Mortgages , Home Equity

How Does Lending Tree Work

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

LendingTree’s focus is loans, as the name suggests. Specifically, it facilitates consumers’ search for lending possibilities. Because of my own experiences with LendingTree, I’d like to share some details with you.

Personal loans and business loans are both available on the platform. Requests for loans are not handled by LendingTree. Instead, it collects your data financial and others and sends it to participating institutions, who then provide you their rates to compare. 

If you need a loan, this greatly simplifies the process because you won’t have to spend a ton of time contacting different lenders to get different rates and terms.

Visit the site, fill out the form, and wait for the offers to roll in. Although the process is simple and quick, I’ll go over some of the benefits and drawbacks of using the service anyhow.


  • Many different loan providers are available. Several different lenders, including some well-known ones, are connected to LendingTree. Although it is not guaranteed that you will find loan offers that meet all of your requirements, the variety of choices available increases the likelihood that you will find something that works for you.
  • There is no initial payment required. You can use the service without putting up any initial monetary cost. Although it doesn’t cost you anything to look for a loan online, some lenders may charge you if you accept their offer to lend money.
  • It costs you nothing to use their materials. The loan procedure can be confusing, but the free information and tools available on the LendingTree website can help you make sense of it.
  • It is still possible to apply even if you have bad credit. You don’t need a spotless credit history to use LendingTree. While LendingTree advertises its services to those with less-than-perfect credit, anyone can apply for a loan through the platform, even if they have a low likelihood of receiving an offer.


  • Some loans may have maximum amounts. It’s possible that you won’t qualify for a loan because of the restrictions that accompany some of them. To be eligible for a certain loan offer, you could, for instance, need to borrow over a certain threshold.
  • Not all loan offers are priced similarly. The terms of any loan offer that come your way may not be ideal. At first, I blamed the nature of the loan I was trying to get, but it appears that many other people have had the same experience. The fact that my credit rating is excellent has not allowed me to take advantage of lower interest rates. 

The situation has left me wondering if the deals are universal and not conditional on the details you provide in advance. You should receive sufficient bids to be able to pick among reasonably priced contenders. Also, there’s no need to accept anything until you’re completely satisfied, so feel free to bargain till then.

What It Does

1. Submit a loan application

It will take you about 10 to 15 minutes to complete the online request form after you’ve decided on the kind of loan you want to look for. You can find online calculators to assist you in determining affordable monthly payments if you need some assistance with this. 

Calling LendingTree and completing the request process over the phone provides an alternative for those who would rather not share sensitive information online.

2. Stay patient until lenders contact you

After your loan application has been submitted, the information you provided will be forwarded to potential lenders. Email is the preferred method of communication for businesses wishing to send you promotional materials. When one of their lenders is ready to give you a loan offer, LendingTree will notify you by email.

3. Select a loan from the offerings.

In the event that you receive some offers, you will have the option of selecting one above the others. According to user feedback, LendingTree assigns the lender a “Lender Score.” The rating is out of five.

4. Take any attractive loan offers and don’t be afraid to haggle.

A pre-approval letter will be given to you if you decide to proceed with a loan. If no offer works for you, you’re under no obligation to take it. In their Frequently Asked Questions section, LendingTree suggests haggling with lenders to secure better prices if the initial offer is less favorable than desired.

Bottom Line

LendingTree is a great choice if you lack the time, desire, or specialized knowledge to use price comparison websites to acquire loan rates. Since it’s free, if your loan request doesn’t provide any suitable possibilities, you aren’t losing any money. 

Just keep in mind that credit inquiries will be included in your credit report. You should also research the loan officers and the items they are offering since they have contacted you. 

Just because a company is a member of LendingTree does not guarantee that the loan product it offers is the best option for you. Always complete your homework!

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