Personal Loan

Lending Club vs Prosper vs LendingTree: Which Is the Best Personal Loan?

When you need a loan, it can seem stressful trying to find the right lender. However, you shouldn’t just go with the first lender you find. Take the time to compare and contrast your different lending options; make sure you are going with the best lender for you and your needs.

In this article, you will get to know three popular lenders and better understand what each of them has to offer.

Weighing the pros and cons, understanding the differences and comparing what each company can offer you will all help you make an informed decision and choose the best lender for you.

Before you can properly compare them, you need to know more about the companies themselves.

About Lending Club

With business loans, personal loans and auto refinancing, Lending Club has a great reputation for helping you save money and provide a financial hand when you need it.

With over 2.5 million people having used Lending Club and billions of dollars borrowed, the Lending Club is just short of a full five-star rating, proving it is a trusted and trustworthy business.

Lending Club works by screening borrowers and facilitating the transactions from borrowers and investors. They are then able to service the loans from investors and you get the money you need.

The investors gain the ability to diversify their investment portfolio and earn competitive returns while aiding the borrower’s need to get cash fast. Since 2007, Lending Club has strived to reinvent how people borrow money, and this technological company has certainly done that and more.

About Prosper

Founded in 2005, Prosper is a much smaller and less well-known company than Lending Club, but it is still a worthy competitor. It has over 850,000 borrowers and 14 billion dollars borrowed.

They take pride in having low interest and fixed term personal loans that are meant to help empower those in financial need, rather than cripple them and make it difficult to get out of debt.

The interest rate is low and will never increase, the payment plans can be tailored to your financial needs and there are no prepayment penalties.

If you decide to go with Prosper, you will need to complete three simple steps. Step one involves choosing how much money you need to take out in a loan, answer a few questions and find out what your interest rates will be instantly.

If you are satisfied with the options Prosper has to offer you, then move onto step two: selecting the loan offer that is best for you. The third step is getting your money directly into your bank account with a direct deposit.

No need to worry about a check in the mail or transferring funds. The money goes straight to where you need it so you can start using it immediately.

About Lending Tree

With 22 years of experience behind them, Lending Tree is easily one of the most well-known lenders in the United States. With over 100 million borrowers, billions of dollars borrowed and a large variety of loans available, it is easy to see how Lending Tree has stayed at the top of the lending company list for all these years.

Whether you are looking for a business loan or a personal loan, Lending Tree is here to help with home purchases, refinancing, auto loans, and even credit cards. Want even more help?

Lending Tree can also help you find and repair your credit score, get a reverse mortgage, get equity in your home, consolidate your debt and help you with banking.

Lending Tree finds the best loans available for you and lets you choose which one you want to go with. Within a matter of minutes, you can be seeing all the loans you qualify for and can simply select the one you want.

This makes comparing easy and getting the money you need simple and efficient. Whether you are looking to refinance student loans, buy your first house, or even get insurance, Lending Tree can be a one-stop-shop for it all.

Lending Club vs Prosper vs LendingTree

FactorsLending ClubProsperLending Tree
Services OfferedBusiness and Personal LoansPersonal LoansBusiness and Personal Loans +
Application ProcessSimple and Online Simple and OnlineSimple and Online
Credit Score Approval660 or betterAverage or betterFair or better
Loan Amount Limit40,000$40,000$50,000
Fees1 % per year2.4 % per yearLess than 1 %
Minimum Deposit$1,000$25None
Loan SourcePeer to PeerMarketplaceMarketplace
Payment Schedule3 or 5 years3 or 5 years3 months to 15 years
Funds Received  Time About 3 days About 2 daysAbout 7 days
Customer ServiceAvailable 6 daysAvailable 5 days Available all 7 days
Cosigners OptionYesNoYes
APR6.16 % to 35.89 %6.95 % to 35.99 %4.79 % to 35.99 %

Services Offered

Lending Tree, by far, offers the most services with not only personal and business loans, but insurance, credit repair and much more.

While Lending Club offers business and personal loans and Prosper offers personal loans, you get a plethora of other options when you go with Lending Tree. Whether you want to refinance your mortgage or student loans, auto loans, credit cards, getting insurance, gain equity in your home and even repair your credit score.

Application Process

All three lenders operate online so the process is relatively quick and simple. You will need to fill out a form and consent to a credit report check. You can then choose how much you want to borrow.

If you go with Prosper or Lending Tree, they will then provide a list of possible loans you qualify for that you can choose from.

Credit Score Approval

Each lender has different criteria for credit scoring and what they deem to be the minimum amount of credit you need to have to borrow from them. Lending Club is very clear that you need to have a credit score of 660 or better to borrow from them.

To borrow from Lending Tree, you need to have a fair or better credit score. Prosper requires a credit score of average or better to borrow from them, which makes them the most lenient when it comes to credit scores.

Loan Amount Limit

Both Lending Club and Lending Club competitors such as Prosper have a 40,000-dollar limit for personal loans, while Lending Tree has a maximum loan of 50,000 dollars.


While none of these lending companies have over 40% interest rates, they all have different ranges of interest rates. Lending Club’s APR ranges from the lowest at 6.16 percent and the highest being 35.89 percent.

Prosper’s lowest interest rate is 6.95 percent and the highest rate is 35.99 percent. Lending Tree has the greatest range and lowest percentage, at 4.79 percent and a high of 35.99 percent.


Fees related to your loan also range with the three different companies. Prosper has the highest fees with roughly 2.4 percent of your loan going to that. Lending Club boasts of their 1 percent fee, while Lending Tree comes in with a less than 1 percent fee every year.

When You Get Your Money

If you need your money as quickly as possible, Prosper is your best bet. They are able to get your money to you directly into your bank account via direct deposit in only two days. Lending Club takes only a day longer with a three-day waiting period.

On the other hand, Lending Tree takes the longest time to get you your money, with an average of seven days before you have access to it.

Minimum Deposit

Lending Club and Prosper both require you to have a minimum deposit to borrow from them. Lending Club needs you to put up a relatively high deposit, while Prosper’s deposit requirement is significantly lower. Lending Tree doesn’t require a deposit to borrow from them at this time.

Loan Source

Prosper and Lending Tree both utilize a marketplace-style loaning system that helps connect you to a variety of loaners that meet your criteria. It also allows you to select the one that you want.

Lending Club, on the other hand, utilizes peer to peer lending that allows you to borrow from them while investors invest into it themselves, rather than dealing with banks or corporations.

Payment Schedule

For both Lending Club and Prosper, you can choose between a three-year payment plan and a five-year payment plan. Lending Tree offers you the option to choose how long you want to have to pay back the loan with a range of three months to 15 years.

Cosigner Option

If you have a low credit score or just feel more comfortable having a cosigner on your loan, you can have two people on the loan if you go with Lending Club or Lending Tree. If you decide to go with Prosper, you will have to sign the loan on your own.

Customer Service

If you run into any problems or just have some more questions you want to be answered along the way, all three companies have information and FAQs on their website. If you want to get in touch with a representative, you can call the companies for more help.

Prosper is available Monday through Friday, Lending Club is available Monday through Saturday. Lastly, Lending Tree is available all seven days of the week.


Getting a loan doesn’t have to be as complicated and stressful as it used to be. Whether you choose to go with Lending Club, Prosper, or Lending Tree, you can rest assured that you will be able to find a loan that is right for you without having to worry about high interest rates, intense payment schedules, or ending up in further financial trouble trying to repay the loan.

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