LendingTree is a consumer-driven platform that lets people compare loans from different lenders. LendingTree is not a direct loan supplier. Instead, it’s classified as a broker. The company is headquartered in Charlotte, N.C., and the lenders on the company’s site compete for the business of the applicants who use LendingTree.
Getting a Personal Loan Through LendingTree
LendingTree personal loans are something people might apply for because they want to consolidate existing debt, make improvements to their home, improve their credit score, or pay unexpected or emergency costs.
Personal loans are also called signature or unsecured loans. A personal loan usually has lower interest rates than credit cards, which is one of the primary reasons someone might apply for this type of financing. However, that’s not always the case, and sometimes interest rates for a personal loan can be higher than 100%.
While every individual lender is going to have their own requirements, the following are some of the general qualifications approved borrowers tend to have:
- Credit scores requirements usually start at around 580, although some have requirements as low as 500
- A maximum debt-to-income ratio of up to 45 percent
- Interest rates range anywhere from around 5 percent up to 155 percent
When someone wants to apply for a LendingTree personal loan, they first select the specific purpose they’re going to be using it for. Then, they enter the amount of financing they would like. They enter their estimated credit rating, employment status, pre-tax income, type of residence, ZIP code and address. Then, the user has to create an account to receive offers. Only the lenders willing to provide the financing are shown. Applicants can hear back within 24 hours about whether they’ve been approved.
Basic Information: Rates, Terms, Fees, and Limits
Terms for loans vary significantly between lenders. For example, if someone were to receive financing through the Best Egg company featured on LendingTree, they would need a credit score of at least 680. The APR range is 5.99%-29.99%, and loan terms range from 36 to 60 months.
On the other end of the spectrum is NetCredit. Their APR range is 35%-155%, but borrowers can have credit scores as low as 500. Loan terms range from six to 60 months.
Most LendingTree personal loans are anywhere from $1,000 up to $35,000. Terms usually range anywhere from two to five years, and with an unsecured personal loan, the borrower receives a lump sum.
LendingTree lets you compare the terms and rates quickly and easily. You can apply with multiple lenders at one time and receive your personalized rates.
It also shows a breakdown of lenders available for personal loans and outlines their APR range, loan terms, and the credit score requirements.
LendingTree features ratings from other customers for the lenders featured on their site, and they have helpful articles and guides, as well as calculators that allow you to estimate your payments if you were to accept financing.
The first downside of obtaining a personal loan through LendingTree isn’t specific to this marketplace. If you have a low credit score, some personal loans can have very high costs. This risk isn’t eliminated because you’re going through LendingTree. Consumers have to be cautious with this type of loan regardless of how they source financing.
The other downside is that when you fill out a financing request with LendingTree, you could be inundated with advertising and offers from financial institutions, even if you decide you don’t want the loan.
LendingTree is a marketplace where lenders go to connect with borrowers. It’s a convenient site, and it provides good information and the chance to compare personal loan offers quickly. As with any loan, be sure to read and understand the fine print before you sign, and budget carefully so you don’t borrow more than you can repay.
Author: Jeff Gitlen
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