There are many situations in life when you might need some extra money, and long term loans available for people with a good/ poor credit history can help. These loans are designed to be paid off over a longer period than typical payday loans or short term loans that get repaid within 3-6 monthly payments.

In this guide, the Cashfloat Team will cover all you need to know about long term loans. We’ll look at long term loans direct lenders UK, rates of interest on long term loan payments and the pros and cons. We’ll also detail how to apply for these loans and more. Plus, we’ll look at some alternatives to these loans for potential borrowers to consider.

Features of Long Term Loans

There are various long term loan lenders out there. This includes some lenders for people with a bad credit history. These lenders specialise exclusively in helping those with a poor credit rating. The precise nature of different long term loan products can vary from lender to lender. However, they tend to have the same basic features, as listed below.

  • Long Term Cash Loans – Amounts

    Whether you’re looking for long term loans and have a poor credit score or little credit history, or small business loans to support your company, it’s common for these types of loans to have high limits in terms of how much money you can actually borrow. This is why these loans are often used for larger purchases such as buying homes, or cars, and so on. You can still opt for small long term loans if you like. However, most people use these loans to borrow in five or six-figure sums.

  • Long Term Loans – Low Interest Rates

    When you compare loan and specifics, another difference between short and long term loans is that the interest rates. Usually, longer term loans have a lower representative APR in relation to short term or payday loans. This is because the repayment period is longer, so standard bank loan providers are more willing to offer attractive rates and make their money over the longer term.

  • Long Term Loans – Instalments

    Another term for long term loans is long term instalment loans, as this type of loan is almost always paid back in regular monthly repayments (also referred to as instalments). For example, someone who takes out a home loan for a repayment period of 10 years will pay back a set amount of that loan each month.

Types of Long Term Loans

There are various types of long term business loans and long term personal loans. Examples include home improvement loans, student loans, and loans to pay off debt. Below, we’ll briefly cover some common long-term loan types you can apply for.

  • Long Term Education Loans

    Education and student loans are increasingly important in today’s world. Students need these loans to cover the costs of their education. They’re a good choice for students, as they offer long repayment plans, giving the loan recipients time to pay back what they owe.

  • Long Term Home Loans

    It’s also common for people to look for the best lenders or credit broker for home loans. These loans can be used for purchasing a home, similar to a mortgage. Or they’re used for making improvements to a home, such as renovating the kitchen.

  • Long Term Car Loans

    The price of new cars rises year after year. In response, many people are seeking instant long term loans UK to pay for a new car. This 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 possibility to consider. They can be used for all kinds of unique purposes. Some people use a long term personal loan to pay for weddings or vacations, for example.

  • Long Term Payday Loans

    You can also find long term direct lender payday loans online. They work like regular payday loans online, providing instant payment. The only difference is that you get a longer period to make your monthly payments.

Long Term Loan Advantages and Disadvantages

There are various pros and cons associated with long term loans.


  • Lower interest rates

  • Large amounts available

  • Flexible & affordable monthly repayments

  • More time to pay


  • Bigger risks if you can’t pay

  • Possible fees for missed payments

  • Difficult to access long term loans for those with a bad credit report

Alternatives for Long Term Loans Bad Credit UK

Long term loan eligibility can be a challenge when you have a bad credit score. If you need a cash injection quickly, an alternative could be to opt for shorter term payday loans, unsecured loans, or business loans from Cashfloat.

These loans have less strict eligibility requirements when compared to long term lenders. They are more accessible and have various benefits, such as flexible loan terms; they can be repaid early, so you are only charged for the days you had the loan.

If you meet our eligibility criteria; you must be over 18 years, hold a valid UK bank account, have a steady source of income, and be a UK citizen, and of course you must have enough disposable income to make the monthly repayments, then go ahead and apply.


What are long term loans UK?

In the UK, the long term loans definition is used for any loan that has a repayment period in excess of one year. These loans have been designed to finance big expenses with at least 4 digits. This may be to consolidate debt, to make renovations in your home or to pay for your wedding.

Can you get long term loans with bad credit?

It is possible to get long term bad credit score loan. You’ll need to find a long term loans bad credit direct lender. These loans often have higher rates.

Can I get a long term loan with no credit check?

The Financial Conduct Authority don’t recommend lenders that do not perform creditworthiness checks before approving customers. These lenders are usually not FCA authorised and do not care about your financial safety. Stay away from these lenders and always make sure to apply with a fully authorised and responsible lender.

Do I have to be a homeowner to get a long term loan?

No, this is not a necessary requirement. Non-homeowners can still get long term loans. If you aren’t a homeowner some lenders may require a guarantor, but this isn’t always the case.

Is it better to get long term or short term loans?

It depends on your needs. Short term loans online usually have higher interest rates but are paid off sooner and are good for small amounts, such as payday loans. Longer term loans have lower interest rates, but you may have to provide some sort of collateral and have a bigger risk if you can’t pay them back.

What Are Long Term Loans?

Let’s begin with an easy definition. This should help you understand what these loans actually are. As the name implies, a long term loan is one that is paid off over a relatively long period of time. Usually, any loan with a repayment period longer than a year is classed as a long term loan. So you can use this rule to tell the difference between short term and long term loans.

Representative example

Total amount of credit: £700
Duration of the agreement: 6 months
Repayment total: £1,179.05
Interest is Fixed at rate of 185.39% per year | Representative 611.74% APR
Installment 1
Installments 2 — 5
Installment 6