In this Review..
What is 5KFunds?
5KFunds is an online marketplace with a large network of lenders. The platform is based in Florida and aims to make it quicker and easier to get rates from multiple lenders.
The company has been operating since 2015 and can help borrowers access personal loans even if they have a poor credit score.
There are no fees for using this service and you can access up to $35,000. 5KFunds takes a transparent approach. You can track all the agreements with the marketplace and you will receive all the details directly from 5KFunds after the loan is finalized.
How Does It Work?
To apply for a loan using the 5KFunds marketplace, you need to meet the following criteria:
- At least 18 years of age
- US citizen
- Have a bank account, preferable an account with direct deposit
- Have a steady income stream
If you meet this criteria, you can start the quick and easy way to compare loan deals. You’ll need to complete an online form with some basic personal information, your employer details, bank information and a social security number.
However, unlike many marketplace platforms, 5KFunds may perform a hard credit check to search for appropriate deals.
After you submit your application, 5KFunds will immediately match you with available lenders where you will pre qualify.
You can then view the terms and rates that lenders are offering based on the details you provide.
After you pre-qualify, lenders will contact you to complete the process. Depending on your income and loan requirements, you may qualify for an installment or short term loan. The loans range from $1,000 to $35,000 with a term of 61 days to 72 months.
5KFunds takes a transparent approach. You can track all the agreements with the marketplace and you will receive all the details directly from 5KFunds after the loan is finalized.
5.99% - 35.99%
$500 - $35,000
Varies based on lender
5KFunds Pros & Cons
As with any financial product or platform, there are both pros and cons associated with 5KFunds. It is important to be aware of both sides, before deciding to use this service. The benefits and drawbacks of 5KFunds include:
Once you click continue, you’ll see a prompt to enter the last four digits of your social security number to access your loan options.
5K Funds FAQs
Is 5k Funds Trustworthy?
5K Funds is a free personal loan comparison service that can connect you with a marketplace of over 100 authorized, vetted lenders. Each lender must meet 5K’s responsible lending practices to remain an authorized lender.
5K Funds also has an excellent reputation for taking security and privacy seriously. Any personal details you supply are encrypted and protected to 256 bit bank level SSL security standards.
Does 5K Funds affect credit score?
In addition to having no minimum credit score to use the 5k Funds loan aggregation service, the online application does not trigger an initial credit check. You can gain pre-approval in 90 seconds by supplying some basic financial information. However, there are some cases where 5K Funds will pull a hard credit check, which could impact an already low credit score.
Is 5K better than Credible?
Credible has a solid reputation, particularly on Trustpilot that is more positive than 5K Funds. This company also offers different types of loans and finance, rather than just the personal loans on offer with 5K. You can source personal loans, student loans, student loan refinancing, home loans and mortgages, which makes it more flexible than 5K Funds.
Both platforms use bank level encryption to protect your data and like 5K Funds, in most cases, Credible will not perform a hard credit check to allow you to compare loan deals.
Is 5K better than Monevo?
5K Funds aim for lower credit score borrowers compared to Monevo. Basically, Monevo provides better rates depending on the lender and your circumstances. Like 5K Funds, Monevo does not charge fees for its services, but you can access unsecured and secured loan products.
However, one key difference between the two services is that while 5K has a poor BBB rating, Monevo is a BBB accredited business. This provides consumers with the reassurance that they can access arbitration services should they encounter a problem.
Marketplaces like 5KFunds can be a great tool to quickly connect with multiple lenders and make easy comparisons with just one application.
5KFunds has a quick application process that you can complete in less than five minutes, yet immediately allows you to view terms and rates that you pre-qualify for.
The main drawback is that when you apply, you are giving consent for lenders to run a hard credit check. This may cause damage to your credit score. Many online marketplaces do not perform a hard check for just a preliminary application.
Another consideration is that 5KFunds has low review scores. With an average on Trustpilot and poor on BBB, it does raise some red flags. However, it is common with these types of platforms that you may start to receive unsolicited calls and emails, which can fuel complaints and poor reviews.
So, if you are looking to quickly explore your loan options, 5KFunds may provide a good solution. But, if you’re wary of hard credit searches, you may prefer to look elsewhere.