Best 10 Long Term Loans of 2024 for Bad Credit Holders

We all needed a loan for all the different reasons in the world. Whether it is for buying a house or a car or starting a startup, life is not always so cheap! But not everyone has a good credit score to get easily approved for loans. So, does this mean that you do not have any options? False! There are several financial institutions or banks willing to extend long term loans to individuals with poor credit but on some terms and conditions.

If you have a low score but want a loan, this article will help you out. Keep reading to know your options.

Long Term Loans for Bad Credit

Long term personal loans help you go through difficult financial situations. However, banks and financial institutions have set the bar for credit scores so high that nowadays, it is difficult for everyone to achieve that score. But that does not end all your options. There are some vendors willing to provide long term personal loans for bad credit. If you wish to get a loan for yourself but worry because your credit score is not good, don’t worry. Below listed are unique suggestions for the best long term loans.

1. LendingPoint

LendingPoint offers a lower rate, however, it is their lending amount. This means that LendingPoint offers a lower lending amount as compared to most of its lenders. But this does not make it a bad choice. The rates are pretty reasonable and you can even go through pre-qualifications to know the rate you will have to pay. 

Apart from this, the application process is pretty smooth and easy. It will only take a few minutes to apply and you can even get approved within seconds. You can even choose a payment date as per your suitability.

Features

Pre Qualifications

You can fill out pre-qualifications to get a clear picture of whether or not you are suitable and will get approved. In this pre-approval, you will also get to know what rate will be applied to your loan along with different long term loans offers. Your credit score will not be affected because pre-qualifications only perform soft checks.

Flexible Payment

LendingPoint will not allow you to change the date of payment when you are signing the loan. However, after closing you can switch to a more suitable due date. This offers you flexibility according to your income plans. You can edit the date once per year.

Easy Application

The application process is quite easy. It is not complicated and takes only a few minutes to fill out all the details. The same is the pre-qualification. Having said that, it is also possible that you get approved within a few seconds of applying. You will get funding and will be transferred the very same day if the application is submitted and approved before noon Eastern time. After that, you will get it the next day.

Mobile Application

LendingPoint also offers you to fill out pre-qualifications, and applications, and manage your loan and payments, through the comfort of your home with its mobile application. This application allows you to track your credit score and offers tips to build a good one.

Qualifications

• You have to be at least 18 years or older.
• A credit score of at least 600 and six months of a credit report.
• You will need to provide a government-issued photo ID of the U.S. federal, state, or local.
• You must have a social security number.
• Your annual income should be at least $35000.
• You should have a legal and verified bank account in your name.
• Not belonging to Nevada or West Virginia.
• DTI should be 50%, excluding mortgages.

How to Apply?

• Firstly, you will have to go through pre-qualifications from their official website. Add your details including your SSN. You can only move forward if qualified here. 
• If qualified, you will be shown up to 12 offers with the amount of long term loans and permission to alter repayment options.
• Once you have selected the most suitable offer, you will have to submit a proper application with all the documents. The documents required will be on your form itself. Also, qualifications are already stated above. A hard credit pull will be performed once the final application is submitted.
• After approval, prepare repayment plans and make sure to manage loans and payments properly.

2. Avant

If you are someone with bad credit and looking for long term loans, Avant might be a good choice for you. Although it does not offer credit-building facilities but approval procedure is fast and so is the funding. You will have to pay orientation fees and late fees. Avant requires you to have a credit score as low as 500 to 600.

Avant offers pre-qualifications where you can get a clear picture of your eligibility, approval, rates, and loan amount (approx). The annual percentage rate varies from 9.95% – 35.95%. Avant allows you to refinance the loan in order to get an interest rate at a low limit.

Features

Quick Funding

Avant states that your loan will be approved within a day and all the funds will be transferred the very next day. This feature is useful for those requiring immediate long term bad credit personal loans.

Pre Approvals

Pre-approvals or pre-qualifications require you to fill out a simple form wherein a soft check will be performed and you can get a picture of the loan amount and rates you might be getting. In this soft check your credit score is not harmed at all, however, you still get a clear image of where you stand and whether you will get approved or not.

Flexible Payment Date

Initially, you cannot change the payment dates. However, during the repayment term, you will be given up to two chances to edit your date of payments as suitable for your pocket. Therefore you can leverage this feature in case of any unexpected twists on your income. 

Application

The Avant mobile application helps you to manage your loan and make payments quickly and easily. You can get your loan report and every transaction with this app.

Qualifications

• You must have a proper bank account in your name.
• A social security number that is valid.
• At least 550 credit score and credit report of one account.
• Monthly income should at least be $1200.
• Debt to income should be 70%, including mortgage.
• No report of bankruptcy.

How to Apply?

• You will have to initiate the pre-qualification process. Enter all the appropriate and correct details. After a soft check, if you are qualified, you will be permitted to move further.
• Next, review and select an offer. Avant will present all the long term loans offers with loan amounts and additional charges like orientation fees. A breakdown of your loan term, APR, and monthly payments will also be visible. You can see this breakdown for more than one offer. 
• Once an offer is selected, submit the final application. A hard credit check will be performed and all your documents and information will be verified along with your credit. 
• If approved, you will have to prepare a plan for repaying. 

3. Upgrade

Upgrade offers online personal long term loans with bad credit via Cross River Bank and Blue Ridge Bank. Along with loans, and personal credit lines, you will also get tools to monitor and manage your credit score. However, if you are looking for a lower APR, you might want to reconsider because Upgrade’s initial APR is relatively higher than most of its competitors. 

You will have to pay an orientation fee and a late payment fee as well. It allows its borrowers to apply a joint application which eventually lowers the APR. Upgrade offers a secured loan option for those who are not approved for unsecured loans, using your vehicle as collateral.

Features

Secured Loan Options

Secured loan refers to those that require you to put down something as collateral. Upgrade offers secured loans for individuals who are declined for unsecured loans. Therefore, you can keep your vehicle as collateral and get a loan.

Pre Qualification

You can go through pre-qualification before actually applying. This will help you know the approx. loan amount and rate. You will also know whether or not you have a chance of getting approved by Upgrade for long term loans.

Discount

If you turn on the auto payment option, you will get a 0.5% discount on your payments. This helps you save a few bucks on your payments.

Credit Monitoring

You will get a credit score simulator that will give you a rough picture of your credit score. You will also get the latest summary of your credit report. Therefore you can easily keep track of your credit score and thus build it. Upgrade also provides tips and tricks to build a good credit score.

Mobile App

The mobile application will offer credit-building facilities and loan-managing features. You can repay your loans and track all the transactions through this app.

Qualifications

• You must be a U.S. citizen or resident or have a valid U.S. visa.
• Must have a valid email id.
• You must be at least 10 years old in most states.
• A bank account that is verified and in your name.
• 560 credit score.
• Credit report of at least one account.
• You should have a minimum of 2 years of credit history.
• DTI should be 75%, including the mortgage and loan you are applying for.

How to Apply?

• Go to Upgrade’s official website and fill out pre-qualifications. Also, select whether you want to fill out a joint or individual application. 
• If qualified, review different loan options. Select the most suitable one out of all.
• Submit all the documents along with your final application. 
• Once you are approved, you will receive funds in one day. If an upgrade is directly paying off your debts, it might take longer.
• Start with your repayment planning and always make payments on time in order to grow your score.

4. MyAutoloan.com

If you are looking for the best long term personal loans for an automobile purchase, MyAutoloan.com is your savior. It is a marketplace for auto loans. It is the best option for individuals with bad credit. The application is smooth and everything you provided is confidential and secured. However, you still need to have around $21000 annual income. 

All MyAutoloan.com asks you to fill out a form with the correct details, and you will be matched with 2 to 4 lenders, accordingly. Since the matches will be according to the details you provide, so make sure they are accurate. You can research all the options MyAutoloan.com provides and select the best out of all.

Features

Multiple Offers

Best for individuals who want to look around before sticking to a lender. It will offer you 2 to 4 options as per the information given by you yourself. You can check out all the options and select the best of the ones given to you.

Fast Approval

It is known for its fast approvals. You can get approved as early as 30 seconds after application submission. Moreover, the application procedure is pretty smooth and easy. It can be completed within a few minutes.

Management Tools

This auto long term loans provider’s website offers some helpful tools. You can get a rate calculator that will approximately tell you the rate you will be charged. Other than this, the payment calculator will calculate your monthly due payments.

Different Auto Loans

MyAutoloan.com offers different types of loans like New and used purchase loans that you can use to purchase new or used automobiles. Auto refinances loans for refinancing your auto loans, Private party auto loans, and Lease buyout loans to buy your leased automobile.

Qualifications

• You must be 18 years or older.
• You should have a minimum 575 credit score.
• If you opt for a non-refinancing purchase, the annual income should be at least $21,600.
• The annual earnings for refinancing should be at least $18,000.
• The vehicle you put as collateral should be less than 10 years old and the total distance traveled to be 125,000 miles.

How to Apply?

• Gather your valid driver’s license, Pay stub that reflects year-to-date earnings, insurance proof of vehicle, and personal reference contact details. 
• Submit your online inquiry form from their website only.
• You will get up to four offers if any matches are found.
• Select the best suitable one and submit the final application with the above-gathered documents.

5. AutoPay

AutoPay is a marketplace that will display auto loans from different lenders, credit unions, and banks. Therefore, you can compare different lenders and choose the best suitable one for you. Once you apply, around 2 to 4 matches will be displayed. This is your pre qualification stage which will not affect your credit score. However, after proper application, a hard credit check will be performed, which might affect your credit score. 

Features

Multiple Options

You get at least 2 and a maximum of 4 options as per your requirements. You can research them accordingly. Since these lenders are best for your requirements, you will have to select one that will be most suitable among all.

Pre-qualification

You can get a clear picture of whether AutoPay will approve you or not with pre-qualification. A soft credit check is performed, which will not affect your score. Through this, you can determine the rates. You need not provide your social security number.

Co-signer

A co-signer is a person who legally agrees to pay the debt if defaults are made by you. AutoPay allows a co-signer to sign with you which will reduce your APR. 

Qualifications

• Minimum 560 credit score.
• Credit history requirement depends on the lender.
• The requirement of minimum annual income also varies from one lender to another.
• The debt-to-income ratio should be 50%.
• Bankruptcy-related restrictions: Varies by lender.
• Available in all 50 states.

How to Apply?

• State with filling out the application form with accurate information.
• If any matches are found, you will be presented with all offers.
• Now select one offer best suited to you and file the final submission.
• You will need: a driver’s license, insurance proof of vehicle, income, and residential proof, if you are refinancing then a letter of payoff, and other additional documents that the lender requests.
• You will be funded in 1 or 2 weeks after approval.

6. FHA Loans

FHA is short for Federal Housing Administration. It is a governmental mortgage issued by the FHA. You can apply for this loan even with poor credit. However, if you are looking for short-term loans, this might not be the right choice for you. FHA loans are issued for around 15 to 30 years of term period with rate. It is popular among new house buyers especially those who are rejected by private lenders. 

However, you will have to pay FHA mortgage insurance that protects the interests of lenders in situations when the borrower fails to make payments. You will have to pay two insurance premiums: Upfront mortgage insurance premium (1.75% of the loan amount) and Annual mortgage insurance premiums (0.45% to 1.05%).

Features

Government Backed

Federal housing administration is not privately owned like most of the long term loans lenders. It is backed by the government and specifically for house loans. It is famous among those with poor credit who are rejected by private lenders.

Insurance Payment

FHA not only thinks about the borrowers by setting that credit score requirement low but also protects the interests of lenders. You will have to pay two insurance premiums that will help the lender if you fail to meet the payments on time. These are the Upfront mortgage insurance premium (1.75% of the loan amount) and the Annual mortgage insurance premium (0.45% to 1.05% of the loan amount).

Long Term Loans 

The term period of FHA loans is quite long. Therefore it is not suitable for anyone looking for payday loans. If you get a loan from here, you will get it for a period of at least 15 years and a maximum of 30 years, with the rate.

Down Payment

You will have to make a down payment as well. However, if you want you can go as low as 3.5% of your credit score. You need a minimum 580 score, and 3.5% has to be paid as a down payment. However, if your score is lower, i..e around 500 to 570, your down payment will be 10%. Any credit score below that will not be eligible.

Qualifications

• Your credit score should be between 500 to 570 for 10% down payments and 580 for 3.5%.
• You must have the last two years of employment history that is verified.
• An income that can be verified through pay stubs, federal tax returns, and bank statements.
• You must not have filed for bankruptcy in the last one to two years.
• No foreclosure in the last three years.
• The property should be approved by FHA.

How to Apply?

• Before applying, you should know if you have a budget to cover the long term loans costs.
• Fill out an application for FHA loans with tax returns of at least two years, pay stubs (the latest two), your driver’s license, and complete statements of all your assets.
• Once an application is filed, select one offer out of all the offers presented to you.
• File a proper and final application.
• You can take the funding after getting approved and paying the down payment.

7. Rocket Loans

Rocket loans are a perfect option for those looking for immediate funding. However, you need to have fair credit along with a two-year credit history if you wish to get this loan. Other than this, there are other limitations too. Like direct payments to debt consolidation, loans are not allowed and flexibility in payment date is not granted. 

But this does not make Rocket loans all bad. It is a perfect fit for borrowers with fair credit requiring same-day funding. Moreover, it offers discounts on auto payment options and a wide range of loans.

Features 

Discount

You can even save on payments. This can be done by turning on the auto payment option. If you do so, you will get a 0.3% discount on your payments. Therefore you can save some bucks on this expense. 

Pre Qualification

You can undergo pre-qualification, wherein, a soft credit check will be performed. This will not affect your credit score at all. However, it is going to provide a clearer picture of your eligibility, approval, and approx. rate on the long-term loans. 

Fast Funding

Rocket loans approve your application within five minutes. If you sign all the documents before 1 p.m. ET and the details are all verified by your bank quickly, you can get the funds on the same day. If not, you will get funding the next day. 

Payment Date

Most lenders offer to change the repayment date once the loan is closed. However, Rocket loans do not provide that facility. You cannot select the date of payment as suitable for you. 

Qualifications

• You must either be a citizen of the U.S. or a permanent resident.
• You must not have filed for any bankruptcies in the last two years.
• At least 18 years or older in most states.
• The credit score should be 640, a minimum of two years of credit history, and four account reports.
• 70% debt to income.
• Your annual income should at least be $24,000.

How to Apply?

• Fill out pre-qualifications. Once approved, move further.
• Select the loan offer as suited to you.
• Fill out the final application with all the necessary documents and accurate details.
• After you go through a hard check and get approved, start making repayment plans. 
• Since Rocket loans reports to all three major credit bureaus, any defaults in payment might reduce your credit score. Therefore make all payments on time.

8. Bank Of America Mortgage

If you are a first-time home buyer or are interested in home equity options, Bank of America Mortgage will be a good choice for it. It is among the most famous banks and the second largest bank in the U.S.A. that offers different loan options and competitive mortgage rates.

With rapid application and a $200 to $600 discount on mortgage orientation, Bank of America offers affordable loan offers. You can even refinance the funds you receive. You can get conventional, FHA, and VA loan options.

Features

Affordable

The mortgage rates of long term loans from Bank of America are displayed on its website. You can compare them. Moreover, these rates change almost every day. All you have to do is get in touch with a loan consultant to estimate the amount. The fees are comparatively lower than most home loan lenders.

Different Options

You can opt for conventional, FHA, and VA loans here. However, it does not provide USDA loans. If you wish to purchase at a higher price, you can also get jumbo loans. 

Discounts

If you are an existing customer and opt for a home loan or home equity, then you will get discounts on interest rates as well as your mortgage orientation fee will be reduced. Although to avail of these discounts, you need to be a part of the Preferred Rewards program of the bank.

Options for Mortgage

If you have lower credit or income, Bank of America mortgages with a lower down payment and credit requirement. You can avail of down payment and closing cost assistance programs that will help you become homeowners.

Qualifications

Details for Pre-qualification:

• Information about your income.
• Credit check.
• Valid bank account in your name.
• The amount you will put down as a down payment.
• Amount of mortgage.

Details for Final Application:

• Pay stub copy of last 30 days.
• Hard credit check.
• Most recent credit reports of two accounts.
• Amount of down payment and mortgage.
• Statements of W-2.
• Last two years of signed, personal and business tax returns.

How to Apply?

• Firstly decide your mode of application, i.e. online or physical.
• Collect all the documents that are already stated in the qualification section above.
• Submit your pre qualification with accurate details. If approved, be ready to move ahead.
• Now either you can look for a home yourself or from Bank of America’s Real Estate Center which will help you find a local house and broker.
• Fill out the final application as per your mortgage needs. 
• If your application is approved, the lender will provide a closing date.

9. Upstart

Upstart offers fast funding long term loans to borrowers with a weak credit history and a bad score. Although Upstart does not offer secured, joint, or co-signer applications but approval and funding are quick. It does not offer a flexible repayment option, i.e. only two. 

Upstart stands out from other lenders because of its underwriting procedure which uses AI and non-traditional data in order to qualify more borrowers. If you do not have a credit history, you do not need to worry. Upstart used work history and college minor to review your background.

Features

Data Review

Upstart does not use credit or income details to perform the borrower’s evaluation. It uses your college major and work history. This is Upstart’s unique and non-traditional model procedure of underwriting which helps generate more borrowers and provide them a low rate of interest.

Quick Funding

The application process is quite simple and quick. As soon as you fill out an application and submit it, you will get your approval results. Once approval is generated, funding is done quickly. It will only take a maximum of one day to transfer funds to you. 

Pre Qualification

Just like most loan lenders, Upstart also offers you to go through pre-qualification. Pre-qualification is a perfect way of checking the rate and whether you have a chance of getting approved or not. Therefore, you can avoid hard checks which affect your credit score. 

Grace Period

Upstart offers you 15 days before and after the due date to pay your due amount. Therefore, if you pay late, no charges will be deducted because you have a 15-day period. Although the late fee will be charged if payment is made after the 15-day grace period is over. Having said that, you get an extra 15 days to pay the sum.

Qualifications

• You should be a citizen of the U.S.
• Age: At least 18 in most states.
• Provide a valid email id.
• Provide a verified name, DOB, and Social Security number.
• Give details of a full-time job or starting one within six months.
• a verified bank account in your name.
• No credit score requirements as stated.
• The minimum annual income should be $12000.

How to Apply?

• Go through the pre-qualification.
• If approved, you will be seeing different offers.
• Select one offer that you think is the best one for you, matching your requirements.
• Submit the final application with all the verified and valid documents.
• Make plans of repayment and pay on time to grow your score.

10. BadCreditLoans.com

BadCreditLoans.com helps lend long term loans to individuals with bad credit and offers facilities to grow their scores. If you have trouble getting approved elsewhere, there are high chances that BadCreditLoans.com will support your applications because that is what its priority is: to offer loans to those with poor scores and history.

However, your credit history is the main factor used to approve your application, but you can get approved even if the score is poor. BadCreditLoans.com does not directly lend you funds, but it will connect you to potential lenders that are willing to extend the loan as per your requirements.

Features

Several Options

All you have to do is provide your details and requirements, and BadCreditLoans.com will then connect you to potential lenders. You can even compare your options of loan and non-loan offers and decide the one most suitable for you.

24*7 Service

The services are completely free of cost and are available 24*7. You can access services like debt relief, credit repair, and credit monitoring at all times whenever required. Moreover, the support team will also be available to clear out your queries at all times.

No Charges

BadCreditLoans.com does not charge a single penny for matching with potential lenders. Whatever the lender is charging has nothing to do with this site. It only connects you to lenders and offers any loan option of its own.

Secured

All your information is secured with high encryption technology. Therefore it cannot be hacked, stolen, or lost. Your data will not be used without your permission whatsoever!

How to Apply?

• Fill out and submit the online form on their official website.
• They will send your details to a potential lender who will review them and then contact you.
• The lender will then present you with a loan offer. You can compare several offers.
• Review all the offers and accept the most suitable one.
• Now after all document submissions, funds will be transferred to your account.

Frequently Asked Questions (FAQs)

Q1: How to get long term loans for bad credit?

• Check your credit score and if needed, improve it.
• Examine your budget, and whether you can cover the cost of the loan like rate, fees, etc. 
• Undergo multiple pre-qualifications. So that you have multiple options.
• If you can, add a co-signer. This will reduce the rate.
• Submit your application with accurate and proper documents.
• Create a plan for repayment and pay on time. 

Q2: How can I apply for a bad credit loan?

• Go through the pre-qualification.
• If approved, you will get different loan options.
• Review and select one option.
• File the final application along with all the details and documents.
• Once approved, you will get the funds.
• Plan for repayment.

Q3: What’s the easiest loan to get with bad credit?

The easiest loan to get with bad credit is co-signed loans, secured loans, and joint loans. This is because of different reasons.

1. You can use another person’s creditworthiness to cover up your bad score.
2. Your rate will be reduced.
3. You can use collateral in case of a secured loan to cover up your credit score.

Payday, pawnshop, and car title loans are also easy but come with an expensive price.

Final Verdict

Most people are unaware that there are lenders who are willing to provide loans even to individuals with poor credit. If you wish to get long term loans but worry about your bad score, we got your back! In the above article, there are top lenders willing to extend loans but with certain terms and conditions. We have done the research for you, and the final verdict is yours to make.

Whether you choose Upstart or you select LendingPoint, is completely your decision. Some lenders offer unsecured and secured options both while others just unsecured ones. All institutions have different offers and schemes to offer. One thing you need to know is that good and bad choices vary from one individual to another. Anything that is good for you, might not be suitable for anyone else. Therefore, review all your choices and select the best one as per your needs.