All You Need to Know About Long Term Loans

There are many situations in life when being able to borrow money can really help, and long term loans can be helpful for lots of things. With these loans you usually borrow a large amount of money but then pay it off over a much longer period than with a short term loan. With a long term loan, you’ll make repayments for at least a year. Payday loans, in comparison, usually get repaid within 3-9 months.

In this guide, the Cashfloat team will cover everything you need to know about long term loans. We’ll look at loan amounts, interest rates and repayment conditions. As well as this, we’ll look at the advantages long term loans offer over other forms of borrowing, the types that are available and whether or not you can get one with a bad credit score.

The precise nature of any long term loan product will vary according to the lender you borrow from. It will also vary according to your circumstances and how you want to borrow money. However, all long term loans usually have the same basic features.

Here they are:

• Larger loan amounts

  Long term loans are usually used to borrow large sums of money. When someone needs to fund a large purchase, such as buying a home, buying a car or paying for a wedding, for example, they’ll often take out a long term loan for a large sum of money. It is possible to borrow a small amount with a long term loan, but most people use these loans to borrow five or six-figure sums.

• Lower interest rates

  When you compare loan types, another difference between short term and long term loans is the interest rates. If you look at long term loans that are being advertised, they’ll normally have a lower representative APR than short term loans or payday loans. This is because, with a longer repayment period, long term loan providers can offer better rates but profit from the large number of payments.

• Monthly repayment instalments

  Long term loans are also referred to as ‘long term instalment loans’ because they are almost always paid back in regular monthly instalments. Someone who takes out a home loan with a repayment period of 20 years, for example, will pay back a set amount of that loan each month for 20 years.

Can you get a long term loan with a bad credit score?

Being accepted for a long term loan might be more difficult if you’ve got a bad credit score. Many long term loan lenders, including banks, set quite high standards for their loan applicants. It does depend how low your credit score is, though, and some mainstream lenders may offer you a loan. There are also specialist lenders for people with a bad credit score that you can try. Where it is possible to get a loan, having a bad credit score will often mean you can’t borrow as much and that you have to pay more interest.

If you need a quick cash injection, an alternative could be to opt for a short term loan from Cashfloat. We offer various different types of loan, including payday loans, unsecured loans and small business loans. Our loans have less strict eligibility requirements than most long term loans. As well as being more accessible, our loans offer other benefits. You get flexible repayment terms and the option of paying the whole loan back early so you’re only charged for the days you had it.

Here are the eligibility criteria for a Cashfloat loan:

• You must be over 18 years of age

• You have to have a valid UK bank account

• You must be a UK citizen

• You need to have a steady source of income

If you meet our criteria, you can go ahead and apply today.

There are a number of different types of long term loan, and they can be used for many different purposes, including both business and personal purposes. Examples include home improvement loans, student loans and loans that are used to consolidate debt.

Here are some of the most common long-term loan types you can apply for:

• Long term home loans

  Normally, people only look for the best lenders or credit brokers for a home loan. These loans are usually used for purchasing a home, whether it’s a newbuild house or a resale home. Otherwise, they might be used for building a new home from scratch or renovating an existing one.

• Long term car loans

  The price of new cars rises every year. Using a loan can be an excellent way to upgrade to a new model of vehicle without having to save or spend a considerable amount in one go.

• Long term personal loans

  Long term personal loans are another type of long term loan. Personal loans are used for all kinds of unique purposes. Some people use a long term personal loan to pay for a wedding or they might be used to pay for a vacation, for example.

• Long term education loans

  Student loans and other loans for education are important in today’s world. Education is expensive and lots of jobs can only be done with certain types of education. Student loans offer very long repayment plans, giving the recipient time to pay back what they owe during their career.