can potentially help raise their credit scores over the repayment term through this reporting.
Emily Johnson is a seasoned loan expert whose passion lies in empowering individuals to make informed financial decisions. With years of experience in the lending industry, Emily has honed her expertise in various loan products and strategies.