LendingTree vs. LendingClub: Which Is the Best To Borrow From?

LendingTree and LendingClub are popular online-based lending platforms offering great loan opportunities. They can serve both businesses and individuals with different credit ratings and other considerations. But while these two lenders offer similar services, they also have many differences.

Therefore, which of these two insanely successful fintech companies is the best?

The answer to this, however, is very difficult to determine because it depends on your individual needs.

Many people and business owners today need that answer desperately because the pandemic has put many livelihoods at risk. Government relief programs help some. However, they are insufficient and full of problems. In this situation, millions of people require loans just to survive. The majority of them need bad credit loans, in particular.

In this situation, LendingTree and LendingClub, and others like them, maybe one of the only options for many, especially those considering bankruptcy. Therefore, it’s essential to understand exactly what is different between the two platforms and how each can benefit you.

To do this, you’ll need to look at a detailed LendingTree vs. LendingClub comparison. Mind both the pros and cons and recommendations as to which platform suits different types of borrowers. Both of them are excellent and have stellar customer reviews. Therefore, the main differences are in the details.

Let’s look at LendingTree vs. LendingClub and see which might be right for you.


LendingTree is an online lending marketplace in the fullest sense of the word. Meaning it’s not a lending platform but instead a market where you can shop for a compatible lender. There you can apply for a variety of loans, including:

  • Personal loans
  • Mortgage
  • Student loans
  • Auto loans
  • Business loans
  • Refinancing and debt consolidation

Most people who use LendingTree are looking for personal loans or mortgages. The platform itself is free for a prospective borrower to use. However, technically, LendingTree receives a commission for every deal. It’s definitely part of why lenders’ rates offered through this platform might be a bit higher.

LendingTree is designed to serve clients with moderate and good credit rating. However, as there are a variety of lenders partnered with LendingTree, and some of them might accept customers with poor credit.

Looking for a loan through this platform will not affect your credit score. But when you apply to a matching lender, they will conduct a hard check, which will likely lower your score by a few points. However, this dip is usually temporary as long as you continue to make your payments on time and your credit report adjusts to any new loans.

Today, LendingTree has expanded from the simple lending marketplace it started as back at the end of the 1990s. It currently offers a variety of financial services as well as an app that can consolidate your accounts and improve money management.

LendingTree reviews are overwhelmingly positive (95%). The company hasn’t had a big scandal to its name in over two decades. You can find loans of any amount and varied interest rates on this marketplace.

Note that LendingTree itself is just a service that connects you to lenders. Therefore, it doesn’t affect APR or any fees involved in the loan.

LendingTree: Pros

The platform is free and very easy to use. Most importantly, you can use it to find nearly any type of financing.

Comparing offers from different lenders doesn’t affect your credit score at all. This allows you to explore unlimited opportunities to find the best option.

As the number of lenders partnered with the platform is huge, your chances of finding a great match is high. The system will look for offers based on your specific requirements. Therefore the loans will be custom tailored to you.

Overall, LendingTree help facilitates the process of getting a loan, especially for someone who is struggling to get financing from a traditional bank. They simplify the process by bringing a variety of offers to you, rather than you needing to take the time to go out and find potential lenders and compare your offers.

LendingTree: Cons

While advertised rates are very good, not everyone qualifies for them.

LendingTree is a “middleman.” Therefore, you depend fully on each lender’s eligibility requirements, APR, fees, etc.

You may also receive a higher APR when obtaining a loan through LendingTree due to the commissions mentioned above that LendingTree gets when partnering customers with lenders.


LendingClub started as a peer-to-peer online lending marketplace. Back at the time of its inception, it was a Facebook group where borrowers and investors could find the best match. The company has come a long way since then. It will be converting to a bank holding company in the future and recently purchased Radius Bank to facilitate this goal.

LendingClub does generate its own capital for lending. This means that, unlike with LendingTree, you get a loan directly through LendingClub. This enables the platform to charge specific fees, including an origination fee.

This platform can be used to get a variety of loans:

  • Personal loans
  • Debt consolidation
  • Small business loan

Small businesses, in particular, are frequent users of this lending marketplace. You can get an unsecured loan with LendingClub if it’s under $100,000.  Loans over $100,000 and to $500,000 (the platform’s maximum) must be secured.

Minimum requirements for a business applying for a loan with LendingClub are:

  • Being a registered business for 12 months or more.
  • Having a minimum of $50,000 in annual revenue.
  • Not having any recent bankruptcy filings or tax liens.
  • Owning over 20% of the business.
  • Having a fair to high personal credit score.

Note that LendingClub allows for early loan repayments without additional fees. However, it does charge an origination fee you’ll pay once (1-6%) and an APR ranging from 6.95% to 35.89% for personal loans. The maximum duration of a loan is five years. There might also be an interest fee included in your loan.

LendingClub also has a very high customer satisfaction rate and a reputation of a trusted lender.

LendingClub: Pros

The LendingClub platform is very easy to use. The application process is straightforward, and you can get a loan within four days.

Once approved, the money will be transferred directly to your account fast.

There are no penalties for early loan repayment. Therefore, if you are only looking for a loan to tide you over for a while, this option can be a good one despite the higher APR.

Interest rates are fixed, which means you won’t be subjected to possible adjustments in interest rates which could increase your payment.

LendingClub: Cons

Unfortunately, LendingClub charges several fees and offers a rather high APR. Therefore, this loan will definitely cost more than financing from a bank. The trade-off is that it will be much easier to get a loan from LendingClub than it would be with traditional financing.

The maximum loan term is rather short, which also factors into higher interest rates. Additionally, not everyone will meet the eligibility requirements set by LendingClub.

Like with any application for new credit, LendingClub will eventually run a hard credit check, which may lower your credit score. However, it should bounce back relatively quickly once your credit report has adjusted to the new loan and you’ve begun made regular payments.

Which Is Best for You?

There are a few ways to get quick cash when you need it, including taking out a new loan.

Both LendingTree and Lending Club are options you should consider in this situation. You’ll need to take a look at the options LendingClub affords directly and the offers you can get through LendingTree’s marketplace, then decide which is best based on your circumstances and the exact purpose of your loan.

LendingTree vs. LendingClub?

Considering the high level of service, trustworthiness, and reliability you can expect from both these lenders, you can’t go wrong with either. Therefore, the only thing that truly matters is which offers the exact type of service you need and the best terms for your circumstances.