LendingTree, founded in 1996, is a lending marketplace that works completely online. It works by connecting borrowers to different loan operators and helping them find the right loans, insurance, and credit card deposits. The company has expanded significantly over the past few years by establishing offices nationwide. In this article, we will see about ‘LendingTree’.
LendingTree: Is It Credible?
As of 2022, the company has acquired around 10 notable financial management websites and companies. LendingTree has partnered with a multitude of loan operators and thereby provides its customers with an array of options to choose from. The company has processed over 20 million loans to date and has millions of happy customers.
LendingTree is a completely legitimate and safe option for purchasing any type of loan and other financial products. It makes the process easier by avoiding the submission of individual applications. The online platform of LendingTree can also be used to calculate your finances and to receive coaching on mortgages. The services provided by LendingTree include:
- Shopping and comparison of different financial items
- Financial tools and calculators
- Information about lending and borrowing
it also allows the potential buyer to compare the different lenders and find a service that fits their needs. The online platform through which the customers can access these services is completely protected by Firewall and it uses secure encryptions.
How It Works:
Applications for loans, including personal loans, can be done either over the phone or through LendingTree’s official website and app. The steps that you must follow to get started with the loan-matching process and access the financial tools are as follows:
- Create an account
- Specify the type of the loan and the amount needed
- Provide required personal information
- Give contact information
Once you give these details, a list of lenders will be shown that matches your requirements. After selecting a lender of your choice, you are required to provide your financial documents along with the proof of funds for further processes.
- Fee – There will be an origination fee demanded by the lender which is about 1% – 8% of your total loan amount, which will be deducted directly from it.
Advantages:
- Easy-to-use
- Low credit score requirement
- Multiple loan offers
- Financial calculators and tools
- Educational materials
- Transparency
In addition to providing multiple loan offers, it is the only platform that accepts low credit scores. In addition to that, you can calculate the loan terms and the percentage rates through its website or app. It also provides an option to calculate your credit score by using the My Credit Score feature.
Apart from loan applications and educational tools, you can also read blogs and articles on many financial products through LendingTree’s website. The company also provides credit repairs and debt relief options among its wide range of services.
The loan approval and transaction process of LendingTree are very convenient and thus praise-worthy. The company also gives importance to transparency and therefore has clearly outlined how its process works and what kind of information is shared with third parties.
Drawbacks:
- Dissemination of customer information
- No collaterals for loans
- High-interest rates
it makes revenue by selling its customers’ information to the top lenders partnered with them. It also does not take responsibility if the security of your personal information is breached. One of the common complaints made by LendingTree customers is the number of sales calls they receive after signing up with the company. The calls tend to continue even after the account is deactivated.
Another drawback of LendingTree is the interest rate on the loans taken. The lenders of LendingTree approve loans based on the customer’s credit score and other factors. A lower credit score might result in a higher interest rate, especially since they do not ask for collateral.
Conclusion
LendingTree can be considered a one-stop destination for all your financial needs. It is a safe and credible platform to compare that allows the borrowers to select the lender of their choice. LendingTree makes the process of comparing and applying for a loan effortless and quick.
The one factor that discourages potential customers is the sharing of customer information by the company. Although the process is not illegal, the inconvenience caused by the spam calls received has caused major customer dissatisfaction.
The calls can however be blocked and it is up to the individuals to decide whether the effort to deal with the sales calls is worth the free service provided by LendingTree.
Frequently Asked Questions
1. Do LendingTree lenders accept credit scores below 600?
No, the minimum credit score requirement put forth by the lenders partnered with LendingTree is 600.
2. Is LendingTree free?
Yes, LendingTree offers its service completely free of cost. However, it is crucial to pay attention to the fee and other requirements demanded by the individual lenders of LendingTree.
3. Does LendingTree do hard credit checks?
Although LendingTree does not carry out a hard credit check, the partnered lenders of LendingTree might do so.
