LendKey Reviews - What Is It?
DO NOT USE LendKey!!! You Must Read This Review!
Fully Researched: Price, User Feedback and More!
LendKey is a company with their own official website that cooperates with credit unions to provide private student loans, student loan refinancing, and home improvement loans. There is a quote on their homepage saying that all if their loans are financed by community lenders that prioritize people over profits and come with low rates. The company was founded in 2007 and is also known as LendKey Technologies, Inc. Vince Passione is the company's founder and CEO. The major approach of LendKey is to serve people and only then to get profit. Common lenders working with the company include Quicken Loans, SoFi, and many other non-bank organizations. The company claims that their terms, rates, and conditions are borrower-focused. It can boast a fast and easy application process that provides customers with positive experience.
LendKey offers three types of loans: private student loans, student loan refinancing, and home improvement loans. If we take a look at the student loan refinancing, we'll see that the company purchases your student loans, offering you a new loan with lower monthly payments. This often happens with homes. An individual buys a house with a mortgage with an interest rate of 7%. Later, the rates are decreased to 5% and the company refinances at that rate, while you do lower monthly payments. However, there is one disadvantage about this type of refinancing - it is a reset on your repayment length. If you are ten years into a thirty-year repayment, the clock restarts as you refinance with a new thirty-year loan. Common lengths of LendKey's student loan refinancing include 5, 7, 10, 15, and 20 years. According to the company's official website, you your loan can be refinanced via adjustable rate loans or fixed-rate loans. These can be paid back with graduated payments or level payments.
Customer Reviews - Does LendKey Really Work?
There is a great number of users' reviews about the company's work online. The first thing potential users like is the detailed information on the official website. LendKey explains in detail what fixed- and variable-rate loans are and how to deal with them. A loan with a fixed rate is characterized with a stable interest rate during the entire length of the loan, while a variable-rate loan can change according to LIBOR rates each month. Every customer has the right to choose the loan that seems to be more suitable for them. There is high chance that a variable-rate will help you to save money. But you should avoid it if rates are low at present. They may go up, that poses a risk to you. At present, interest rates are quite low, which means that they may go up in future.
Private Student Loans can still be taken through LendKey that offers these from credit unions in the area you live. Those loans usually have low interest rates (3.28%); however, that rate is available to those who enroll in automatic bill pay and have excellent credit. the customers of the company are pleased to find online several ways of saving on their loans. You can face 1% rate reduction if you have paid 10% of your loan or you can benefit from 0.25% rate reduction signing up for automatic payments. Their loans don't come with an origination fee (a fee for processing paperwork). You can get a co-signer for your loan on LendKey's private student loan page. It means that you can add another person with great credit to your loan in order to increase your credibility. In this way, you will be able to benefit from their good credit. The drawback is that, if you can't make payments or go into default, this person is liable for your loan. This individual will have to pay. A co-signer can be released from the loan if you make on-time payments for a definite period of time.
Home Improvement Loans give an opportunity to do some renovations to your house. The company is ready to lend you up to $40,000 for your project. This loan comes with certain requirements, though. You have to earn at least $50K per year and use one of their approved contractors. This home has to be your major residence. The maximum amount of the loan is $50,000. Most LendKey's customer reviews are pretty positive. Student Loan Sherpa gives the company four out of five stars, emphasizing the fact that they offer low APRs (2.43%). Magnify Money's review of the site is also very positive. Contributor Will Lipovsky noted different ways of reducing your rates (automatic payments, consistent payments). The company has an A+ with the Better Business Bureau, focusing on the transparent of their practices and the way how they handle customer complaints. Let's see what real clients are saying about their experience of working with the company.
"I am pleased with cooperation with LendKey. This company runs a wonderful student loan refinancing division, as well as offers a lot of customizable options with few disadvantages. There is no application fee, which is a great benefit for me. I am just amazed with what this student loan refinancing powerhouse can do for me. It was really easy for me to refinance my student loan. I am saving a ton of money."
"I went to LendKey to get out a loan to pay off my student loans. I learnt that this company offers low interest rates and I decided to give it a try. This company helped me save a lot of money in interest, so that I can now pay off the loan. They know what they are doing! I do recommend them to my friends."
"I needed a student loan, that is why I addressed LendKey. They hooked me up with a nonprofit reputable lender in my area. I was satisfied with everything, especially with the fact that there are no origination fees. They offer provisions to help borrowers experiencing financial trouble. This was a great operation of mine. Thank you very much."
My Final Summary
LendKey's official website offers a number of loans without any origination fees. Based on what we have learnt about the company, it seems to be reputable and trustworthy. Most of all, it is known for its student loan refinancing. The personnel make the process fast and simple. What they do is consolidating all of your loans into one big loan, and then they offer you a new repayment period and interest rate. The company's official website contains all the details on the range of APRs you can get, as well as customer reviews from other websites for you to see what kind of experience other people tend to have with this company.
Before filling out your application, pay attention to the APRs on all your student loans. In this way, you will be able to understand whether the rates offered by LendKey are competitive depending on what you are already paying. It should be kept in mind that LendKey is a matchmaker - they do not directly give you're the loan; they simply pair you with a lender who can do it. Based on all the information we have learnt about LendKey, my advice is that this company is worth working with.
LendKey Pricing and Rates
LendKey is a large lending platform for student loan refinancing. It offers terms of up to 20 years on loans of up to $175,000. Their rates start at 2.66% APR. You can choose whether between variable or fixed rates and loans. The company operates in all 50 states.