LendingTree Review

The emergence of financial needs is the mother of financial innovations. Every passing year is adding to our financial demands and more innovations in the finance industry. To satisfy our financial demands, we are consistently looking for new and novel financial innovations that could reduce costs, risks, provide improved products, and better fit into our personal financial system. LendingTree claims to be such a nation-leading innovation with all the concentration on confident financial decisions. Let’s check out our LendingTree review to take a deep dive into this online lending platform.

What is LendingTree?

It all began way back in 1996 when Doug Lebda teamed up with Tara Garrity and Jamey Bennet to launch Lewsburg Ventures Inc., then it was renamed CreditSource USA, and finally LendingTree. It is an online lending marketplace that does not offer any mortgages or loans of any sort by itself. It can be best described as a lending aggregator that facilitates lenders to come together on one platform and everyone, whether he is a professional, homebuyer, businessman, or a student, can meet their borrowing needs.

LendingTree offers borrowing services for various financial needs like auto loans, small business loans, personal loans, credit cards, deposit accounts, and much more. Comparison shopping services for autos and educational programs are also available. Now, you can see online rates, banks competing for clients, hundreds of lenders, and lots of products, and find the best deals for yourself.

The goal of the company is to put up choice, education, and support to bring home financial decisions. Empowering its employees and customers is the essence of all LendingTree‘s efforts. An empowerment that resembles safety and can be felt only.

Attributes

  • 25 years in business
  • 50+ Billions served in loans
  • 30+ Billions saved in loans
  • 100+ Millions of customers served

How LendingTree Works

How LendingTree Makes Money?

LendingTree makes money from lenders. When the borrowers provide LendingTree their information, it is passed on to the lenders. There are also fees charged from the customers on some specific products such as credit cards and deposit accounts. LendingTree has no other fees or markups except loan processing fees, closing costs, or other fees necessitated by the loaners.

Signup

Sign up on LendingTree is straightforward and free of cost. After signing up, you will be asked certain questions e.g. your location, occupation, income, investments, and liquid assets, type of loan, and the loan amount. It is also obligatory to provide social security number, email address, and password. LendingTree will show you your credit score which is a three-digit number based on your credit report. For this purpose, LendingTree employs the newest credit score: VantageScore 3.0. A typical requirement for borrowers on LendingTree is a credit score of 640 or above. If your credit score is lower than 640 you still can get a loan but the interest rates will be higher. LendingTree will find out the factors affecting your credit score, advise you on how to boost your credit score, and cut your monthly payments.

Functioning

LendingTree functions in three simple steps.

  1. Answering Questions

To use LendingTree services, you have to provide details about the type of loan you need and its consumption. Your loan request will be sent to the LendingTree network, and there will be competing offers for you within minutes.

  1. Shopping Comparison

LendingTree offers its services free of any markup, and you are assured to get the most competitive offers from lenders.

  1. Get the Best Loan

After receiving competitive offers from lenders, you can compare their offers, talk to them to adjust the loan terms and conditions, and get the loan that suits you best.

LendingTree Features

Free Credit Score

LendingTree is a great helping hand when you are improving your credit. LendingTree is responsible to evaluate your credit score, and your credit score is delivered every month at no cost. Moreover, when there is any chance for savings, you will get an email notification,

Data Protection

LendingTree is concerned about the protection of your personal data. That is why modern maneuvers like Secure Sockets Layer (SSL) Technology and minimum 128-bit encryption are used to secure your data.

Feeless Best Loan Option

With LendingTree, you don’t need to pay any surplus fees. Now, searching and determining the best loan option is at hand without any hidden charges.

Time-Saving

LendingTree is quite different from traditional lending platforms. It is particularly launched to save you from long waits as you can find competitive loan rates from several loan providers in minutes.

Variety of Products

LendingTree is such a marketplace that offers a wide range of financial products e.g. mortgage, personal loans, auto loans, student loans, credit cards, and more.

Calculators

LendingTree presents different types of calculators so that you may best estimate your monthly payment amount, the total cost of your loan, total interest paid, and more.

These calculators include:

  • Mortgage calculator
  • Home Affordability calculator
  • Loan Payment calculator
  • Auto calculator
  • Business Loan calculator and more

Large Network

LendingTree is one of the biggest marketplaces with more than 300 lenders/partners. It means a wide array of options available to you when you are looking to compare and line up loan rates and terms.

Financial Wellness

LendingTree ensures your financial wellbeing by improving your credit, lower your payments, and managing money with smart and up-to-date financial tools. Over 15 million people have trusted LendingTree to better their financial health.

Education

LendingTree not only helps you grow financially but also tells you how you can increase your chances of success. There are educational videos about different LendingTree services and products so that you can understand your credit, loan estimate, and more.

LendingTree Mobile App

LendingTree mobile app is available on Google Play Store and App Store. Just download the app and you can see everything from credit cards to car loans to get financial relief.

Budget Tracking

LendingTree offers a budget tracking feature. Users can easily view your monthly spending against the recommended budget. You can also set your own budgets.

Transaction History

LendingTree provides a summary of checking, savings, loans, and credit cards. Besides, expenditure and income records for all the accounts you have connected to LendingTree are also available.

Customer Care

To render better and satisfactory customer support, LendingTree offers phone, regular mail, and online submission form services. However, phone service is not available 24/7.

Here is the Customer Care phone service availability.

You can also follow and get support from LendingTree on social media:

  • YouTube
  • Twitter
  • Facebook
  • Pinterest
  • Instagram

LendingTree Products

  1. Home Mortgage

LendingTree offers many services under its home mortgage product. First, you need to know some of its characteristics.

Financial Goals

Qualifying for a home loan amount does not mean that you are bound to purchase a home within that range. You can choose your own price and monthly repayment according to your financial ease.

Credit Score

LendingTree allows for a home loan with a low credit score such as 500, but with a 620 credit score, you will have lower mortgage rates with a little down payment. If your credit score is below 620, you should go with an FHA loan. There is a VA loan for military borrowers with no funds for a down payment.

Down Payment

With LendingTree, down payments can be as lower as 3% or even zero.

Categories

  • Home loans
  • Refinance
  • Mortgage
  • Home Equity Loans
  • Home Equity Line of Credit
  • Reverse Mortgage
  • Home Insurance
  • FHA Loans
  • VA Loans

Helping Resources

  • Mortgage Rates
  • Refinance Rates
  • FHA Rates
  • VA Rates
  • Check Home Value
  • Mortgage Lender Reviews
  • Loan Officer Directory
  • Glossary

Calculators

  • Mortgage Calculator
  • Home Affordability Calculator
  • Refinance Calculator
  • VA Loan Calculator
  • Cash-out Refinance
  • Home Equity Loan Calculator
  • Reverse Mortgage
  • Rent Vs. Buy Calculator

Shopping Steps

After the choice of a loan program, you can contact local lenders, banks, credit unions, online lenders, real estate agents for comparison. But to save yourself from all the hassle you can simply check the “rate comparison website” available on the LendingTree platform. Follow the following 4 shopping steps to get what is best for you.

  • Ask for price quotes
  • Put same questions for each lender
  • Apply for a mortgage and wait for loan estimates
  • Compare rates and fees before making the final choice

Requirements

  • Credit Scores
  • At least 620 for a conventional loan
  • 580 for an FHA loan and a 3.5% down payment
  • Minimum 620 for VA loan
  • Minimum 640 for USDA loan
  • Debt-to-income (DTI) Ratio
  • At or below 43%
  • Also eligible at 50% (larger down payment and/or a good credit score)
  • Down Payment
  • 3% for conventional loans
  • 3.5% for FHA loans
  • No down payment for USDA or VA loans
  • Employment History
  • Pay stubs
  • W-2s
  • Federal tax returns
  1. Personal Loans

LendingTree lenders provide personal loans almost for everything from $1,000 to $50,000 at rates as low as 2.49% APR. Personal loans are a useful financial product because of low-interest rates and can be of two types i.e. secured personal loans and unsecured personal loans. Secured personal loans have lower APRs but demand collateral whereas unsecured personal loans do not require any collateral but have higher interest rates.

Some Common Uses of Personal Loans

  • Debt Consolidation
  • Credit Card Refinancing
  • Home Improvement
  • Car Repairs
  • Large Purchases
  • Wedding Costs
  • Medical Bills
  • Moving Expenses

Personal loan offered APRs by credit band

Source: LendingTree Personal Loans Offers Report, February 2021

Things to Consider in a Personal Loan Offer

Before accepting a personal loan offer, do consider the following points.

  1. Low APR
  2. Low fees
  3. Positive lender reviews

Personal Loans Features

We like personal loans because of:

  • Fixed Interest Rates
  • Fixed Monthly Payments
  • Improvement in Credit Score
  • Personal property is not at risk

Categories

  • Debt Consolidation
  • Unsecured Loans
  • Holiday Loans
  • Pool Loans
  • Dental Loans
  • Emergency Loans

Resources

  • Personal Loan Lender Reviews
  • Glossary

Calculators

  • Loan Payment Calculator
  • Debt Consolidation Calculator

Steps to Get a Personal Loan

  1. Credit Score

Lenders always focus on your credit history when they consider your loan eligibility. LendingTree is offering free access to credit score enabling you to save on your loan payments.

  1. Prove Your Qualification

Now, you can compare offers and satisfy the loan lenders by answering some questions and verifications about your income, credit score, and DTI (debt-to-income) ratio.

  1. Compare Offers and Make a Choice

You can get competitive loan offers from up to 5 lenders. After reviewing rates, monthly payments, and real customer reviews, you can make a decision and apply for the loan.

  1. Auto Loans

Auto Loans is another loan product of LendingTree to finance new or old cars. Finding the best auto loan rates from different lenders is fast, easy, and free on LendingTree.

Your auto loan is determined by

  • Credit score
  • Loan term
  • Loan amount
  • Value of the vehicle

Categories

  • Auto Loans
  • Auto Refinance
  • Auto Insurance
  • Boat Loans
  • RV Loans
  • Motorcycle Loans
  • Powersport Loans
  • New Car Financing

Resources

  • Auto Lender Reviews
  • Glossary

Calculators

  • Auto Calculator
  • Auto Loan Calculator
  • Auto Refinance Calculator
  • Auto Affordability Calculator

Steps to Get an Auto Loan

  1. Form Completion: answering some questions
  2. Lenders Comparison: compare up to 5 lenders
  3. Get the Best Loan
  4. Business Loans

According to SBA (Small Business Administration), there are about 32 million small businesses across the U.S. If you are planning to start a business or expand your current organization, LendingTree is offering a wide variety of business lenders with looser qualifications and faster applications. Small business loans include short-term loans, long-term loans, secured loans, and unsecured loans. On LendingTree, lenders offer small business loans between $5,000 to $500,000 or even more with repayment terms ranging from 3 months to 25 years.

Lenders might consider your debt capacity that includes:

  • Debt-to-Equity Ratio (D/E)
  • Equity Investment
  • Resource Management
  • Working Capital
  • Cash Flow
  • Collateral
  • Credit Score
  • Minimum 680 or higher required by traditional banks
  • 670 or lower required by online lenders
  • 500 acceptable by online lenders with higher interest rates
  • Personal Character

Business funding and grants for underserved small businesses are also available on the LendingTree marketplace. These include:

  • Business loans and grants for women
  • Business loans and grants for minorities
  • Business loans for veterans

Categories

  • SBA Loans
  • Short Term Loans
  • Long Term Loans
  • Business Line of Credit
  • Working Capital Loans
  • Equipment Financing
  • Accounts Receivable Financing
  • Merchant Cash Advance
  • Business Credit Cards

Resources

  • Business Loan Lender Consumer Reviews
  • Glossary
  • Business Loan In-Depth Lender Reviews
  • Growing a Business
  • Starting a Business
  • Small Business Grants
  • Business Banking

Calculators

  • Business Loan Calculator
  • Business Loan Refinance Calculator

Application Process

Business loan paperwork depends on the type of loan you want to apply for. However, you should have the following documents as they can improve the chances of application approval.

  • Profit and Loss Statement
  • Cash Flow Statement
  • Balance Sheet
  • Business Plan
  • Business and Personal Tax Returns

Average Business Loan Interest Rates

Average business loan interest rates differ from lender to lender. Your loan type and personal financial profile also have an impact on the interest rate.

  • Traditional banks average loan interest rate is between 3% to 7%
  • Online lenders can charge from 11% to 44% interest rate

Average Business Loan Interest Rate by Loan Type

  1. Student Loans

Whether you wish to fund your degree or refinance your already earned student loan, the LendingTree student loan center is a helping hand with the right price.

You should simply avoid misunderstanding the terms of student loans which is done by 65% of students and consider the following to be a responsible borrower.

  1. Compare options
  2. Read the fine print (reservations and qualifications printed in small type)
  3. Ask questions

Eligibility

  1. Associate Degree
  2. Bachelor’s Degree
  3. Master’s Degree
  4. PhD

4 Simple Steps to Get a Student Loan

  1. Determine the amount you need
  2. Compare loan options
  3. Apply

For a successful loan application procedure, you may be asked to submit these documents:

  • Social security number (SSN)
  • Driver’s license
  • Most recent income tax return
  • Parent’s latest income tax return (if required)
  • Bank statements
  • Business activity statements
  • Legal documentation of residency (if needed)
  1. Get approval and sign

Categories

  • Student Loans
  • Student Loan Refinance

Resources

  • Student Loan Interest Rates
  • Student Loan Lender Reviews
  • Glossary
  1. Debit/Credit Repair

Whether you are willing to be stress-free by paying all your debts with a single monthly payment, or you need to improve your credit score, LendingTree offers a beneficial financial product, Debit/Credit Repair.

Debt relief companies can help you improve your financial situation by rendering expert advice and practical steps, and you just have to spend a little money on their services.

A credit repair company does not possess any legal power to do miracles for you, and beware if any of them promises to do that because a lot of scams are there. Legitimate credit repair agencies assist you in different aspects such as reviewing your credit reports and identifying false information.

Categories

  • Debt Relief
  • Credit Repair
  • Credit/Debt Analyzer
  • Understanding Bankruptcy
  1. Credit Cards

There is an extensive range of credit cards available on the LendingTree marketplace based on category, type, and quality.

Cared Categories

  • Featured
  • Balance Transfer
  • Low Interest
  • Rewards
  • Cash Back
  • Student
  • Secured
  • Apple Pay
  • No Annual Fee
  • Travel
  • Business
  • No Foreign Fees
  • EMV Chip
  • Prepaid
  • Gas
  • Military

Card Types

  • Citibank
  • Capital One
  • Chase
  • Bank of America
  • Wells Fargo
  • Credit One
  • Visa
  • MasterCard
  • Discover
  • American Express

Card Quality

  • Excellent
  • Good
  • Fair
  • Poor
  • Limited/No

Resources

  • Finding the Right Card
  • Glossary

Calculator

  • Debt Consolidation Calculator
  1. Banking Products

Besides LendingTree loans and credit card products, several deposit accounts are offered under the name Banking Products.

These accounts include:

  • Savings Accounts
  • Certificate of Deposit
  • Checking Accounts
  • Money Market Accounts
  • IRA Accounts
  1. Insurance

LendingTree is not negligent of its customers’ financial protection. For this purpose, different types of insurance are furnished. You can pick one of these.

  • Homeowners Insurance
  • Auto Insurance
  • Insurance Bundle
  • Life Insurance

LendingTree Fees

LendingTree charges ‘No’ fee for its services from the borrowers, and all the compensation is charged differently for different products, goods, and services from the lenders.

LendingTree Competitors

  • SoFi
  • ANT Group
  • LendingClub
  • Kabbage
  • Credible
  • Fiona
  • Quicken Loans
  • Avant
  • Bankrate
  • Funding Circle
  • ChangeMyRate.com
  • Total Mortgage
PROS
  • Free of cost for borrowers
  • No must buy obligation
  • Get competitive rates in minutes
  • Huge variety of potential lenders and products
  • Shopping tools are fee-less
  • Mobile App
  • Website is comprehensive
  • Education material is available
CONS
  • In-depth personal information needed
  • Influx of phone calls and emails from lenders
  • Extensive amount of queries from lenders
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