9 Best Long-Term Personal Loans

» MORE: Best unsecured personal loans

Pros of taking a long-term personal loan

• 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 give you the option of a longer term to pay the loan back.

• Lower monthly payments: Loans with longer terms will 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 a monthly payment you can afford, but factor in both the interest rate and the loan term when you apply for a loan.

» MORE: Estimate monthly payments with our personal loan calculator

Cons of taking a long-term personal loan

• Higher interest rates: Lenders may charge higher rates for long-term loans because they are considered more risky. The longer you have to pay back a loan, the greater the possibility that your money situation will change in a way that prevents you from paying back the loan as agreed.

• More interest: 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 to seven years. Carrying a long-term debt means you might have to make trade-offs with future financial decisions.

When to consider a long-term personal loan

A long-term loan is ideal when you’re borrowing a large sum of money and need more time to pay it back. You may need to borrow $50,000 for a major home improvement, like a kitchen remodel, and a longer term will reduce your monthly payments.

If you want a long-term loan to consolidate multiple debts into one simple payment, consider this first: 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 allows you to get rid of debt faster than your current pace.

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

» MORE: Best debt consolidation loans

Where to get a long-term personal loan

Banks: Discover, Wells Fargo, USAA and U.S. Bank offer loan terms up to seven years. If you have a good relationship with your bank, you may be able to qualify for other benefits, like lower rates or larger loan amounts. Banks typically look for borrowers with good credit (690 credit score 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 first need to join the credit union before applying for a loan, most credit unions consider fair- and bad-credit borrowers (689 credit score or lower).

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

Next steps: Check rates on long-term personal loans

To get a long-term personal loan, you’ll first want to pre-qualify with a few lenders. Pre-qualifying gives you a preview of 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.