About lender
LendKey is a platform facilitating access to loans, predominantly in the realms of student financing and private loans, aiming to alleviate the financial burden on borrowers. Operating as a conduit between borrowers and a network of banks and credit unions, LendKey leverages digital infrastructure to streamline the lending process, thereby offering competitive rates.
The company's approach hinges on collaboration with over hundreds of non-profit credit unions and banks, advocating for borrower-centric financial solutions. By harnessing its digital platform, LendKey enables lenders to automate various aspects of the loan process, leading to cost efficiencies which are passed on to borrowers in the form of lower interest rates.
For borrowers, LendKey represents an opportunity to attain financial goals while saving money through access to loans with favorable interest rates from institutions prioritizing customer well-being over profits. The platform's unified application process and dedicated customer support team aim to simplify what can often be a convoluted process, providing borrowers with clarity and assistance.
With a track record of assisting over 160,000 borrowers and facilitating $6.3 billion in funded loans, LendKey's commitment to facilitating fair and transparent lending practices underscores its role as a catalyst for positive change in the lending industry.
Features
- Borrower-Centric Approach. LendKey champions the interests of borrowers by collaborating with non-profit credit unions and banks, ensuring access to loans with competitive rates and favorable terms.
- Streamlined Digital Platform. Leveraging advanced digital infrastructure, LendKey simplifies the loan process for both borrowers and lenders, resulting in cost efficiencies that translate into lower interest rates for borrowers.
- Transparent and Accessible Financing. Through its platform, LendKey facilitates transparent and accessible borrowing options, empowering borrowers to make informed financial decisions while providing clarity and assistance throughout the application process.
- Empowering Community Financial Institutions. LendKey's mission extends to supporting local lenders by enabling them to succeed in the online lending space, thereby fostering a more inclusive and diverse lending landscape that prioritizes customer well-being over profits.
Pros and cons
Pros
Cons
Reliability
LendKey's reliability stems from its extensive network of trusted partners, including hundreds of non-profit credit unions and banks like Customers Bank, Veridian Credit Union, Zeal Credit Union, and many more. This robust network ensures borrowers have access to a wide range of competitive loan options with favorable terms. Additionally, the company's commitment to transparency and customer satisfaction is reflected in its Trustpilot reviews, boasting over 400 reviews and an impressive 4.5-star average rating. This strong endorsement from customers underscores LendKey's reliability and dedication to providing high-quality financial services to borrowers seeking student loan refinancing and private student loans.
How to apply for a LendKey loan?
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Visit the LendKey website. Begin by navigating to the official LendKey website using your web browser.
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Click on the "Apply Now" button. Once on the website, locate the "Apply Now" button and click on it to initiate the application process.
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Select the loan purpose. Choose the option that aligns with your borrowing needs: Refinance student loans, Pay for school, or Make home improvements.
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Follow the prompts to provide information. Enter the required details, including personal information, financial data, and loan preferences, as prompted by the application form.
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Complete the application process. Submit all necessary documentation and agree to any terms and conditions outlined during the application.
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Review loan offers. Upon submission, LendKey will review your information and connect you with potential lenders from its network.
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Compare loan offers. Once approved, you'll receive loan offers from multiple lenders. Take the time to compare rates, terms, and other factors to make an informed decision.
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Finalize the loan agreement. After selecting the most suitable loan offer, finalize the agreement with the chosen lender. Funds will be disbursed according to the lender's procedures.
Conditions and requirements
Conditions
- Interest Rates and Terms. The interest rates, repayment terms, and conditions of the loan will vary depending on factors such as creditworthiness, loan amount, and chosen lender.
- Loan Approval Process. Meeting the initial requirements does not guarantee loan approval. Final approval is subject to the lender's assessment of the applicant's creditworthiness and other factors.
- Cosigner Consideration. While a cosigner may be required for applicants with limited credit history or income, the cosigner's involvement is contingent upon the lender's discretion and specific loan terms.
- Financial Aid Impact. Applicants should consider how obtaining a loan may impact their eligibility for other forms of financial aid, such as grants, scholarships, or federal student loans.
- Repayment Obligations. Borrowers are responsible for repaying the loan according to the terms outlined in the loan agreement, including making timely payments and adhering to any conditions regarding deferment, forbearance, or repayment plans.
- Origination Fees and Other Charges. Some loans may be subject to origination fees or other charges imposed by the lender, which can affect the total cost of borrowing.
- Loan Disbursement. Funds from the loan may be disbursed directly to the borrower's school, to the borrower, or to the designated purpose of the loan, depending on the lender's policies and the loan agreement.
- Loan Limits. There may be maximum loan limits imposed by the lender or by federal regulations, restricting the amount of money that can be borrowed through the LendKey platform.
- Loan Repayment Grace Period. Depending on the loan terms, borrowers may be granted a grace period after graduation or leaving school before they are required to begin repaying the loan.
- Loan Servicing. After the loan is disbursed, borrowers will interact with the designated loan servicer for all aspects of loan management, including payments, inquiries, and account maintenance.
Requirement
- Enrollment Status. Students must be enrolled at least half-time in a degree-granting program at an approved school.
- Credit History. The application process is credit-based, so applicants should have an established credit history. If the applicant does not have a sufficient credit history or a steady source of income, a cosigner may be required.
- Citizenship or Residency. All applicants must be either a U.S. citizen or a permanent resident of the United States.
- Age Requirement. Applicants must be at least the age of majority in their state of residence. This typically means being 18 years old or older, though the age of majority can vary by state.
Ways to receive the money
- Direct Disbursement to Institution. Upon approval, loan funds are disbursed directly to the borrower's educational institution.
- Application to Outstanding Tuition Balance. The educational institution applies the received loan funds directly to the borrower's outstanding tuition balance.
- Potential Refund. If there are surplus funds remaining after the institution applies the loan to the outstanding balance, the excess amount may be refunded to the borrower. The refund process typically follows the school's refund policy, which may involve issuing a refund check or transferring funds to the borrower's designated account.
Products
- Student Loan Refinancing. LendKey provides the option for borrowers to refinance their existing student loans, allowing them to potentially secure lower interest rates, reduce monthly payments, and simplify their repayment process. This product is particularly beneficial for graduates with multiple student loans or high-interest debt seeking to streamline their finances.
- Private Student Loans. LendKey offers private student loans to help cover the cost of education expenses not met by federal aid or scholarships. These loans are tailored to students' needs, offering competitive rates and flexible repayment options. Private student loans from LendKey can be used to cover tuition, books, housing, and other educational expenses.
- Home Improvement Loans. LendKey provides financing solutions for home improvement projects, allowing homeowners to fund renovations, repairs, or upgrades to their properties. These loans offer competitive rates and terms, empowering homeowners to enhance the value and comfort of their homes with affordable financing options.
- Personal Loans. LendKey also offers personal loans to borrowers seeking funds for various purposes, such as debt consolidation, major purchases, or unexpected expenses. Personal loans from LendKey feature competitive rates and flexible terms, making them a versatile financial solution for individuals looking to achieve their financial goals.
Other Student Loans
Reasons you may be denied a LendKey loan
- Credit History. LendKey's lending partners typically assess applicants' credit histories as part of the loan approval process. If an applicant has a poor credit history, including a low credit score, missed payments, or a history of bankruptcy, it may lead to a denial of the loan application.
- Income Verification. Lenders may require applicants to demonstrate a steady source of income to ensure their ability to repay the loan. If an applicant fails to provide sufficient income verification or has an unstable employment situation, it could result in a loan denial.
- Debt-to-Income Ratio. Lenders often evaluate applicants' debt-to-income ratios, comparing their monthly debt obligations to their income. If an applicant's debt-to-income ratio is too high, indicating a high level of existing debt relative to income, it may lead to a denial of the loan application.
- Insufficient Collateral. Some loans, such as home equity loans or secured personal loans, may require collateral to secure the loan. If an applicant's collateral is deemed insufficient to cover the loan amount, it could result in a denial of the loan application.
- Incomplete or Inaccurate Information. Providing incomplete or inaccurate information on the loan application can lead to delays or denials in the approval process. It's essential for applicants to ensure that all information provided is accurate and up to date.
- Loan Amount or Purpose. Lenders may have specific criteria regarding the loan amount or purpose, and if an applicant's request does not meet these criteria, it could result in a denial of the loan application.
- Credit Policy Changes. Lenders may periodically update their credit policies and lending criteria based on market conditions or regulatory requirements. Changes in credit policies could affect an applicant's eligibility for a loan.
How to repay a LendKey loan
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Understand Loan Terms. Familiarize yourself with the terms of your loan, including the repayment schedule, interest rate, and any fees associated with the loan. This information is typically provided in the loan agreement you signed when you accepted the loan.
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Set Up Automatic Payments. Many borrowers opt to set up automatic payments to ensure timely and hassle-free repayment. You can usually do this through your LendKey account or directly with the loan servicer. Plus, by signing up for automatic payments from your checking or savings account each month, you can receive a 0.25% interest rate reduction.
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Make Manual Payments. If you prefer to make manual monthly payments, you can typically do so through your LendKey account or by contacting the loan servicer directly. Make sure to submit payments by the due date to avoid late fees and potential negative impacts on your credit score.
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Choose a Repayment Plan. Depending on the type of loan you have, you may have different repayment plan options, such as standard repayment, extended repayment, or income-driven repayment. Choose the plan that best fits your financial situation and goals.
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Consider Making Extra Payments. If you have the financial means to do so, making extra monthly payments towards your loan principal can help you pay off the loan faster and save money on interest over time. Check with your loan servicer to ensure that any extra payments are applied correctly.
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Monitor Your Loan Balance. Keep track of your loan balance and repayment progress regularly. You can usually do this by logging into your LendKey account or contacting the loan servicer for updates.
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Contact Customer Support if Needed. If you encounter any issues or have questions about your loan repayment, don't hesitate to reach out to LendKey's customer support team or the loan servicer for assistance.
Student loans like LendKey
College Avenue
College Avenue specializes in private student loans and refinancing. They offer flexible repayment plans, customizable loan terms, and an easy-to-use online application process. Their focus is on providing a straightforward and borrower-friendly experience.
Ascent Funding
Ascent offers a range of student loan products, including loans that do not require a co-signer. They provide both undergraduate and graduate loans with various repayment plans and rewards for good academic performance.
Earnest
Earnest is known for its customizable student loan refinancing options. They offer competitive interest rates and flexible repayment terms, allowing borrowers to tailor their repayment plan to fit their financial situation.
Editorial opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- Full LendKey Account Review
- How to Apply for LendKey Loan
- How to PayOff LendKey Loan
- LendKey Customer Reviews
