Lendstreet.com Review

Based on checking the website Lendstreet.com, it presents itself as a platform designed to help individuals consolidate and refinance high-interest debt, particularly focusing on credit cards.

The core offering revolves around personal loans aimed at simplifying debt management by combining multiple payments into one lower-interest loan.

However, for those seeking ethical financial solutions aligned with Islamic principles, Lendstreet.com’s model, which appears to involve interest-bearing loans riba, poses significant concerns.

This directly contradicts core Islamic financial tenets that prohibit interest in all transactions due to its exploitative nature and the promotion of financial instability.

Here’s an overall summary of Lendstreet.com based on its public-facing information:

• Purpose: Debt consolidation and refinancing personal loans.
• Primary Mechanism: Offers interest-bearing personal loans.
• Target Audience: Individuals seeking to reduce or manage high-interest debt.
• Islamic Ethical Stance: Not Recommended Forbidden – Riba due to its reliance on interest riba, which is strictly prohibited in Islam. This type of financial transaction is seen as unjust and economically detrimental.
• Website Transparency: While providing information on its services, the fundamental financial model is based on interest.
• User Experience: Appears geared towards streamlining the application process for debt consolidation loans.

The premise of consolidating debt might sound appealing, offering a seemingly simpler payment structure or a lower monthly outlay.

However, for a Muslim, engaging with an interest-based system, even for debt relief, carries the weight of a severe prohibition.

Islam promotes economic justice, equitable wealth distribution, and transactions free from exploitation.

Interest riba is fundamentally viewed as an unjust gain derived without effort or risk, leading to accumulation of wealth in a few hands and burdening borrowers.

Therefore, while Lendstreet.com offers a service that might be legally permissible in conventional finance, it falls squarely into a forbidden category within Islamic finance.

The path to financial well-being in Islam involves seeking debt relief through permissible means, such as benevolent loans qard hassan, equity-based financing, or structured payment plans that avoid interest.

Best Ethical Alternatives for Financial Management Non-Interest Based:

• Qard Hassan Benevolent Loans:

  • Key Features: Interest-free loans provided as an act of charity or mutual support. The borrower repays the principal amount without any addition. Often facilitated by individuals, community organizations, or Islamic financial institutions.
  • Price: No interest, only the principal is repaid.
  • Pros: Purely ethical and permissible in Islam, fosters community solidarity, no financial burden from interest.
  • Cons: Availability can be limited, often for smaller amounts, requires trust between parties.

• Islamic Microfinance Institutions:

  • Key Features: Provides small loans and financial services based on Islamic principles like Murabaha cost-plus financing, Mudarabah profit-sharing, or Musharakah joint venture. Focuses on empowering entrepreneurs and individuals without charging interest.
  • Price: Charges a fixed profit margin Murabaha or shares in profits Mudarabah/Musharakah, not interest.
  • Pros: Access to finance without interest, supports productive ventures, adheres to Sharia.
  • Cons: May involve higher administrative fees, less widespread than conventional microfinance.

• Community-Based Zakat Funds:

  • Key Features: Zakat is an obligatory annual charity for eligible Muslims. Funds are often collected and distributed by local mosques or Islamic centers to those in need, including those burdened by debt, provided they meet specific criteria.
  • Price: No cost to the recipient. it’s a form of charitable assistance.
  • Pros: Direct financial relief, divinely ordained support, strengthens community bonds.
  • Cons: Eligibility criteria apply, funds are limited and depend on donations.

• Takaful Islamic Insurance:

  • Key Features: An Islamic alternative to conventional insurance, based on principles of mutual cooperation, solidarity, and shared responsibility. Participants contribute to a common fund, and payouts are made from this fund in times of need. Avoids interest, uncertainty gharar, and gambling maysir.
  • Price: Regular contributions to a common fund.
  • Pros: Sharia-compliant protection against risks, promotes mutual support, transparent operations.
  • Cons: Still developing in some regions, fewer product offerings compared to conventional insurance.

• Halal Investment Platforms:

  • Key Features: Platforms that allow individuals to invest their money in Sharia-compliant ways, avoiding industries like alcohol, gambling, interest-based finance, and non-halal food. Focuses on ethical and socially responsible investments.
  • Price: Management fees vary by platform, but the underlying investments avoid interest.
  • Pros: Builds wealth ethically, aligns with Islamic values, diversifies income streams.
  • Cons: Returns are subject to market fluctuations, may have fewer investment options than conventional platforms.

• Financial Counseling and Budgeting Services:

  • Key Features: Non-profit or community-based services that help individuals create budgets, manage expenses, and develop debt repayment strategies without resorting to new interest-bearing loans. Focuses on financial education and self-sufficiency.
  • Price: Many non-profits offer free or low-cost services.
  • Pros: Addresses the root causes of financial issues, empowers individuals with knowledge, avoids accumulating more debt.
  • Cons: Requires discipline and commitment from the individual, results take time.

• Bartering and Exchange Networks:

  • Key Features: Direct exchange of goods or services without the use of money, or through local exchange trading systems LETS. Can be a way to acquire necessities or services without incurring debt.
  • Price: No monetary cost. involves trade of goods/services.
  • Pros: Zero interest, fosters community self-reliance, promotes resourcefulness.
  • Cons: Limited applicability, requires finding compatible exchange partners, not always practical for large transactions.

Find detailed reviews on Trustpilot, Reddit, and BBB.org, for software products you can also check Producthunt.

IMPORTANT: We have not personally tested this company’s services. This review is based solely on information provided by the company on their website. For independent, verified user experiences, please refer to trusted sources such as Trustpilot, Reddit, and BBB.org.

Lendstreet.com Review & First Look

Lendstreet.com positions itself as a solution for individuals grappling with substantial credit card debt.

The website’s primary promise is to facilitate the consolidation and refinancing of this debt into a single, potentially lower-interest personal loan.

From an initial glance, the platform appears designed for straightforward navigation, aiming to simplify the often-complex process of debt management.

It emphasizes the benefit of having a single monthly payment and the possibility of reducing overall interest paid over time.

The concept of debt consolidation itself is not inherently problematic.

Many individuals find themselves overwhelmed by multiple high-interest credit card payments, and a structured approach to repayment can be beneficial.

However, the critical aspect, particularly from an ethical Islamic perspective, lies in the underlying financial mechanism. Lendstreet.com operates by offering interest-bearing personal loans. This is a fundamental point of contention, as interest riba is strictly forbidden in Islam. The prohibition of riba is one of the most emphasized economic principles in Islamic jurisprudence, rooted in the Quran and Sunnah. It is seen as a form of exploitation, an unjust gain that exacerbates wealth inequality and creates instability. While conventional finance views interest as a legitimate cost of borrowing, Islamic finance considers it a mechanism that leads to oppression and the concentration of wealth without genuine effort or risk.

The platform’s appearance of simplicity and promise of financial relief might seem attractive to those under financial strain.

However, for a Muslim, engaging with such a service would mean participating in a transaction that directly violates core religious tenets.

This isn’t merely about avoiding a moral discomfort. Sunscapenursery.com Review

It’s about adhering to divine commands that aim to establish a just and equitable economic system.

Therefore, while Lendstreet.com might offer a functionally effective solution in a conventional sense, its interest-based model renders it impermissible for a Muslim seeking to conduct their financial affairs according to Islamic ethics.

What Lendstreet.com Aims to Offer

Lendstreet.com aims to provide a lifeline to consumers burdened by high-interest debt, predominantly credit card debt.

Their primary service revolves around offering personal loans that allow borrowers to consolidate multiple debts into one.

The rationale behind this is to simplify financial management and potentially reduce the total interest paid over the life of the loan.

This is a common strategy in conventional finance, where individuals seek to escape the high Annual Percentage Rates APRs often associated with credit cards.

• Debt Consolidation: The core feature is combining several debts into a single, new loan. This can make tracking payments simpler and potentially lead to a lower overall monthly payment.
• Refinancing: By offering new loans, Lendstreet.com allows individuals to refinance existing debt at a different and hopefully lower interest rate, aiming to reduce the total cost of borrowing.
• Online Application: The platform appears to facilitate a streamlined online application process, allowing users to check their eligibility and apply for loans from the convenience of their homes. This digital accessibility is a hallmark of modern financial services.

The Underlying Interest-Based Model

The critical aspect of Lendstreet.com’s operation, and the reason for its non-recommendation from an Islamic perspective, is its reliance on interest riba. Every loan facilitated through Lendstreet.com, like most conventional personal loans, involves the borrower repaying more than the principal amount borrowed, with the excess being the interest charge. This is the very definition of riba.

• Riba as Exploitation: In Islam, riba is seen as exploitative because it represents gain without effort or risk, effectively penalizing those who are in need of funds. The lender profits purely from the passage of time on the loan, not from a productive venture or shared risk.
• Economic Inequality: The prohibition of riba aims to prevent the concentration of wealth and to encourage real economic activity where risk is shared. Interest tends to favor lenders and can trap borrowers in cycles of debt, widening the gap between the rich and the poor.
• Societal Impact: A society built on interest-based transactions is believed to be prone to economic crises and social injustice, as financial returns become detached from tangible economic output. For instance, historical data and economic analyses, like those discussed by economists such as Umer Chapra in “Towards a Just Monetary System,” highlight how interest-based economies can lead to cycles of boom and bust and increased indebtedness.

Lendstreet.com Features Non-Permissible Due to Riba

While Lendstreet.com might offer features that are considered convenient or beneficial in conventional financial systems, it’s crucial to evaluate these within the context of Islamic ethics.

Since the fundamental service is built upon interest riba, these features, despite their practical appeal, are part of a system deemed impermissible.

Therefore, rather than praising them, it’s essential to understand their function within a forbidden framework and strongly discourage engagement. Swap.ng Review

Online Loan Application and Approval

Lendstreet.com likely provides a fully digital application process, allowing prospective borrowers to apply for loans from anywhere with internet access. This might include:

• Pre-qualification Checks: Often, platforms like Lendstreet.com allow users to check their eligibility and potential interest rates without a hard credit inquiry, which can be appealing to those wary of affecting their credit score. This gives an immediate sense of what might be available.
• Streamlined Document Submission: Digital platforms generally aim to simplify the submission of required documents, such as proof of income, identity verification, and debt details, through secure online portals.
• Quick Decisions: The promise of fast approval decisions is a common draw for online lenders. This can be attractive to individuals seeking quick relief from mounting debt pressure.

Why This is Problematic Islamic Perspective:
Even if the process is smooth and efficient, the outcome is participation in an interest-based loan. The ease of access does not negate the prohibition. It merely makes it easier to engage in a forbidden transaction. The perceived “speed” or “convenience” is a superficial benefit when the underlying contract is impermissible. The focus should be on what is being facilitated, not how efficiently it’s done.

Debt Consolidation and Refinancing Tools

The platform’s core offering centers around tools to manage and combine existing debts. This implies:

• Consolidation Calculators: Websites often feature calculators to illustrate how consolidating debt might reduce monthly payments or the total interest paid over time. These tools can give a clear financial projection.
• Direct Payment to Creditors: Some debt consolidation services directly pay off the borrower’s existing credit card debts, streamlining the process and ensuring the new loan is used for its intended purpose.
• Fixed Monthly Payments: Personal loans typically come with fixed interest rates and fixed monthly payments, which can offer predictability compared to fluctuating credit card minimums.

While the idea of simplifying payments and potentially reducing conventional interest rates might sound financially prudent in a secular context, it’s akin to exchanging one forbidden contract for another.

The new consolidated loan still carries interest, thereby continuing the cycle of engaging in riba.

True relief, in Islam, comes from eliminating interest altogether, not from reorganizing it.

The goal is to escape riba, not merely manage its terms.

Customer Support and Resources

Like many financial websites, Lendstreet.com probably offers various support channels and educational content:

• FAQ Sections: Comprehensive FAQs can help users understand common questions about the loan application process, eligibility, and repayment terms.
• Contact Information: Providing phone numbers, email addresses, or live chat options for customer inquiries.
• Educational Content: Some platforms offer articles or guides on debt management, credit scores, and personal finance, aiming to empower users with knowledge.

Good customer support or educational resources cannot legitimize an interest-based transaction.

While knowledge is valuable, if the knowledge leads to engaging in forbidden acts, its benefit is negated in the Islamic context. Learningquranonline.com Review

The support is for a service that is fundamentally against Islamic principles.

The focus should be on seeking permissible advice and resources that lead to ethical financial solutions, not merely efficient ones that violate fundamental principles.

Lendstreet.com Cons Emphasizing the Prohibited Aspects

When evaluating Lendstreet.com from an Islamic perspective, the “cons” heavily outweigh any perceived “pros.” The platform’s fundamental operational model is built on interest riba, which is a major prohibition in Islam.

This single factor overshadows any conventional benefits like convenience or lower monthly payments.

The negative implications are not just financial, but deeply ethical and spiritual, undermining the very principles of Islamic economic justice.

Riba Interest – The Foremost Prohibition

The most significant and overarching con of Lendstreet.com is its reliance on interest-bearing loans.

In Islam, riba is forbidden in all its forms, whether as a late payment fee, an excess charge on a loan, or any form of stipulated increment on borrowed capital.

• Quranic Prohibition: The prohibition is explicitly stated in the Quran, for instance, in Surah Al-Baqarah 2:275-276, which declares war from Allah and His Messenger against those who deal in interest.
• Economic Injustice: Riba is considered inherently unjust because it allows wealth to be generated without real productive effort or shared risk. It disproportionately burdens the borrower, particularly those in financial distress, who are often forced to pay more than they received. This leads to wealth concentration and financial instability within society.
• Moral Decay: Islamic scholars argue that dealing in riba can harden hearts, promote greed, and erode the spirit of cooperation and compassion within a community. It shifts focus from productive ventures and shared prosperity to mere financial accumulation.
• Lack of Barakah Blessing: From an Islamic spiritual viewpoint, wealth earned through riba is devoid of blessing barakah. While it might appear to grow financially, it often leads to unforeseen difficulties, instability, or a lack of contentment in the long run.

Potential Debt Cycle Reinforcement

While debt consolidation aims to simplify payments, for many, it can mask underlying spending habits or financial mismanagement without truly resolving the root cause.

Engaging in a new interest-bearing loan, even if the interest rate is lower, still perpetuates the debt cycle.

• New Debt, Same Problem: Consolidating debt doesn’t eliminate it. it merely repackages it. If the underlying spending habits aren’t addressed, individuals can easily accumulate new credit card debt while still repaying the consolidation loan, leading to a worse financial position.
• Extended Repayment Periods: To achieve lower monthly payments, consolidation loans often come with longer repayment periods. This means paying interest for a longer duration, potentially increasing the total amount of interest paid over time, even if the rate is lower.
• False Sense of Relief: The initial relief of a lower monthly payment can create a false sense of security, delaying necessary behavioral changes related to budgeting and spending.

Lack of Sharia-Compliant Alternatives

Lendstreet.com does not offer any Sharia-compliant financial products or alternatives. Younggates.com Review

Its business model is exclusively based on conventional interest-bearing loans, making it unsuitable for a Muslim seeking ethical financial solutions.

• No Qard Hassan: The platform does not facilitate benevolent, interest-free loans Qard Hassan, which are highly encouraged in Islam for those in need.
• No Profit-Loss Sharing: There are no options for profit-loss sharing Mudarabah, Musharakah or cost-plus financing Murabaha arrangements, which are common Sharia-compliant alternatives to interest-based lending.
• Limited Scope: Its focus solely on consumer personal loans means it doesn’t engage in productive, asset-backed financing, which is the cornerstone of Islamic finance.

Lendstreet.com Alternatives Ethical & Permissible

Given that Lendstreet.com operates on an interest-based model, which is strictly prohibited in Islam, it’s imperative to explore genuinely ethical and permissible alternatives for managing debt or seeking financial assistance. The goal is not just to find a different lender, but to find a fundamentally different approach to finance that aligns with Islamic principles of justice, equity, and mutual cooperation. These alternatives focus on eliminating riba interest and promoting beneficial, real-economy transactions.

1. Qard Hassan Benevolent Loan through Community Funds

• Description: This is an interest-free loan where the borrower repays only the principal amount. It’s often facilitated by mosques, Islamic community centers, or even individuals as an act of charity sadaqah and mutual support.
• Key Features: No interest, fosters community spirit, often available for those in genuine need.
• Why it’s an alternative: Directly addresses financial need without the burden of riba. It’s a system built on compassion and trust.
• Pros: Absolutely Sharia-compliant, promotes solidarity, no exploitative charges.
• Cons: Availability is limited, often for smaller amounts, depends on community generosity.

2. Islamic Microfinance Institutions

• Description: These institutions provide financial services to low-income individuals and small businesses based on Islamic principles, avoiding interest. They typically use models like Murabaha cost-plus sale, Musharakah partnership, or Mudarabah profit-sharing to generate permissible returns.
• Key Features: Focus on productive assets, equity-based financing, empowering entrepreneurs, avoids interest.
• Why it’s an alternative: Offers structured financial support for income-generating activities without resorting to interest.
• Pros: Sharia-compliant, promotes economic development, often provides training and support.
• Cons: Not as widespread as conventional microfinance, specific product offerings may vary.

3. Zakat Funds and Sadaqa Networks

• Description: Zakat is an obligatory annual payment made to charitable causes by wealthy Muslims. Sadaqa voluntary charity is also highly encouraged. Many Islamic organizations and mosques manage these funds, often distributing them to the poor, needy, and those genuinely burdened by debt gharimeen who cannot repay.
• Key Features: Direct financial assistance, pure charity, no repayment expected for Zakat/Sadaqa recipients.
• Why it’s an alternative: Provides direct relief from debt without any financial obligation, a pure act of benevolence.
• Pros: Completely Sharia-compliant, addresses severe financial distress, purifies wealth for the donor.
• Cons: Eligibility is strict, funds are not always readily available for everyone, depends on donations.

4. Halal Financial Advisors and Debt Counseling

• Description: Seeking advice from financial counselors who understand Islamic finance principles can help individuals create Sharia-compliant debt management plans. This often involves budgeting, negotiating with creditors for interest-free payment plans, or seeking qard hassan.
• Key Features: Personalized budgeting, debt management strategies, negotiation support.
• Why it’s an alternative: Focuses on addressing the root causes of debt and finding permissible pathways to financial stability.
• Pros: Empowers individuals with knowledge, focuses on long-term financial health, avoids new forbidden contracts.
• Cons: Requires commitment and discipline, may not offer immediate financial relief in terms of new funds.

5. Leasing Ijarah or Purchase Murabaha for Specific Needs

• Description: For specific large purchases like cars or homes, Islamic financial institutions offer Sharia-compliant alternatives to conventional loans, such as Ijarah leasing with a promise to sell or Murabaha cost-plus sale. In Murabaha, the bank buys the asset and sells it to the customer at a pre-agreed profit margin. In Ijarah, the bank leases the asset to the customer, and ownership may transfer at the end of the lease.
• Key Features: Asset-backed financing, clear profit margin instead of interest, transparent contracts.
• Why it’s an alternative: Provides access to necessary assets without engaging in interest-based borrowing.
• Pros: Sharia-compliant, facilitates large purchases, transparent and ethical.
• Cons: Fewer institutions offer these, may involve higher administrative fees, often more complex than conventional loans.

6. Sale of Assets to Repay Debt

• Description: If faced with unmanageable debt, a Sharia-compliant approach can involve liquidating non-essential assets to pay off debts. This is a practical step to reduce or eliminate debt without incurring new interest.
• Key Features: Immediate debt reduction, avoids new financial obligations.
• Why it’s an alternative: A direct and permissible way to reduce financial burden without engaging in forbidden transactions.
• Pros: Clear conscience, direct debt reduction, empowers financial control.
• Cons: Requires sacrifices, assets might be undervalued in a quick sale.

7. Family and Friends Support Qard Hassan

• Description: Seeking interest-free loans Qard Hassan from family members or trusted friends is a highly encouraged form of mutual support in Islam. This avoids formal interest-based financial institutions entirely.
• Key Features: Trust-based, flexible repayment, no interest.
• Why it’s an alternative: The most direct and compassionate form of interest-free assistance, often readily available within close circles.
• Pros: Fully Sharia-compliant, fosters strong relationships, highly flexible.
• Cons: May strain relationships if not managed well, depends on the capacity of family/friends.

How to Avoid Interest-Based Debt from the Outset

Avoiding interest-based debt is paramount for a Muslim seeking financial purity and blessing.

It’s not just about finding alternatives when debt becomes a burden, but adopting proactive financial habits that prevent the accumulation of riba from the very beginning.

This requires discipline, foresight, and a deep understanding of Islamic financial principles.

Prioritizing Needs Over Wants

A fundamental principle in Islamic finance is the emphasis on moderation and avoidance of extravagance. Distinguishing between needs darooriyat, comforts hajiyat, and luxuries tahsiniyat is crucial.

• Needs Darooriyat: Essential for survival and well-being, like food, shelter, and basic clothing. These are always prioritized.
• Comforts Hajiyat: Enhance quality of life but are not strictly necessary, such as a comfortable home or a reliable car.
• Luxuries Tahsiniyat: Non-essential items or experiences that provide enjoyment but can easily lead to debt, such as designer clothes or extravagant vacations.

Practical Application: Before making any significant purchase, ask yourself: Is this truly a need? Can I delay this purchase? Can I afford this without resorting to interest-based loans or credit cards? This discipline is key to preventing debt accumulation.

Budgeting and Financial Planning

Effective budgeting is the cornerstone of avoiding debt.

It involves meticulously tracking income and expenses to ensure spending does not exceed earnings. Spartexpc.com Review

• Create a Realistic Budget: List all sources of income and categorize all expenses fixed like rent, variable like groceries. Numerous apps and templates are available, but a simple spreadsheet works just as well. For example, a study by the National Endowment for Financial Education NEFE found that only 41% of Americans use a budget, highlighting a gap that often leads to financial stress.
• Track Every Dollar: Knowing where your money goes is crucial. This helps identify areas where spending can be cut.
• Set Financial Goals: Whether it’s saving for a down payment, an emergency fund, or an investment, clear goals provide motivation to stick to a budget and avoid unnecessary borrowing.
• Regular Review: Budgets aren’t static. Review and adjust them monthly or quarterly to reflect changes in income or expenses.

Building an Emergency Fund

Life throws curveballs.

A robust emergency fund acts as a financial safety net, preventing the need to resort to high-interest loans during unexpected crises like job loss, medical emergencies, or unforeseen repairs.

• Target Amount: Aim for 3-6 months’ worth of essential living expenses saved in an easily accessible account e.g., a separate savings account, not a checking account. Some experts even recommend up to 12 months for greater security.
• Consistent Saving: Treat saving for the emergency fund as a non-negotiable expense. Set up automatic transfers from your checking to your savings account each payday.
• Separate from Other Savings: This fund is specifically for emergencies and should not be touched for non-urgent expenses or investments.

Utilizing Halal Savings and Investments

Instead of relying on conventional interest-bearing savings accounts, Muslims should seek Sharia-compliant avenues for their savings and investments.

• Halal Investment Funds: Invest in mutual funds or ETFs that are screened for Sharia compliance, avoiding industries like alcohol, tobacco, gambling, conventional finance, and non-halal food. Platforms like Wahed Invest or Amanah Ventures offer such options.
• Direct Equity Investment: Investing directly in ethical companies whose business models align with Islamic values.
• Real Estate: Investing in income-generating properties through permissible means, like cash purchase or Islamic financing.
• Precious Metals: Gold and silver can serve as a store of wealth, traditionally viewed as permissible assets for saving.

Avoiding Credit Cards

While some might argue for their utility in building credit scores or for convenience, the inherent risk of falling into interest-bearing debt makes them highly problematic in Islam.

• Zero Interest, Zero Benefit: If used strictly to pay off the full balance each month, credit cards theoretically accrue no interest. However, even then, the underlying contract allows for interest, and the temptation to carry a balance is high.
• Debt Trap: The ease of spending and the minimum payment structure often lead individuals to accumulate debt they cannot easily repay, thus incurring riba. According to the Federal Reserve, in 2023, the average credit card interest rate was over 20%, illustrating the high cost of carrying a balance.
• Alternatives: Use debit cards for purchases, or rely on cash for transactions. For building credit, consider permissible alternatives like secured credit cards if structured without direct interest charges on the principal, rent payment reporting services, or utility bill reporting services that don’t involve interest.

Seeking Qard Hassan When Necessary

If borrowing becomes absolutely necessary due to unforeseen circumstances, the first recourse should be seeking Qard Hassan benevolent loan from family, friends, or community organizations.

• No Interest: This ensures the transaction remains permissible.
• Mutual Support: It strengthens community ties and emphasizes compassion.
• Clear Terms: Even with Qard Hassan, it’s wise to establish clear repayment terms to avoid misunderstandings and ensure financial responsibility.

By proactively implementing these strategies, Muslims can build a strong, debt-free financial foundation that is fully compliant with Islamic principles, avoiding the pitfalls of interest and leading a more blessed and secure financial life.

How to Cancel Lendstreet.com Subscription Hypothetical, as it’s a Loan Service

Lendstreet.com is a platform that facilitates personal loans, not a subscription service in the typical sense like Netflix or a gym membership. Therefore, the concept of “canceling a subscription” doesn’t directly apply.

Instead, if one has engaged with Lendstreet.com, the relevant actions would be either withdrawing a loan application before funding, or repaying an existing loan.

However, for the sake of exploring potential scenarios and general advice on disengaging from non-permissible financial agreements, we can address hypothetical cancellation or repayment.

Disclaimer: This advice is general. Always refer to the specific terms and conditions outlined in any loan agreement with Lendstreet.com. Fabrikaa.com Review

Withdrawing a Loan Application

If you have applied for a loan through Lendstreet.com but the funds have not yet been disbursed, you might be able to withdraw your application.

• Contact Them Immediately: The most effective first step is to contact Lendstreet.com’s customer service as soon as possible. Look for phone numbers, email addresses, or a live chat option on their website. State clearly that you wish to withdraw your loan application.
• Check Application Status: If your application is still “pending” or “under review” and hasn’t reached the “funded” stage, withdrawal is typically straightforward.
• Review Loan Documents: Before funding, you would have received loan documents for e-signature. Check these documents for any clauses related to application withdrawal.
• Consequences: Withdrawing an application typically has no financial penalty. If a “hard inquiry” was made on your credit report, it will remain, but it’s a minor factor.

Repaying an Existing Loan The Actual “Cancellation”

If you have already received funds from Lendstreet.com, you are legally bound by the loan agreement.

The “cancellation” in this scenario means repaying the loan.

From an Islamic perspective, the urgency to repay an interest-based loan riba is paramount, even though the initial act of taking it was impermissible.

The goal is to exit the forbidden transaction as quickly as possible.

• Early Repayment Clause: Check your loan agreement for terms related to early repayment. Most personal loans do not have prepayment penalties, meaning you can pay off the loan balance before the scheduled term without extra fees.
• Calculate Payoff Amount: Contact Lendstreet.com’s customer service to get an exact payoff quote. This will include the principal balance and any accrued interest up to the specific payoff date.
• Source Permissible Funds: If possible, strive to repay the loan using funds acquired through permissible halal means. This might involve:
  • Savings from halal income.
  • Selling permissible assets.
  • Seeking a benevolent loan Qard Hassan from family, friends, or an Islamic community fund specifically for the purpose of clearing interest-based debt. This is highly recommended to replace one forbidden transaction with a permissible one.
• Confirm Zero Balance: After making the final payment, request a confirmation letter or email from Lendstreet.com stating that your loan balance is zero and the account is closed. This prevents any future disputes.

Important Islamic Ethical Stance:

While taking an interest-based loan is impermissible, Islam prioritizes fulfilling contracts and rectifying wrong actions.

Therefore, if one has already entered into such an agreement, the obligation is to repay the principal promptly and clear the interest as quickly as possible to minimize participation in riba.

Seeking sincere repentance Tawbah and resolving never to engage in such transactions again is also crucial.

Lendstreet.com Pricing Refers to Interest Rates and Fees

When discussing “pricing” for a loan service like Lendstreet.com, we are referring to the interest rates and fees associated with their personal loans. For a Muslim, this information is particularly critical because any charge above the principal amount loaned is considered riba interest, which is strictly prohibited in Islam. Therefore, understanding the pricing structure of Lendstreet.com serves not to evaluate its competitiveness, but to highlight its non-compliance with Islamic financial principles. Letsunlockphone.com Review

Interest Rates Annual Percentage Rate – APR

Lendstreet.com, like other conventional lenders, charges an interest rate, expressed as an Annual Percentage Rate APR. This APR represents the true cost of borrowing, including the interest rate and certain fees.

• Variable Rates: Some lenders offer variable rates, which can fluctuate over the loan term based on a benchmark index. This introduces uncertainty gharar, another concept often discouraged in Islamic finance.
• Fixed Rates: Fixed rates remain constant throughout the loan term, providing predictability in monthly payments. While predictable, the underlying charge is still interest.
• Factors Influencing APR: Typically, the APR offered to a borrower depends on several factors, including:
  • Credit Score: Borrowers with higher credit scores usually qualify for lower interest rates.
  • Debt-to-Income Ratio: A lower ratio generally indicates better financial health.
  • Loan Term: Longer loan terms often come with higher interest rates, as the lender takes on more risk over a longer period.
  • Loan Amount: Sometimes, larger loan amounts might have slightly different rate structures.
  • Example Data Hypothetical, based on industry averages: For personal loans from similar platforms, APRs can range from 6% to 36%, depending significantly on creditworthiness. A borrower with excellent credit 760+ might see rates below 10%, while someone with fair credit 580-669 could face rates exceeding 25%.

Fees

Beyond the interest rate, conventional personal loans, including those potentially offered by Lendstreet.com, may also involve various fees.

Each of these fees contributes to the overall cost of the forbidden transaction.

• Origination Fees: A common fee, charged by the lender for processing the loan application. This is typically a percentage of the total loan amount e.g., 1% to 5% and is often deducted directly from the loan proceeds before disbursement.
• Late Payment Fees: Charged if a borrower misses a payment or pays after the due date. This is a direct penalty on delay, considered a form of riba in Islamic finance riba al-nasiah.
• Insufficient Funds NSF Fees: If a payment attempt fails due to insufficient funds in the borrower’s account, the lender might charge an NSF fee.
• Prepayment Penalties: While less common for personal loans, some conventional loans might charge a fee if the borrower repays the loan early. This punishes early debt clearance, which is ethically preferred in Islam.

Islamic Ethical Stance on Pricing:

Every single component of Lendstreet.com’s “pricing”—from the APR to origination fees and late payment charges—is a manifestation of riba or related impermissible charges.

• The Principle of Zero Excess: In Islamic finance, a loan Qard Hassan must be repaid with zero excess over the principal amount. Any charge above the principal is considered riba.
• No Charge for Time: Interest is essentially a charge for the use of money over time. Islam prohibits this, as money itself is not considered a commodity to be rented out.
• Prohibition of Penalties: Late payment fees, when they accrue beyond actual administrative costs and become a profit for the lender, are also considered riba, as they exploit the borrower’s distress.

Therefore, for a Muslim, the “pricing” of Lendstreet.com is not merely a financial cost to be evaluated, but an ethical barrier.

Any engagement with such a pricing structure would be a direct violation of Islamic financial principles.

The focus should be on seeking financial solutions that operate on principles of partnership, profit-loss sharing, or benevolent lending, where the concept of “pricing” is entirely different and permissible.

Lendstreet.com vs. Halal Alternatives Ethical Comparison

When comparing Lendstreet.com with Halal permissible in Islam alternatives, the fundamental difference isn’t about which offers a better interest rate or more convenient service.

It’s about a complete divergence in their underlying financial philosophy and ethical framework. Testmy.net Review

Lendstreet.com operates within a conventional, interest-based system, whereas Halal alternatives adhere strictly to Islamic principles, particularly the prohibition of Riba interest.

Lendstreet.com Conventional, Interest-Based Model

• Core Offering: Provides personal loans for debt consolidation and refinancing, with borrowers repaying the principal plus interest APR.
• Mechanism of Profit: Generates revenue primarily from the interest charged on loans.
• Ethical Stance Islamic: Prohibited Haram due to Riba. This directly violates the Quranic and Sunnah commands against engaging in interest.
• Pros from a conventional view, though irrelevant in Islamic context:
  • Convenience: Often features quick online applications and potentially fast funding.
  • Simplification: Consolidates multiple debts into a single payment.
  • Potential Lower Monthly Payments: Can reduce the immediate monthly burden, though not necessarily the total cost if interest is high.
• Cons from an Islamic view, which is the primary concern:
  • Riba: The fundamental problem, making all transactions impermissible.
  • Debt Cycle: Can perpetuate debt if spending habits aren’t controlled.
  • Exploitative: Profits from the need of the borrower, not from productive shared enterprise.
  • Lack of Barakah: Wealth and transactions tied to Riba are considered devoid of divine blessing.

Halal Alternatives Islamic Finance Principles

• Core Offering: Focuses on equitable transactions, risk-sharing, and asset-backed financing, avoiding interest. This includes Qard Hassan benevolent loans, Murabaha cost-plus sale, Musharakah partnership, Mudarabah profit-sharing, Ijarah leasing, and community-based Zakat/Sadaqa funds.
• Mechanism of Profit: Profits are generated through legitimate trade, partnership, asset utilization, or direct service charges e.g., administrative fees, profit margins on sales, never from interest on borrowed money.
• Ethical Stance Islamic: Permissible Halal and highly encouraged, aligning with divine commands for justice and economic fairness.
• Pros:
  • Riba-Free: The most critical advantage, ensuring financial transactions are permissible.
  • Ethical & Just: Promotes fairness, shared risk, and discourages exploitation.
  • Barakah Blessing: Transactions conducted ethically are believed to invite divine blessing.
  • Community Focused: Often fosters mutual support and solidarity e.g., Qard Hassan.
  • Real Economy Driven: Encourages investments in tangible assets and productive ventures, rather than speculative financial instruments.
• Cons:
  • Limited Availability: Fewer Islamic financial institutions compared to conventional ones, especially in non-Muslim majority countries.
  • Possibly Higher Administrative Fees: Due to different operational structures and often smaller scale, administrative costs might sometimes be higher than the interest on a conventional loan.
  • Longer Processes: Some Islamic finance products like home financing might involve more complex legal documentation and longer processing times compared to simple interest-based loans.
  • Specific Eligibility: Certain aid e.g., Zakat has strict eligibility criteria.

Key Differentiating Factors

1. Nature of the Contract:
   • Lendstreet.com: A loan contract where money is borrowed and repaid with an increment interest.
   • Halal Alternatives: Diverse contracts including benevolent loans no increment, sale contracts profit on goods, partnership contracts profit/loss sharing, or leasing rent for asset use.
2. Risk Bearing:
   • Lendstreet.com: Lender bears minimal risk, guaranteed return interest regardless of borrower’s success.
   • Halal Alternatives: Risk is shared between parties in partnerships or transferred with asset ownership in sales/leases, encouraging productive enterprise.
3. Source of Revenue:
   • Lendstreet.com: Interest income from pure money lending.
   • Halal Alternatives: Income from legitimate trade, investment in real assets, or administrative fees for services.
4. Moral & Spiritual Impact:
   • Lendstreet.com: Engages in Riba, which is a major sin in Islam, leading to spiritual consequences and a lack of blessing.
   • Halal Alternatives: Adheres to divine commands, seeking blessing and fostering justice and equity in financial dealings.

In essence, while Lendstreet.com offers a readily available solution within the conventional financial paradigm, it fundamentally conflicts with Islamic economic principles.

For a Muslim, the ethical imperative is to seek out and utilize Halal alternatives, even if they require more effort to find or have different operational structures, as these are the only permissible pathways to managing finances.

FAQ

Is Lendstreet.com a legitimate company?

Yes, Lendstreet.com appears to be a legitimate financial company operating in the personal loan and debt consolidation space, offering services in line with conventional lending practices.

What kind of loans does Lendstreet.com offer?

Lendstreet.com primarily offers personal loans for debt consolidation and refinancing, aimed at helping individuals manage or reduce high-interest credit card debt.

How does Lendstreet.com make money?

Lendstreet.com makes money by charging interest on the personal loans it extends to borrowers, as well as potentially through various fees such as origination fees.

Is Lendstreet.com suitable for Muslims?

No, Lendstreet.com is not suitable for Muslims because its core business model relies on interest riba, which is strictly prohibited in Islam.

What is Riba interest in Islam?

Riba refers to any excess or increment obtained on a loan or debt, and it is strictly forbidden in Islam as it is considered exploitative and unjust.

Are there any Sharia-compliant alternatives to Lendstreet.com?

Yes, Sharia-compliant alternatives include Qard Hassan benevolent loans, Islamic microfinance institutions, Zakat funds, Halal financial advisors, and asset-backed financing models like Murabaha or Ijarah.

Can I consolidate my debt without interest?

Yes, consolidating debt without interest is possible through Sharia-compliant methods like obtaining a Qard Hassan, seeking assistance from Zakat funds, or using savings/liquidating assets to pay off existing interest-based debts. Atlasquantum.com Review

What happens if I have an existing loan with Lendstreet.com?

If you have an existing interest-based loan with Lendstreet.com, from an Islamic perspective, you should strive to repay the principal amount as quickly as possible to minimize your engagement with riba, and seek sincere repentance.

Does Lendstreet.com offer fixed or variable interest rates?

Lendstreet.com, like other conventional lenders, typically offers either fixed or variable interest rates, depending on the specific loan product and market conditions. You would need to check their current offerings.

Can I cancel my loan application with Lendstreet.com?

Yes, you can typically withdraw a loan application with Lendstreet.com before the funds are disbursed.

Contact their customer service immediately to inquire about the specific process.

Does Lendstreet.com charge prepayment penalties?

You would need to review your specific loan agreement with Lendstreet.com, as prepayment penalty policies vary.

However, many personal loan providers do not charge prepayment penalties.

How does Lendstreet.com impact my credit score?

Applying for a loan with Lendstreet.com typically involves a hard inquiry, which can temporarily lower your credit score.

Successfully repaying the loan can positively impact your credit score over time, while late or missed payments will negatively affect it.

What documentation do I need to apply for a loan with Lendstreet.com?

Typically, you would need to provide proof of identity, income verification pay stubs, bank statements, and possibly details about your existing debts if applying for debt consolidation.

Are there any fees associated with Lendstreet.com loans?

Yes, besides interest, Lendstreet.com may charge various fees such as origination fees, late payment fees, or insufficient funds NSF fees, all of which contribute to the overall cost of the loan. Wordsuccor.com Review

Can I negotiate interest rates with Lendstreet.com?

Generally, interest rates with online lenders like Lendstreet.com are determined by algorithms based on your creditworthiness and loan terms.

Negotiation is usually not an option, but you can compare offered rates from different lenders.

What is the maximum loan amount I can get from Lendstreet.com?

The maximum loan amount offered by Lendstreet.com would be specified on their website and depends on their lending policies, your creditworthiness, and income.

How long does it take to get funds from Lendstreet.com?

Online lenders often promise quick funding.

After approval, funds from Lendstreet.com could potentially be disbursed within a few business days, depending on their process and your bank.

Is debt consolidation always a good idea?

From a conventional perspective, debt consolidation can be beneficial if it reduces your interest rate and simplifies payments.

However, if not accompanied by a change in spending habits, it can lead to accumulating new debt.

From an Islamic perspective, if it involves interest, it is not permissible.

Where can I find Halal financial advice?

You can find Halal financial advice from certified Islamic financial advisors, reputable Islamic scholars, or through organizations that specialize in Islamic finance and wealth management.

What are the consequences of dealing with Riba in Islam?

Dealing with Riba in Islam is considered a grave sin, incurring divine displeasure and leading to a lack of blessing barakah in wealth. Eroomsplus.com Review

It is also believed to contribute to economic injustice and instability in society.