With so many lenders to research and compare, finding the right loan can be a challenge. That’s where an online lending marketplace comes in handy. Like Credible, LendingTree lets you compare multiple loan quotes to find one that fits your needs, whether you're consolidating debt, getting an emergency loan, or something else.
A personal loan marketplace can make shopping for a personal loan fast and easy. But it’s important to note that LendingTree isn’t a lender itself, so credit decisions come directly from its partner lenders. Here’s how LendingTree personal loans work and what you should know before getting one.
How LendingTree’s personal loan marketplace works
LendingTree is an online marketplace that lets you compare personal loans, auto loans, and other types of loans from different lenders. LendingTree partners with more than a dozen traditional personal loan lenders, including Discover, PenFed Credit Union, and Upstart.
Think of LendingTree as a matchmaking service. While LendingTree doesn’t provide personal loans, you can use the site to compare loans from several lenders at once.
LendingTree lets you prequalify with multiple lenders to get estimated loan rates and terms. Prequalification requires a soft credit check, which doesn’t affect your credit score. However, most lenders conduct a hard credit check before making an offer, which can lower your credit score by a few points.
LendingTree emails you loan offers from up to five lenders after prequalifying, usually within minutes. You can choose whether to accept or decline any loan offer from LendingTree.
Good to know
LendingTree doesn’t charge fees to comparison shop for a loan. However, certain partner lenders might charge origination fees, late fees, or other fees.
Related: What Is a Personal Loan Origination Fee?
Common personal loan uses through LendingTree
Many LendingTree personal loan lending partners let you use a loan for purposes including:
- Debt consolidation or refinancing: Use your loan to consolidate debts, like other loans or credit cards, giving you one monthly payment instead of multiple. You might also refinance a high-interest loan into a loan with a lower rate.
- Home improvement: A personal loan can help you pay for home repairs or renovations. Unlike a home equity loan or home equity line of credit, you won’t have to use your home as collateral with an unsecured personal loan.
- Large purchases: Pay for major purchases, like a wedding, medical bills, moving, car repairs, or an emergency expense, with your loan.
Related: What Are Personal Loans Used For?
What can’t I use a personal loan for?
A lender may restrict what you can do with your loan. Read through your loan agreement carefully before signing to understand what is and isn’t allowed.
For example, lenders usually won’t let you use a personal loan to pay for college tuition. Student loans are intended specifically for education expenses. Most lenders also don’t allow personal loans for gambling or illegal activities, making a down payment on a home, or funding a business or its expenses.
Learn More: What Can't You Use a Personal Loan For?
Pros and cons of LendingTree personal loans
Pros
- Easy loan comparison
- Soft credit check to prequalify
- Large lender network
- No platform fees
Cons
- No direct loans
- Marketing calls and emails
- Middling Trustpilot reviews
Pros
- Easy loan comparison: LendingTree’s platform lets you compare loans and lenders side-by-side without having to visit each lender’s website.
- Soft credit check to prequalify: You can prequalify with multiple lenders simultaneously through LendingTree to view potential rates and terms.
- Large lender network: LendingTree works with more than 25 personal loan lenders.
- No platform fees: LendingTree does not charge fees to prequalify or connect with lenders. Instead, the platform earns revenue from fees charged to lenders.
Cons
- No direct loans: LendingTree doesn’t offer loans directly, so you’ll need to apply with its partnered lenders to get a loan. Each lender sets its own approval requirements, rates, and fees, which may vary significantly between lenders.
- Marketing calls and emails: Some LendingTree customers note that they’ve received numerous calls and emails from lenders soon after filling out a prequalification form. One customer stated on Trustpilot, “I submitted an inquiry for a business line of credit 4 years ago and still get upwards of 60 spam calls per day.” You can put your number on LendingTree’s do-not-call list by going to the website’s Contact Us page and selecting “Opt out of phone calls” from the menu.
- Middling Trustpilot reviews: The company has a 4.2 star rating on Trustpilot, which is much lower than some competitors like Credible.
Related: Should I Get a Personal Loan?
How LendingTree compares to other personal loan marketplaces
LendingTree and Credible are among the few online platforms that qualify as true, all-in-one personal loan marketplaces. Other platforms, such as Bankrate and NerdWallet, may direct you to a different website for prequalification. None of these platforms provides loans but instead matches you with potential partner lenders.
These and most platforms are free to use. Any fees you might incur would come from the lender whose loan offer you accept rather than a personal loan marketplace itself.
One area where LendingTree and other online platforms differ is loan amounts. The highest personal loan amount available through LendingTree is $50,000. On the other hand, Credible offers personal loans of up to $200,000.
Related: How Much of a Personal Loan Can I Get?
LendingTree personal loan requirements
LendingTree’s lending partners set their requirements for personal loans rather than LendingTree itself. Some lenders may accept borrowers with bad credit, while others might only approve borrowers with good to excellent credit and a low debt-to-income ratio (DTI).
Generally, personal loan lenders look for:
- A good to excellent credit score (FICO scores of 670 or higher), although LendingTree and other marketplaces partner with lenders that consider scores as low as 300 or borrowers with no credit history
- A DTI of 36% or lower
- An income high enough to reasonably support your loan payment
- A steady employment history
- A history of on-time debt payments
Lenders also evaluate the same factors for your co-borrower or cosigner if you apply with one.
FAQ
Is LendingTree reputable?
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What credit score is needed for a personal loan through LendingTree?
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Does LendingTree do a hard pull on your credit?
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Can you pay off a LendingTree personal loan early?
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