Take a comprehensive look at two lending companies to find out which has the best loan for you.
Making a big purchase, paying for your wedding or even buckling down on home improvements can cost more cash than you have on hand. If you’ve decided to take out a personal loan, the last thing you want is to pay more than you need to. We’re here to help you by comparing a top peer-to-peer lender with a top loan-connection service.
Yes. Our analysis is based on both providers’ stated APR ranges, loan amounts and listed fees. Reputation is judged from an outside source that gathers user reviews. Keep in mind that LendingTree is a loan-connection service whereas LendingClub is a peer-to-peer lender. So all LendingTree’s advertised benefits may not apply to you if you don’t qualify for that specific lender’s terms.
An overview of LendingClub and LendingTree
LendingClub is a peer-to-peer lender established in 2006. LendingTree was established in 1996 as a lending marketplace. It doesn’t directly provide loans. Instead, LendingTree’s gathered a network of lenders that it checks your application against to connect you with the best fit.
It may sound like we’re comparing apples and oranges here, but you’ll find some overlap among direct lenders and loan-connecting services.
Are LendingClub and LendingTree the same company?
No. Despite the similar names, LendingClub and LendingTree are not related. They also offer financing in slightly different ways. LendingClub connects borrowers with investors, while Lending Tree simplifies your loan search by pointing you toward lenders that could be a good fit.
Scott Sanborn has been the CEO of LendingClub since 2006, which is based in San Francisco. Doug Lebda is the founder and CEO of LendingTree, which is headquartered in Charlotte, North Carolina.
First, am I eligible for a loan with LendingClub and LendingTree?
You must be an American citizen, a permanent resident or on a long-term visa to borrow with LendingClub. You must have a credit score of at least 660 and be at least the age of majority in your state. LendingClub doesn’t service customers in Iowa or West Virginia.
Because it’s a loan-connection service, LendingTree’s results could include several lenders you might qualify for — each likely with different eligibility requirements. Base requirements include being at least 18 years old, an American citizen or a permanent resident and having good credit with the income to support the cost of the loan.
Which offers lower interest rates?
LendingClub’s APRs range from 5.98% to 35.89%. LendingClub assigns your application a “Loan Grade” of A1 to G5 that it uses to determine your APR and original fee.
Because LendingTree aggregates loans from many different companies, it doesn’t advertise a set APR range. Its network of providers is extensive — and includes LendingClub.
LendingTree has LendingClub within its network. That means that at minimum, you could potentially get the same APR. Because there are other providers within the network, you also have the opportunity to get a lower APR than those provided by LendingClub.
Which comes with fewer fees?
An origination fee, potential check processing fees and late fees could end up costing you. LendingClub’s origination fees range from 1% to 6% depending on your LendingClub loan grade. A charge of 5% of the amount due or $15, whichever is greater, comes with any payments that are over 15 days late. Each payment made by check is also subject to a $7 fee.
While the service itself is free, lenders through LendingTree associate costs with their specific loans. Not all lenders within LendingTree’s network have the same or as stringent fees as LendingClub.
LendingTree has lenders in its network that don’t charge an origination fee or high late fees.
Hugo looks to expand his homeHugo and his son have just adopted a fairly large Saint Bernard. With the new addition to the family, Hugo finds that his current space doesn’t quite fit his needs.
Luckily, Hugo already planned renovations to open up his house a little more. To take out a non-load-bearing wall, it’s going to cost Hugo about $3,000. Since Hugo has to get a loan for the home renovation, he decides to look into LendingClub and LendingTree.
|APR||Fees||Ease of application|
|LendingClub||5.98%-35.89%||An origination fee of $30 to $180, depending on loan grade||Application takes a few minutes to complete, but you can also check your rates without affecting your credit.|
|LendingTree||Varies by lender||Varies by lender||A simple application can get you up to five offers from different lenders.|
Hugo reviews the facts and decides to go with LendingTree, since LendingClub is part of LendingTree’s network.
Which has a better reputation?
LendingClub has a good score of 8.1 out of 10 with Trustpilot but only seven reviews.
With more than 5,300 reviews, LendingTree holds an excellent score of 9.4 out of 10.
LendingTree has a significantly higher review presence than LendingClub. The higher rating from those reviews also helps LendingTree surpass LendingClub in reputation.
How much can I borrow with each lender?
Personal loans from $1,000 to $40,000 are available through LendingClub. Other products offered by LendingClub carry different minimums and maximums.
With 46 lenders that offer personal loans in its network, LendingTree offers a broad variation of minimum and maximum terms.
With a network of lenders, LendingTree has options that can meet LendingClub’s low minimum — up to SoFi’s $100,000 maximum.
Which lender can get me money faster?
You can complete the application in just a few minutes and receive funding in as little as a few business days.
LendingTree claims that it can get you the funding you need in as little as 24 hours, if you qualify.
LendingTree’s marketed 24-hour turnaround time is hard to beat, but that’s not a guaranteed funding speed, and most borrowers probably won’t be connected with an eligible lender that can process an application and provide funds the next day. Lending Club’s turnaround time of just a few business days is shorter than most competing direct lenders.
Bonus round: Which lender offers risk-free quotes?
LendingClub allows borrowers to check which rates, terms and loan amounts they might qualify based on a soft credit pull. This doesn’t affect your credit score.
If you continue with your application, LendingClub will eventually conduct a hard credit inquiry, which can make your credit score drop a few points.
LendingTree also allows borrowers to prequalify with multiple lenders based on a soft credit pull that has no affect on your credit score.
While LendingTree never conducts a hard credit check itself, but your lender most likely will if you continue with your application.
Both LendinClub and LendingTree offer ways to find out which rates you might be eligible for without hurting your personal credit score.
LendingClub is a solid lender. It has a fair system for breaking down APR qualification and origination fees. That said, because it’s a part of LendingTree’s network, you could potentially get to compare it against other offers that may be better for your situation.
Though LendingTree includes more than 40 personal loan lenders in its network, it shows you offers from a maximum of five of those lenders. Before you settle on any one provider, make sure you shop around.
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