LendingTree is an online marketplace designed to simplify the loan shopping process by connecting borrowers with a network of lenders. Instead of applying separately to each lender, you fill out one application that matches you with competing loan offers. This approach saves time and can help you find more favorable loan terms.
Here’s how LendingTree’s loan comparison process works:
- Submit Your Loan Request: On LendingTree’s platform, specify the type of loan you need—such as personal, mortgage, auto, student, or business loans—and provide information about your financial situation.
- Soft Credit Check and Matching: LendingTree performs a soft credit inquiry that does not impact your credit score. Based on your profile, it sends your information anonymously to multiple lenders in its network.
- Receive Multiple Loan Offers: Lenders respond with preliminary loan offers showcasing potential interest rates, loan amounts, repayment periods, and fees.
- Compare Offers Side-by-Side: You can then conveniently review all offers to compare the Annual Percentage Rate (APR), monthly payments, loan terms, fees, and other conditions.
- Choose and Proceed with a Lender: If you decide to move forward, the lender will perform a hard credit inquiry and verify your details before providing a final loan approval and terms.
LendingTree supports comparisons for a wide range of loan types, including:
- Personal loans: for debt consolidation or major expenses.
- Mortgages: including fixed-rate, adjustable-rate, FHA, and VA loans.
- Auto loans: for new or used vehicles.
- Student loans: including refinancing options.
- Business loans: for small business financing.
- Credit cards: comparison based on rates, rewards, and fees.
Advantages of using LendingTree:
- Saves time by providing multiple offers from various lenders with a single application.
- Allows comparison of different loan types and terms side-by-side.
- Initial soft credit check protects your credit score.
- No obligation to accept any offers.
Considerations to keep in mind:
- Initial offers are estimates and subject to change after lender review.
- You may receive marketing contacts from lenders.
- LendingTree’s network does not include every lender, so explore other local options as well.
To maximize your LendingTree experience, check your credit score before applying, focus on APR rather than just interest rate to understand total loan cost, and carefully read all loan terms, including fees and penalties.
For more detailed insights, explore our Fixed Rate vs ARM Comparison page to better understand mortgage options, or visit Home Loan Toolkit for mortgage preparation tips.
Additional authoritative guidance on credit scores can be found on the Consumer Financial Protection Bureau site What is a credit score?.