Is LendingTree Legit? An In-Depth Look at This Loan Marketplace

LendingTree is an online loan marketplace that connects borrowers with multiple lenders to compare rates and offers. With over 20 years of experience, LendingTree has become one of the most well-known brands in the lending industry. But is LendingTree legit? Can you trust them to find you the best loan offers? In this article, we’ll take an in-depth look at LendingTree to understand how it works and if it’s a scam or not.

Overview of LendingTree

LendingTree operates an online marketplace that aims to simplify the loan process for borrowers Here’s a quick rundown of how it works

• Submit one form Fill out one simple online form with details about the loan you need and your financial profile This form takes just 5 minutes or less.

• Get matched: LendingTree will match you with up to 5 lenders from its network of over 300 lenders. These lenders will compete to offer you the best rates and terms.

• Compare offers: The lenders will contact you directly with their loan offers. You can then easily compare the offers side-by-side and choose the right one for your needs.

• Loan types: LendingTree can match you with lenders for a variety of loans – mortgages, home equity loans, personal loans, auto loans, business loans, student loans, and more.

So in essence, LendingTree acts as a loan marketplace – it connects you with lenders but doesn’t directly issue loans itself. The goal is to make the process faster, easier and get you better offers by creating competition among lenders.

Is LendingTree Legit?

Now let’s address the key question – is LendingTree a legit company you can trust?

LendingTree is absolutely a legitimate company, and there are several reasons why:

• 20+ years in business: LendingTree has been operating since 1996, so it has over two decades of experience in the lending industry. Longevity builds trust.

• Publicly traded company: LendingTree is a publicly traded company listed on NASDAQ, so it is required to provide transparent financial reporting and is accountable to shareholders.

• Uses legitimate lenders: The lenders in LendingTree’s network are legitimate banks, credit unions and other financial institutions. They are required to comply with state and federal regulations.

• Encrypts data: LendingTree uses encryption and secure data transmission protocols to protect your personal information.

• Trusted by major brands: LendingTree has partnered with and been featured by reputable brands like H&R Block, NerdWallet, Bankrate and more.

• Positive reviews: LendingTree currently holds an A+ rating from the Better Business Bureau (BBB) and largely positive customer reviews on sites like Trustpilot.

So based on these factors, LendingTree checks off the markers of a legitimate business. They have the longevity, transparency, security protocols and reputation to indicate it is not a scam.

How LendingTree Makes Money

To understand LendingTree’s incentives and business model, it helps to look at how they actually generate revenue. Here are the main ways LendingTree makes money:

• Lead generation fees: When a lender funds a loan for a customer referred by LendingTree, the lender pays LendingTree a lead generation fee. This incentivizes LendingTree to match borrowers with viable lenders.

• Upsell services: LendingTree may earn commissions by referring customers to other services like credit monitoring or insurance. However, they don’t require customers to purchase these services.

• Advertising: LendingTree sells advertising spots to lenders who want increased visibility in search results. But they claim lender ads do not influence matching services.

• Loan processing: For some loan types like mortgages and auto loans, LendingTree may collect fees for processing paperwork and documentation.

The key point is LendingTree gets paid when you as the customer get funded for a loan. This alignment of incentives is positive for borrowers.

Pros of Using LendingTree

Now that we’ve established LendingTree is a legitimate loan marketplace, what are some of the advantages of using their services?

Saves time and effort: LendingTree eliminates the need to manually apply with multiple lenders. Their single form and automated matching process makes loan shopping fast and seamless.

Access to multiple lenders: LendingTree provides borrowers access to a broad network of lenders – banks, credit unions, online lenders, etc. More lender options increases competition.

Better rates and terms: More lender competition leads to better offers for borrowers. LendingTree facilitates rate negotiations on your behalf.

Personalized recommendations: LendingTree provides customized loan recommendations based on your credit profile and financial qualifications.

Free to use: LendingTree doesn’t charge fees to borrowers. You also are not obligated to accept any offers. Their incentive is getting you funded.

Educational resources: The LendingTree site offers a wealth of educational resources and tools to guide you through the lending process.

Cons of Using LendingTree

Of course, there are also some potential downsides to be aware of when using LendingTree’s services:

Not all lenders included: While LendingTree connects with many lenders, they don’t have 100% coverage of the entire market. There’s a chance you could get better offers by applying directly.

Multiple inquiries: When you fill out LendingTree’s form, your credit report will show inquiries from multiple lenders even if you only accept one loan. Too many inquiries can temporarily ding your credit score.

Repeat solicitations: Some users complain about getting relentless calls and emails from lenders in LendingTree’s network soliciting business. This can feel intrusive.

Advertisements and upsells: As discussed above, LendingTree does earn revenue from advertisements, upsells and ads from lenders. Some customers may not like seeing these promotions.

Need to vet lenders: While LendingTree works with legitimate lenders, you still need to properly vet any lender before accepting an offer to ensure it is right for your needs.

So while LendingTree streamlines the overall loan process, borrowers still need to put in some legwork to verify offers and avoid pitfalls.

Tips for Using LendingTree Effectively

To maximize the benefits and minimize the risks of using LendingTree’s services, borrowers should keep these tips in mind:

• Only fill out one LendingTree form at a time to limit credit inquiries.

• Thoroughly research any lender before submitting paperwork – check reviews, Complaints, licensing.

• Be wary of unsolicited lender calls/emails. Feel free to say you’re not interested.

• Compare LendingTree loan offers with any other offers you get to find the best deal.

• Negotiate directly with lenders to improve terms and rates.

• Avoid simply choosing the lender with the lowest advertised rate. Consider the full terms and costs.

• Use LendingTree’s educational resources and tools to empower your search process.

• Remember – you have no obligation to accept any offer facilitated by LendingTree.

The Verdict: Yes, LendingTree is Legit!

Just make sure to vet lenders, compare all options, negotiate for the best deal and avoid the marketing noise. Used strategically, LendingTree can simplify finding the right loan while saving you money. So we deem the answer is definitively yes – LendingTree is not a scam and is a legit loan platform.