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Long-term personal loans can be a great way to finance large purchases or consolidate debt by spreading payments out over time. However, loan amounts and repayment terms vary, and interest rates may be higher than for smaller loans.
The best long-term personal loans offer lengthy terms, competitive rates and low fees. Evaluate your borrowing needs and compare multiple lenders to find an option that aligns with your financial situation.
Best Long-Term Personal Loans
BEST OVERALL LONG-TERM LOAN
SoFi®
APR range
8.99% to 29.99%
with autopay
8.99% to 29.99%
with autopay
Editor’s Take
SoFi is an online lending platform that offers unsecured fixed-rate personal loans in every state. Founded in 2011, SoFi has extended over $50 billion in loans and stands out for allowing high loan amounts and its availability of extended loan terms.
Loans are available from $5,000 to $100,000, making SoFi a great option for those with excellent credit who need to borrow a large amount of money. Loan amounts available may vary by the state you live in. Repayment terms range from two to seven years, making SoFi an incredibly flexible option for those with sufficient credit (minimum 650) and annual income (at least $45,000). SoFi also lets prospective borrowers submit joint applications—although co-signers are not permitted.
Approved borrowers are rewarded with comparatively low APRs. What’s more, SoFi doesn’t charge origination fees, late fees or prepayment penalties—a stand-out feature because personal loan lenders often charge origination or late payment fees at a minimum.
However, if you’re considering a debt consolidating loan from SoFi, keep in mind that the lender does not offer direct payment to a borrower’s other creditors. This means the loan proceeds will be deposited to your bank account and you’ll have to pay off your other lenders individually. The platform does offer customers a number of other perks and discounts.
Pros & Cons
- Prequalification with a soft credit check
- Funding as quickly as the same day of loan approval
- Offers direct payments to third-party creditors for debt consolidation
- High credit score requirement
- High minimum loan amount
Details
Eligibility:
- Minimum credit score required. 650
- Minimum annual income. $45,000
- Co-borrowers. Permitted
- Co-signers. Not permitted
What I find impressive about SoFi is its innovative approach to lending, with a focus on providing borrowers with personalized loan options tailored to their unique financial situations.
As a small business owner, I benefited from SoFi’s competitive rates and borrower-friendly terms, which include no origination fees or prepayment penalties. Also, SoFi’s member benefits, such as career coaching and financial planning resources, add value beyond just the loan itself, making it an attractive choice for entrepreneurs looking to grow their businesses while managing their finances responsibly.
— Michael Ashley, finance expert, Richiest.com
BEST FOR LOW INTEREST RATES
LightStream
APR range
6.99% to 25.49%
with autopay
6.99% to 25.49%
with autopay
Editor’s Take
LightStream offers loans with both a low minimum and maximum interest rate, along with a rate-beat program. LightStream’s unsecured personal loans range from $5,000 to $100,000 with loan amounts varying based on the loan purpose. In addition to offering appealing and flexible terms, LightStream charges no origination, late payment or prepayment fees. The lender also offers a 0.50% rate discount for borrowers who enroll in autopay.
Pros & Cons
- Long loan terms available
- Low interest rates
- Fast approval and funding
- No prequalification option
- High minimum loan amount
- Low average customer rating on Trustpilot
Details
Eligibility:
- Minimum credit score. 660
- Minimum income. Does not disclose
- Co-borrowers. Permitted
Lightstream, a division of Trust Bank, is known for its range of loan options and competitive rates. The downside can be its strict eligibility criteria, making it difficult for those with less-than-stellar credit history to gain approval.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR FAST FUNDING & BELOW-AVERAGE CREDIT
LendingPoint
APR range
7.99% to 35.99%
with autopay
7.99% to 35.99%
with autopay
Editor’s Take
LendingPoint is an online lender based in Atlanta that offers personal loans to prospective borrowers in 48 states and Washington D.C.; it does not offer loans in Nevada and West Virginia. Prospective borrowers in eligible states can apply online and benefit from quick funding.
LendingPoint personal loans range from $2,000 to $36,500; Georgia loans have a minimum loan amount of $3,500. Repayment terms range from 24 to 72 months—or two to six years.
There are two main disadvantages to LendingPoint: high maximum APRs and origination fees. While you can typically avoid high APRs by maintaining a high credit score, LendingPoint origination fees (up to 10%) depend on the state you live in.
Pros & Cons
- Quick funding
- Low credit score requirements
- No prepayment penalty
- Origination fee up to 10%
- Co-signers or joint loans not permitted
- Not available in Nevada and West Virginia
Details
Eligibility:
- Minimum credit score. 600
- Minimum annual income. $35,000
- Co-signers. Not permitted
LendingPoint can be a good option for those who may not have a high credit score. They focus more on the potential borrower’s job history and income when determining loan eligibility and rates.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR BAD CREDIT
Upgrade
Editor’s Take
Upgrade was launched in 2017 and provides accessible online and mobile credit and banking services. Since that time, the platform has made more than $3 billion in credit available to over 10 million applicants and continues to expand its online and mobile services. Although maximum APRs are on the high end compared to other online lenders, Upgrade makes loans available to those with poor credit history.
Loans amounts, which range from $1,000 to $50,000. Upgrade has two- to seven-year terms available. Upgrade charges an origination fee between 1.85% and 9.99% of the loan, and borrowers will encounter a $10 fee if their payment is more than 15 days late or if the payment does not go through; there are no discounts for autopay. That said, Upgrade borrowers are not subject to a prepayment penalty, so you can reduce the overall cost of the loan if you’re able to pay it off early.
Beyond offering accessible personal loans, Upgrade streamlines the lending process with a mobile app that lets borrowers view their balance, make payments and update personal information. Upgrade’s Credit Heath tool also makes it easy to track your credit score over the life of your loan.
Pros & Cons
- Low minimum credit score requirement
- Offers direct lender payoff for debt consolidation loans
- No income requirement
- High APR range
- Charges fees for late payments and insufficient funds
- Charges origination fees from 1.85% and 9.99%
Details
Eligibility:
- Minimum credit score. 580
- Minimum income. None
- Co-applicants. Permitted
Upgrade’s personal loans come with a unique feature—mandatory automatic payments. While this is an effective default prevention measure, it might not suit everyone, especially those with irregular income streams.
— Jonathan Feniak, general counsel and head of finance, LLC Attorney
BEST FOR BORROWER PERKS
Discover
Editor’s Take
Discover is an online bank that also offers customers credit cards, retirement solutions and personal loans in all 50 states. As a lending platform, Discover stands out because of its online application and mobile banking tools, well-reviewed customer support team and quick funding.
In general, loans are available from $2,500 to $40,000 and may be issued for between three and seven years. So, while borrowers may get a larger loan from another lender, the repayment terms are fairly flexible. Discover charges a late payment fee and does not offer an autopay discount; however, it does not charge any origination fees or prepayment penalties, making it competitive with other top personal loan providers.
Pros & Cons
- Option to pay off creditors directly
- No origination fees or prepayment penalties
- Directly pays creditors
- Charges late fees
- Low maximum loan amount
Details
Eligibility:
- Minimum credit score: 660
- Minimum household income: $25,000
- Doesn’t allow co-signers or co-borrowers
Loan uses:
- Medical bills
- Business expenses
- Home renovation
Summary: Best Long-term Personal Loans
Tips to Compare Long-term Personal Loans
There are several factors to consider when shopping for a long-term personal loan—and this type of financing may not be right for everyone. Use these tips when comparing long-term personal loans:
- Check your credit score before you apply. Lender requirements vary, but borrowers must typically have a FICO score of at least 650 to qualify for a personal loan. When shopping for a personal loan, look up your credit score and review your credit report to better understand how lenders will view your application. Lenders generally reserve the most competitive rates and terms for the most creditworthy applicants.
- Evaluate how much you need to borrow. Long-term personal loans are usually for higher amounts than short-term loans—often up to $50,000 or $100,000. For that reason, this type of financing isn’t a good fit for consumers who only need to borrow a small amount. Avoid borrowing more than necessary by choosing a lender that offers loan amounts that align with your needs.
- Compare available loan terms. Repayment terms for long-term personal loans typically range from 60 to 84 months—five to seven years. The longer the repayment term, the lower the monthly payment, but the more you’ll pay in interest over time. Consider how much you can afford to pay each month and find a repayment term that fits your budget. Also determine whether each lender charges prepayment penalties if you pay off your loan early.
- Choose a lender with competitive interest rates. Long-term personal loans pose more risk to lenders because there is more time for the borrower to default. Lenders often charge higher interest rates on long-term loans than on short-term loans to compensate for this risk. When choosing a lender, compare available interest rates and other costs like origination fees and late payment charges.
- Determine how quickly you need the loan proceeds. Long-term personal loans can take several weeks to process while short-term loans may be available within 24 hours. If you’re in a hurry, look for lenders that offer fast approval and funding times.
What Is a Long-term Personal Loan?
Long-term personal loans typically have repayment terms between five and seven years compared to shorter-term loans ranging from one to three years. Loan amounts often extend up to $50,000 but may be available up to $100,000. Long-term loans are often offered by banks, credit unions and online lenders. Borrowers can use funds for large purchases such as home improvements or major medical bills.
How Do Long-term Personal Loans Work?
Long-term personal loans work similarly to other types of installment loans. Loans are available from banks, credit unions and online lenders, and prospective borrowers must submit an application that includes information about their income, debt and assets. Some lenders also offer a prequalification process that lets borrowers see what rate they’re likely to qualify for without impacting their credit score.
Once approved for a long-term personal loan, a borrower must make regular monthly payments until it is paid off in full—usually between 60 and 84 months, though longer terms may be available. The interest rate on a long-term personal loan depends on several factors, including the borrower’s credit score and income. However, annual percentage rates (APRs) generally range from 6% to 36%.
As with other loans and lines of credit, borrowers must make payments on time and in full. Missed or late payments can result in additional fees or an increased interest rate, depending on the lender. Lenders may also report late payments to one or more of the three main credit bureaus.
When to Consider a Long-term Personal Loan
Long-term personal loans can be a good option if you need to cover large expenses and don’t have the cash on hand. A long-term personal loan may be a good option if you want to:
- Finance a large home improvement project
- Consolidate a large amount of credit card debt or other loan balances
- Pay for a medical emergency you can’t cover with cash on hand
That said, you should not rely on a long-term personal loan to finance a vacation or make other optional purchases. Also avoid a long-term personal loan if you can afford to make the higher payments associated with a shorter-term loan.
How to Get a Long-term Personal Loan
Borrowers can get long-term personal loans from various sources, including banks, credit unions and online lenders. Loan amounts, terms and eligibility requirements vary by lender, so do your research before choosing the best personal loan for your needs. These are some of the most popular places to get a long-term personal loan:
- Traditional banks. Banks may offer long-term loans with lower interest rates and more flexible repayment terms than other financial institutions. However, they may have stricter qualification requirements than other lenders. This makes traditional banks a good option for borrowers who have a good credit score and want to borrow a large amount of money.
- Credit unions. Credit unions may offer longer loan terms to members and can be an excellent option for consumers looking for added flexibility. What’s more, credit unions often have more accessible eligibility requirements than banks and some online lenders.
- Online lenders. Online lenders tend to have faster approval times than more traditional financial institutions and can provide financing even if you have less-than-perfect credit. Online personal loans also may have faster funding times and lower interest rates than other lenders.
Pros of Long-term Personal Loans
Long-term personal loans offer several advantages over other forms of debt like credit cards or short-term loans. These include:
- Large loan amounts. Long-term loans typically come with larger loan amounts, making it easier to cover significant expenses.
- Lower monthly payments. The extended repayment period of a long-term loan can reduce your monthly payment and make it easier to manage your budget.
- Fixed interest rates. Long-term loans usually come with a fixed interest rate, meaning the amount you pay each month won’t change over time.
Cons of Long-term Personal Loans
Long-term loans may also come with some drawbacks, including:
- Higher interest rates. Long-term loans often come with higher interest rates than other types of debt, making them more expensive in the long run.
- More interest over time. Lengthy repayment periods often translate into more interest paid over time.
- Strict eligibility requirements. Banks and credit unions may have strict eligibility requirements, so research lenders carefully before applying for a long-term loan.
- High loan amounts. Long-term loans usually come with high loan amounts, so if you don’t need that much money, it could be more expensive than necessary.
Methodology
We reviewed 29 popular lenders based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at minimum credit score requirements, whether each lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
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