LendKey vs SoFi: Which is Better:
Overview of LendKey vs SoFi
If you regularly making payments on your existing student loan, then refinancing might be a good option for you. Just by refinancing your loan, you can simplify your payment by consolidating your federal loans and student loan into a single loan. Then you will get a lower interest rate and can reduce your monthly payment. It will help you to pay off your loans faster than usual. But there are several refinancing companies out there. So, you have to choose the best terms. LendKey and SoFi are well known for their student loan borrowers to refinancing options.
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About LendKey:
LendKey is an online lending company based in United States. Community banks and Credit unions offer some of the most borrower-friendly loans. But they have to depend on the infrastructure to scale their operations, marketing, and technical support to reach a wide range of borrowers. Usually, every borrowers are looking for the lowest interest rates. But going through the application process at multiple banks is problematic and time-consuming. For the sake of efficiency, many borrowers end up paying more than they should. By providing a platform to connect the borrowers, LendKey has solved the problems with the community banks and credit unions.
About SoFi:
SoFi is one of the best student refinancing companies in the market. They don’t connect the borrowers with traditional lenders. They offer a platform the borrowers for crowd-sourcing or peer to peer lending. SoFi lending company was first started by a group of Stanford business students and they want to help the other students. Several alumni have invested in this program, which will help the graduates, to lower their student loan rates. Although, it was first started in Stanford, soon spread through the nationwide.
SoFi was among the first companies that consolidate federal loans with private loans.
Difference Between LendKey and SoFi:
Interest Rates:
People refinance their student loans to same some money by reducing the interest rate. You might want to know, what interest rates LendKey and SoFi offers.
LendKey’s lowest fixed interest rates started from 3.25% and the variable interest rates start from 2.22% for those who sign up for the auto-debit payment. In case, the borrowers do not enroll for the autopay, then their interest will be 0.25% higher.
Fixed rates of SoFi started from as low as 3.37% and the variable rates of the SoFi, started from 2.35% with the autopay. If the borrower does not take advantage of the automatic payment service from the bank account, your rates will be 0.25% higher.
Loan Balance and Terms:
The minimum loan balance of LendKey starts from $7,500. Here you will get the refinancing for the loan up to $175,000. LendKey does not charge any fees for making an early payment, origination fee, or any extra payment.
Whereas, the minimum loan balance of SoFi starts from $5,000. There will be no upper limit for the balances SoFi will refinance.
The terms for both services can be chosen from 5, 7, 10, 15, or 20 years of loan terms.
Qualifying:
LendKey does not provide the loans themselves. Rather they connect the borrows with the credit unions and community banks. Credit unions lend to the peoples within certain areas, belong to particular associations, or working in certain fields. Whereas, Community banks only services through the designated geographic regions. To get the loans from the LendKey, the minimum credit score requirements are 660 and you must have an annual income of $24,000 minimum.
Not like the LendKey, SoFi has a strict qualification requirement. To get a loan from SoFi, the minimum credit score requirement is 650. But most of the borrowers of SoFi has a very excellent credit score of 774. Although the SoFi, does not require the minimum annual income, most of the borrowers of SoFi has an annual income of $124,630. To get eligible for the SoFi loan, you have to be a graduate student from a respected university. SoFi does not provide its services within Nevada. So, if you live in Nevada, then you have to go to another lending company.
Forbearance:
As you know, LendKey does offer the loans by themselves. They just connect the borrowers with the credit union or the community banks. So, the forbearance options might vary. The single forbearance for LendKey loan is for six months and may be extended for up to 18 months.
Those who have involuntarily lose their jobs will get the unemployment protection program from SoFi. Here, SoFi allows the borrowers the pause the loan for three months, up to a total of 12 months.
Also Read : Difference Between SoFi and Laurel Road Loan Online
Applying:
You can apply for the LendKey and SoFi loans on their official website. To apply, you will require your educational information, financial information, employment details, and the student loan amount.
Before applying, you can check the rates of both lenders, so that you will have an idea about the estimated rates. The rate check tools use only the soft check inquiry, it will not harm your credit score.
Conclusion:
The LendKey and SoFi, both are famous for refinancing student loans. Most of the features of these platforms are similar to each other. Although the SoFi stands from the crowd because of their career services. Using the career coaches, SoFi helps borrowers with job hunting and salary negotiations and interviewing skills. For the borrowers who want to start their own business, they also offer an entrepreneur program.
If you have excellent credit, stable career, and other great desirable borrower trails, then you might go for the LendKey with slightly lower rates. You may also like the idea of having the career services and the entrepreneur resources, then you can go for the SoFi. Both lenders do not charge an application fee. So, you can look for both lenders, who offer the best refinancing options for you.
Reference Link:
SoFi: www.sofi.com
LendKey: www.lendkey.com
