LendKey Review 2022 – Top 10 Student Loans Services
Taking out private student loans can be a lifeline if you have explored all of your government financial help options and still need money to go to school. A private lender is challenging to locate, though. It cannot be easy to compare your options with so many businesses.
The goal of LendKey is to streamline the procedure. Unlike other private student loan providers, it is not a lender. Nonprofit credit unions and banks are instead used to finance loans. A loan application through the platform will attempt to link you with one of its associates, avoiding the need for you to do your research.
When it comes to borrowing money, there are certain limitations to LendKey’s method. Here is all the information that will help you understand more about the service provider;
LendKey can help you get a private student loan faster if you are intimidated by the prospect of shopping around. It may help you locate a loan fast and simply by linking you to many nonprofit credit unions and banks. On the other hand, some people may be irritated by the process. Knowing who your lender is in advance can help you better understand its rules on important concerns, such as interest rates and fees. Co-signer discharges and forbearance may be tricky regarding the fine print. Lender Key is one of several private student loan companies you may compare before applying for a loan with them or any other lender.
- when you compare the company to other student loan refinancing providers, you will realize the following benefits;
- Many Loans Amount Options
- Most creditors need substantial debt to qualify for a refinancing loan. The minimum loan amount is as high as $15,000, depending on the lender. You may refinance for as low as $5,000 with Lender Key, on the other hand. Users with little amounts and high-interest rates may find it beneficial to employ this method.
- There is a Prequalification Tool
- Lenders do severe credit checks when you ask for a loan, which might lower your credit score. Your credit score will benefit the most if you minimize the number of queries on your credit report while looking for a loan. With LendKey's loan prequalification tool, you can see rates and lending possibilities without damaging your credit history and know whether you are eligible for a loan. The company's credit options may be compared to those of other lenders, allowing you to get the best deals possible.
- Lender Key has hundreds of banks and credit union partners doesn't mean it's the ideal choice for your student loan refinancing needs. Be aware of these limitations before filling out the application form through the company:
- An Associate's Degree is Required at Minimum
- Regarding student refinancing, LendKey's rules are stricter than other lenders. If you want a loan, you will need at least an associate degree; if you don't, you won't be eligible.
- Refinancing is not Available to Parent Borrowers or Parent Loans.
- Unfortunately, the platform does not provide the flexibility to transfer parent-student debts to the kid, removing the parent's liability for the loan. Parents cannot refinance loans taken out on behalf of their children using LendingKey, and students cannot refinance and assume responsibility for their parent's debts. Only school loans in the identity of the student borrower may be refinanced using the service provider.
- The Co-signer Release Rules of Each Partner Lender Differ
In 2009, Lender Key, a digital lending marketplace, was established to let students evaluate different student loan options at once. There are credit unions and community banks all around the country willing to work with anyone looking to refinance their student loans or pay for school with a private student loan. Since LendingKey works with a wide range of lenders, it’s an excellent choice for those who desire the convenience of one-stop shopping for student loans.
Through the platform, every loan is originated and serviced. Nevertheless, since more than 300 partners back the loans, the interest rates and repayment choices differ by lender and region. Only lenders with good customer service and low rates will be considered to partner with the service provider. Similarly, Student debt refinancing and private student loans are available through LendingKey.
Plans and Pricing
The company provides variable and fixed-rate lending options, and there are no application or origination costs for these loans. Different loans have different interest rates, APRs, and loan periods. APRs for private student loans range from 1.49 percent for variable-rate loans to 3.99 percent for fixed-rate loans with AutoPay. It’s possible to get a loan for up to 15 years.
APRs vary from 1.9% to 7.63% with AutoPay refinancing student loans. Variable and fixed-rate loan APRs range from 1.91 percent to 5.25 percent, respectively. Five- to twenty-year terms are common.
Frequently Asked Questions
What Exactly is a Marketplace for Student Loans?
When using a student loan marketplace, you can analyze the many loan options several lenders provide at once. Checking your rates through the platform does not affect your credit rating. If you do not want to utilize a student loan marketplace, you must submit personal applications to each potential lender. You will subsequently be responsible for comparing the different terms associated with each loan, and the spreadsheet may be helpful in this regard.
Are Co-Signers Needed?
The service provider does not require co-signers. However, having one does boost your chances of securing a loan and getting a better interest rate. Co-signer release regulations may range from one partner to the next since the platform works with many companies. Some creditors may enable you to seek the release of your co-signer after a certain period of on-time payments, while others may not. Before taking the loan, make sure you speak with the partner lender if this is your concern.
How Do You Apply for a Loan with the Company?
LendKey’s application procedure may be performed online. After submitting your application, the corporation will work with you to find the appropriate lender for your situation. The platform’s refinancing and student loan process are laid out in this way:
- Refinancing or paying for school is the first step in the online application process.
- Fill out the application, including any personal, loan, and educational information requested.
- You may shop for the best deal by comparing several lenders and interest rates.
If you are applying for a loan, you will most likely be asked to supply documentation such as a driver’s license, social security number, and details on any co-borrowers. If you are refinancing, private student loans need details about your school and reports from your existing servicer.
Who Would Benefit Most from Using LendingKey?
Users who do not want the headache of registering with several lenders and looking around for the lowest rates are the perfect candidates for LendingKey loans. The service provider can manage all of this for you with just one simple application on your end. In addition, if you can qualify for the company’s lowest rates, comparable to rates offered by other leading student loan lenders, you may find that LendingKey is the best option.
Does the company Have any Reward Programs?
In contrast to other lenders, LendingKey does not give graduation prizes or excellent grade reductions. A referral incentive scheme exists, but it is restricted to refinancing existing student loans, not new ones. If you suggest a friend who takes out the company’s refinancing loan, you will get a $200 incentive.
Is it Reliable to Use LendKey?
The Better Business Bureau (BBB), a nonprofit group that focuses on the confidence and protection of consumers, has awarded Lender Key with an A rating. They assign ratings to businesses based on how well they handle customer complaints, how truthful their advertisements are, and how open they are about their procedures.
Take the BBB rating of a service provider with caution since it does not ensure that you will have a positive connection with the lending institution. Before deciding, you should consult with members of your family and circle of friends about their previous interactions with the firm. Lender Key has not been at the center of any recent debates or disagreements. Because they have a spotless past and an excellent reputation with the Better Business Bureau, you may conclude that you are comfortable borrowing money from the company.
What are the Advantages of Having a Marketplace for Student Loans?
A marketplace for student loans provides a list of providers and the interest charges you would be levied by each. You will not need to waste time filling out several applications with lending institutions since everything you need will be in one location for you to access.
What are the Benefits of Refinancing my Student Loan?
Here are some of the most common justifications for consolidating your college debt:
- To Reduce Your Interest Charges: This is most likely the main idea behind people’s decisions to refinance their student loans. You will spend less overall on your loan if you can negotiate a lower interest rate. It may be possible if your credit rating has increased, you have acquired a co-signer, or you have discovered a lender that provides more favorable conditions.
- Making the Changeover from a Fluctuating Interest Rate to a Fixed One: Although variable rates are often cheaper than fixed rates, it is not sure that they will remain so. Your loan repayment schedule will be more predictable if you establish the interest rate upfront.
- To Change Term Length: Consider dividing your student loan payments over a longer period if your monthly installments are too expensive for your present financial situation. Extending your term will likely result in a higher total interest payment. To save money on interest, you might shorten your loan’s terms. Increasing your monthly payments will assist you in reducing your debt faster.
What Is the Minimum Credit Score Required?
Lender partners do not specify the minimum or maximum credit scores needed for the business. You may check your rates and determine whether you qualify for a refinance without affecting your credit rating. However, if your loan application is declined, you will get an email from LendingKey explaining why. A counteroffer, such as reapplication with a co-signer, may be sent in a subsequent email.
When is it a Bad Idea to Refinance with the company?
A loan from Lender Key may not be the best choice if you have federal student loans. A wide range of repayment and forgiveness programs are available from the government, including extended payback terms, income-based repayment plans, and certain plans that pardon your amount if you satisfy specific conditions. These options will be deleted if you refinance with the service provider.
Regarding fine-tuning, LendKey’s simplified service may not be the greatest fit. They do not provide information about the banks and credit unions, such as their record or any small print included in the loan. Depending on your attention to detail, this might imply more effort.
It’s usually a good idea to consider both the short- and long-term benefits of a decision. As a result, do not merely concentrate on conserving money each month. What is the total cost of the loan throughout the term of the agreement?
There are more than 13,000 institutions in LendKey’s network. However, many are ineligible since you must reside in a certain location. Also, bigger banks may have better deals, so it’s a good idea to look around many national institutions and online lenders.
Is the Company Right for You?
If you are considering using Lend Key’s private student loans to fund the rest of your education expenses, you may borrow up to the full cost of the program. When you graduate, the service provider gives you a six months grace period to seek employment and get your finances in order before you begin making payments.
A different lender could have greater flexibility with repayment terms if you need more time to pay back your debts. Lender Key gives just one loan term of 10 years, although most other creditors mostly provide periods of up to 15 years. Additionally, the platform’s forbearance and co-signer release rules rely on the credit union or bank providing the service, so you may not be entitled to a payment hold if you are experiencing financial difficulties.
The service provider gives a modest loan limit, which can be a decent alternative if you have a small loan amount. You may refinance your balance and perhaps achieve a cheaper rate, allowing you to save money over time. Depending on your degree level, you may refinance up to $175,000 using the company. And suppose you have a positive experience and wish to share Lender Key with others. In that case, you may get a $200 incentive for every individual who correctly refinances their loans through the platform.