Get Approved for up to $35,000 in 3 minutes
Apply Now
Blog Categories
Loan Calculator

Long Term Loans for Bad Credit: Fast Cash With Easy Repayments

Written by Jessica Steer
A long-term loan may be the answer if you need to borrow a substantial amount of cash and don’t want to be burdened with large monthly payments. Find out what a long-term loan is and how to choose the right one for you.
Table of Contents

    If you’re searching for a long-term loan, it means you’ve done your research and understand the disadvantages of short-term payday loans. Unlike risky payday loans, long-term loans offer manageable payments spread out over a longer period. They’re also relatively easy to attain – good news if your credit isn’t the best. There are many long-term loan options out there so make sure you compare all the different kinds before making a decision.

    What is a long-term loan?

    A long-term loan is a personal loan with a repayment term of at least 60 months (five years). Mortgages and student loans fall into this category too as they have extended pay-back schedules which typically last 10 to 30 years.

    Also known as long-term installment loans, long-term personal loans allow you to borrow substantial amounts of up to $50,000. This makes them a convenient solution if you need to cover high-ticket expenses such as a wedding or home renovation. They offer lower monthly payments compared to short-term loans since payments are spread out over a longer time. Lower monthly payments give your budget more wiggle room however, keep in mind you’ll most likely be paying more interest in the long run.

    What are the benefits of a long-term personal loan?

    Long-term personal loans combine comprehensive financial support and peace of mind. They offer valuable benefits including:

    • Manageable repayment schedules: Lower monthly payments are easier to stick to and give you the chance to free up cash for other things such as investing or debt repayment.
    • Ability to get approved with bad credit: Numerous reputable lenders specialize in long-term loans for bad credit and will work with you to find a solution that fits your financial situation.
    • Quick approval process: It’s easy getting long-term loans online as many lenders can complete the application, approval, and delivery process without you having to step foot in a physical store. Some can even deposit funds in your bank account within 24 hours of approval.
    • Credit building opportunities: Making loan repayments on time will improve your credit score as lenders report this activity to Equifax and TransUnion, Canada’s largest credit bureaus.

    Are there any drawbacks to a long-term loan?

    While long-term loans let you make smaller monthly payments and borrow larger amounts, the downside is you’ll pay interest for longer. Fortunately, there is a solution to paying more interest than you have to: pay off the loan faster. This can be done with an open-end long-term loan.

    What’s the difference between a closed-end and open-end long-term loan?

    Open-end long-term loans don't have prepayment penalties so you can pay off the loan faster than your repayment schedule. Choosing to make larger monthly payments or one lump sum payment will save you interest and won’t incur any penalty fees. 

    Closed-end long-term loans are the opposite. They charge you a fee if you make a payment that’s not the same as the agreed-upon monthly amount. Some closed-end loans may advertise lower interest rates, but that doesn’t mean the loan will work out to be cheaper since you’re stuck with a strict repayment plan and can’t pay off the loan faster without being penalized.

    What’s the difference between a secured and unsecured long-term loan?

    When considering a long-term loan, you’ll also need to decide between a secured or unsecured one. A secured loan is backed by collateral like a house or car, while an unsecured loan isn’t backed by anything. Each has its benefits and the right option will depend on your financial situation and personal preference. 

    Secured long-term loans

    • Pros: Lower interest rates, larger loans, higher chance of approval 
    • Cons: Risk of losing collateral if payments are missed, longer application process 

    Unsecured long-term loans

    • Pros: No danger to personal assets, fast application process
    • Cons: Higher interest rates, smaller loans

    What long-term loans should be avoided?

    Not all long-term loans are the same so it’s important to do your research and find a lender you can trust. Be wary of long-term payday loan lenders as they’re known to target people with poor credit and use predatory tactics such as hidden fees and sky-high interest rates. Avoid them completely if you want to build credit. Payday lenders don’t send your payment history to credit bureaus so your score won’t improve even if you make your payments on time.

    You should also steer clear of any lender that offers:

    • No credit check long-term loans: If you have poor credit, it can be tempting to turn to lenders who promote guaranteed approval or no credit checks. Although a credit check can slightly lower your credit score, not getting one can put you in deeper financial trouble. Lenders who fail to conduct credit checks often approve loans much larger than what you can afford. This financial strain can cause you to miss payments and sink your credit rating even more. You may also wind up in a vicious debt cycle where you have to take out new loans to pay for your previous one.
    • Advance fee long-term loans: Stay away from any lender who agrees to give you a long-term loan if you pay an upfront fee first. Not only is this a common loan scam (“lenders” disappear when you pay the advance fee), it’s a practice that’s illegal in Canada.

    Spring Financial: Your destination for long-term loans for bad credit

    Whether you need to take care of expensive home repairs or ready to launch your own business, Spring Financial can get you the funds you require by approving you for a long-term installment loan. The credible lender specializes in unsecured open-end loans, giving you the chance to save on interest by paying off the loan early without any penalties.

    More reasons to get a long-term loan from Spring Financial:

      • Quick & easy approvals: Get approved even if you have bad credit, no credit, or have filed for bankruptcy.
      • Same-day money transfer: Once you get approved (sometimes in as little as a few hours), money can be e-transferred to your account on the same day. 
      • Open-end loans with reasonable interest rates: Loans aren’t fixed to a payment plan so you pay it off faster and save on interest. Interest rates are also much lower compared to payday loans.
      • Build up your credit score: Monthly payments are reported to the credit bureaus, resulting in a significant boost to your credit score.
      • No hidden fees: You’ll never have to pay application fees, administrative charges, and other hidden costs.
      • Simple application process: Online applications take just minutes to complete.
      • Trusted online lender: Check out over 1,500 reviews on Trustpilot.

      Ready to get a bad credit long-term installment loan online? Apply now or call 1-888-556-6441 to get started.

    Online Loans from 9.99%*

    Skip the branch visits, apply online in minutes and get the financing you want today.

    Get a Loan Quote

    Subscribe to receive special offers and financial tips

    Subscribe To Our

    Receive Special Offers, and Learn Tips and Tricks to Improve your Finances.