Best Long-Term Personal Loan Lenders of 2024

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Personal loans can be handy when you need funding in a pinch for a big expense. Choosing a personal loan with a longer repayment term gives you more time to repay the entire balance, and your monthly payments will likely be smaller (and thus, slightly easier to budget for).

While this could mean paying more interest over the entire term, choosing a loan without a prepayment penalty and making additional payments can help you save on interest.

Most personal loan lenders give you up to five years to repay the balance. However, some solid options offer much longer repayment terms.

CNBC Select rounded up the best personal loan lenders that offer longer loan terms. We considered key factors like interest rates, fees, loan amounts and, of course, term lengths offered, plus other features including how your funds are distributed, autopay discounts, customer service and how fast you can get your funds. (Read more about our methodology below.)

Best long-term personal loans

Compare offers to find the best loan

Best for borrowing larger amounts

LightStream Personal Loans

  • Annual Percentage Rate (APR)

    7.49% – 25.99%* APR with AutoPay

  • Loan purpose

    Debt consolidation, home improvement, auto financing, medical expenses, and others

  • Loan amounts

  • Terms

    24 to 144 months* dependent on loan purpose

  • Credit needed

  • Origination fee

  • Early payoff penalty

  • Late fee

Terms apply. *AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose.

Pros

  • Same-day funding available through ACH or wire transfer (conditions apply)
  • Loan amounts up to $100,000
  • No origination fees, no early payoff fees, no late fees
  • LightStream plants a tree for every loan

Cons

  • Requires several years of credit history
  • No option to pay your creditors directly
  • Not available for student loans or business loans
  • No option for pre-approval on website (but pre-qualification is available on some third-party lending platforms)

Who’s this for? LightStream allows eligible borrowers to apply for as little as $5,000 and as much as $100,000 in funding. This is one of the largest personal loans you can get.

Standout benefits: LightStream offers loans with terms as long as 144 months (12 years), which is longer than any other lender we reviewed. It also offers a Rate Beat Program in which it will beat any competing lender’s unsecured loan by .10 percentage points.

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Best for borrowing smaller amounts

Upgrade Personal Loans

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation/refinancing, home improvement, major purchase

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

    1.85% to 9.99%, deducted from loan proceeds

  • Early payoff penalty

  • Late fee

    Up to $10 (with 15-day grace period)

Pros

  • No early payoff fees
  • Loans up to $50,000
  • Fixed interest rates (no surprises)
  • Can pay creditors directly (may take up to two weeks)
  • Fast funding in as little as four days

Cons

  • Origination fee of up to 8% (deducted from your loan)
  • Not available in Washington D.C.

Why Upgrade is the best for financial literacy:

  • Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
  • Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
  • Ability to sign up for free credit monitoring and weekly VantageScore updates

Who’s this for? Upgrade offers personal loan amounts starting at $1,000, which makes it appealing to those who only need to borrow a smaller amount. Besides, borrowers are generally advised to avoid applying for more than they can reasonably pay off — the more you borrow, the higher your monthly payments will be, assuming your loan term stays the same. Eligible borrowers have up to 84 months (seven years) to repay their loan balance in full.

Standout benefits: This lender lets you check what rate you may qualify for based on self-reported information, such as your desired loan amount and personal information, without impacting your credit score. It also accepts joint applications, which can be useful if your credit needs work.

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Best for co-applicants

SoFi Personal Loans

  • Annual Percentage Rate (APR)

    8.99% – 29.49% when you sign up for autopay

  • Loan purpose

    Debt consolidation/refinancing, home improvement, relocation assistance or medical expenses

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

  • Early payoff penalty

  • Late fee

Pros

  • No origination fees required, no early payoff fees, no late fees
  • Unemployment protection if you lose your job
  • DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
  • Can have more than one SoFi loan at a time (state-permitting) 
  • May accept offer of employment (to start within the next 90 days) as proof of income
  • Co-applicants may apply

Cons

  • Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
  • No co-signers allowed (co-applicants only)

Fixed rates from 8.99% APR to 29.49% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.

Who’s this for? SoFi allows eligible borrowers to repay their loans over up to 84 months (seven years) and allows potential borrowers to have a co-applicant. A co-applicant is someone who applies for the loan with you and is equally responsible for paying back the full loan amount.

In many cases, having a co-applicant can be advantageous since a co-applicant with a higher credit score can help you get approved for a lower interest rate and other more beneficial terms. The idea is that you may be seen as a less risky borrower since two individuals, each with a source of income, are signing on to repay the entire loan.

Standout benefits: SoFi allows eligible borrowers to apply for as much as $100,000, making it another solid contender for those who need to borrow larger amounts of money. SoFi members also enjoy various perks like rate discounts on other SoFi loans and complimentary access to financial planners.

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Best for next-day funding

Discover Personal Loans

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation, home improvement, wedding or vacation

  • Loan amounts

  • Terms

    36, 48, 60, 72 and 84 months

  • Credit needed

  • Origination fee

  • Early payoff penalty

  • Late fee

Pros

  • No origination fees, no early payoff fees
  • Same-day decision (in most cases)
  • Option to pay creditors directly
  • 7 different payment options from mailing a check to pay by phone or app

Cons

  • Late fee of $39
  • No autopay discount
  • No cosigners or joint applications

Who’s this for? Discover Personal Loans provides borrowers funding as soon as the next business day as long as their application is error-free and the loan is funded on a weekday. This option is handy if you require funding in a pinch.

Standout benefit: Discover allows applicants to check their rate online before applying without impacting their credit score. Shopping around with a few lenders can help increase your odds of landing terms that work best for you.

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Best for borrowing from a credit union

First Tech Federal Credit Union

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation, home improvement, medical bills or emergencies

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

  • Early payoff penalty

  • Late fee

Pros

  • Loans as low as $500 and as high as $50,000
  • No origination fees, application fees or prepayment penalties
  • Quick application
  • Ability to defer payments for up to the first 45 days
  • Offers a mobile app

Cons

  • Must be a First Tech member to apply; you may also be eligible if someone in your family is already a member, you or a family member work for one of their partners, you live in Lane County, Oregon or you belong to the Computer History Museum or the Financial Fitness Association

Who’s this for? First Tech Credit Union is ideal for those who prefer to bank with a credit union to potentially get lower rates and better terms. The credit union offers loan terms as long as 84 months.

You must be a First Tech member to apply for this loan, but there are many ways to join. You can qualify if someone in your family is already a member, you or a family member work for a partner company, you live in Lane County, Oregon or you belong to the Computer History Museum or the Financial Fitness Association.

Standout benefits: You can check your two-year loan rate before applying without impacting your credit score.

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Best for secured loan option

Best Egg Personal Loan

  • Annual Percentage Rate (APR)

  • Loan purpose

    Debt consolidation, home improvement, moving expenses, major purchases, adoption and more

  • Loan amounts

  • Terms

  • Credit needed

  • Origination fee

    0.99% to 8.99% of the loan amount

  • Early payoff penalty

  • Late fee

    $15 fee if the borrower’s bank account has insufficient funds

Pros

  • Possible to secure financing in as little as 24 hours
  • An average APR discount of 20% compared to their unsecured loan*
  • Factors besides credit scores are considered when applying
  • Access to Best Egg Financial Health

Cons

  • 0.99% to 8.99% origination fee
  • Home may be difficult to sell or refinance before the secured loan is repaid

*The Best Egg Secured Loan is a personal loan secured using a lien against fixtures permanently attached to your home such as built-in cabinets, light fixtures, and bathroom vanities. Rest assured, your home itself will not be used as collateral.

Who’s this for? Most personal loans are unsecured and many lenders don’t offer the ability to secure them with collateral. However, Best Egg offers the option to secure a personal loan using permanent fixtures in your home as collateral. Permanent fixtures can include built-in cabinets, light fixtures, shelving and more. With this option, borrowers do not need to put up personal possessions or the home itself as collateral, according to the lender’s website.

Standout benefits: Best Egg allows for repeat borrowers, however, when applying for a second loan your total outstanding loan balance cannot exceed $100,000.

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More on our top long-term personal loan lenders

LightStream

Upgrade

SoFi

Discover

First Tech Federal Credit Union

Best Egg

Common personal loan definitions you should know

Here are some common personal loan terms you need to know before applying.

FAQs

What is a long-term personal loan?

A long-term personal loan is a personal loan that offers a longer amount of time to repay the balance. Many personal loan lenders give borrowers up to 60 months (five years) to repay their loan, but some offer longer terms (six years or more).

Keep in mind that because personal loans are a form of installment credit, borrowers must repay the balance in fixed, equal monthly amounts for a specified period.

How big of a personal loan can I get?

Personal loans can range in size from $500 to $100,000. Before you apply, consider how much you can afford to make as a monthly payment. Also, keep in mind that your creditworthiness may also determine the size loan you qualify for.

How does a personal loan impact my credit score?

As with any other form of credit, personal loans can impact your credit score positively or negatively. When you apply for a personal loan, a lender launches a hard inquiry on your credit report, which can result in a slight credit score dip at first. However, getting a personal loan can contribute to diversifying your credit mix, which may improve your credit score. Making on-time loan payments consistently can also improve your credit score over time.

How is my personal loan rate decided?

As with any other form of credit, your interest rate for your personal loan is decided based on factors such as your credit score, credit history, income, the loan’s size and term. Keep in mind that when taking on a personal loan with a longer repayment term, you may be subject to higher interest rates.

What credit score is needed for a personal loan?

A credit score in the good to excellent range (a FICO score of 670 or higher) is generally needed for a personal loan but some lenders consider fair or poor credit scores as well. Just keep in mind that the lower your credit score, the higher your interest rate may be.

Bottom line

If you need a personal loan that gives you a longer runway for repayment, there are several solid options. Just remember to consider factors like the amount you need to borrow, the interest rate and credit score needed for approval.

Why trust CNBC Select?

Our methodology

To determine which long-term personal loans are the best, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions, that come with no origination or signup fees, fixed-rate APRs and flexible loan amounts and terms to suit an array of financing needs.

When narrowing down and ranking the best personal loans, we focused on the following features:

  • No origination or signup fee: None of the lenders on our best-of list charge borrowers an upfront fee for processing your loan.
  • Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary, making your budget easier to plan.
  • Flexible minimum and maximum loan amounts/terms: Each lender provides a variety of financing options that you can customize based on your monthly budget and how long you need to pay back your loan.
  • No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
  • Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
  • Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
  • Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
  • Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
  • Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $500 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

After reviewing the above features, we sorted our recommendations by best for overall financing needs, borrowing larger amounts, no fees, low credit scores and next-day funding.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more. 

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.



Sumber: www.cnbc.com

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