Identifying a credible and reliable credit lending company can time be an uphill climb, especially when you need to borrow from banks and other financial lenders. Your loan choice and which creditor to go to are the things you would first need to deliberate on before proceeding to apply.
Lending club and lending tree are financial lending companies based in the United States offering a variety of credit funding services to their clientele.
However, as an individual with little or no knowledge, you need to familiarize yourself with those institutions before seeking their services. Here is a breakdown of all you would need to compare lendingtree vs lending club before you decide on which one will suit you.
1. Inquiry Requirements
Whenever a loan request is presented to lending tree, they make a credit enquiry of the clients’ credentials. This helps determine the maximum credit limit of a client. Additionally, you can get small personal loans from individual investors on this platform.
On the other hand, at the lending club, all loan applications have to go through their website. This implies that your chances of getting a loan from individuals members are limited. You would also need to pull up your credit report on completing your loan request.
2. Credit Score Needed to Get a Loan
A credit score of 660 at lending tree means you are can comfortably apply for a loan. However, a high credit score of 800 onwards increases the chances of your loan being approved.
Although individual lenders here have their own constraints, low score rating becomes harder to apply and qualify for small personal loans. Nevertheless, your request would also be approved but be prepared to pay a higher interest rate.
With a credit score of 600, lending club qualifies you to get loans but typically, borrowers must have a credit score of 700 and above. You can also check your scores by searching on their website which is absolutely free.
3. Loan Processing Duration
Loan processing duration in lending club and lending tree takes approximately seven working days. Unfortunately, this can sometimes take longer especially when your credit score is lower than the required. Similarly, In case you are among those with low credit scales but need a loan, you can use collaterals or look for a fair creditor. Again, consider clearing your other debts first before applying for another one. Surprisingly, you can get a loan of up to $50,000 as long as you are able to provide a co-signer.
4. Personal Loan and Insecure loans
Your creditworthiness while applying for small personal loans in lending tree depends on the lender. He or she determines the amount of interest to charge you. Any loan you apply for without providing any form of security or having a co-signer attracts higher interest rates. This is because of the uncertainty of whether you will be able to pay them back.
Surprisingly, at lending club you get a chance to renegotiate the payment deadlines. With no penalties, lending club gives additional 15-days to members to repay their loans in case they are stack. This is possible since lending club connects borrowers with investors on an online marketplace who also happen to be members.
5. Interest Rates
Your loan choice could also be affected by the interest rates offered by lending institutions. Interest rates at lending tree ranges between 5.99% and 36.99% on small personal loans. Other larger loans are likely to attract a higher percentage. Borrowers with poor credit records force lenders to adjust interest rates slightly higher than normal. This is because of the uncertainty of the debtors to pay back in time.
On the other hand, lending club small personal loans have a fixed annual rating of 5.98% to 35.89%. These rates are determined by multiple factors including duration of paying off the loan; which could be between 36 months and 60 months, credit history of the borrower among others.
6. Dealing With Bad-Debt
Bad-debt is disheartening to every creditor. This would be a setback in both lending club and lending tree in giving credit. While at lending club there is room for grace period to borrowers who communicate to the lenders early enough, with lending tree a bad-debt would attract additional of the interest rate. Moreover, this would also limit you from getting loans in the future.
7. Repayment Period of Loans
At lending club, loans from $1,000 to $40,000 would be repaid within a period of three or five years. Furthermore, all their loans have a fixed interest rating hence fluctuations would not affect your monthly payments.
Lending tree repayment period varies depending on individuals you choose to borrow from as individual lenders set their own requirements. Deporting to meet the agreed time frame would attract additional charges or even they would hold back your collateral longer.
All in all, both lending tree and lending club would be good go-to platform for loan applicants. Their verifications in the terms and conditions make each of them unique. They meet clients’ needs differently hence need for every client applying to conduct a decent research on each before deciding which is favorable to them. However, borrowers are advised to have a clean credit score record before applying any loans.