Personal loans are excellent for people who need flexible loans. Whether for a vacation, a wedding or even a great purchase, personal loans can be used for almost anything. They can even help you improve your credit score if you pay them on time.
Despite this, there is still much confusion surrounding the personal loan process. People often do not know what their budget is, which lenders are ideal and what they should consider when applying for a loan. Fortunately, LendingTree is there to help.
LendingTree is an online marketplace and an educational resource for loan purchase. They can help you find and compare lenders so that you leave with the best possible deal. But is LendingTree really as good as it looks? We will discuss it below.
What is the loan tree?
LendingTree founder Doug Lebda was inspired to start LendingTree while looking for mortgages for his first home. He realized that the process of obtaining and comparing personal loans was a nightmare. You would have to visit potential lenders, fill out multiple paper applications, wait weeks to get a proposed rate and compare them on your own. He realized that there had to be a better way.
Founded in Charlotte, North Carolina in 1996, LendingTree was born from the desire to improve the loan process for both the borrower and the lender. Borrowers across the country can compare tons of loan offers at a time, while lenders can set subscription guidelines and offer or refuse loans automatically. In general, it encourages more people to embark on obtaining loans.
LendingTree's bike is "when banks compete, you win." The underlying feeling is that loan competition allows the borrower to obtain the best possible rate while allowing smaller lenders to enter the game. Loans originate in a variety of different places, including individual investors, small businesses and traditional lenders.
How do LendingTree personal loans work?
Personal loans can be used for a variety of purposes. You can get a personal loan to finance your wedding, add an addition to your home or consolidate credit card debt.
Usually, they are not insured either, which means that you do not have to put any of your personal property as collateral. In addition to paying education or taxes, you can use a personal loan for anything.
LendingTree works by using the information it provides to compare loan rates among hundreds of different lenders. They look for the best rates and terms and match it with several lenders based on their credit score and loan needs.
The LendingTree panel allows you to review lenders for APR, loan terms and other decisive factors. You can even read the customer reviews of each of the LendingTree partners to get an idea of what your credit experience would be like with each company. This makes it easy to see how loan offers compare to each other.
LendingTree has a calculator that helps you determine what your monthly payment would be with a given lender. It will calculate the payment based on the term, the amount of the loan and the corresponding rates.
Many people worry that buying a loan will damage their credit score. If you are simply seeing how lenders compare through LendingTree, it should be fine.
They will perform a soft credit check to verify your information. This control goes through Vantage Score 3, which is an association of the three main credit agencies. You will not get a hard credit check until you formally submit the application.
LendingTree personal loan rates
LendingTree offers interest rates ranging from 3.99% to 48.25%, but that will be decisive in your credit score and lender.
As for the loan limits, you can apply for a personal loan of $ 1,000 to $ 50,000. Some lenders may allow financing on the same day, but it may take up to seven business days.
Because LendingTree is not a lender, you will not be charged any fees. However, your lender may charge certain fees.
Depending on the lender with which you close, you may have to pay origination fees, delays or prepayments. Be sure to read the terms of your loan to see what types of fees may apply.
LendingTree personal loan ratings
Therefore, you have decided to apply for a personal loan and want to use LendingTree to buy it. How do you start?
To qualify for a LendingTree loan, you must be at least 18 years old, have a credit score of at least 560 and be a US citizen or permanent resident. Unfortunately, if you are looking for a personal loan and have bad credit, LendingTree may not be the best option.
Starting the loan process with LendingTree requires a lot of information. This is so they can check with all their loan partners and return with prequalified loan offers.
LendingTree will ask you to provide a variety of personal information that includes:
- Date of birth
- Speak to
- Phone number
- Email address
- Last four digits of your Social Security number
- Income before taxes
- Employment Status
- Resident state
- Amount of the desired loan
- Estimated Credit Score
- Recent Payment Receipts
- Proof of citizenship or resident status
They can also check your debt / income ratio to determine if you can accept a loan payment. In general, it must be less than 40% for individual applicants and less than 35% for joint applicants.
After entering all this information, LendingTree will check with your loan partners to see what kind of rates and terms they can offer you. They will then return with all prequalified offers, which will be displayed on their board.
It is important to remember that these are prior approval rates and are not final. These are usually accurate, but may be subject to change when you submit a formal request.
Finally, you can apply for a loan. Once you choose a lender, you will formally request it through your loan application. At this point, the lender will perform a hard credit check, which could affect your score. Keep in mind that this process will take place on the LendingTree website, and the lender will follow up with you to finalize the loan details.
Is LendingTree safe for personal loans?
When you send personal information such as your Social Security number on the Internet, you want to know that the site is secure. LendingTree, like other financial technology companies, uses encryption on all its web pages. This means that your data is stored securely in your databases.
The only red privacy flag that arises from LendingTree is the sale of customer data to third parties. This often results in unwanted calls and unwanted emails from loan companies, banks and other financial institutions.
There is no sure way to unsubscribe to request calls through LendingTree. However, you can go to www.donotcall.gov to register your number on a no-call list. This will prevent telemarketers from harassing you in the future.
LendingTree customer service
The process to obtain a loan can be confusing, and it is better to have someone to turn to if you have questions.
LendingTree has a dedicated customer service team that is available by phone (1-800-813-4620) or via an online submission form. They are also active on Facebook and Twitter if you are interested in communicating that way.
They are not available at all hours of the day and night, so you should consider your service hours. This is when you can contact the LendingTree customer support team:
- Monday through Thursday, from 8 a.m. at 9 p.m. its T
- Friday from 8 a.m. at 8 p.m. its T
- Saturday from 10 a.m. at 7 p.m. its T
In addition to your support in person, LendingTree has an impressive collection of educational material to guide you through the loan process. LendingTree emphasizes education because they want you to have knowledge in the loan process. They do not have a frequently asked questions section, but most users have no problem answering their questions.
Pros and cons
When considering asking for a loan of any kind, it is better to consider the good, the bad and the ugly. LendingTree is an excellent resource, but it has its flaws.
Let's examine the pros and cons of finding a personal loan lender through LendingTree.
- Large network of lenders: LendingTree has one of the largest lender networks of any loan market. They have more than 300 members, which means you have many options when it comes to rates and terms of personal loans.
- Free platform: what's better than free? Because LendingTree receives your income completely from its lending partners, you do not have to pay anything to use them. There is no reason not to try LendingTree lender matching services when it doesn't cost you a penny.
- Full product offers: LendingTree is not limited to personal loans only. You can buy a variety of different financial products through LendingTree. Among student loans, car loans, commercial loans and mortgages, there is little you cannot buy through LendingTree.
- Extensive information is required: Many loan market sites only require four or five key pieces of information to match the lenders. After all, you will complete a complete application with the lender you choose anyway. Unfortunately, LendingTree requires a ton of information to return prequalified rates. This may mean that the rates are more accurate, but it's definitely frustrating if you're just looking.
- Rates higher than most: Those who buy loans through LendingTree should expect slightly higher rates. This is because LendingTree does not have a defined minimum credit score and tends to accept even risky borrowers. This can negatively affect the rates of people with excellent credit scores.
Is LendingTree for you?
LendingTree is an excellent place to buy loans of any kind. They offer many resources to help you educate and advance the loan process.
Having been in business for more than 20 years, LendingTree has an excellent reputation in the industry. However, they do not represent all the lenders, so you will still have to make some purchases. You should check with your local credit unions, as they are unlikely to be represented by LendingTree.
Ultimately, LendingTree is a useful tool for comparing lenders and helping you achieve your financial goals.