If you're in the market for a loan or a mortgage, you've probably heard of LendingTree. But what is LendingTree, and what can it do for you?
To save you from browsing through endless LendingTree reviews, we’ve done the legwork for you. So, without further ado, let’s take a look at what LendingTree is, what types of loans it offers, how to apply for a loan through it, and the pros and cons of using its services.
APR range 0.99% to 35.99%
- Multiple applications through one form
- Free tools for calculating loans and improving your financial health
- The fully online application process
- Financial advice available on the site
- Excellent mobile app
- No fees for using LendingTree Services
- Forwarding your contact information to multiple lenders
- Lenders have different fees which are not always transparent
What is LendingTree?
LendingTree is an online marketplace that allows you to compare loan and mortgage offers from multiple lenders in one place. It is not a lender, as it doesn't offer proprietary loans. However, it will allow you to shop around and compare prices, and rates, without having to fill and apply with multiple lenders or worry about its effect on your credit score.
You can start comparing loans from LendingTree lenders on its website or by downloading the mobile app.
The LendingTree mobile app is a great way to get quick, easy access to the best loan offers from around the country. With just a few taps, you can see what kinds of loans are available to you and check their rates and terms. You can also use the LendingTree app to apply for a loan or to get pre-qualified for one.
The app is also incredibly helpful for building your credit score. You can use it to check your current one and read suggested ways to improve it. Furthermore, the app will notify you if it finds better rates for your existing loans so that you can refinance them and save on interest.
What Type of Loans Does LendingTree Offer?
LendingTree offers a wide variety of loans, including:
- LendingTree personal loans - ranging from $1,000 to $50,000 with rates as low as 2.49% APR,
- Debt consolidation loans - ranging from $1,000 to $50,000 and having rates as low as 3.99% APR,
- Business loans - ranging from $5,000 to $10,000,000 at different rates,
- Auto loans - rates start as low as 0.99% APR.
For each of these, the LendingTree website offers an overview of the lenders with the best rates and an easy-to-use calculator for calculating your overall payments. For some, it also provides an overview of monthly payments to help with the management of your budget and finances.
There are also student loans and LendingTree refinance options for them, along with some of the best rates for auto refinancing around.
Additionally, you can rely on the LendingTree website and app to find the right credit card for your needs. You can use its overview of rates and qualifications for balance transfer credit cards, rewards cards, and cashback cards.
LendingTree is great for taking on a mortgage: both new homeowners and those that would like to refinance their current rates can find a competitive offer here. LendingTree home loans offer a wide variety of mortgage products from different lenders, including:
- Fixed-rate mortgages - the interest rate stays the same for the entire loan term,
- Adjustable-rate mortgages - it can change over time,
- FHA loans - backed by the US Federal Housing Administration and available to those with lower credit scores,
- VA loans - available to veterans, service members, and their spouses,
- Jumbo loans - for loan amounts that exceed the conforming loan limit.
There are also mortgage options for those looking to buy a second home or an investment property. The website offers calculators, rate trends, and budgeting tools to help you plan your new home purchase.
How to Apply for LendingTree Loans?
Applying for a loan with LendingTree is easy and can be done via either its official website or the mobile app. All you have to do is create a free account.
You’ll need to give some basic information about yourself, including your ZIP code and the last four digits of your Social Security Number. From there, LendingTree will ask you about the loans you're interested in and help you find the best rates.
Applying for a loan through LendingTree is also simple. After you create an account, share some basic data about yourself, and fill in the information about the LendingTree loan you're looking for, the actual application process will begin.
You will be asked to specify the amount you'd like to borrow and the timeframe for receiving the disbursement. LendingTree will then show you your credit score and match you with lenders who would be a good fit.
You will be able to see the lender's name, loan amount offered, the APR rate, length term, and estimates of monthly payments you'll need to make.
LendingTree will also provide you with a lender's phone number so that you can give them a call and inquire further about requirements, rates, or any additional information about the loan.
If you decide to work with one of the lenders you’ve found using LendingTree., you will likely need to provide proof of income or other financial information, as requested by the lender.
What Are the Requirements for LendingTree Loans?
LendingTree does not have any strict requirements for loans as it doesn't provide any proprietary loans. However, most lenders who work with LendingTree will have their own requirements that you will need to meet in order to qualify for a loan.
When digging deep through its website and other LendingTree reviews, we've uncovered that many of their partner lenders will accept applicants with credit scores as low as 600 but will also require your employment information and proof of income.
However, each lender has to verify your credibility on their own. This means that your credit score may take a significant hit due to multiple hard pulls they may perform. If you are in the process of building your credit, or if your score is less than stellar, it may pay to search for the lender manually and avoid relying on LendingTree's services.
What Are the Fees Associated with LendingTree Loans?
LendingTree does not charge any fees for its services. However, the lenders who work with LendingTree may charge some, such as origination or application fees.
An origination fee is a charge assessed by a lender for processing a loan application. This fee is generally a percentage of the total loan amount and is paid at closing. For example, if you're taking out a $100,000 mortgage, and the origination fee is 1%, you'll pay $1,000 upfront.
With LendingTree, you will be able to find some lenders that don't have this fee. On average, though, LendingTree lenders will charge 1% to 8% in origination fees.
Another important cost you'll need to factor in is the interest rate. This will vary per lender and will depend heavily on your creditworthiness. At the time of writing this LendingTree review, its partners offered rates as low as 0.99% for auto loans, but as high as 35.99% for some other loan types.
You should also inform yourself on whether a particular lender has any prepayment penalties. If you are looking to pay off your loan quickly, you’ll want to avoid lenders that charge penalties for doing so.
How Does Using LendingTree Compare To Other Lenders?
0.99% to 35.99%
$1,000 - $50,000Visit Site
59% - 160%
$500 - $4,000Visit Site
5.99% - 35.99%
$500 - $35,000Visit Site
While LendingTree can provide you with some of the best loan rates around, it pays to keep yourself informed about other options on the market. Once you calculate all the rates and fees involved with a particular loan obtained through LendingTree, you’ll have a better idea of what to look for and how other lenders compare.
Depending on your circumstances, it’s possible to find better deals outside of LendingTree. Even so, the convenience here is unmatched, so even if you don’t opt for one of their lenders, the site is still a great starting point.
What Are the Pros and Cons of LendingTree?
Like any loan service, there are both pros and cons to using LendingTree.
The main pro is the convenience. You can apply for multiple loans through a straightforward and quick process. This way, you only have to fill out the application once, which is quite a time-saving feature.
Furthermore, LendingTree offers an easy side-by-side comparison of loans and other financial products from multiple lenders so that you can effortlessly compare them without having to visit multiple sites.
Lastly, many will appreciate the fact that they can compare and take out a loan fully online. This is another feature that, according to many LendingTree reviews available online, saves users a lot of time and effort.
However, there are also some cons that we need to talk about.
The first one is the lack of transparency with some lenders. You’ll have to contact them individually or apply for their loans to figure out specifics about the rates and hidden costs.
Additionally, even though LendingTree is a free platform, lenders set their own fees. This can translate into astronomical origination fees and other hidden costs that will hike up the price of your loan.
Furthermore, as these LendingTree lenders will have to verify your credibility, your credit score might take a dive due to multiple hard pulls on your credit report. If you have a less-than-stellar score, you should consider applying for a loan directly and making sure that your chosen lender will initiate a soft pull.
Lastly, online reviews of this lender provide us with another con - lenders can be very persistent with their phone calls, to the point of becoming a nuisance. Thankfully, you can always opt out of phone calls on the website.
To conclude this LendingTree review, we’ll say that it is a great option for those who are looking for a loan but don’t have the time or the patience to compare and apply at multiple loan providers manually. Just be sure to do your research on all the lenders you are interested in, and compare their offers before signing any paperwork.
Who owns LendingTree?
LendingTree is owned by Tree.com, Inc. Tree.com also owns other brands in the financial space, such as GetSmart, iLoan, Mortgage Loan Center, and Reverse Mortgage Loan Center.
What credit score does LendingTree use?
LendingTree’s credit check uses the Fair Isaac Corporation (FICO) credit score model to assess your creditworthiness. The FICO score ranges from 300 to 850, with a higher score indicating better credit. Typically, people with a credit score as low as 600 may apply, but the better your score, the more favorable your loan terms will be.
Does LendingTree hurt your credit?
Opening an account at LendingTree won’t hurt your credit score. In fact, its website and app can be of great help in building it. With that said, just as LendingTree reviews its lenders, they review your credit score. This means that the process of applying for a loan could damage your score because some lenders perform hard pulls on your credit report to determine your creditworthiness.