LendKey was established in 2007 under the name of Fynanz. In its early years, Fynanz provided peer-to-peer loans using innovative technology to separate high-risk applicants from low-risk applicants. In 2013 the company changed its name to LendKey and expanded their lending services to community banks and credit unions, which were not utilized under the Fynanz years.
LendKey is headquartered in New York and has over 30,000 borrowers from across the country. LendKey’s online website allows potential customers to apply for various loans, such as student loans, auto loans, and home improvement loans, using their local community bank or credit union. LendKey collects low-rate loan offers from over 13,000 banks and credit unions which helps them stay competitive. Currently, students can apply for new private loans, green loans, and refinancing of previous student loans.
What Is LendKey Refinancing?
Many students rely on student loans in order to pay for part or all of their college tuition and expenses. Often times, when a student borrows a loan, the interest rate can be higher than what he or she would like to pay. The interest rate of a loan is affected by many factors, such as the creditworthiness of the applicant (and potentially the cosigner), debt-to-income ratio, previous payment history, and perhaps even the student’s major. Each company has its own criteria to determine whether an applicant is eligible for a loan and, if so, what the interest rate will be.
As such, students may find it beneficial to refinance their loans in order to qualify for a lower interest rate. This will help borrowers pay less during the life of their loan and may also help them spread the payments out over a longer amount of time, if they want a lower minimum monthly payment. One of the benefits of using LendKey is that they rely on over 13,000 banks and credit unions to help get customers the lowest rate possible. The rates that are quotes can often times be lower than many leading national refinancing companies. Currently, there are over 175 credit unions that provide low interest rate loans through LendKey. Students from any state are eligible to apply for these loans.
This model helps many customers save thousands of dollars on their student loans, because they can customize a refinance plan that best meets their unique financial situation. Students have the option to refinance their loans with a fixed or variable interest rate. Flexible repayment lengths are also available and students can choose to repay their loans over a 5 year, 10 year, or 15 year period. Current variable rates start at 2.09% and fixed rates start at 3.25%. Additional information about current interest rates for variable and fixed rate loans can be found at this website.
How Do I Apply for Refinancing through LendKey?
Applying for loan refinancing through LendKey is a fairly straightforward and hassle-free process. First, applicants must complete an online application. The application will first ask students where they live and how much debt they have. Next, they will fill out the last university that they graduated from and what degree they completed. Furthermore, they will be asked what level of education they have completed as well as their current e-mail address. During this stage of the application process, applicants will also be asked whether they are applying with or without a cosigner. After that, students will receive an instant decision about eligibility. If they are eligible, they will be taken to a more in depth application form.
The detailed application form will gather additional demographic, school, and financial information. For example, it requires applicants to complete information about their employer, address, and salary. Furthermore, it requires proof of identification, such as a social security number of other type of photo identification. Students then choose a credit union that will finance their loan. As an example, when Maryland was the state chosen, two options (McGraw-Hill Federal Credit Union and Aspire Federal Credit Union) came up as potential options. A disclaimer states that the pricing and terms will be the same regardless of which lender is chosen. Next, the applicant consent to a credit inquiry. Thirdly, the applicant will have the opportunity to customize his or her loans. After the loan terms have been finalized and accepted by the applicant, the loan will be disbursed.
LendKey considers every applicant’s unique financial circumstances. However, they generally require that applicants have good credit and enough income to cover loan repayment and living expenses. Borrowers who experience problems repaying their loans can opt to pay the interest only for up to four years.
Benefits of Using LendKey Refinancing
- Option to choose a fixed or variable interest rate
- Flexible repayment terms that range from 5 years to 15 years
- No origination or prepayment fees
- Refinancing Calculator that enables students to see what their monthly pay will be with different interest rates and with differing repayment terms
- A large bank of online resources regarding student debt, such as how to determine whether a loan consolidation or refinance would best meet a borrowers needs
- A 0.25% interest rate reduction when the borrower enrolls in automatic payments
- Option for cosigner release after 12 months of on-time payments have been received
Additional Products from LendKey
In addition to refinancing, students can find competitive private student loans through LendKey. These loans provide students with low interest rates to begin with and up to a 1% reduction off their interest rate once they have repaid the first 10% of the principal of their loan. An additional reduction is offered for automatic payments and there are no hidden fees are associated with the loan. Furthermore, cosigners can be released from the loan after a year of on-time payments. Like the refinancing application the application for a private student loan is also quick and easy.