Lower your monthly payments with the 5 best long-term personal loan lenders (2024)

Personal loans can come in handy when you need funding in a pinch for a big expense. Of course, it's important to remember that any money you borrow would need to be paid back with interest. 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).

The drawback to having a personal loan with a longer repayment term is paying more interest charges over the life of the loan. However, if you choose a loan that doesn't charge a prepayment penalty, you can make additional payments whenever you can to pay off your loan faster and save on interest.

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

CNBC Selectrounded up five of the best personal loan lenders that offer longer loan terms. When compiling our list, we looked at key factors likeinterest 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 ourmethodologybelow.)

• Best overall:LightStream Personal Loans
• Best for borrowing smaller amounts: Upgrade Personal Loans
• Best for co-applicants:SoFi Personal Loans
• Best for borrowing from a credit union: First Tech Credit Union Personal Loan
• Best for next-day funding:Discover Personal Loans

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Who's this for? LightStream offers loans with terms as long as 144 months (12 years), the longest term on this list. Aside from that, this lender allows eligible borrowers to apply for as little as $5,000 and as much as $100,000 in funding. While LightStream approves applicants with good credit scores (670–739), having an even higher credit score can allow you to qualify for the lowest interest rates, longest loan term and more funding.

Its loans can be used for just about anything except higher education and small business. If applying for a loan for debt consolidation purposes, just keep in mind that this lender doesn't offer an option to pay your creditors directly; you'll need to manually pay creditors using the funds.

Who's this for? Upgrade gives eligible borrowers up to 84 months (seven years) to repay their loan balance in full. This lender also 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.

This lender caters to borrowers with fair credit or better, so if your credit score is on the average side, your application will still be considered.

Who's this for? SoFi allows eligible borrowers to pay back their loans over the course of up to 84 months (seven years). What sets SoFi apart is the ability for 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 ahigher credit scorethan you can help you get approved for a lower interest rate and other more beneficial loan 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. Not all personal loan lenders allow co-applicants but SoFi does — especially for those who are DACA recipients.

Who's this for? First Tech Federal Credit Union offers loan terms as long as 84 months (seven years) and loan amounts ranging from $500 to $50,000. Since it's a credit union, you must be a First Tech member to apply for this loan. Alternatively, you can qualify 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.

If you'd like to check your rate before you apply, First Tech uses your information to run a soft inquiry — meaning your credit score won't be impacted — to quickly give you a personalized rate for a two-year loan term.

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.

Borrowers can choose between five set loan terms: 36, 48, 60, 72 and 84 months. Borrowers who need a longer period of time to pay back the loan can elect to take on the 72-month or 84-month terms. The maximum loan amount of $35,000 is on the lower end compared to that of other lenders on this list. Though, if you don't plan on borrowing more than $35,000, that shouldn't be a deterrent for you.

A long-term personal loan is simply apersonal loanthat offers a longer amount of time to repay the loan balance. Many personal loan lenders give borrowers up to 60 months (five years) to repay their loan, however, some lenders stand out from the rest by offering even 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 of time.

As with any other form of credit,personal loans can impact your credit scorepositively or negatively, depending on what's already on your credit report. 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 can improve your credit score. Making on-time loan payments consistently can also improve your credit score over time.

As with any other form of credit, your interest rate for your personal loan will be 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.

CNBC Selectnow has a widget where you can put in your personal information andget matched with personal loan offerswithout damaging your credit score.

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

• Co-applicants or joint applications:A co-applicant is a broad term for another person who helps you qualify by attaching their name (and financial details) to your application.A co-applicant can be a co-signer or a co-borrower. Having a co-applicant can be helpful when yourcredit scoreisn't so great, or if you're a young borrower with little credit history. If your co-applicant has a good credit score, you might be offered better terms, including qualifying for a lower APR and/or a bigger loan. At the same time, both applicants'credit scoreswill be affected if you don't pay back your loan, so be sure that your co-applicant is someone you feel comfortable sharing financial responsibility with.
• Co-signers:A co-signer agrees to help you qualify for the loan, but they are only responsible for making payments if you are unable to. The co-signer does not receive the loan, nor do they necessarily make decisions about how it is used. However, the co-signers credit will be negatively affected if the main borrower misses payments or defaults.
• Co-borrower:Unlike a co-signer, a co-borrower is responsible for paying back the loan and deciding how it is used. Co-borrowers are usually involved in decisions about how the loan is used. Some lenders will only consider two co-borrowers who share a home or business address, as this is a firm indicator that they are sharing the responsibility of money in mutually beneficial ways. Both co-borrowers'credit scoresare on the hook if either one stops making payments or defaults.
• Direct payments:Some lenders offer direct payments when you select debt consolidation as the reason for taking out a personal loan. With direct payments, the lender pays your creditors directly, and then deposits any leftover funds into your checking orsavings account. Until you see your account balance is fully paid off, it's best to keep making payments so that you don't get hit with additional late fees and interest charges.
• Early payoff penalty:Before you accept a loan, look to see if the lender charges an early payoff or prepayment penalty. Because lenders expect to get paid interest for the full term of your loan, they could charge you a fee if you make extra payments to pay your debt down quicker. The fees could equal either the remaining interest you would have owed, a percentage of your payoff balance or a flat rate.
• Origination fee:An origination fee is a one-time upfront charge that your lender subtracts from your loan to pay for administration and processing costs. It is usually between 1% and 5%, but sometimes it is charged as a flat-rate fee. For example, if you took out a loan for $20,000 and there was a 5% origination fee, you would only receive $19,000 when you got your funds. Your lender would get$1,000 of the loan off the top,and you'd still have to pay back the full $20,000 plus interest.It's best to avoid origination fees if possible. Having a good to excellentcredit scorehelps you qualify for loans that don't have origination or administration fees.
• Unsecured versus secured loans:Most personal loans are unsecured, meaning they are not tied to collateral. However, if yourcredit scoreis less-than-stellar and you're finding it hard to qualify for the best loans, you can sometimesuse a car, house or other assetsto act as collateral in case you default on your payments. When you put an asset up as collateral, you are giving your lender permission to repossess it if you don't pay back your debts on time and in full.

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To determine which long-term personal loansare the best,Selectanalyzed 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 disbursem*nt: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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