LendingTree Personal Loans Review: How the Marketplace Really Works
If you’re in need of some fast cash — and lots of it — you may have considered getting a personal loan. They can help you pay for large expenses like home renovations, unexpected medical bills or even weddings. But narrowing down where to borrow from can get overwhelming. A variety of financial institutions offer personal loans and with different terms. A tool that can make your search easier is an online loan marketplace. One of your options is LendingTree. We put together a LendingTree Personal Loans review so you have the details on how it works.
What Is LendingTree?
LendingTree has been around since 1996 and is one of the biggest online loan marketplaces in the country. It’s important to note that it is not the lender. It doesn’t give you money and it can’t guarantee approvals. It does, however, connect borrowers like you to lenders like banks and credit unions.
LendingTree aims to make research into your personal loan options less overwhelming by comparing loans from top lenders. LendingTree can help you find debt consolidation loans and loans for bad credit. And in addition to personal loans, its marketplace has information on auto loans, mortgages, home equity lines of credit, business loans and more.
How the LendingTree Marketplace Works
LendingTree can connect you with multiple loan offers. You’ll fill out a form that shows what you’re looking for, then LendingTree will do a soft credit pull to find good loan matches for you. A soft credit pull does not affect your credit (though if/when you apply for a loan, that will generate a hard inquiry and affect your credit). LendingTree also doesn’t charge any upfront fees.
These lenders will be getting your information, so keep that in mind. As LendingTree puts it, they “will call to compete for your business.” So they will reach out to you directly with offers you’re prequalified for. You can then compare your options and choose what’s best for you, though you’re not obligated to pick one. You can say no to all of them if they aren’t what you’re looking for.
If you do choose one of the offers, you’ll work with the lender directly at that point. That’s when you’ll work out the final terms.
Although this ultimately saves you time, be prepared to field calls from those who are essentially sales people.
Loan Rates, Terms & Fees
The rates, terms and fees will depend on the lender and your own credit history. But loan amounts typically range from $1,000 to $50,000 with APRs as low as 5.99% and as high as around 36%. Term lengths are usually between one year and seven years. Again, your terms will be based on your own credit profile.
LendingTree won’t charge any fees and its credit inquiry won’t negatively impact your score because it’s a soft inquiry. Once you work with individual lenders and apply for a loan, then you may run into origination fees and a hard inquiry that will impact your credit.
Pros and Cons of LendingTree
Pros
- One form connects you with multiple lenders.
- You’ll be able to compare a variety of loan amounts and terms.
- Rate ranges are transparent and visible upfront.
- Doesn’t charge fees.
Cons
- Expect multiple calls or emails from lenders.
- Loan terms and borrower experience vary by lender.
- Your rates depend a lot on your credit score.
- There are complaints about aggressive marketing practices.
Customer Reviews & Complaints
Users have both positive and negative experiences with LendingTree. It has a 4.5/5 star rating on TrustPilot and an A+ rating from the BBB, but also an average user rating of one star on the BBB. Positive reviews say it’s a quick and easy process and took some of the hassle out of finding a loan.
Most of the negative reviews are related to people getting excessive calls from lenders. Users say they received more calls than they anticipated and some did not receive loan options they were happy with.
Safety & Legitimacy
LendingTree is a legitimate online marketplace that’s been in business for nearly 30 years. It is not a lender but rather a company that connects you with lenders who want your business. Positive reviews say it makes that process of finding a personal loan easy and quick. However, your information will be shared with these companies so they can generate offers and reach out to you to discuss them. Just be aware of the risks that you may get more calls, emails and texts than you want.
How LendingTree Compares to Other Marketplaces
All terms are subject to individual credit history
| Marketplace | Loan Amounts | APR Range | Term Lengths | TrustPilot Rating |
|---|---|---|---|---|
LendingTree |
$1,000-$50,000 |
5.99%-35.99% |
2-7 years |
4.5/5 |
Credible |
$1,000-$250,000 |
6.49%-35.99% |
1-10 years |
4.8/5 |
LendingClub |
$1,000-$60,000 |
7.04%-35.99% |
2-7 years |
4.5/5 |
Lending Tree Personal Loans Review: Is It Right for You?
Seeing different loan options in one place is definitely a benefit. LendingTree cuts down on your research time and connects you with various lenders offering loans. That means LendingTree is best for those who want to shop multiple options at a time without filling out a bunch of applications. Just remember that it’s not a lender or a guarantee of funding.
If you’re wary about companies contacting you to try to get you to borrow with them, that’s something to keep in mind. LendingTree does give your contact information to lenders and they will reach out to you. If that concerns you and you already have a specific lender in mind that has decent terms, you could go without using a market place.
Ultimately, it’s a tool that helps you shop around for different options and saves you some time along the way.
FAQs About LendingTree
Yes, LendingTree is a licensed and established marketplace that’s been in business since 1996.
No, LendingTree is free to use and will not charge fees. The lenders it connects you with may charge origination or other fees.
The form you fill out to connect with lenders will not hurt your credit because it uses a soft pull, which does not affect your score. Applying for a loan with a specific lender will generate a hard inquiry, which does impact your score.
Typically anywhere from $1,000 to $50,000 or more, depending on the lender and creditworthiness.
LendingTree will share your information with lenders who are competing for your business. That is typically how marketplaces work, but it’s important to know what you’re getting into.
