LendingTree vs. LendingClub: Personal Loan Comparison
LendingTree is an online lending marketplace for banks. LendingClub is a platform for peer-to-peer lending. Both have an easy application process and fast funding, but they differ in repayment terms, fees and eligibility requirements.
Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.
We’ve all faced a financial pinch at one time or another and needed a little outside help. In these situations, personal loans are a great resource.
Personal loans can be used for almost anything, they’re usually unsecured (so no collateral is required), and they usually have lower interest rates than credit cards. These loans are also typically faster and easier to apply for compared to loans from big traditional banks.
Two common personal loan providers are LendingTree and LendingClub. If you’ve ever wondered if LendingTree and LendingClub are the same company (hint: they’re not!), then this guide is for you.
In this review:
- LendingTree vs. LendingClub: At a Glance
- LendingClub vs. LendingTree: Which is right for you?
- Where to find other personal loan options
LendingTree vs. LendingClub: At a Glance
|APR Range||Varies by lender||10.68% – 35.89%|
|Loan Amounts||$1,000 – $50,000||$1,000 – $40,000|
|Term Lengths||Varies by lender, but usually 12 – 144 months||36 or 60 months|
|Origination Fees||Varies by lender||2% – 6%|
Are LendingTree and LendingClub the same company?
LendingTree and LendingClub are not the same company. They both offer personal loans, but they work very differently in how they fund loans.
A way to differentiate LendingTree and LendingClub is to think of LendingTree as a tree that expands into a network of branches like banks and businesses. Think of LendingClub as a club with other individuals and peers who want to help you out.
LendingTree is a major online loan aggregator. It uses a network of different lenders like banks and creditors to source loans. It has provided more than $50 billion in loans to over 100 million customers in its 22 years of business.
After you fill out an online loan application, a soft credit inquiry is made on your credit report to determine your creditworthiness. Within minutes, you’ll be provided with several loan offers from a variety of online lenders to compare and select. Once approved, money can arrive in a few days.
Learn more about how LendingTree works in our full LendingTree personal loans review.
LendingClub is a peer-to-peer lender (P2P), or a direct lender, which means money comes from a private investor rather than a financial institution. It has issued more than $50 billion in loans since its 2006 inception.
Once you provide some personal information and complete a soft credit check on LendingClub’s website, you’ll get offers from individual investors who want to fund your loan, instead of having major banks and lenders approach you.
Once you decide on a lender, you can receive loan proceeds to your bank account in a matter of days. You can learn more about how LendingClub works in our full LendingClub personal loan review.
LendingClub vs. LendingTree: Which is right for you?
A quick search of personal loans online will generate a dizzying amount of options. The offers tend to bleed into one another, making it challenging to find the one best suited for you. Below we’ll break down some scenarios in which one lender or the will make more sense for you.
- If you want to avoid loan offers over the phone
- If you need long repayment terms
- If you want to pay off your loan early
- If you have bad or excellent credit
- If you live in Iowa, Guam, or Puerto Rico
- If you don’t want any hidden fees
If you want to avoid loan offers over the phone: LendingClub
As a loan aggregator, LendingTree sells its leads to other lenders who will sometimes contact you directly. So once you submit an application, you may start getting calls from lenders who want your business.
Some users have complained about a bombardment of calls filling up their voicemail days after losing interest in a LendingTree loan.
LendingClub, on the other hand, shows your application to investors on its lending platform, and those individuals can choose to fund your loan request or not. You may be able to choose between multiple options, but you won’t face the same marketing calls using its platform.
If you need long repayment terms: LendingTree
LendingTree’s repayment terms vary by the lender you get paired with, but they could potentially reach up to 144 months, or 12 years.
LendingClub’s maximum term length is 60 months.
So if your circumstances dictate the need for an extended repayment period, LendingTree may be the better option. Just be mindful that your loan may cost you considerably more in interest the longer you extend your loan term.
If you want to pay off your loan early: LendingClub
Some borrowers like to make extra loan payments or pay their loan in full before the end of the loan term. LendingClub allows you to make additional monthly payments and pay off your loan early without any prepayment penalty.
On the other hand, LendingTree loans may be subject to prepayment penalty fees, depending on which lender you get paired with. This could be a flat fee, a percentage of the remaining loan amount, or several months’ worth of interest if you pay off your loan early.
If you have bad or excellent credit: LendingTree
LendingTree has a wide network of lenders that caters to borrowers on both ends of the credit spectrum. If you’ve had either a spotless or rough credit history, you may get more options using their aggregator, which includes LendingClub.
LendingClub is best for fair credit borrowers who might not get the best rates with a traditional lender, but who have a decent enough credit score to convince an investor to fund their loan. You can also check out more personal loans for fair credit here.
If you live in Iowa, Guam, or Puerto Rico: LendingTree
You cannot apply for a LendingClub personal loan if you live in Iowa or a U.S. territory. LendingTree only requires you to be a U.S. citizen or permanent resident.
If you don’t want any hidden fees: LendingClub
Since LendingTree is a loan aggregator, each lender has its own set of fees, which means you could be hit with extra fees depending on which lender you choose. You also may not get any fees at all.
However, all of LendingClub’s fees are disclosed upfront so there won’t be any unanticipated costs.
Where to find other personal loan options
Not sold on LendingTree or LendingClub? We’ve done some digging and compared many other lenders for you to consider.
Check out our list of the best personal loan lenders to find which one offers you the best rate, or read some of our other comparison reviews below.
Author: Stephanie Sasseen