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Discover Affordable 5 Year Personal Loans

As you plan for financial stability, a 5-year personal loan can be a powerful tool. In this guide, we break down the top options for long-term personal loans. By comparing lenders, understanding interest rates and being mindful of repayment terms, you can ensure you’re making a smart and informed decision to meet your financial goals.
Offers: 5
Updated:
18.02.2024
13:04
Best Personal Loan Today 27.02.2024*
Finanso
Personal Loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
2000.00 – 100000.00 $
Rate
i

Effective interest rate on the product

6.34 – 35.89 %
Term
i

Loan term for the financial product

2 months – 72 months
LightStream
Personal Loans
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$5,000-$100,000
Rate
i

Effective interest rate on the product

up to 24.49%
Term
i

Loan term for the financial product

up to 144 months
Apply
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

3.35
(20 Ratings)
Recommended FinScore™
0
300
650
1000
5000.00 – 100000.00 $
Rate
i

Effective interest rate on the product

8.99 – 24.99 %
Term
i

Loan term for the financial product

36 months – 72 months
Apply
Submit One Loan Application Online!
Submit One Loan Application Online!

Use our quick loan matching system with a free credit check!

Avant
Personal loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

3.3
Recommended FinScore™
0
300
650
1000
$2,000-$35,000
Rate
i

Effective interest rate on the product

up to 35.99%
Term
i

Loan term for the financial product

24-60 months
Apply
Happy Money
Personal loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

5
Recommended FinScore™
0
300
650
1000
$5,000 - $40,000
Rate
i

Effective interest rate on the product

up to 24.99%
Term
i

Loan term for the financial product

up to 60 months
Apply
Loans Calculator of February 2024

Calculate your best loan with a free credit check in the US, just a few clicks away.

The best personal loan calculator
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The Legal Status of Personal Loans in the USA

In the USA, personal loans are legal and typically used for non-business needs. They must be repaid according to the loan agreement, which includes interest and a repayment timeline. Various laws regulate these loans, including the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, and the Truth in Lending. These laws protect both the lender's interests and the borrower's rights, ensuring fairness and transparency in the lending process.

Reviews
CreditFresh
4.8
The application process was a breeze, and I received a response within minutes. This straightforward and prompt procedure proved to be a great help to me during a crucial time of need.
Review
JG Wentworth
4.6
The assistance I received was exceptional. My representative handled my case with care and provided all the necessary information...
Review
OneMain Financial
4.4
The loan application process was straightforward, and the representative I interacted with displayed patience, provided informative answers, and was quite pleasant throughout...
Review
My Funding Choices
4.6
The process was swift and straightforward, which was particularly helpful during a time when, despite my reluctance to seek assistance, I genuinely needed help.
Review
Plain Green Loans
2
The interest rate is shockingly high, and it feels like taking advantage of individuals facing financial challenges when unexpected expenses arise...
Review
Advance America
4.6
I have never encountered any issues with this company. They consistently deliver funds on time, and the repayment process is straightforward...
Review
Discover Affordable 5 Year Personal Loans

What are 5-year personal loans?

A 5-year personal loan, as the name suggests, is a type of loan that allows borrowers to repay the borrowed amount over a period of 5 years. These loans are usually unsecured, which means they don't require collateral. Personal loans are versatile and can be used for various purposes, such as debt consolidation, home improvements, major purchases, or even funding a wedding.

Features

  1. Loan Amount. You can borrow a significant amount of money with a 5-year personal loan, typically ranging from $8,000 to $17,000 or more, depending on the lender and your creditworthiness.
  2. Fixed Interest Rate. 5-year personal loans often come with a fixed rate. This means that your interest rate remains constant throughout the loan term, providing predictability and stability in your monthly payments.
  3. Affordable Monthly Payment. The longer repayment term of a 5-year personal loan typically results in lower monthly payments compared to shorter-term loans. This can make it easier to manage your cash flow and fit the loan payment into your budget.
  4. Competitive Interest Rates. Personal loan interest rates can vary depending on your creditworthiness and the lender you choose. However, with a good credit score and financial history, you may qualify for competitive interest rates on a 5-year personal loan.
  5. Flexible Use of Funds. 5-year personal loans provide flexibility in how you use the borrowed funds. Whether it's consolidating debt, financing home improvements, covering educational expenses, or addressing other financial needs, you have the freedom to use the loan for various purposes.
  6. No Collateral Required. Most personal loans are unsecured, meaning you don't need to provide collateral such as a home or car to secure the loan. This reduces the risk associated with the loan and simplifies the application process.
  7. Quick Funding. If approved, personal loans can provide relatively quick access to funds. Depending on the lender, you may receive the loan amount in your bank account within a few business days.
  8. Credit Building Opportunity. Successfully managing and repaying a 5-year personal loan can have a positive impact on your credit history. Making timely payments helps establish a track record of responsible borrowing, which can improve your credit score over time.

How can I get a 5-year personal loan?

Apply for a loan

  1. Check Your Credit Score. Lenders will assess your creditworthiness, so it's essential to know where you stand. If your credit score is lower than expected, take steps to improve it before applying for a loan.

  2. Research Lenders. Explore reputable financial institutions, online lenders, and credit unions that offer personal loans. Use financial analytics resources to compare personal loan rates, loan terms, and customer reviews.

  3. Gather Necessary Documents. Typically, you'll need to provide proof of identity, income verification, bank statements, and other relevant documents requested by the lender.

  4. Complete the Application. Fill out the application form, ensuring that all information is accurate and complete. Double-check the terms and conditions before submitting.

  5. Wait for Approval. After submitting your application, the lender will review your information, conduct a credit check, and assess your eligibility. The approval process can take a few days to a couple of weeks.

  6. Review the Loan Offer. If approved, carefully review the loan offer, including the interest rate, repayment term, monthly payment amount, and any associated fees or conditions.

  7. Accept the Loan. If the terms are favorable, accept the loan offer by signing the necessary paperwork and providing any additional requested documentation.

  8. Receive the Funds. Once the loan is finalized, the lender will transfer the funds to your designated account, allowing you to use the money as intended.

Pros and cons

Pros

Lower Monthly Payments. The longer loan term allows for more manageable monthly payments, making it easier to fit into your budget.

Fixed Interest Rate. You can enjoy the stability of a fixed interest rate, knowing that your payments won't increase over time.

Versatile Use. Personal loans can be used for various purposes, providing flexibility based on your needs.

Streamlined Application Process. Many lenders offer online applications with quick approval times, making the process convenient and efficient.

Debt Consolidation. If you have multiple high-interest debts, a personal loan can help consolidate them into a single, more manageable payment.

    Cons

    Higher Interest Rates. Compared to shorter-term loans, 5-year personal loans may have higher interest rates due to the extended repayment period. It's important to compare rates and find the best deal.

    Longer Repayment Period. While the extended term reduces monthly payments, it also means you'll be in debt for a longer time.

    Total Interest Paid. Due to the longer loan term, you may end up paying more in total interest over the life of the loan.

      Requirements and conditions

      1. Good Credit Score. Most lenders prefer borrowers with a credit score in the good to excellent range (typically 670 or higher). A higher credit score may also result in a lower interest rate.
      2. Stable Income. Lenders want to ensure you have a steady income to support loan repayment. They may request recent pay stubs, tax returns, or other income verification documents.
      3. Debt-to-Income Ratio. Lenders consider your existing debts and calculate your debt-to-income ratio to assess your ability to manage additional debt responsibly.
      4. Citizenship or Residency. You'll need to provide proof of citizenship or legal residency in the United States.
      5. Age Requirement. You must be at least 18 years old to apply for a personal loan.

        Best places to get 5-year personal loans today 27.02.2024

        LightStream

        Apply for a loan

        LightStream is a reputable online lender that offers competitive rates for personal loans. The loan amounts offered by LightStream range from $5,000 to $100,000, providing borrowers with the flexibility to meet their financial needs. One of the standout features of LightStream is its focus on providing a seamless and fee-free borrowing experience. They do not charge any origination fees or late fees, which can save borrowers money over the life of the loan. While LightStream primarily caters to borrowers with excellent credit, with a minimum credit score requirement of 660, they also consider other factors such as credit history, payment history, and evidence of savings. It is worth noting that LightStream does not offer a pre-qualification option on its website. However, completing an application on its website is necessary to obtain a loan offer and may impact your credit score. While LightStream provides loans for various purposes, including debt consolidation and home improvements, they do not offer direct payment to creditors for debt consolidation loans.LightStream

        Laurel Road

        Apply for a loan

        Laurel Road is an online lender specializing in medium to large personal loans. Laurel Road offers competitive annual percentage rates for borrowers with good credit. One of the advantages of choosing Laurel Road is its commitment to providing a hassle-free borrowing experience. Laurel Road does not charge an origination fee, which can help borrowers save on upfront costs. Laurel Road provides additional benefits, such as direct payment to creditors for debt consolidation loans. This feature streamlines the process of consolidating and paying off existing debts, making it easier for borrowers to manage their finances. While Laurel Road requires a minimum credit score of 660, they also offer co-sign and joint loan options. It's important to note that Laurel Road does have a late fee. They also have a minimum loan amount, which may be higher than some borrowers require.Laurel Road

        Happy Money

        Apply for a loan

        Happy Money is an excellent option for individuals who are looking to consolidate credit card debt. If you find yourself burdened by multiple credit card balances with high-interest rates, Happy Money offers a solution to simplify your debt repayment. Happy Money understands that everyone's financial situation is unique, and they strive to provide loan options that are personalized and transparent. They consider various factors such as credit history, income, and debt-to-income ratio to offer loan terms and interest rates that align with your individual circumstances. Additionally, Happy Money emphasizes a seamless and convenient application process. They offer an online application platform that allows you to apply from the comfort of your own home. The application is user-friendly and guides you through the necessary steps to provide the required information. Once your application is submitted, Happy Money conducts a quick review and promptly provides you with a decision.

        AchieveHappy Money

        Apply for a loan

        Achieve is an online lender that offers personal loans to individuals with good credit or those who have a well-qualified co-signer. They understand that not everyone may meet the credit requirements on their own, so they allow the option of having a co-signer to strengthen the loan application. One of the advantages of Achieve is its fast funding process. Once your loan application is approved, they strive to provide quick access to the funds you need. This can be particularly beneficial when you have time-sensitive expenses or financial obligations that require immediate attention.

        Achieve also provides the support of a personal loan consultant. Their knowledgeable consultants are available to guide you through the loan application process, answer your questions, and provide personalized assistance. Whether you need help understanding the loan terms, calculating your repayment options, or navigating any aspect of the loan, the personal loan consultant is there to assist you.

        With Achieve, you can conveniently apply for a personal loan online. Their user-friendly online application platform allows you to complete the application from the comfort of your own home. You can provide the necessary information, review the terms and conditions, and easily submit your application. This online application process saves you time and allows for a more streamlined experience.Achieve

        Navy Federal Credit Union

        Apply for a loan

        Navy Federal Credit Union offers personal loans catering to its members' needs. Navy Federal provides competitive annual percentage rates for its members. The loan annual percentage rate is determined based on creditworthiness. The loan amounts available through Navy Federal range from $250 to $50,000, offering various options to meet various financial requirements. One of the standout features of Navy Federal personal loans is their quick funding time. Members can expect fast approval and funding, ensuring that they receive the funds they need promptly. Navy Federal offers a variety of loan options to its members. They provide co-sign, joint, and secured loan options, giving borrowers the flexibility to explore different loan structures that may better suit their needs. Additionally, Navy Federal allows direct payment to creditors for debt consolidation loans, simplifying the repayment process and helping borrowers manage their debts effectively. Navy Federal Credit Union personal loans have no minimum credit score requirement, which can be advantageous for members with varying credit histories. This policy allows a wider range of members to access the loan products and benefit from the consumer-friendly features offered by Navy Federal.

        With Navy Federal, members also have the added advantage of being able to visit local branches for personalized assistance. Navy Federal Credit Union has numerous branch locations across the United States, allowing members to meet with loan officers and discuss their borrowing needs face-to-face. This local branch presence enhances the customer experience and provides more personalized service. However, it's important to note that Navy Federal personal loans are exclusively available to credit union members. Non-members will need to become members before applying for a personal loan. Additionally, Navy Federal does not offer a pre-qualification option with a soft credit check, which means that members will need to submit a formal application to determine their eligibility and potential loan terms.Navy Federal

        First Tech Credit Union

        Apply for a loan

        First Tech Credit Union offers personal loans that provide members with a customizable borrowing experience and fast funding. Loan amounts are available from $250 to $50,000, ensuring that members can access the funds they need for various purposes. One of the standout features of First Tech's personal loans is the ability to customize the loan to suit individual preferences. Members can choose and change their payment date, providing flexibility in managing their loan repayments. First Tech Credit Union offers a variety of loan options to its members, including co-sign, joint, and secured loans. These options allow borrowers to explore different loan structures that may better suit their needs and financial situations. Additionally, First Tech allows direct payment to creditors for debt consolidation loans, streamlining the repayment process and facilitating the management of multiple debts. First Tech Credit Union has a fast funding process, ensuring that approved members receive their funds promptly.

        First Tech Credit Union members can also benefit from local branches' convenience. First Tech has branch locations across the United States, allowing members to receive personalized assistance and guidance from loan officers. This local branch presence enhances the overall customer experience and allows for in-person interactions, further strengthening the relationship between the credit union and its members. Additionally, it's worth mentioning that First Tech reports payments to only one of the three major credit bureaus, which may impact credit reporting for some borrowers.First Tech Credit Union

        Ways to receive the money

        1. Direct Deposit. The lender transfers the approved loan amount directly to your designated bank account. This method offers convenience and quick access to the funds.

        2. Check. Some lenders may provide you with a check for the loan amount, which you can deposit into your bank account or cash as needed.

        Things to pay attention to

        1. Interest Rates. Compare interest rates from multiple lenders to secure the most favorable rate. Even a slight difference can significantly impact the overall cost of the loan.
        2. Fees and Origination Charges. Be aware of any loan origination fees or other associated charges. Consider the impact of these fees on the total loan amount and repayment plan.
        3. Repayment Terms. Understand the specific terms of the loan, including the monthly payment amount, repayment schedule, and any penalties for early repayment.
        4. Prepayment Options. Some lenders allow borrowers to make extra payments or pay off the loan early without penalties. This flexibility can help you save on interest costs.
        5. Additional Features and Benefits. Some lenders may offer additional perks, such as rate discounts for autopay, financial counseling services, or flexible payment arrangements. Assess these features to find a loan that aligns with your needs.

        How to repay a 5-year personal loan?

        1. Monthly Payments. Make your monthly payments on time and in full to maintain a good credit score and avoid late payment fees.

        2. Automate Payments. Consider setting up automatic payments to ensure you never miss a payment. Some lenders may even offer an interest rate discount for autopay.

        3. Budgeting. Incorporate the monthly loan payment into your budget and financial planning. Ensure you have sufficient funds available to cover the payment each month.

        4. Extra Payments. If your financial situation improves, consider making extra payments towards your loan principal whenever possible. This can help reduce the overall interest you pay and potentially shorten the repayment period or have a lower monthly payment.

        5. Early Repayment. If you have the means, you can pay off the loan earlier than the agreed-upon term. Check with your lender to understand any prepayment penalties or fees associated with early repayment.

        Alternatives

        Apply for a loan

        1. Credit Cards. If your borrowing needs are relatively small, using a credit card with a low-interest introductory period or a rewards program might be a viable option.

        2. Home Equity Loans. If you own a home and have built up equity, a home equity loan or line of credit may offer a lower interest rate due to the collateral involved.

        3. Credit Union Loans. Credit unions often offer competitive interest rates and flexible terms to their members. If you're a member of a credit union, explore the loan options available.

        4. 0% APR Introductory Offers. Some credit card issuers provide promotional 0% APR periods for balance transfers or new purchases. This option can be beneficial if you can repay the balance before the introductory period ends.

        Editorial opinion

        5-year personal loans can be a valuable financial tool for individuals seeking to meet their financial goals while managing their budget effectively. The longer repayment term and fixed interest rate provide stability and predictability, allowing borrowers to confidently plan their finances. One of the key advantages of a 5-year personal loan is the flexibility it offers in terms of loan amount and use of funds. Whether you need to consolidate debt, finance home improvements, or cover other essential expenses, a 5-year personal loan provides the necessary funds without requiring collateral. This makes it a convenient option for borrowers who may not have assets to secure the loan. Additionally, the lower monthly payments associated with a 5-year personal loan can be beneficial for individuals looking to maintain a manageable cash flow. By spreading the loan repayment over a longer term, borrowers can allocate their income to other financial obligations while still meeting their loan payment obligations. However, exercising caution and carefully evaluating your financial situation before committing to a 5-year personal loan is essential. While the extended repayment term may result in lower monthly payments, it also means paying more in total interest over the life of the loan. Borrowers should weigh the benefits of lower payments against the overall cost of the loan and ensure that the loan fits within their long-term financial plan. In conclusion, a 5-year personal loan can be a valuable financial tool for those who need access to funds for a longer duration while maintaining a manageable repayment structure. It's crucial to compare loan offers from multiple lenders, consider the interest rates, loan terms, and conditions, and evaluate your financial capabilities before making a decision. A 5-year personal loan can help you achieve your financial goals when used responsibly and in line with your overall financial strategy.

        Important

        Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

        How to choose a lender

        1. Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
        2. Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
        3. Carefully review all the terms and conditions of your loan contract.
        4. Thoroughly examine the interest rates and ensure that your contract includes a detailed breakdown of the total cost of the loan.
        5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
        6. Choosing a lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

        Methodology

        At Finanso, we've carried out a comprehensive analysis of over 100 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

        In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

        At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

        Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

        Additional resources

        To learn more about personal loans and best practices, check out some of the following resources:

        Sources

        FAQ

        Is it a good idea to get a 5-year loan?

        A 5-year loan can be a good option if you need a longer repayment period and prefer lower monthly payments. However, consider the total interest paid and ensure the loan fits your budget and financial goals well.

        Can you get a 5-year personal loan?

        Yes, many lenders offer 5-year personal loans. You can explore options from banks, credit unions, and online lenders to find a loan that suits your needs.

        How much is a $20,000 loan over 5 years?

        The total cost of a $20,000 loan over 5 years will depend on the interest rate and any associated fees. To determine the exact amount, use an online loan calculator or consult with a lender.

        For example, the total repayment can be calculated using an amortization formula for a $20,000 loan with an interest rate of 12% and a loan term of 60 months (5 years). The total repayment would be $26,693.34 without additional fees or charges.

        How much would a monthly payment be on a $5,000 personal loan?

        The monthly payment on a $5,000 personal loan will depend on the interest rate and the loan term. Use an online loan calculator or consult a lender to calculate the monthly payment amount.

        For example, the monthly payment can be calculated using an amortization formula for a $5,000 loan with an interest rate of 18,5% and a loan term of 60 months (5 years). Without any additional fees or charges, the monthly payment for this loan would be $128.33.

        What's the longest you can get a personal loan for?

        Personal loans typically range from 1 to 7 years, depending on the lender and your creditworthiness. However, the maximum loan term can vary among lenders. It's best to inquire with different lenders to determine their specific loan term limits.