Best long-term personal loans

A longer loan term typically has smaller monthly payments than a loan with a shorter term. For example, a $10,000 personal loan with an 18% APR and a two-year repayment term would cost around $500 per month. The same loan paid over a five-year term would cost about $250 a month. However, you'd pay around $2,000 in interest over two years compared to more than $5,000 over five years.

Long-term loans may be the best fit for you if you need more time and smaller payments to repay your debt. Compare lenders to find the best long-term personal loans and rates, and learn what factors are most important when considering whether a longer personal loan is right for you.

Compare long-term personal loan rates

What are long-term loans and how do they work?

Long-term personal loans generally have repayment terms of five years or longer, though there's no set definition for what qualifies as a "long-term" loan. As mentioned, a longer repayment term spreads your balance out to give you smaller monthly payments, but this means paying more interest to finance the loan than you would with a shorter term.

When you get approved for a long-term personal loan, you'll receive a lump sum and make payments to your lender each month until you pay it off. Personal loans are generally unsecured loans with fixed annual percentage rates (APRs) and set monthly payments. The APR accounts for the interest rate and any upfront fees, such as an origination fee.

Short-term vs. long-term personal loans

A short-term personal loan typically has a repayment period of two years or less. It works the same as a long-term personal loan, but you pay it off in less time.

Generally, you pay less interest overall on a short-term loan than a long-term loan with the same APR because your balance has less time to accrue interest. Short-term loans often have lower APRs than long-term loans as well because they present less risk to lenders, who will see a return on their investment more quickly. However, monthly payments are higher with a short-term loan because your debt is spread over fewer payments.

The following table compares monthly payments and total interest for a $15,000 personal loan with various repayment terms.

Pros and cons of long-term loans

Pros

• Longer time to pay: By extending your payments over several years, you'll have more time to pay off your balance. And if you decide to pay off your loan early, most lenders will let you do so without charging a prepayment penalty.
• Smaller monthly payments: A long-term loan offers smaller monthly payments than a short-term loan, giving you extra room in your budget for other expenses.
• Potential for larger loans: Some lenders offer longer terms on higher loan amounts. For instance, Lightstream offers repayment terms up to 84 months if you need a $100,000 debt consolidation loan - but if you only need a $5,000 debt consolidation loan, the longest term you can get is 72 months. It may also be easier to qualify for a larger loan with a longer repayment period.

Cons

• Can have higher interest rates: Long-term loans often come with higher interest rates than short-term loans, which can significantly increase how much you pay for your loan.
• Not available from all lenders: Many lenders don't allow repayment terms past five years.

How to get a long-term personal loan

Long-term personal loan requirements vary by lender, and you'll need to meet a lender's criteria to get approved for a loan. Generally, lenders look at your credit score and history, debt-to-income ratio (DTI), and income and employment information when considering your application.

Check your credit report for free with AnnualCreditReport.com before researching lenders. Review your personal information, current account balances, and inquiries for accuracy, and contact the reporting credit bureau to fix any mistakes as soon as possible. Then, check your credit score via a free app so you can review it against lender minimums.

This gives you an idea of where your credit stands in order to find lenders that tend to approve borrowers with credit profiles similar to yours.

Next, go through the prequalification process with multiple lenders before applying to see loan terms you may be eligible for. Loan prequalification won't impact your credit score like an official application will, and it allows you to compare potential repayment terms, monthly payments, and APRs based on a soft pull of your credit report.

How to apply for a long-term personal loan

Follow these steps to apply for the best long-term personal loans:

1. Prequalify: Learn what loan terms you might be eligible for by prequalifying with several lenders to compare potential loans without affecting your credit. Prequalification does not guarantee approval, but it can show you what you might be eligible to borrow.
2. Compare loans: Compare your prequalification quotes. Review APRs, repayment terms, monthly payments, and loan amounts to decide which might be best.
3. Apply: Once you find a loan, apply with the lender. The lender will review your credit and income, and use a hard inquiry to check your credit report, which can temporarily lower your credit score.
4. Review your loan offer: If approved, the lender will send you an official loan offer. Review its details, including the APR, repayment term, and fees. This offer may differ from your prequalification quote. If you accept the loan, sign the offer.
5. Get your loan funds: Most lenders send your loan funds via direct deposit, sometimes as soon as the same business day you're approved or on the next business day.

What are long-term loan interest rates?

The interest rates for long-term loans typically vary by credit score, with higher scores generally correlating with lower rates. The following table illustrates how potential loan rates differ for various credit scores and different loan terms.

Best long-term personal loans

Upgrade: Best for fair credit

SoFi: Best overall

LightStream: Best home improvement loans and low rates

Universal Credit: Best debt consolidation loans for bad credit

Splash: Best quick loans for good credit

Best for military: Navy Federal

Est. APR: 8.99% to 18.00% APR

Loan Amount: $250 to $50,000

Min. Credit Score: Does not disclose

Repayment terms: Up to 15 years (home improvement loans and savings secured loans), up to five years otherwise

Pros and cons

Pros

• No origination fees or prepayment penalties
• Low maximum APRs
• Same-day funding
• Small loan amounts available
• Rate discount for military members
• Some loans offer 15-year repayment terms

Cons

• Must qualify for credit union membership

More details

Overview Navy Federal Credit Union offers low APRs and a wide range of loan amounts, with particularly long terms for home improvement loans and savings secured loans. However, you must become a member of the credit union to qualify to take out a loan or open an account. Membership is restricted to active or retired military members or Department of Defense personnel and their families.

If you are eligible to join, this credit union is a good option for personal loans, including debt consolidation and home improvements loans, especially if you're eligible for a low-rate loan secured by your Navy Federal savings account or CD. Navy Federal does not disclose specific credit requirements, but it does permit co-applicants on loans.

Methodology

Our team gathered over 700 data points on two dozen lenders to identify the best long-term personal loans. We considered a wide range of criteria, including rates and terms, loan fees, eligibility, customer satisfaction and lender access, funding times, discounts, minimum credit score and income requirements and the availability of secured loans and cosigned loans. We eliminated lenders that only offer loan terms of five years or fewer. Most lenders are financial partners of Fox Money.

Read our full lender rating methodology for more information.

Tips on comparing long-term personal loans

Always compare several features of loans and lenders to find the best long-term personal loan for you. Here's what to look for:

• Repayment terms: Long-term personal loans usually have repayment terms of at least five years, but some lenders may give you longer than 10 years to repay your loan, such as LightStream, which offers up to 20 years for home improvement loans, and Navy Federal, which offers 15 years for home improvement and savings secured loans.
• Loan amounts: Look for a lender that lets you borrow the amount you need. Many lenders offer $1,000 or $2,000 loans with maximum loan amounts up to $50,000 or $100,000, but available amounts can vary by term.
• Interest rates: A loan's interest rate directly affects how much you'll pay to borrow money. A lower interest rate can help you save money on a long-term loan, but many lenders require at least good credit to qualify for the best rates.
• Fees: Some lenders charge origination fees, deducted from your funds upfront, to process your loan. Consider applying with lenders with no fees to avoid extra loan costs.
• Lender requirements: Not all lenders have the same criteria for applicants, and some are friendlier to poor or fair credit than others. Look for lenders that offer loans for bad credit if you've had challenges getting approved.
• Funding times: Consider a lender's typical funding times before applying. Some can take a few days to fund your loan once approved, but others offer same- or next-day funding.

What are the requirements for a long-term loan?

When you apply for a long-term personal loan, lenders generally consider the following criteria:

• Credit: Lenders review your credit when you apply to borrow money because it can give them an indication of how responsible and experienced you are with repaying debt. Some institutions prefer applicants with at least good credit (a FICO score of 670), but some accept applicants with lower scores. Lenders also consider other aspects of your credit report, including whether your payments have been on time, the type of credit you have, and the length of your credit history.
• DTI: Your DTI compares your debt to your income. Lenders generally like to see a DTI of 36% or lower, but this doesn't mean you can't qualify for a loan with a higher DTI. Find your DTI by dividing your total monthly debt by your monthly income. Multiply that number by 100 to get your DTI as a percentage.
• Income: While no specific income will automatically qualify you for a loan, your lender will want to make sure your income is high enough to reasonably afford your payments. A lender may decide not to approve you if it deems your income insufficient, or you might be approved to borrow less than you requested.
• Employment history: A lender may want to know how long you've been employed at your current job or whether there have been several lapses in your employment over the past couple of years, in addition to asking how much you earn. Employment information is especially important for you if you have variable income because it helps lenders verify your ability to repay a loan.
• Verification documents: When applying, you'll likely need a form of identification, like a driver's license, photo ID, or passport, to verify your identity. Lenders also may ask you to verify your address and/or income. To prove your address, you can usually use a utility bill, lease agreement, or something similar. To verify your income, you may be asked to provide pay stubs, bank statements, and/or tax returns. A lender may also accept a statement from your employer if you've recently changed jobs or have variable income.

FAQ

When should you consider a long-term loan?

A long-term loan can be a good choice if you need a large loan and want to pay it over several years to reduce your monthly payments. For example, if you need to borrow $50,000 for home repairs, you might apply for a five, six, or seven-year loan to have more time to pay it off.

What is the longest term personal loan?

Many lenders offer personal loans with terms of up to five or seven years. However, some have much longer repayment terms. Navy Federal Credit Union, for example, offers 15-year home improvement loans, and LightStream provides select personal loans for up to 20 years.

How big of a personal loan can I borrow?

Lenders typically set borrowing limits of $50,000 or $100,000 for personal loans. You can prequalify with multiple lenders to see how much you might be eligible to borrow. Then, when you officially apply, a lender will decide whether to approve you and determine the exact amount you're approved for based on factors like your credit history, income, and DTI.

Where can I get a long-term personal loan?

Several lenders, banks, and credit unions offer long-term personal loans with repayment terms of five or more years, including LightStream, Discover, and SoFi. The repayment terms you qualify for may vary by lender.

Note that some lenders reserve the longest personal loan terms for current customers or loans of $5,000 or more. U.S. Bank, for instance, provides terms up to 84 for customers but 60 months for non-customers, and PNC Bank only offers loans of less than $5,000 for terms of less than five years.

Can I get a long-term loan with bad credit?

Some lenders may approve you for a long-term loan if you have bad credit, but you may not qualify for the best interest rates. Consider applying with a well-qualified cosigner to improve your chances of getting a long-term loan with bad credit. You can also prequalify with multiple lenders to see if you might be eligible for a loan before you apply.