What Are Long-Term Personal Loans?
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What Is Considered a Long-Term Personal Loan?
Pros and Cons of Long-Term Personal Loans
Long-Term Personal Loan Lenders
Staying on top of making on-time payments Working to pay off any existing balances Lowering your credit utilization ratio Reviewing your credit reports and correcting any errors
Long-Term Personal Loan Application Process
Your name Birth date Social Security number Your annual income Current employment status Employment history
Alternatives to Long-Term Personal Loans
See if there’s a way to avoid taking on debt: If there’s a way to avoid going into debt at all, such as by using money in an emergency fund, that might be the least costly way to take care of your expenses. That being said, you don’t want to completely collapse your savings, even for projects like debt repayment. Consider a credit card: Credit cards might be an alternative to long-term personal loans, but they tend to have fairly high interest rates themselves, and it can be easy to spiral into debt since you can keep using them until they’re maxed out. Personal loans, on the other hand, are for a set, specific amount, which makes them a little bit less risky on that front. Look into 401(k) loan, paycheck advance or salary loan: You might also consider taking a loan out of your retirement account, such as a 401(k) plan, if that option is available through your provider. Certain employers may also offer paycheck advances or salary loans, but these, too, might come with fees, so make sure to read the fine print before signing any paperwork.
The Takeaway
About the Author
Jamie Cattanach is a full-time freelance writer whose work has been featured at CNBC, Yahoo Finance, The Motley Fool, the Huffington Post and other outlets. At SoFi, she writes about investing, retirement, student loans and how to get your money right -- no matter what that means for you.
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