Out-of-pocket healthcare expenses — from elective surgery to dental work and dermatology — can strain even solid savings in your bank account. Many patients explore financing, evaluating options from traditional financial institutions and credit unions all the way to online lenders like Prosper and LendingClub.

These firms were early leaders in peer-to-peer lending, though their models now differ — LendingClub personal loans are bank-issued, while Prosper.com remains a peer lending platform.

How Prosper Works

Founded in 2005, Prosper was the first major p2p lending marketplace in the U.S. It connects borrowers with both institutional and individual investors who fund personal loans. Over the years, Prosper has facilitated billions in lending and remains one of the most recognized peer lending platforms. While its loans are used for many purposes — from consolidating credit card debt to funding real estate projects — they are general-purpose, not healthcare-specific.

Prosper offers new loans up to $50,000 with terms from two to five years. APRs vary from 8.99% to 35.99%, and origination fees run from 1% to 9.99%. Borrowers start with prequalification (soft credit check), then complete underwriting, income verification, and a credit report pull to finalize a loan application. Prosper customers may be faced with late fees, but will never be charged a prepayment penalty for paying off their loan early.

Takeaways

• Up to $50,000; 2–5 year terms
  
• APR: 8.99%–35.99%
  
• Origination fees: 1%–9.99%
  
• No prepayment penalty; late fees possible
  

How LendingClub Works

LendingClub was founded in 2006 and quickly became one of the largest names in peer-to-peer lending. For years, it allowed individual investors to directly fund loans, similar to Prosper. But in 2020, LendingClub acquired Radius Bank and officially transitioned into a regulated traditional bank model. 

Today, LendingClub personal loans are no longer marketplace-funded; instead, they are originated and serviced through LendingClub Bank. This gives the company the ability to offer a wider range of financial services. 

LendingClub offers unsecured personal loans up to $60,000 with terms typically from 24–84 months. APRs range from around 7.9% to 35.99%, and origination fees run 0%–8%, depending on creditworthiness. Loan approval includes underwriting and hard credit checks, with no prepayment penalties 

Takeaways  

• Up to $50K–60K; terms up to 84 months
  
• Lower APR for creditworthy individuals: ~7.9%–35.99%
  
• Origination fees: 0%–8%
• No prepayment penalty; late fees possible

Prosper vs. LendingClub: Side-by-Side

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Limitations for Healthcare Financing

• Risk-based pricing can mean high APR for patients with fair credit.
  
• Origination and late fees raise overall cost.
  
• Funding delays (days) may not align with treatment-day decisions.
  
• General-purpose loan lenders are not optimized for healthcare workflows.

Top Alternatives

While LendingClub and Prosper loans can help patients manage medical expenses, they aren’t designed specifically for healthcare. Many practices and patients prefer solutions that integrate seamlessly at the point of care, offer faster approvals, and fund providers up front.

A growing number of fintech lenders and personal loan lenders now provide alternatives with more flexible terms, clearer pricing, and wider eligibility requirements across a range of credit profiles. Below are some of the most popular.

Cherry Financing

Cherry is a buy now, pay later fintech company built for healthcare, wellness, and aesthetics. With just a soft credit check, patients can apply and get an approval decision in less than a minute for loan amounts up to $50k, terms up to 70 months, and special financing options like true 0% APR for qualified applicants — no deferred interest traps. 

For practices, there’s no risk if the patient defaults, merchant fees are the lowest in the industry, and funding is exclusive to the office where the patient applies.  

Takeaways

• Instant approval with soft credit check
  
• 80%+  approval across all credit profiles
  
• True 0% APR options with flexible repayment terms
  
• Practice funded up front, no risk if borrower defaults
  
• No hidden fees, deferred interest, or prepayment penalties
  
• Larger loan amounts for high-ticket procedures
• Funding available for dermatology, medspa, veterinary, plastic surgery, dental, and orthodontics, and exclusive to the practice where the patient applies

Sunbit

Initially for auto repair, Sunbit now supports healthcare, offering loans up to $20,000 with APRs from 0-35.99%. Approval is easier for borrowers with lower credit ratings, and the installment plans are flexible. However, since some offers use deferred interest, costs can escalate if balances aren’t paid on time, and merchant fees start comparatively high at 4.7%. 

Takeaways

• High approval rates for lower credit profiles
  
• Up to $20,000 in financing
  
• Deferred interest possible
  
• Higher merchant fees

Scratchpay

Scratchpay offers single-use installment loans, popular in veterinary, dental, and mental health care. Borrowers apply with a soft credit check, and approved amounts range from approximately $200 to $10,000. Loan terms typically range from 12 to 36 months with APRs between 0% and 36%. Though it imposes no prepayment penalties, Scratchpay’s promotional financing results in deferred interest charges if not repaid on time, and higher interest rates.

Takeaways

• One-time installment loans per procedure
  
• Up to ~$10,000 financing
  
• No prepayment penalties
  
• Deferred interest promotions
  
• Lower rates for higher credit scores

CareCredit

CareCredit is a healthcare credit card issued by Synchrony Bank and accepted at more than 270,000 providers across dentistry, veterinary care, vision, and cosmetic specialties. Patients can apply online with a hard credit check, and if approved, they receive a revolving line of credit that can be used for multiple procedures.

CareCredit offers promotional financing — often 0% interest for 6-24 months on qualifying purchases — but these offers rely on deferred interest: if the balance isn’t paid in full by the end of the promo period (or if a payment is missed), interest is charged retroactively from the original purchase date. 

After promotions, the regular APR is about 32.99%, and missed payments can also trigger late fees. While CareCredit’s broad acceptance makes it convenient, patients must be cautious to avoid turning a short-term interest-free offer into a costly long-term debt.

Takeaways

• Revolving credit for ongoing treatment
  
• Large network of 270,000+ providers
  
• Hard credit check in application
  
• Higher merchant fees starting at 5.9%
  
• $25,000 loan limit, not exclusive to practice
  
• Reusable credit line with wide provider acceptance
  
• Missed payment or unpaid balance triggers deferred interest
  
• Higher interest rates after promotions end

SoFi

SoFi is an online lender that began as a startup focused on student loan refinancing but has since expanded into personal loans, mortgages, and business loans. Its personal loans are used for everything from debt consolidation to home improvement. 

Borrowers can apply through a fully digital application process, with access to loan amounts up to $100,000, fixed-rate terms ranging from two to seven years, and no origination fees or prepayment penalties. Applicants with an excellent credit score, good credit history, and a low debt-to-income ratio will qualify for the best rates, while those with weaker profiles may face higher APRs up to 35.49%.  

Takeaways

• Large loan amounts available ($5k minimum, $100k max)
  
• No origination fees or prepayment penalties
  
• Competitive loan offers for strong credit profiles
  
• Not tailored to healthcare
  
• Hard credit check for full application
  
• Supports a wide range of personal finance needs from growing an IRA to completing a student loan refinance

Affirm

Affirm is a popular fintech company best known for its role in e-commerce, where it partners with major retailers to provide buy now, pay later financing at checkout. In recent years, it has expanded into healthcare and wellness, though its presence is still smaller compared to medical-specific financing providers.

Affirm offers point-of-sale financing with terms from 3–36 months and loan amounts up to ~$17,500. Some offers have true 0% APR; others go up to about 30%. While easy for patients, Affirm’s merchant fees are high and loan caps may not suit more expensive procedures.

Takeaways

• Terms: 3–36 months; up to ~$17,500 financing
  
• Some 0% offers; APRs up to ~30%
• High merchant fees

Conclusion

Both Prosper and LendingClub let patients spread healthcare costs into predictable monthly payments. However, their risk-based pricing, origination fees, and lack of embedded healthcare support limit suitability.

For providers looking to deliver seamless care and better acceptance rates, Cherry offers a clearer, safer, and more flexible approach tailored to healthcare. Patients benefit from transparent terms with customizable payments, loan amounts up to $50k, and high acceptance rates for applicants of all backgrounds.

Providers benefit from upfront payment, the industry’s lowest merchant fees, no risk if the borrower defaults, and funding exclusive to the practice. Find out why over 40,000 practices use Cherry to offer more treatment and grow their small business. Claim your complimentary demo here.