GreenSky does not reveal the exact credit score requirements for its customers. These loans are approved by their partner banks which may have different credit score requirements.
Generally, you can expect a loan approval with an above-average credit score of 620 or more.
Let us discuss what is GreenSky financing and its credit score requirements for the borrowers.
How Does GreenSky Financing Work?
GreenSky offers loans to individuals for home improvements and patient care services. It has two types of loans; deferred-interest loans and reduced-interest rate loans.
You can get GreenSky financing for home improvements or healthcare services through its registered partners for both fields.
GreenSky loans are offered through merchants, contractors, and healthcare service providers. It means individuals cannot apply for these loans directly.
Deferred-Interest Loans
This type of loan offers you to enjoy zero interest rate on the loan term. It comes with a promotional period to offer a zero-interest rate and extended loan term as well.
Some key features of this loan include:
Zero interest during the promotional period of 3 to 24 months.
- Loan term up to 84 months.
- Loan APR from 6.99% to 24.99%.
- Loan amount up to $65,000.
You do not have to pay interest if you repay the full amount during the promotional period. The interest-free period will depend on the loan amount and your creditworthiness.
Reduced-Interest Rate Loans
This loan does not offer a promotional period but comes with a reduced rate. You can enjoy a longer loan term with this loan and repay gradually enjoying low-interest rates.
Some key features of this loan include:
- Loan term of up to 12 years.
- The interest rate ranges from 0% to 11.99%.
- Maximum loan amount of $ 65,000.
- The loan originating fee is $39.
What Credit Score is Needed for GreenSky Financing?
GreenSky does not disclose the exact credit score requirement for its customers. It does not offer loans directly because it offers financing services through its partner banks.
Depending on customer reviews and analysis, you can expect to get approved for GreenSky financing with a fair credit score of 580 or above.
However, the more important thing to remember is the cost of borrowing that is directly linked to your credit score.
All other things being equal, the higher the credit score the lower the interest rate on your loan with any lender. The same holds for GreenSky financing as well.
If you have above average or excellent credit score of 720 or 800+, you can enjoy reduced APR on any type of loan. This is particularly useful for you if you are considering the reduced-interest rate loan from GreenSky.
In practice, GreenSky does not evaluate your credit score. Rather, its banking partners will evaluate your credit score, credit history, and financial strength by pulling a hard inquiry on your credit report.
In short, you can expect a loan approval with any credit score as GreenSky is a private lending platform. However, your credit score plays a crucial role in determining the APR of the loan, the amount, and the loan term.
How to Apply for GreenSky Financing?
You cannot directly apply for GreenSky financing. Whether you are looking for a home improvement loan or patient care assistance, you need a partner.
Your contractor or merchant partnering GreenSky will assist you through the process. Once they provide you with their reference number, you can apply for a loan online.
You’ll go through a few steps online and submit your loan application through your contractor’s reference. Then, GreenSky will offer you different loan terms and amounts depending on your creditworthiness and project needs.
Once approved, you’ll get the fund in your account. This amount may differ from the loan amount you applied for.
Your approved loan works as a revolving credit facility. It means you do not need to withdraw the full loan amount at once. Your loan interest will be charged on the amount you utilize.
What Do You Need to Qualify for GreenSky Financing?
GreenSky provides loans through its partner banks and financial institutions. Therefore, the lender may require details other than those listed here.
Personal Information
You need to provide personal information when completing the loan application. This information includes your full name, date of birth, social security number, and contact number.
You’ll also need to provide your residential address. In some cases, the lender may ask you for further details like gross annual income and employer identification number as well.
Credit Score
The exact credit score requirements are not provided by GreenSky. However, you can expect a loan approval with an average credit score of 580 and above.
For improved chances, you should apply with a good score of 720+. It will also help you lower the loan cost as lenders charge higher interest rates to borrowers with low credit scores.
Documents
The loan application is fully online. So, you do not need to provide any paper copies of any documents.
However, during the online process, you may need to upload some documents like a driving license.
Contractor Partner
For home improvement loans and patient care assistance, you’ll need to find a GreenSky partner.
Without a registered partner, you cannot apply for GreenSky financing.
What Happens Once Your Loan is Approved by GreenSky?
Once your application is approved, you’ll get a notification from GreenSky. In some cases, the lender may ask you for further information or documents as well.
Once your loan offer is finalized, you can sign the loan agreement electronically. After finalizing the loan, GreenSky will transfer the amount to your loan account.
You can then start authorizing your contractor to complete the home improvement project. You do not need to fully utilize the loan amount if you opt for a revolving loan facility.
How Do Repayments Work with GreenSky Loans?
You do not need to make loan installments during the promotional period. However, you must repay the loan amount before the promotional period ends to avoid interest charges.
For a reduced-interest rate loan, your monthly payment schedule will be available in your account. You’ll have to make monthly payments through the online account.
You cannot make installment payments through credit cards. So, you’ll have to use a debit card or bank transfer to fund your GreenSky loan account.
You can also sign up for automatic loan payments for the GreenSky account.
Alternatives to GreenSky Financing
GreenSky loans are suitable for borrowers who want to repay quickly and can save interest by repaying the full amount. On the other hand, these loans are a good fit for you if you want a long-term repayment plan.
Here are a few alternatives to consider if GreenSky loans do not fit your needs.
Home Equity Loan
If you have built home equity through repayments of your mortgage, you can use that to get a new line of credit.
As you pledge your home equity and get a secured loan, it reduces your cost of borrowing. It can be a good alternative to an unsecured private loan like GreenSky financing.
Credit Cards
Credit cards come with high APRs. However, if you are looking for a small home improvement or maintenance project, you may use a suitable credit card for these purchases.
Personal Loan
A personal loan is another useful option for you. If you have a good source of income or have some assets to pledge, you can secure a personal loan.
Secured personal loans also offer low APRs as compared to unsecured loans.
Frequently Asked Questions about GreenSky Financing
Let us answer some FAQs on Greensky financing.
Is my loan agreement with GreenSky?
Although GreenSky facilitates your loan application, the actual loan agreement is between the lender bank and the borrower.
Does applying for a GreenSky loan incur a hard credit inquiry?
Yes. A lender bank will evaluate your loan application and pull a hard inquiry on your credit report. It may cost you a few credit score points.
My loan is approved but I changed my mind, what should I do?
You do not need to accept the loan offer once it is approved. If you changed your mind, you can contact GreenSky and close your loan account immediately before making any transaction.
What does a deferred-interest loan mean?
Deferred interest means you do not pay interest during the promotional period. If you repay the full loan amount during this period, you do not pay any interest.
How much will be monthly installment?
Your monthly installment will be calculated depending on the loan type, loan amount, APR, and loan term. You’ll get the monthly payment schedule with your loan approval documents.
Can I repay with my credit card?
No, you cannot make monthly installments through a credit card.
How can I report issues with my loan account?
You can log in to your GreenSky account and report any suspicious or unauthorized transactions. You can also use the contact form or phone numbers to contact the GreenSky support team.
