LendingTree Personal Loans Review
As a broker that connects applicants with different personal loan lenders, LendingTree.com does all the homework for borrowers in terms of finding competitive loan products with varying interest rates. As with any personal loan, you’ll want to compare offers and read the fine print before you sign on the dotted line.
In today’s online lending marketplace, personal loans are used to finance a variety of financial needs, including debt consolidation, home improvements, medical expenses, and other major purchases. Personal loans can also provide a path for consumers to improve their credit scores.
>> Read More: Can Personal Loans Actually Improve Your Credit Score?
As an unsecured loan, personal loans don’t require collateral, but their interest rates can vary greatly by lender. What sets LendingTree apart is that it connects personal loan applicants with up to five lenders for easy comparison. With interest rates on personal loans ranging from 5% to more than 100%, it’s important for borrowers to consider their options before making a final decision.
If you’re interested in filling out a loan application with LendingTree, here’s what you need to know.
In this review:
- How to Get a LendingTree Personal Loan
- Rates, Fees, & Other Basic Info
- The Benefits of LendingTree Personal Loans
- The Downsides of LendingTree Personal Loans
Getting a LendingTree Personal Loan
Finding the best personal loan offers via LendingTree is simple and quick. So far, 10 million consumers have borrowed $6 billion in loans using the broker.
You’ll select a loan purpose, how much you want to borrow, and provide some basic details about yourself. You’ll also have to estimate your credit score. After you fill in your personal information, you’ll be asked to create an account before seeing your free, no-obligation results.
Borrowers who go on to accept a loan offer through LendingTree can get their money in as little as a couple of days. Although a wide range of credit histories are accepted, you’ll have a better chance of qualifying for the lowest rates if you have good or excellent credit.
The credit score classifications you have to choose from while filling out your application include:
- Excellent (720 to 850)
- Good (680 to 719)
- Fair (640 to 679)
- Poor (639 and below)
In addition to your credit score, potential lenders will consider factors like your employment history and debt-to-income ratio before making a loan decision.
>> Read More: What Credit Score is Needed for a Personal Loan?
Basic Information: Rates, Terms, Fees, & Limits
Terms for LendingTree personal loans vary significantly between lenders. For example, if someone were to receive a Best Egg personal loan featured on LendingTree, they would need a credit score of at least 680. The APR range is 5.99% to 29.99%, and loan terms can be anywhere from 36 to 60 months.
On the other end of the spectrum is NetCredit. Its APR range is 34% to 155%, but borrowers can have credit scores as low as 500. Loan terms range from six to 60 months.
Most loan amounts are anywhere from $1,000 up to $50,000, enough to accomplish a range of financial goals. Terms usually range anywhere from two to five years, and with an unsecured personal loan, the borrower receives a lump-sum deposit into their bank account.
Because lower interest rates are reserved for borrowers with better credit, here are a few tips to raise your credit score:
- If you notice a mistake on your credit report, take steps to correct it. Errors are routinely made that can impact a person’s score.
- Make timely monthly payments to all creditors.
- Pay off as much as you can on your revolving account balances to reduce your debt-to-income ratio and overall credit usage.
- Consider adding a co-signer to lessen the risk you present as a borrower.
The Benefits of LendingTree Personal Loans
LendingTree is a free, easy-to-use service that allows you to compare loan offers from multiple lenders within just minutes, helping you secure the best offer based on repayment terms and other factors.
It’s free tools can be invaluable for anyone who wants a greater understanding of how to better their financial situation. Calculators are also available to help you estimate your loan payments if you were to move ahead with a loan.
Taking out a personal loan with an online lender through LendingTree can also result in faster funding compared to traditional financial institutions, and loan rates are generally lower than what you’d find with credit cards, lowering the overall cost of borrowing.
The Downsides of LendingTree Personal Loans
As with any loan product, you need to be thorough when comparing your LendingTree personal loan offers. Because terms can vary so widely, you’ll want to make sure you’re getting the best rates possible, especially if your credit history is a bit spotty.
Since you have to create an account to view your results, you could be inundated with advertising and offers from a variety of financial institutions, even if you decide not to go ahead with the loan. You can mitigate this downside by unsubscribing from any marketing lists you’re added to.
The other downside to applying is the impact on your credit rating as a result of hard credit pulls. This will resolve itself in a few months, but if you anticipate applying for other types of credit in the next few months — like auto loans, home loans, or small business loans — it’s something you need to keep in mind.
Bottom Line: Is a Lending Tree Personal Loan Right for You?
LendingTree is a convenient option for getting more than one quote for a personal loan while only having to fill out one application. That can be a timesaver for would-be borrowers who might not know where else to look when trying to secure funds for a variety of expenses.
Because rates, fees, and other terms vary widely between lenders, make sure you take the time to fully consider all aspects of your LendingTree loan offers before accepting one.
Author: Shannon Serpette
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