LendingTree is a large and legitimate company, but it’s not always the most enjoyable experience to work with them. We’ll cover the top pros and cons of LendingTree that you’ll want to be aware of before you submit your information to them.
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Pros and Cons of LendingTree
LendingTree is one of the biggest lending brands online. They’ve been around for a long time, so it’s a good bet you’ve seen their ads on numerous websites. In fact, you may even see one of their ads on this site.
I’ve never worked for LendingTree as a lending professional, but many of my past clients applied for loans through them at one time or another. I don’t have personal experience with them, but because of my mortgage lending background, I’m well acquainted with how they work.
If you want to shop multiple mortgage or personal loan offers all in one place, LendingTree can be a great resource. However, be warned, it’s not always an enjoyable experience. I’ll explain why as we cover the pros and cons of LendingTree.
Pros of Working With LendingTree
As we dig into the pros and cons of LendingTree, let’s first cover the positives.
- Well-known and reputable brand – LendingTree is large, reputable, and has been around for a long time. They’ve partnered with the largest and most reputable lenders in the business.
- Numerous lenders in it’s network – They have a lot of lenders in their network. This enables you to shop multiple lenders and products in one place.
- Multiple loan products available – LendingTree started off in the mortgage space, but they’ve expanded to other loan products. This enables you to shop multiple loan products in one place.
- Competitive loan offers – Because multiple lenders are competing for your business, they are likely to price their offers more aggressively than a lender who isn’t competing for your business.
Cons of Working With LendingTree
LendingTree is a great resource to shop multiple mortgage or personal loan offers all in one place, but it’s not always an enjoyable experience to work with them. Here are the top downsides of working with LendingTree:
- They’re primarily a lead generator – LendingTree is primarily a marketer and lead generator for lenders. They don’t make money by funding loans, they make money by selling your personal information to lenders. They have a financial incentive to sell your information to as many lenders as they can get away with without creating too negative of a customer experience.
- You’ll likely have to submit a lot of personal information – If you’re like me, you’re probably leery about submitting a lot of personal information online. I’m sure LendingTree takes data security very seriously, but what about their lender partners? There’s no way to know where your personal information will ultimately end up, how long it will be kept, and how secure it is.
- You may not be able to view rates without first talking to a salesperson – If you prefer to just browse rates without having to talk to somebody, LendingTree probably isn’t what you’re looking for. By the way, you can browse the latest mortgage, home equity, and personal loan rates in peace on this page without annoying salespeople calling you.
- Your phone will likely blow up with calls – LendingTree has a good overall Trustpilot rating, but aggressive and frequent phone calls are one of the most common reasons they receive negative reviews. Remember, LendingTree’s business model is to sell your information to lenders, which means you’ll likely be barraged with calls within moments of submitting your information. Lenders spend a lot of money on LendingTree leads, so they will aggressively try to get you on the phone.
- Less control over who you work with – LendingTree selects where your information goes, so you don’t have as much control over the lenders you work with. It’s possible you could get calls from lenders who are less capable or reputable.
- Frequent calls for weeks and months to come – Lead aggregators such as LendingTree often “recycle” old leads by selling them at a discounted rate to lenders. It’s possible you’ll continue to get calls for weeks and months to come.
Current Interest Rates
Instead of submitting your personal information to LendingTree and getting barraged with phone calls, you can shop multiple mortgage lenders and offers right here on this webpage.
We have home equity loan rates and personal loan rates available as well.
Want to see more options? Check all mortgage rates here
The Bottom Line
LendingTree is reputable and offers a variety of loan products. It’s a useful resource if you’re serious about getting a loan and don’t want to have to find lenders on your own.
However, keep in mind that you’re probably going to be hounded with calls if you submit an application to them. Personally, I think the aggressive phone calls are the biggest negative associated with LendingTree.
I’ve worked with mortgage clients who said they received hundreds of calls over a period of weeks because they submitted their information to LendingTree. It’s for this reason alone that I would never personally work with them.
FAQs About Pros And Cons of LendingTree
Does LendingTree Loans hurt your credit?
It shouldn’t, as long as you haven’t had more than a few lenders run your credit recently. A few credit inquiries here and there typically don’t damage your scores. However, if numerous lenders have run your credit recently, an additional inquiry from LendingTree could adversely impact your credit scores. If you’d like to find out more about the pros and cons of LendingTree, check out our article here.
Is it good to use LendingTree?
They’re a reputable company, but many of their customers get frustrated by the barrage of phone calls they get when they submit an online application. Of the pros and cons of LendingTree, the aggressive phone calls is probably the biggest negative of working with them.
Can I pay my LendingTree loan off early?
Very likely, yes. Few loans have prepayment penalties these days. However, if you want to be sure, either check your original loan agreement or contact your servicer to confirm if you have a prepayment penalty or not.
What are the pros and cons of LendingTree?
They’re a reputable company, but many of their customers get frustrated by the barrage of phone calls they get when they submit an online application. Of the pros and cons of LendingTree, the aggressive phone calls is probably the biggest negative of working with them.
