What LendingTree's car refinance service does
LendingTree is a loan marketplace that connects borrowers with multiple lenders — it does not lend money itself. When you use LendingTree's car refinance tool, you answer questions about your current loan and vehicle, and the platform shares that information with lenders in its network. Those lenders then send you loan offers you can compare side by side.
The service is free to use. LendingTree makes money when a lender funds a loan through their platform, not from you. You are not required to accept any offer, and getting quotes does not obligate you to refinance.
The process typically takes a few minutes to complete the initial questionnaire. Lenders then review your information and send offers within hours or a few business days. You can then contact the lenders directly to move forward, ask questions, or decline.
Key Takeaways
- LendingTree connects you with multiple lenders at once, so you can compare rates and terms without visiting each lender separately.
- The service is free; you pay nothing to LendingTree whether you refinance or not.
- Lenders pull a hard credit inquiry when they send you an offer, which temporarily affects your credit score, but multiple inquiries within 14 days typically count as one for scoring purposes.
- You control which offers you pursue; receiving a quote does not mean you have to refinance or accept any particular terms.
- The lenders in LendingTree's network vary by state and by the type of loan, so not all lenders will send you an offer.
How the LendingTree car refinance process works step by step
You start by visiting LendingTree's website and selecting the car refinance option. You will enter basic information: your current loan balance, the interest rate you are paying now, your vehicle's year and make, your credit range (if you know it), and your state. LendingTree uses this to match you with lenders that typically work with borrowers in your situation.
After you submit, LendingTree sends your information to lenders in its network. Each lender decides whether to send you a quote. Some will; some will not, depending on their lending criteria and whether they operate in your state. You will see the offers that come back in your LendingTree account, usually within a few hours to two business days.
Each offer shows the interest rate, monthly payment, loan term (how many months to pay it back), and any fees. You can review all offers side by side. If you want to move forward with a lender, you contact them directly — LendingTree does not complete the refinance for you. The lender will then order a vehicle inspection, verify your information, and finalize the loan if you decide to proceed.
What information you need before you start
Have your current car loan documents nearby. You will need your current loan balance (the amount you still owe), your current interest rate, and your monthly payment amount. You should also know your vehicle's year, make, and model, and the current mileage.
You do not need to have perfect credit or know your exact credit score to get your free guide. LendingTree asks you to estimate your credit range (poor, fair, good, excellent), and lenders will pull your actual credit report if they send you an offer. If you have recently checked your credit score through another service, that information can help you estimate accurately.
Have your state ready as well, since lender availability varies by location. Some lenders operate nationwide; others work in only certain states.
Credit inquiries and how they affect your score
When a lender sends you an offer, they perform a hard credit inquiry to see your full credit report and score. A hard inquiry temporarily lowers your credit score by a few points. However, credit scoring models treat multiple car loan inquiries within a 14-day window as a single inquiry for scoring purposes, so shopping around does not damage your score as much as it might seem.
The impact of a hard inquiry is temporary. Your score typically recovers within a few months as long as you do not miss payments or take on new debt. If you receive multiple offers from LendingTree lenders, the combined impact on your score is usually less than if you visited each lender separately, because the inquiries cluster together.
Not all lenders will pull your credit to send you a quote. Some may send a pre-qualification offer based on the information you provided, without a hard inquiry. The offer details will tell you whether a hard inquiry was used.
Comparing offers and understanding the terms
When you see your offers, focus on three numbers: the interest rate, the monthly payment, and the loan term. A lower interest rate means you pay less over the life of the loan. The monthly payment shows what you will owe each month. The term is how many months you have to repay — a shorter term means higher monthly payments but less interest paid overall; a longer term spreads payments out but costs more in interest.
Look for any fees listed, such as origination fees, prepayment penalties, or documentation fees. Some lenders charge these; others do not. A lower rate with a high fee might not save you money compared to a slightly higher rate with no fees. Use a calculator or ask the lender to show you the total amount you will pay over the life of the loan.
Pay attention to the lender's reputation as well. You can search for reviews of each lender online or check their rating with the Better Business Bureau. LendingTree does not endorse any particular lender; you are choosing based on the offer and the lender's track record.
What happens after you choose a lender
Once you decide to move forward with a lender, you contact them directly using the information in your offer. The lender will ask you to complete a formal loan process and provide documents such as proof of income, your driver's license, and proof of insurance. They will also order an inspection of your vehicle to confirm its condition and value.
The lender will verify that you own the car and that the loan amount does not exceed the vehicle's value. If you still owe money on your current loan, the new lender will typically pay off the old loan directly, and you will make payments to the new lender instead. This process usually takes one to two weeks from process to funding.
You are not locked in until you sign the final loan documents. If you change your mind or find a better offer elsewhere, you can decline and walk away at any point before signing.
When LendingTree car refinance might not be the right fit
If you have very poor credit or a recent bankruptcy, you may not receive offers from LendingTree's lenders. In that case, you might have better luck contacting credit unions or banks directly, as some specialize in loans for borrowers with damaged credit.
If your car is very old, has very high mileage, or is worth less than you owe on it (being "underwater" on the loan), lenders may decline to refinance. Some lenders have minimum vehicle value requirements or will not refinance cars older than a certain year.
If you are happy with your current loan terms and do not expect to save money, refinancing may not make sense. Refinancing involves a new hard inquiry and new paperwork, so it is worth doing only if the new rate or terms meaningfully improve your situation.
Frequently Asked Questions
Does using LendingTree cost money?
No. LendingTree's service is free to you. The company makes money from lenders, not from borrowers. You do not pay LendingTree whether you refinance or not, and receiving quotes does not obligate you to accept any offer.
Will all lenders send me an offer?
No. LendingTree's network includes dozens of lenders, but each lender has its own criteria. Some may not work in your state, some may not refinance vehicles as old as yours, and some may decline based on your credit score or income. Receiving fewer offers than you expected is normal.
Can I refinance if I am still paying off my current car loan?
Yes. In fact, most people refinance while they still owe money on their original loan. The new lender pays off the old loan, and you begin making payments to the new lender. You will need your current loan balance to get your free guide.
How long does it take to refinance through LendingTree?
Getting quotes takes a few hours to two business days. Once you choose a lender and explore, the full refinance process — process, verification, inspection, and funding — typically takes one to two weeks. The exact timeline depends on how quickly you provide documents and how busy the lender is.
What if I do not recognize a lender in my offers?
LendingTree works with both large national lenders and smaller regional ones. If you do not recognize a lender, search for their name online and check their Better Business Bureau rating and customer reviews. You can also contact them directly to ask questions before deciding whether to move forward.