A huge part of the lending process is comparing lenders — after all, it can make an impact on how much you borrow and how much your loan costs. LendingClub and LendingTree are two different services that can get you funding when you need it, but before you dive into either, you’ll want to make sure you know how each works.
We pinned these two companies against each other in five categories: interest rates, fees, reputation, loan amounts and turnaround times.
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|---|---|
| A direct lender and fintech marketplace bank. | Receive up to five loan offers in minutes through its simple online form. |
| Fair-credit borrowers with steady income. | Comparing multiple offers by filling out one online form. |
| -Be a US citizen or resident, Be at least 18 years old, Have a verifiable bank account |
Regular source of income, US citizen or permanent resident, ages 18+ |
| $1,000-$40,000 | $1,000-$50,000 |
| As soon as 24 hours after approval | If you apply during work hours on a business day, you can get access to approved funds within 24 hours. |
| 24 months-60 months | 12 months-120 months |
| 600 | 580 |
| 850 | 850 |
| 8.98%-35.99% | 7.75%-35.99% |
| Fixed | Variable |
| Not stated | Not stated |
| 3%-8% | Not stated |
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Despite similar names, LendingClub and LendingTree aren’t the same company.
The main difference is that LendingClub is a direct lender, while LendingTree is an online lending marketplace. Though it started as a peer-to-peer (P2P) platform, LendingClub is now a digital bank that offers personal loans. LendingTree doesn’t issue any loans — it only helps find you a lender.
Aside from similar-sounding names, both companies have been around for a while. LendingClub was founded in 2006, and LendingTree was founded in 1996. Both deal in personal loans and operate online, but that’s about where the similarities end.
LendingClub offers rates starting at 8.98% up to 35.99%.
LendingTree is a loan marketplace, so it doesn’t have a set range of APRs. Provider rates range from 7.75% to 35.99%, but depending on what lenders you’re matched with, those rates may be higher.
Winner: LendingTree
LendingTree has a slight leg up on LendingClub, simply because when you submit a form with LendingTree, you get to compare multiple lenders with a range of interest rates. And its partners’ starting rates are lower than LendingClub’s.
LendingClub has a wide range of fees that may apply to your loan. It has an origination fee between 3% to 8% based on your creditworthiness and loan amount. The lender charges either 5% of the amount due or $15, whichever is greater, if your payment is more than 15 days late. And if you choose to pay by check, you’ll face another $7 processing fee.
LendingTree doesn’t charge a fee to use its service, and it has lenders in its network that don’t charge origination fees, prepayment penalties or late fees.
Winner: LendingTree
LendingTree charges nothing to use its service, and it has lenders in its network that don’t charge fees on personal loans. You may be connected with a lender that does — but at the very least, the option for a no-fee personal loan does exist with LendingTree.
LendingClub has had some bumps in the road, but customer reviews are mostly positive. It’s currently accredited by the Better Business Bureau (BBB) with an A+ rating, and has over 5,806 reviews on Trustpilot maintaining a 4.7– out of 5-star rating.
However, LendingClub has run into issues with regulators in the past and has alerts on its BBB profile. In 2018, the Federal Trade Commission (FTC) filed a complaint against LendingClub for false advertising around hidden fees, misleading consumers to believe their loans were approved. In 2021, LendingClub agreed to pay $18 million to settle the charges and they agreed to clearly disclose any fees and total amounts borrowers will receive.
With over 12,316 reviews, LendingTree holds an excellent score of 4.5 stars out of 5 on Trustpilot. On BBB, it has an A+ rating and is accredited, with no current alerts. Most positive reviews praise LendingTree’s fast online application, good customer service and gratitude for efficient connection to a loan provider.
Winner: LendingTree
LendingTree doesn’t issue any loans, and we often see direct lenders taking more heat on review platforms. But that doesn’t take away from the fact that it gets overwhelmingly great reviews.
LendingClub does well compared to other direct lenders in the review and reputation department, but it still ran into issues with regulators in 2018. And while the company settled and agreed to pay out $18 million, it never admitted to any wrongdoing.
LendingClub offers personal loans from $1,000 to $40,000.
LendingTree’s partners offer personal loans ranging between $1,000 to $50,000. However, the exact minimums and maximums depend on which providers you’re matched with.
Winner: Tie
While LendingTree has a network of lenders able to offer large personal loans that surpass LendingClub’s maximum limit, there’s no guarantee that you’ll be paired with one of those lenders. Additionally, the maximum loan amount is very close, and the minimum amount is the same. In this case, it may be better to apply with both to see what kind of preapproval offers you receive.
LendingClub is a direct lender, and boasts a very fast turnaround time as soon as 24 hours. Most borrowers receive their funds within 48 hours, according to the lender’s own stats.
LendingTree is not a direct lender, so you’ll have to fill out a form with LendingTree plus another application if you choose to apply with one of the providers LendingTree connects you with. However, LendingTree does have lending partners that advertise same-day or next-day funding times.
Winner: LendingClub
It was a close one, but LendingClub took the win simply because you’ll only have to fill out an application. LendingTree isn’t a direct lender, so you have more applications and forms to complete, extending the process. Additionally, there’s no guarantee that LendingTree can match you to a lender that has fast funding times.
LendingClub does allow for prequalification with a soft credit check that doesn’t harm your credit score.
LendingTree also allows borrowers to prequalify with multiple lenders based on a soft credit pull that has no affect on your credit score. And while LendingTree never conducts a hard credit check itself, your lender likely will if you continue with your application.
Winner: Tie
Both LendingClub and LendingTree offer ways to find out which rates you might be eligible for without hurting your personal credit score.
Both of these lenders offers several financing options in addition to personal loans.
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
At the end of the day, there are many similarities between LendingClub and LendingTree. As a direct lender, LendingClub has a fair system for breaking down APR qualification and origination fees. It can be a good choice if you’re looking to work with one company for the duration of your loan.
If you want to shop around without having to compare lenders and complete multiple applications, LendingTree might be a better solution. However, although LendingTree includes more than 40 personal loan lenders in its network, it only shows you offers from a maximum of five of those lenders. This can limit your results, meaning you may not get the best deal.
Before you borrow, learn more about how peer-to-peer lending works and take a look at other personal loan connection services so you can be sure you’re getting the best available deal on your next loan.
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