Borrowing over 50,000 dollars is not something that should be done on the side. After all, the total costs for such a loan amount, depending on the term, interest rate and creditworthiness of the applicant, between USD 5000 and USD 20,000.
If you take up so much money, you usually need a loan for major debt restructuring, purchases or other extensive projects: an expensive new car, a complete home furnishing or a house renovation.
A 50,000 dollar loan is no longer a small loan
Special conditions are granted for some purposes. Often it is only a matter of tenths of a percentage point. But with high loan amounts, even the smallest interest rate advantages make a big difference.
Whether the loan should be earmarked or freely available, with a loan comparison you can really save money at 50,000 dollars.
Tip: First of all, get an overview of the market before you make a specific loan request and compare the offers.
Select the intended use, set different terms and learn how the number of providers and the credit conditions listed change.
Credit comparisons by Good Finance
Good Finance is currently the leading comparison portal. The financial service provider offers its customers excellent interest rates from the best-known direct banks. Customers benefit from the exclusive interest only available from Good Finance.
Unlike some of its competitors, the financial service provider advises its customers professionally, if this is desired. This additional service is very popular with customers and is rated positively on evaluation portals.
The default is a term of 96 months. An 8-year term with a loan amount of 50,000 dollars is not ideal, but probably realistic for many borrowers. Shorter terms lead to savings in overall costs, but also to higher rates. If a shorter term is chosen, for example, 84 months, the number of providers increases.
The general civil servant bank, which offers its loans on fixed credit terms through both comparison portals, only grants loans to public servants (employees or civil servants).
Do not only consider credit offers that you receive after inquiries through portals.
Credit comparisons primarily include offers for (special-purpose) consumer loans, the security of which is limited to assignments of wages and the signing of the contract by another person. Other credit solutions, even though the house bank, can be cheaper for a sum of 50,000 dollars.
In the case of loans with relatively large sums, it is tempting to agree on long terms because this enables lower monthly installments.
As already stated, the total cost of the loan increases. In the long term, the repayment portion of the monthly installment is lower, which results in a higher total interest burden. In addition, some banks charge higher interest rates for longer terms.
Example (as of September 2018): E-Money Bank grants installment loans up to a term of 120 months. With a term of up to 60 months, the effective interest rate is 3.69%, up to 84 months 3.79% and for terms from 96 months up to 120 months 5.79%.
Both loan comparisons allow the setting of uses. The uses of living / modernizing / furniture and furnishings, as well as vehicle financing, are of particular importance.
Some providers grant special conditions for earmarked loans. Others also offer their normal installment loans like loans for a special purpose, but without granting more favorable interest rates.
In the latter case, the ordering of special security such as the delivery of vehicle letters is generally not required.
Tip: First use “Free use” and then set the intended use. In this way, they can identify which direct banks offer real-life loans on better terms.
Requirements and guarantees
Banks operate according to different award criteria. It is therefore not possible to make a general statement about which requirements must be met for the award of 50,000 dollars.
However, the garnishment-free income must always be sufficient to be able to service the monthly payments.
The attachment tables show how high the amount subject to attachment is for a certain net income and certain maintenance obligations.
The individual creditworthiness of the credit customer and his professional status are also decisive. Loans without collateral are not granted, especially not in the amount of USD 50,000.
The loans offered through comparison portals are mostly standardized consumer loans, for which either an assignment of salary and/or the co-signing of the loan application by a solvent other person is sufficient as security, or an award is excluded. In the case of vehicle financing, the handover of the vehicle letter is accepted as security.