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A long-term loan is generally considered to be a loan with a repayment term longer than five years. Compared to other types of loans, long-term loans could be a good option if you need to borrow a large amount of money and want to keep your monthly payments low.
If you’re considering long-term loans, here’s what you should know:
- 4 long-term loans for all credit types
- How to get a long-term personal loan
- Pros of long-term loans
- Cons of long-term loans
- How to qualify for a long-term personal loan with bad credit
- Alternatives to long-term personal loans
4 long-term loans for all credit types
If you’re looking for a long-term personal loan, an online lender could be a good choice. Here are Credible’s partner lenders that offer long-term loans:
| Lender | Fixed rates | Loan amounts | Min. credit score | Loan terms (years) |
|---|---|---|---|---|
 View details | 6.99% - 24.99% APR | $2,500 to $35,000 | 660 | 3, 4, 5, 6, 7 |
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 View details | 3.99% - 19.99% APR | $5,000 to $100,000 | 660 | 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans) |
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 View details | 6.99% - 19.99% APR1 | $3,500 to $40,0002 | 660 (TransUnion FICO®️ Score 9) | 3, 4, 5, 6 |
1Rate reduction of 0.25% when enrolled in autopay. 2You may be required to have some of your funds sent directly to pay off outstanding unsecured debt. 3After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. Marcus will waive any interest incurred during the deferral and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details. 4Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. |
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 View details | 5.99% - 18.83% APR | $5,000 to $100,000 | Does not disclose | 2, 3, 4, 5, 6, 7 |
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Discover
Discover could be a good choice if you’re looking to borrow only a small amount — with Discover, you can borrow anywhere from $2,500 to $35,000. You’ll generally need good to excellent credit to qualify for a personal loan from Discover.
LightStream
You can borrow $5,000 to $100,000 with LightStream, making it a good option for funding large projects, such as home repairs and renovations. While most LightStream loans come with terms ranging from two to seven years, you might have up to 12 years to repay LightStream home improvement loans.
Marcus
Marcus offers personal loans from $3,500 to $40,0002, with loan terms up to six years. If you take out a loan with Marcus and make 12 or more consecutive monthly payments, you can defer one payment with no interest accrual for that month.
SoFi
If you’re looking for a large loan — such as a $100,000 personal loan — SoFi could be a good choice. SoFi personal loans range from $5,000 to $100,000. Taking out a loan with SoFi will also get you perks such as unemployment protection and career coaching.
Learn More: Where to Get a Personal Loan
How to get a long-term personal loan
If you’re ready to apply for a long-term personal loan, follow these four steps:
- Shop around and compare lenders. Be sure to compare as many lenders as possible to find the right loan for you. Remember to consider not only interest rates but also repayment terms and any fees charged by the lender.
- Choose the loan option you like most. After comparing lenders, pick the loan option that best fits your needs.
- Fill out the application. Once you’ve decided on the lender, you’ll need to complete a full application and submit any required documentation, such as pay stubs or bank statements.
- Get your funds. If you’re approved, you’ll need to sign for the loan so the lender can send you the money. The time to fund for personal loans is typically about a week — though some lenders might get you your money in as little as one business day.
Remember to consider as many lenders as you can to find the right loan for your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
Check Out: Loan vs. Credit Card
Pros of long-term loans
- Could have lower monthly payments
- Might be able to borrow a larger amount of money
Learn More: $20,000 Loan
Cons of long-term loans
- Could be harder to qualify for if you have poor or fair credit
- Typically come with higher interest rates (plus you’ll pay more in interest over time)
- You’ll be in debt for a longer period of time, which could make it harder to qualify for other credit
For example, say you get a $25,000 loan. Here’s how the costs would break down depending on the term you choose:
| 3-year loan | 5-year loan | 7-year loan | |
|---|---|---|---|
| APR | 4.44% | 4.94% | 5.39% |
| Monthly payment | $743 | $471 | $358 |
| Total interest paid | $1,748 | $3,266 | $5,068 |
| Total amount paid | $26,748 | $28,265 | $30,067 |
While you’d save $385 per month with the seven-year loan, you’d also pay $3,319 more in interest over time compared to the three-year loan. Before you borrow, estimate how much you’ll pay for a loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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Check Out: $50,000 Personal Loan
How to qualify for a long-term personal loan with bad credit
You’ll typically need good to excellent credit to qualify for a personal loan with a long repayment term. A credit score of 670 or higher is generally considered good.
If you have a lower credit score, getting approved for a long-term personal loan could be a challenge.
However, there are some lenders that offer loans for bad credit — just keep in mind that these will likely come with higher interest rates.
Even if you don’t need a cosigner to get approved for a loan, having one could get you a lower interest rate than you’d qualify for on your own.
Learn More: Fair Credit Personal Loans
Alternatives to long-term personal loans
If you need to borrow money, long-term loans aren’t your only option. Here are a few other choices to consider:
| Pros | Cons | |
| Credit card |
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| Home equity loan |
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| Cash-out refinancing |
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Ready to find your personal loan?
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Keep Reading: Personal Line of Credit vs. Personal Loan
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.
