LendingTree Review – Making Comparison Shopping Loans Easier
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Fast Facts
Purpose:
Loan comparison website
Cost:
Free
Credit score:
Minimum 585 for personal loans
Additional services:
Free credit score check
Financial strength:
Highly rated in financial ratings
I often use comparison websites to ensure I get the best rates. I use a website when renewing my auto insurance, and another one when I get my mortgage. When I was in the market for a credit card, I had to go to another website that made credit card comparisons. I found myself on another website when I wanted to take out a personal loan to finance a home improvement project. But wouldn't it be nice to have a website that provides all these services under one roof, so consumers don't have to hop from one website to the other?
Online marketplace LendingTree solves this problem. Our LendingTree review will help you understand its services better.
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What is LendingTree?
LendingTree is a publicly traded online platform that brings together lenders and borrowers all in one place. Two years after its founding, the company was launched nationally in 1998 out of a desire to make comparison shopping loans easier. It is based in Charlotte, N.C., and went public in 2000, just a few weeks before the dot-com meltdown. Auto loans, personal loans, small business loans, and credit cards are just some of the various financial borrowing needs LendingTree caters to. In the 28 years, it has been in business, the company's platform has seen 3 million approved loans, and it has supported 111 million people. Its platform has also helped fund $260 billion in loans thus far.
The online loan marketplace offers free credit scores and other tools and resources to help you compare mortgage loans, home loans (including refinancing), reverse mortgage loans, deposit accounts, insurance quotes, and other related offerings. LendingTree's goal is to match you (aka the consumer) with multiple companies that can provide competing quotes for the financial products you seek.
LendingTree is also very acquisitive. CompareCards , DepositAccounts, MagnifyMoney, Ovation Credit, QuoteWizard, SimpleTuition , SnapCap , Student Loan Hero, and ValuePenguin are all company-owned brands. LendingTree services requests loans from the continental U.S., Alaska, and Hawaii.
Banks compete, you enjoy low rates
- APR: 6.99% - 35.99%
- Loan Term: 12-144 months
- Credit Score: Poor, Fair, Good, Excellent
How does LendingTree work?
Regardless of the product you're looking for, LendingTree process can be summed up in four basic parts:
Submission of information
This is where it begins. You'll have to submit a loan request on the LendingTree website or mobile application. It is important to note that this information isn't considered a formal application; the formal loan application process begins once you accept an offer.
You'll be asked a range of questions in your loan request to determine your eligibility, including:
- How much money you require
- How do you plan to utilize the amount
- Personal and contact information
- Credit score (LendingTree does a soft credit pull that doesn't affect your score)
- Employment and income status
- Social Security number
- Co-borrowers information, if any
The selection
Once you've made an application, LendingTree passes that information to different lenders, deciding if you'd be a good match and making offers after considering the information you provided. If you're rejected, you can either re-apply or talk to a customer care representative to get more information to avoid making the same mistake.
Weighing the options
Congratulations, your case was approved, and you've been made an offer! Now comes the daunting task of screening out loan options you don't like. As a rule, pay close attention to interest rates, APR, points, loan amount, down payment, loan terms, and other offer details. You can also use a loan calculator on the company's website to help you decide.
Make a selection
After filtering the given choices, choose a plan with the most favorable terms, such as an easy repayment structure. Before finalizing the offer, you can contact the lender and try negotiating terms in your favor.
How much does LendingTree cost?
LendingTree's services are free for consumers, and it doesn't charge them any fee. But that raises the question: How does the company make money? The short answer is that banks in its network are mortgage lenders.
Because LendingTree is providing business to these financial institutions, they foot the bill for obtaining those requests. But even though LendingTree is free for consumers, that doesn't mean you're off the hook entirely. Any processing fees, appraisal fees, origination fees, or other costs the lender charges will still apply to you. And this is why you should look at every aspect of the offer before deciding. You could even look elsewhere and compare loan rates offered on the LendingTree platform to ensure you get the best bang for your buck.
Related: LendingTree Business Loans Review
Banks compete, you enjoy low rates
- APR: 6.99% - 35.99%
- Loan Term: 12-144 months
- Credit Score: Poor, Fair, Good, Excellent
LendingTree features
Fast offers
How fast? Within minutes. According to LendingTree, once you provide all the necessary information, you'll receive an email with lenders' offers, which typically takes just a few minutes. As lenders make you an offer, you'll begin to see these in your email. And if you don't have internet access, you can call the company's customer care number to hear about your offers.
No upfront fee
This is arguably the best thing about LendingTree; it doesn't charge any fee for connecting you to its network of lenders. You're not even asked for your credit card information during sign-up. In addition, none of the lenders you're matched with will ask you for an upfront fee either. You may be charged an interest rate lock fee, appraisal fee, application fee, and closing costs once you've accepted an offer — all typical expenses that come with loans.
Hassle-free
LendingTree aims to provide a hassle-free experience to users. Its founder, Doug Lebda, had an "extremely frustrating buying process" when he was in the market for a property. He had to go to multiple banks to compare rates physically. And that's how an idea was born that later materialized into America's largest lending marketplace. LendingTree takes away the hassle of appointments and the manual labor of researching the market for rates and terms that work in your favor.
Free credit score
You can check your credit score for free once you sign up with LendingTree. This allows you to look at the factors influencing your score and develop ways to boost your score. LendingTree lets you look at your VantageScore, but not your FICO score, for free once a month. It also evaluates to see if that number can be brought up and notifies by email of any methods you can utilize.
Resources
LendingTree's website also hosts several financial resources like up-to-date mortgage refinance rates; a mortgage calculator to estimate monthly payments, including taxes, insurance, and PMI; and options for debt relief such as debt consolidation and credit repair.
Who should or shouldn't use LendingTree
LendingTree is best for borrowers with bad credit, anyone looking for an offer within minutes in a hassle-free manner, and those who do not require a large sum. Because LendingTree asks for your information beforehand, you'll only be matched with lenders willing to give you the money. LendingTree has several lenders in its network, including those catering to individuals with a bad credit history.
LendingTree isn't too ideal for people who are looking for large loans.
Pros and cons
Pros
- Assists borrowers with a minimum credit score 585 for personal loans.
- Highly rated and reviewed by customers with a Trust Pilot rating of 4.3 out of 5.
- Service is offered free of cost to customers, and loan offers are made within minutes in most cases.
Cons
- Your personal information is asked, which some people may find intrusive.
- Some reviews online have complained of slow service.
- LendingTree has faced lawsuits over alleged telemarketing calls.
LendingTree vs. its competitors
Company | Services offered |
LendingTree | Comparison service for home loans, personal loans, credit cards, insurance, business loans |
OppLoans | Short-duration installment loans |
SoFi | Mortgages, credit card, personal loans, student and auto loan refinancing, banking, trading crypto |
OppLoans
Opportunity Financial is the lender behind OppLoans, a short-term installment loan ranging from $500 to $4,000 for people with bad credit. Even as OppLoans doesn't pull your credit report, it does report payments to the three major credit bureaus. That means any late payment you make will affect your score. There isn't a balloon payment option, but you can prepay anytime without extra costs. OppLoans has helped 700,000 customers thus far. But the company charges higher rates than a few other lenders, with APR reaching 179% in some cases. OppLoans isn't available in Colorado, Connecticut, the District of Columbia, Iowa, Illinois, Maryland, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia.
SoFi
Social Finance, better known as SoFi, was founded in 2011 to provide affordable student loans. But the company has since branched out and offers a range of personal finance products like mortgages, credit cards, personal loans, student and auto loan refinancing, checking accounts, and brokerage and robo-advisor services. Boasting about 7.5 million members, SoFi has funded more than $59 billion in loans. Registering with SoFi gives you access to a credit score monitoring tool free of cost.
Related: SoFi Debt Consolidation Review
Banks compete, you enjoy low rates
- APR: 6.99% - 35.99%
- Loan Term: 12-144 months
- Credit Score: Poor, Fair, Good, Excellent
FAQs
Does LendingTree charge any upfront fee?
No, LendingTree does not charge its customers any money. However, you will pay fees to the lender once you've accepted an offer.
Is LendingTree available in all states?
Yes, the company operates in the continental U.S., Alaska and Hawaii.
Am I obligated to accept an offer?
No, once you've been made an offer, it's completely up to you whether you want to accept or reject it.
Is there a prepayment penalty?
Lenders are typically upfront about any prepayment penalty. However, if you're unable to find the information, you should contact the lender directly to obtain this information.
During a credit inquiry, does LendingTree do a hard credit pull?
No, LendingTree only does a soft credit pull that doesn't show up on your credit report to anyone except you.
Is LendingTree legit?
With low credit score requirements in some cases, a diverse network of providers offering loan products, easy sign-up, and saving you the hassle of individually contacting each lender and comparing offers, LendingTree is a one-stop shop for your borrowing needs. Loan offers are made within a few minutes, the company doesn't charge you any money, and you can also check your credit score once a month for free.
The company runs a credit check but in a manner that doesn't affect your overall score, and its service is also suitable for people with good credit regardless of the type of loan. With a Trust Pilot rating of 4.3 out of 5, LendingTree is highly rated and reviewed.
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Writer
Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.
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