Comparing lenders is a major step in the borrowing process as it can affect not only how much you qualify for but also what you’ll end up paying over time. LendingClub vs LendingTree both offer ways to secure financing when you need it most, but they operate differently. Understanding those differences can help you make a smarter financial decision.
To help you decide which might be the better fit, we’ve compared LendingClub and LendingTree across five important categories: interest rates, fees, reputation, loan amounts, and turnaround time.
An Overview of LendingClub and LendingTree
As their names may sound alike, LendingClub and LendingTree are two very different financial services platforms.
Major Differences
LendingClub functions as a direct lender, meaning it provides personal loans directly to qualified borrowers. Originally launched as a peer-to-peer lending platform, it has since evolved into a full-fledged digital bank. On the other hand, LendingTree is not a lender as it’s a lending marketplace. It helps borrowers connect with lenders by collecting loan offers through a single application form.
Where They’re Alike
Beyond their similar names, both companies have strong reputations and a long-standing presence in the personal loan space. LendingTree has been in business since 1996, while LendingClub began operations in 2006. Both platforms operate entirely online and cater to consumers seeking personal financing but their business models set them apart.
Related: Lendingtree Personal Loan
What Are The Eligibility Requirements?
LendingClub
To qualify for a personal loan from LendingClub, you’ll need to meet the following criteria:
- A minimum credit score of 600
- A reliable and steady source of income
- Must be a U.S. citizen or a permanent resident
- Must not reside in Iowa or West Virginia
LendingTree
LendingTree partners with a wide network of lenders, but most require:
- Proof of consistent income
- U.S. citizenship or permanent residency
Which Offers Lower Interest Rates?
LendingClub
LendingClub’s personal loan interest rates start at 6.34% and can go up to 35.99%, depending on factors like your credit profile, income, and loan term. Since LendingClub is a direct lender, what you’re offered is based solely on its own underwriting criteria.
LendingTree
LendingTree doesn’t issue loans directly. Instead, it lets you compare personal loan offers from various partner lenders. Rates through the platform generally range from 5.99% to 35.99%, though actual offers may vary depending on the lenders you’re matched with and your financial background. Because it’s a marketplace, you could potentially access lower rates than what a single lender offers.
Winner: LendingTree
LendingTree takes the lead in this category. By giving borrowers the ability to compare multiple loan offers through one application, it increases the chance of landing a lower interest rate. While LendingClub’s rates are competitive, LendingTree’s broader access to lenders and lower starting APR makes it the more flexible option when it comes to interest savings.
Which Comes With Fewer Fees?
LendingClub
LendingClub personal loans may come with several fees depending on your loan terms and how you manage repayment. One of the most notable charges is the origination fee, which ranges from 3% to 40% of the loan amount. This fee is deducted upfront from your loan disbursement. If you miss a payment by more than 15 days, you’ll face a late fee of either $15 or 5% of the missed payment, whichever is greater. Moreover, if you choose to pay by check instead of automatic withdrawal, there’s a $7 processing fee per payment.
LendingTree
LendingTree does not charge borrowers to use its service. As a loan marketplace, it connects you with a variety of lenders, some of which may offer personal loans with no origination fees, no prepayment penalties, and even no late fees in certain cases. While fee structures will vary depending on the lender you choose, the platform does provide access to lenders that offer low- or no-fee loans, giving borrowers more flexibility and potential savings.
Winner: LendingTree
LendingTree wins this round by offering access to lenders that may not charge any fees at all. While LendingClub has a clear and often high fee structure, LendingTree gives borrowers the chance to compare and choose offers with fewer or even zero fees. Even though some lenders in LendingTree’s network may still charge fees, the ability to compare options puts more control in the borrower’s hands.
Which Has A Better Reputation?
LendingClub
LendingClub has built a generally positive reputation among borrowers, despite facing some challenges in the past. The company holds an A+ rating from the Better Business Bureau (BBB) and is accredited. On Trustpilot, it has over 5,800 reviews with an impressive 4.7 out of 5-star rating, highlighting solid customer satisfaction.
However, LendingClub’s history isn’t without issues. In 2018, the Federal Trade Commission (FTC) filed a complaint alleging deceptive practices, including hidden fees and misleading loan approvals. While LendingClub didn’t admit to any wrongdoing, it agreed to an $18 million settlement in 2021 and made changes to better disclose loan terms and fees. These past regulatory concerns remain noted on its BBB profile.
LendingTree
LendingTree also has an A+ rating from the BBB and maintains accreditation with no regulatory alerts. On Trustpilot, it boasts over 14,000 reviews and holds a solid 4.2 out of 5-star rating. Customers commonly highlight the easy online application, responsive customer support, and how quickly they were connected to loan options that suited their needs.
Because LendingTree is a marketplace rather than a direct lender, it avoids some of the operational complaints that lenders usually receive, making its overall reputation cleaner in comparison.
Winner: LendingTree
LendingTree takes the win in this category for its strong customer feedback, clean track record, and positive online ratings. As LendingClub performs well in user reviews and has taken steps to improve transparency, its regulatory history and past legal troubles give LendingTree the edge when it comes to overall trust and reputation.
How Much Can I Borrow With Each Lender?
LendingClub
LendingClub offers personal loan amounts starting at $1,000 and going up to a maximum of $40,000. The amount you qualify for depends on factors such as your credit score, income, and overall financial profile.
LendingTree
Through its network of lending partners, LendingTree provides access to personal loans ranging from $1,000 to $50,000. Since LendingTree isn’t a direct lender, the actual amount you’re eligible for will vary depending on the lender you’re matched with and your creditworthiness.
Winner: Tie
Although LendingTree has the potential to connect you with lenders offering up to $50,000, slightly more than LendingClub’s cap, the difference isn’t significant for most borrowers. Plus, there’s no guarantee you’ll be matched with a lender offering the highest limit. Since both start at $1,000 and the gap in maximum loan amounts is small, it may be worth checking pre qualified offers from both to see which one provides the best deal for your needs.
Which Lender Can Get Me Money Faster?
LendingClub
As a direct lender, LendingClub is able to process applications and disburse funds quickly. In many cases, approved borrowers can receive their money within 24 hours of final approval. According to LendingClub, most customers get their loan funds in about 48 hours, making it a fast option for those needing quick access to cash.
LendingTree
Since LendingTree is a loan marketplace, the process includes an additional step. First, you complete a short form on LendingTree’s website to see potential offers. Then, you’ll need to submit a full application directly with the lender you choose. Some of LendingTree’s partners do offer same-day or next-day funding, but the actual timeline will depend on the lender and how quickly you complete the required steps.
Winner: LendingClub
LendingClub edges out LendingTree in this category thanks to its streamlined process. With just one application and in-house funding, the path to getting your money is often quicker and more straightforward. As LendingTree’s partners may also offer fast funding, the need to apply separately with the lender can slow things down and there’s no certainty you’ll be matched with a provider offering immediate turnaround.
Which Lender Offers Risk-Free Quotes?
LendingClub
LendingClub lets potential borrowers check their eligibility and preview loan offers through a soft credit inquiry. This means you can see your potential rates and terms without impacting your credit score. A hard credit check only occurs if you decide to move forward with the application and accept the loan offer.
LendingTree
LendingTree also uses a soft credit pull to match you with potential lenders. You can compare multiple personalized offers without any effect on your credit. While LendingTree itself never performs a hard inquiry, the lender you choose to proceed with may conduct one before final approval.
Winner: Tie
Both platforms make it easy to explore your options without risking damage to your credit score. Whether you’re using LendingClub or LendingTree, the initial quote process is risk-free and based on a soft credit check, making either a safe choice for rate shopping.
What Other Types Of Loans Do These Lenders Offer?
As both LendingClub and LendingTree are known for personal loans, they also provide access to other types of financing to help meet a wide range of borrowing needs.
LendingClub
Alongside personal loans, LendingClub offers small business loans. These are designed for entrepreneurs and business owners looking to fund working capital, purchase equipment, or expand operations. As a direct lender, LendingClub handles the entire process in-house, from application to funding.
LendingTree
LendingTree serves as a loan comparison platform and gives borrowers access to a wide variety of loan types through its network of lenders. These include:
- Auto Loans: Financing options for purchasing new or used vehicles, as well as refinancing existing car loans.
- Business Loans: Options for startups and established businesses needing capital.
- Home Equity Loans: Borrow against the equity in your home for large expenses or renovations.
- Mortgages: Compare home purchase and refinance mortgage rates from multiple lenders.
- Student Loans: Options for both private student loans and student loan refinancing.
LendingClub vs LendingTree: Customer Review Comparison
This comparison highlights that while both platforms are trustworthy, LendingClub is praised for its direct lending services, and LendingTree is valued for its role in facilitating loan comparisons.
Conclusion
Depending on your preferences, both platforms provide good choices when comparing LendingClub vs LendingTree personal loans. As a direct lender, LendingClub offers clear qualifying requirements and upfront loan terms. If you would rather deal with a single organization from application to final repayment, this is an excellent fit.
LendingTree, on the other hand, makes it easier to compare multiple offers at once without submitting applications to several lenders individually. While its network includes over 40 personal loan providers, you’ll only receive offers from up to five, so your results may not reflect the full range of options available in the market.
Before deciding, it’s a smart idea to explore how peer-to-peer lending works and consider other online loan marketplaces. Doing so can help ensure you find the most competitive rates and terms for your unique financial situation.
FAQ’s About LendingClub vs. LendingTree Personal Loans
Q1. What is the difference between LendingTree and LendingClub?
Ans: The main difference between LendingTree and LendingClub lies in how they operate. LendingClub is a direct lender offering personal loans directly to borrowers. In contrast, LendingTree is a loan marketplace that connects users with multiple lenders through one application. Comparing LendingClub vs. LendingTree personal loans helps you decide which suits your borrowing needs better.
Q2. Is LendingClub good for a personal loan?
Ans: Yes, LendingClub is a solid option for personal loans, especially for borrowers with fair to good credit. It offers fixed interest rates, transparent terms, and loan amounts up to $40,000. As a direct lender, LendingClub manages the full loan process in-house, making it a reliable choice for personal financing.
Q3. Is LendingTree a good personal loan company?
Ans: LendingTree is a great platform for comparing personal loans. It’s not a lender but connects borrowers with multiple loan offers using a single application. LendingTree gives access to rates and terms from top lenders, making it easier to find competitive deals. It’s a useful tool for exploring personal loan options quickly and efficiently.
Q4. Who is the best lender for a personal loan?
Ans: The best lender for a personal loan depends on your credit score, income, and loan amount. If you prefer a one-stop experience, LendingClub is a reliable direct lender. For comparing offers, LendingTree is ideal. To find the best lender, compare APRs, fees, and eligibility requirements using trusted platforms like LendingTree or LendingClub.
Q5. How long does LendingClub take to approve a loan?
Ans: LendingClub normally approves loans within a few hours to one business day. Once approved, most borrowers receive funds in 24–48 hours. As a direct lender, LendingClub’s streamlined process helps ensure quick decisions, making it a fast option for those needing personal loans without long waiting periods.
Q6. What are the risks of LendingClub?
Ans: Risks with LendingClub include high origination fees (up to 40%) and limited availability in some states. It also had past regulatory issues, which may concern some borrowers. While LendingClub offers fixed-rate personal loans, borrowers with low credit scores may receive higher interest rates, increasing overall loan costs over time.
Q7. What are the cons of LendingTree?
Ans: LendingTree’s biggest drawbacks include limited lender matches (up to five offers) and potential follow-up calls from multiple lenders. Since it’s a marketplace, LendingTree doesn’t control lender fees or rates. Borrowers may also face additional steps to apply with individual lenders after initial prequalification through the LendingTree platform.
Q8. What is the minimum credit score for LendingTree?
Ans: The minimum credit score to qualify for a personal loan through LendingTree varies by lender, but most partners accept scores starting at 580. Since LendingTree is a loan marketplace, some lenders may require higher scores. Prequalification with a soft credit check helps you explore options without impacting your credit.
Meet the expert:
Fehmida Tantray
Fehmida Tantray is a senior writer at LendingPalm, bringing over three years of experience in the finance industry. Her expertise spans across loans, credit, budgeting, and financial planning.
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