Finite element analysis has been regarded as an effective research method for analyzing the loosening failure of bolted joints under vibration. However, there exist some factors, which influence the accuracy and reliability of loosening results, thus determining the explanations of the loosening mechanism. In this study, a 3D finite element model of a typical bolted joint was built to investigate the effects of several different factors on the loosening under transverse vibration loading. These influencing factors include preload generation, vibration parameter, and material model. Based on the simulation results, it was found that applying the method of pretension element to generate preload instead of the actual method of torque was reliable and efficient. For the vibration parameter, it showed that the decrease rate in preload was higher for a larger vibration amplitude. But once the bearing surface reached complete slip, the loosening rate would keep constant. This was because the thread surface at that time reached a sticking state. Vibration frequency was proved to have no effect on the loosening behavior. This result demonstrated that the quasi-static assumption for vibration frequency was reasonable. Additionally, it also indicated that plastic material models only affected the preload loss in the initial several vibration cycles and had no influence on the loosening rate of preload after several vibration cycles. Finally, experiments were conducted to confirm qualitatively the results obtained based on finite element analysis.