10 Best Long-Term Personal Loans

» MORE: Best unsecured personal loans

Pros and cons of long-term personal loans

Pros

• Larger loan amounts: When you want to borrow a large sum of money, perhaps for a home improvement project or to consolidate debt, lenders may offer the option of a longer term to pay the loan back.

• Lower monthly payments: Loans with longer terms have lower monthly payments than shorter-term loans. However, the benefit of having a longer term may be offset by a higher interest rate. Choose an affordable monthly payment, but factor in both the interest rate and the loan term when applying for a loan.

Cons

• Higher interest rates: Lenders may charge higher rates for long-term loans because they are considered riskier than shorter-term loans. This is because the longer you have to pay back a loan, the greater the possibility that your money situation will change in a way that prevents repayment.

• More interest paid: Unless you pay the loan off early, you will pay more in interest over the life of the loan than you would with a shorter-term loan.

• Your finances might change: Your financial picture is likely to evolve in the course of six or seven years. Carrying a long-term debt means you might have to make trade-offs with future financial decisions.

» MORE: How to choose the best personal loan term length

When to consider a long-term personal loan

A long-term loan is ideal if you need to keep monthly payments low. It can also be helpful if you’re borrowing a large sum of money and need more time to pay it back — for example, if you need to borrow $50,000 for a kitchen remodel or another major home improvement project.

» MORE: Compare home improvement loans

Before using a long-term loan to consolidate multiple debts into one simple payment, consider this: A debt consolidation loan works best if you get a lower interest rate on the loan than the combined interest rate on your existing debt, or if the loan helps you to get rid of debt faster.

For example, if it will take 10 years to pay off your credit cards, a seven-year consolidation loan may be a better option. Use our debt consolidation calculator to estimate potential savings before opting for a loan.

» MORE: Best debt consolidation loans

Where to get a long-term personal loan

Banks: Discover, Wells Fargo, USAA, Santander and U.S. Bank offer loan terms up to seven years, though you may need to be an existing customer to qualify. Customers who have good relationships with their banks may see other benefits, like lower rates or larger loan amounts. Bank loans typically go to borrowers with good credit (score of 690 or higher).

Credit unions: First Tech Federal Credit Union offers loan terms up to seven years, while Navy Federal Credit Union offers up to 15 years for home improvement loans. Credit union personal loans tend to have low rates and flexible loan features, though you’ll need to join the credit union before applying for a loan. Most credit unions consider fair- and bad-credit borrowers (score of 689 or lower).

Online lenders: Only a handful of online lenders offer longer loan terms, including LightStream, SoFi, Upgrade and Upstart. LightStream and SoFi cater to borrowers with good credit, while Upgrade and Upstart accept borrowers with fair or bad credit (629 credit score or lower). Online loans are fast and convenient, and borrowers usually receive the funds within a few days.

» MORE: Estimate monthly payments with our personal loan calculator

Next steps: Check rates on long-term personal loans

Before applying for a long-term personal loan, pre-qualify with a few lenders to preview the loan offers you might receive, without hurting your credit score.

You can pre-qualify with lenders on NerdWallet to see if you're approved for a loan, and if so, at what rate. Once you’ve pre-qualified and compared offers, you can apply for the loan.