LendingTree vs Lending Club vs Upstart - Financial Analyst Insider
This article may contain affiliate links to products from one or more of our advertisers. Click here for our Advertising Policy.

LendingTree vs Lending Club vs Upstart

Sometimes, something comes up and you suddenly need additional money.

Whether an emergency popped up that your emergency fund can’t cover, a dream opportunity was offered that you simply can’t turn down, or you have the opportunity to get a great deal on something you’ve been saving for, personal loans can be a great alternative option.

Unfortunately, getting a loan can sometimes be harder than it should be. This is especially true if you happen to have the same work hours as your bank.  This can make it difficult to complete the loan application and closing process without taking time off work.

Peer to peer lending and online lending platforms were created to fix the challenges of obtaining a personal loan through traditional lenders.

Online lending platforms offer you the ability to apply for loans on your own schedule from wherever is convenient for you. As with any online financial transaction, you want to be sure to only use a credible lending platform.

This article will take a detailed look at some of the best online lenders in the market.  It will provide a detailed comparison of Upstart, LendingTree, and Lending Club.

Upstart

Upstart is unique in that it not only looks at your credit history but your education and employment history as well.

Upstart believes that your ability to repay a loan involves more than just your credit score, and they strive to offer you more options that reflect the season of life you are in.

This makes Upstart a great option for recent graduates and young professionals who haven’t had as many opportunities to build up their credit yet.

Eligibility Requirements

Upstart requires borrowers to be at least 18 years old, and you must be a US citizen or permanent resident. Unfortunately, residents of Iowa and West Virginia aren’t eligible to borrow through Upstart.*

Additionally, Upstart requires that you have a valid email address, proof of your name, date of birth, and social security number, a steady income stream or a job offer that will begin within six months, and an open bank account at a US financial institution.

While Upstart looks at more than just your credit score, they do require borrowers to have a credit score of at least 620.

Rates, Fees, and Repayment Options

Upstart offers rates ranging between 6.46% and 35.99% APR.*

Origination fees can range between 0% and 8% of your loan amount.  Check the terms of your loan approval for your origination fee.

Upstart offers three year or five year repayment terms, and there is no penalty for paying your loan off earlier than your agreed upon term.

There is, however, a fee for making your payment late (after the fifteen day grace period). This late payment fee is equal to either 5% of the late installment payment or $15, whichever is higher.

For more information about loan terms and fees, see our Long Term Personal Loan guide.

Borrowing Limits

Upstart offers loans ranging between $1,000 and $50,000.*

After completing the online application process, you will be able to select a loan option that best suits your needs.

If you choose a loan before 5pm eastern standard time, you will receive the loan proceeds on the next business day.*

LendingTree

LendingTree is designed to help you get the best deal possible on your loan. An online lending marketplace of sorts, you are able to shop around to find the best loan terms between a variety of lenders. You’re able to do this all in one place: your LendingTree account.

Signing up for a LendingTree account is free, and you will be able to monitor your credit score and receive personalized offers for loans that might help you save money from your current lending terms.

Shop around and compare rates for mortgages, vehicle loans, new credit cards, student loans, personal loans, and more.

Founded in 1996, LendingTree is an established, credible company that is committed to making it easier for you to get the best deal possible when you need to borrow money.

Eligibility Requirements

Eligibility requirements will vary, depending on the loan provider you choose from the options LendingTree presents. In general, you will need to have a steady source of income and a decent credit score.

A low credit score doesn’t automatically disqualify you from being able to borrow, it just means you might have a higher interest rate or stricter repayment terms.

If you are able to improve your credit score notably before the loan is paid off, you can consider refinancing at that time to get a better rate for the rest of the life of the loan.

Rates, Fees, and Repayment Options

Again, this will vary depending on the loan provider you choose from the LendingTree marketplace.

Most lenders will use your credit score as a major determining factor in the rate and repayment terms they can offer you. Be sure to also pay close attention to any fees the lender may have when deciding which option to choose.

Borrowing Limits

Different lenders within the LendingTree marketplace offer a variety of borrowing limits.

Whether you are looking to buy your first home or just need a personal loan to cover an immediate need or emergency, LendingTree has options for you.

Lending Club

Lending Club differs from LendingTree in that it is a peer-to-peer lending model. Individuals are invited to invest in one another, meaning that your loan offers on Lending Club could be financed by a person just like you as opposed to a bank.

Lending Club has been on the scene since 2007, and with over 10 years of experience, it has earned a noble reputation as an online lender. If you are looking for a personal loan or business loan, or are looking for help paying for medical care, Lending Club might have an option that is exactly what you are looking for.

Eligibility Requirements

To be eligible to borrow money with Lending Club, you must be a US citizen or permanent resident, or be living in the US on a valid, long-term visa. You must also be at least 18 years old and have a bank account. Unfortunately, Lending Club cannot currently lend to residents of Iowa.

Rates, Fees, and Repayment Options

Lending Club’s interest rates range from 6.95% to 35.89% APR. This rate is determined by a variety of different things, including your credit score, the amount of money you are asking to borrow, and your debt to income ratio.

Lending Club has a one-time origination fee that is somewhere between one and six percent of the amount you are borrowing. The exact rate will be determined by your credit score.

There are no additional fees for paying the loan back early, which is great news if you can get ahead on your payments.

Additionally, if you make your payment past the fifteen day grace period, you will face a late fee of either $15 or 5% of the late payment.

Also, if you choose to make your loan payment by check, you will have an additional $7 processing fee. These two fees, however, are entirely avoidable.

Borrowing Limits

You can borrow up to a $40,000 personal loan, and you can typically receive your money within an average of one week from when you start the application process.

Once you are approved for a loan and the process is complete, the funds are direct deposited into your bank account.

Which option is best?

LendingTree, Lending Club, and Upstart all appear to slightly different market segments, so it is really up to you and your needs to determine which of these three options is best for you.

It is great to know there are so many great options out there for online lending, and these are just three of them. Other personal loan comparisons include Upstart vs Payoff and our Personal Loan Alternatives guide.

If you are a recent graduate or don’t have much (or any) credit history, Upstart is a great place for you to consider starting if you need to borrow some cash.

If you have a solid credit score and are interested in getting the best possible rate out there, LendingTree might be more what you are looking for as you can compare multiple options quickly and easily.

Lending Club is a great option for those with good credit who are interested in skipping a financial institution and borrowing with a peer to peer model instead.

Final Thoughts

Regardless of which online lender you choose, be sure to read the “fine print” carefully, make sure you understand the terms of your new loan, and be sure to make your payments on time to improve your credit score and avoid unnecessary late payment fees.

Online lenders like LendingTree, Lending Club, and Upstart make it easy to borrow money on your own schedule.

The convenience of hopping online and being able to sift through multiple offers to find loan terms that work best for your financial needs is an incredible benefit of living in a technologically advanced age.

Next time you find yourself needing a loan, be sure to take advantage of the ease and convenience of online lending platforms.

*Upstart Loan Disclaimers:

Loan Amounts:

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount is MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5,001. The minimum loan amount in GA is $3,100.

Average rates 21% lower than credit cards:

Estimated savings are calculated based on the credit profiles of all loans originated by Upstart-powered lenders using the Upstart Platform as of April 1, 2020 in which the funds were used for credit card refinancing. Estimated savings are calculated by deriving current credit card APR using minimum monthly payment and 1% of the principal balance. The estimated credit card APR is then compared to the accepted loan to determine median savings per borrower. To evaluate savings on a loan you are considering, it is important to compare your actual APR from your existing debt to the APR offered on the Upstart Platform.

APR Rates from 6.46% to 35.99%:
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart Platform will have an APR of 21% and 36 monthly payments of $35 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

You can have funds in as fast as 1 day:

If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day.  Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

Checking your rate won't affect your credit score:

When you check your rate, we check your credit report.  This initial (soft) inquiry will not affect your credit score.  If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score.  If you take out a loan, repayment information will be reported to the credit bureaus.

Available Loan Terms:

Available Loan Terms range from 3 years to 5 years.

Origination Fee:

0% to 8%.
Click Here to Leave a Comment Below 0 comments
Scroll Up