Personal loans can be a great alternative option if you have an emergency or have a home improvement to cover. Online lending marketplaces like Upstart or Lending Tree let you quickly compare your personal loans options. But which lender to choose? To help you make the best decision, we compare Upstart and Lending Tree products.

What is Lending Tree Personal Loan?

Based in Charlotte, North Carolina, Lending Tree connects prospective borrowers to multiple loan providers and helps them determine the best rates on loans, credit cards, insurance, etc. A reliable company founded in 1996, Lending Tree makes financial services simple and offers the best bargains for borrowers.

What is Upstart?

Established in 2012, Upstart processes applications through its unique system that uses artificial intelligence. It frequently accepts applications from candidates who do not yet have a sufficient credit history to have a FICO score. Upstart might provide prerequisites for borrowers with subpar credit scores or short credit histories.

Find out more about Upstart here.

What do they both offer?

Like Upstart, Lending Tree uses a peer-to-peer lending model. Direct investment from investors results in more affordable loan terms for consumers.

Upstart and Lending Tree offer fixed-term plans from 2 to 5 years and 1 to 7 years, respectively, offering loans ranging from $1,000 to $50,000. Both have received an "A" rating from the Better Business Bureau (BBB). 

Upstart and Lending Tree provide numerous financial services, including debt consolidation, credit card refinancing, personal loans, auto refinancing, home improvement loans, and more. Getting a personal loan approved is simple. 

Both platforms have extensive experience in the industry. Upstart has been a prominent market lender for more than 10 years, while Lending Tree has been around for more than two decades. Both provide secured and unsecured loans.

Upstart's website contains a wealth of information about the AI system that it employs. They offer 24-hour support and efficient customer service. In addition to having a devoted customer support team on hand, Lending Tree makes provides many resources that assist with responding to any questions that customers may have.

What is Lending Tree’s unique offering?

Easy Application

Install the app, then create a free Lending Tree account. Get a free credit score with customised loan offers to help you save money on existing loan terms.

Flexible Payment Plans

You can obtain loans that let you adjust the due date of payments.

Joint Loans

You can get a joint loan, which is uncommon among online lenders.

Extensive selection

From a network of more than 300 lenders, Lending Tree matches you with up to five lenders.

Soft Credit check

You can check your credit score with Lending Tree without a hard credit check.

What is Upstart’s unique offering?

Lower rates

Rates on personal loans from Upstart are 10% less expensive than rates from other reputable lenders.

Numerous Options

Upstart offers credit cards, personal loans, auto refinancing, home renovation loans, weddings and celebration loans, healthcare loans, and other services.

Prepayment fees waived

There are no costs associated with repaying your loan in full or partly.

Fast Financing

The money is transferred within one business day of approval.

Simplified benefit

Upstart utilizes artificial intelligence to streamline the personal loan application process. The AI carefully weighs all relevant data before making a decision.

How do Lending Tree and Upstart fees compare?

Lending Tree Fees

  • Loan amounts range from $1,000 to $50,000.
  • The loan has a term of 12 to 84 months.
  • No fees for its service of connecting borrowers and lenders.
  • Each lender you get matched with will have its charges, expenses, and conditions, so it’s important to know these before selecting your loan provider.
  • No fee for early payments.

Upstart Fees

  • Loan amount ranges between $1,000 and $50,000.
  • Loan term is from 36 to 60 months.
  • Origination fee of 0% to10%.
  • The penalty for late payments is 5% of the amount past due, up to a maximum of $15.
  • NSFs or returned checks have a $15 fee.
  • No penalty for paying early.

What are the interest rates for Lending Tree and Upstart?

Lending Tree interest rates

The required minimum score is 580. You can find personal loan providers on Lending Tree who offer loans ranging from $1,000 to $50,000. Lending Tree claims that its partners provide excellent credit to borrowers with interest rates as low as 2.49 %. Interest rates, however, can also be very high. Before you submit your loan application, Lending Tree and the lenders will not request information about your bank account.

Upstart interest rates

Even though Upstart requires a 600-credit score, their AI system may approve you with a lower score if you have a regular income and a steady job. Three- to five-year unsecured personal loans are available. Loan amounts range from $1,000 to $50,000. The annual percentage rate (APR) ranges from 5.4% to 35.99%.

What are the eligibility criteria for Lending Tree and Upstart?

Lending Tree eligibility criteria

  • Create a profile.
  • Give details about the loan's purpose
  •  Indicate how much money you want to borrow and when you need it sent.
  • Give your name, address, birth date, social security number, and information about your income.
  • Cite your income proof and other financial details.
  • Information such as your credit score, payment history, income, and debt-to-income ratio are required.

Upstart eligibility criteria

  • The applicant must be at least 18 years old and a citizen or permanent resident of the United States.
  • A full or part-time job that provides income
  • The minimum requisite credit score is 600.

The following are unacceptable to Upstart:

  • Disproportionately high debt-to-income ratios.
  • Recent credit defaults.
  • Bankruptcy or foreclosure in the past.

Which has a better reputation, Lending Tree or Upstart?

  • Lending Tree was founded in 1996 and went online in 1998. It closed over $152 billion in loans by 2006, processing 20 million loan requests. By 2012, it assisted 30 million consumers. Lending Tree has acquired other businesses over the past 20 years, including SimpleTuition, CompareCards, MagnifyMoney, Ovation, and ValuePenguin. It has a 4.6 rating based on 11.600 reviews on Trustpilot and an "A" rating from the BBB.
  • Upstart's website contains a wealth of information regarding the AI process. Although there is 24-hour support, borrowers cannot manage their loans on the Upstart mobile app. The Better Business Bureau has given Upstart a B+ rating. Upstart received 4.9 out of 5 stars on Trustpilot.

Which lender is better, Lending Tree or Upstart?

Lending Tree has over two decades of experience, and its interest rates start low. Hence, Lending Tree has the edge over Upstart in that area. Lending Tree has a mobile application that makes managing finances easy, whereas Upstart does not have that option.

Both share a lot in common while also having some significant differences. Lending Tree is a good choice if you want a flexible repayment plan, whereas Upstart works with borrowers who might not have the best credit and offer quick access to borrowed funds.

If you want to research and obtain an installment loan through a referral service, Lending Tree has a solid reputation and is a reliable choice. At the same time, thousands of people have used Upstart to obtain loans fast. In a nutshell, Upstart excels at installment loans. It's encouraging to see a lender assess your overall borrowing situation, including your educational background and employment prospects, to see if you qualify.

No one can argue with Upstart's devoted following of satisfied customers. Our top rating goes to Upstart for its innovative approach to lending, low-interest rates, and keeping clients happy.

FAQs

How to become prequalified for a personal loan?

Prequalifying for a personal loan helps verify your eligibility and possible interest rate, and the credit report does not get affected. Lenders check your credit report to determine your potential loan terms.  

These lenders will inquire about your basic financial situation and loan requirements to prequalify you. Prequalification enables you to assess multiple lenders and products before you are prepared to make a final decision. You will still need to confirm this information if you formally apply with your chosen lender.

Will paying off your Lending Tree personal loan early subject you to penalties?

The lender you decide to work with will determine this. Although Lending Tree is an online marketplace, it does not impose prepayment fees. Some of its lending partners do. Check to see if there is a prepayment penalty and how much it would cost before you sign any loan documents.

Why are credit scores important?

Your credit score impacts many factors, including credit card limits, mortgage interest rates, and other loans. Your creditworthiness to lenders increases as your score rises. 

Lenders will view you as a riskier borrower if your score is low. They will consequently charge you higher interest rates. It depends on which of the three credit bureaus (Equifax, Experian, and TransUnion) is used for your credit score to differ. A collaboration between the three major credit bureaus led to the development of VantageScore. 

Your credit score should get checked for many reasons. In addition to mortgages, auto, and personal loans, your credit score affects your interest rate. It's crucial to start by understanding where you stand. Monitoring your credit score can help you become aware of any mistakes or potential fraud committed in your name. For instance, you can pull up your entire credit report from the Annual Credit Report and carefully evaluate it if you observe a sharp drop in your score.

How is personal loan borrowing affected by the pandemic?

In spite of the pandemic and its potential impact on the finances of so many families, it is still possible to borrow a personal loan, and occasionally, it is considered even more urgent. Some highly regarded lenders have begun providing smaller-dollar emergency loans to assist consumers and the unemployed to get the money they need to survive. Keep in mind that the eligibility requirements for personal loans, such as credit score and debt-to-income ratio, remain the same.

Due to the ongoing pandemic, lenders have made it simpler for existing personal loan borrowers to prevent loan default. Numerous banks, credit unions, and online businesses have offered fee waivers, customized terms, and repayment deferrals that can be extended.

Should I apply for a fixed-rate or variable-rate personal loan?

Although many personal loans have fixed rates, some lenders provide products with variable rates. Variable rates typically begin lower than fixed rates, even if they increase depending on market conditions.

  • Fixed: The interest rate and monthly payment remain the same.
  • Variable: Rates and payments may fluctuate during repayment.

Decide whether you prefer a fixed monthly payment amount or a volatile payment amount. 

Compare fixed or variable APRs from various lenders after selecting a fixed or variable rate. APR includes all fees charged by each lender, including those for loan origination, unlike a base rate.

About the author 

Greg Lorenzo

Greg is a financial expert who has been advising his audience on loans for over 10 years. He has a wealth of knowledge and experience in the area, and he is passionate about helping people get the best possible deal on their loans. Greg is an expert in negotiating loans, and he has a proven track record of getting his clients the best possible terms. He is also a strong advocate for financial literacy, and he regularly gives workshops and seminars on the topic.

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