How Do I Decide on the Best Loan for Me?


Trying to figure out the best loan for your situation can feel intimidating, but it doesn’t have to be. The best place to start is to figure out what your most immediate or most pressing need is. Everyone’s situation and obligations are different. And everyone’s preferences are different. Let’s start here:

What are you really trying to solve for? What matters most to you? Is it:

Borrowing funds at the most affordable rate, or:

Getting your monthly payments as low as possible to improve your cash flow?

Having both would be ideal, but if you can prioritize one over the other, doing so may help you choose between a shorter or longer-term loan.

For the same loan amount, a shorter-term loan will usually have a lower APR (Annual Percentage Rate) than one with a longer payoff term. That’s because you’re paying things back more quickly, which means there is less risk to whoever is lending you money. But it also translates into a higher monthly payment for the same loan amount, because you are paying it back in a condensed timeframe.


If you’re solving for your monthly cash flow, a longer-term loan could be a good option for you. Why? It spreads out your payment over a longer period of time, so you can pay less each month, just for longer.

Some important rules of thumb:

  • A higher monthly payment doesn’t necessarily mean that a loan is more expensive.
  • Similarly, a lower monthly payment doesn’t necessarily mean that a loan has a low rate.
  • More often than not, the opposite is true.

Want to talk to someone who can help?

If you’re considering your options and want to talk through your unique situation, don’t hesitate to reach out to us. Our Member Support team is here to help you make strategic decisions to help you reach your goals.

Give us a call at 855-363-4151 Monday-Friday 6am-5pm and Saturdays 8am-5pm PT, or email us anytime at

Want to get rid of high interest debt and start saving?

You’re not alone. The number one reason people come to LendingClub is to pay off credit cards and other high interest debt to get a lower rate and save. And it works. On average, customers paying off credit cards and consolidating debt save almost $300* per month. That’s real money. 


Want to improve your credit score?

Did you know LendingClub customers paying off credit cards and consolidating debt experience an average credit score increase of 28 points?+ Making sure you don’t miss a payment is a huge action you can take to repair, maintain, and build up your credit profile. Whether you’re going for a more affordable loan, or a more affordable monthly payment, having just one bill to worry about can make things easier. We’ve all got enough on our plates.

In addition, lowering your credit usage, or credit utilization is also a great way to improve your credit score relatively quickly. If you need to make a big purchase, using a personal loan rather than charging it to your credit cards and coming close to maxing out can help protect your credit score. 


*Based on responses from 2,259 borrowers in a survey of 14,049 randomly selected borrowers conducted from 1/1/17-7/31/17, borrowers who received a loan to consolidate existing debt or pay off their credit card balance reported that they saved $287 a month on average.

+Average credit score increase of all borrowers who took out a loan via LendingClub between January 1, 2013 and December 17, 2017 with a stated loan purpose of debt consolidation or pay off credit cards 3 months after loan issuance.