San Francisco-based Credible is an online loan marketplace that allows customers to compare loan terms and rates. Credible's main focus includes student loans and personal loans. This article will provide a comprehensive Credible review after personally using the product for a year.
Credible lets you compare lenders and rates on its platform so you don't have to spend an enormous amount of time applying one by one. Once you fill out information about your borrowing needs, Credible will highlight the best offers within three minutes so you can make an informed decision.
To be clear, Credible doesn’t do any lending itself. It is simply a lending marketplace that provides pricing transparency to its users so they can make the best borrowing choice possible.
The best way to shop around for the best student loan rate, personal loan rate, and other loan types is to do so online. Credible makes rate comparison a cinch.
Credible Review: A Leading Lending Marketplace
Pros Of Credible
- One stop shop to compare multiple lender offers at the same time.
- You can use Credible to check prequalified rates for free with no obligations.
- Using Credible is safe, secure, and spam-free.
- Over 8.9 million users have already used Credible to compare prequalified rates.
- No hard credit check to request prequalified rates, which means your credit score is not negatively affected to compare rates. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
Cons Of Credible
- Although the lenders on Credible's platform are legitimate, some may not be household names. It's up to borrowers to research the lender they want to go with before taking action.
- No extra “membership benefits” or rate discounts applying via Credible. You may get a cheaper rate if you are a long-time customer of a particular lender or have multiple loans or financial accounts with a particular lender.
Credible Student Loan Refinancing
Credible began with its Student Loan Refinancing Marketplace. If you have a private student loan, and want to lower your interest rate or change your payment terms, refinance your student loans with Credible. If you have a Federal Student Loan, then it's best to wait what the government will do after the pandemic is over.
When you refinance your student loan, you're taking out a brand new loan with a new term. Your old loan is paid off and your loan term resets. You would only refinance your student loan if the interest rate is lower. Otherwise, you might as well keep your existing student loan.
A lower student loan interest rate should lower your monthly payment, especially since your loan term starts fresh. Your key is refinance your student loan to a lower rate and then methodically pay down extra principal as your income rises. This way, you will pay off your student loan sooner.
On Credible, you can fill out a simple form, and it will compare multiple lenders at once for you, so you can find the best rate and terms for your student loan.
They have a trustworthy marketplace that is partnered with multiple top lenders.
To qualify for a Credible Student Loan Refinancing there are no minimum qualifications to use Credible. However, you must be at least 18 years or older and have at least $5,000 in student loan debt to refinance.
Below are the average student loan rates for undergraduate, graduate, and PLUS loans.
It definitely helps if you have a credit score of 650 or higher as interest rates are a function of credit score and your credit quality. The higher your credit score, the lower your interest rate.
Credible Personal Loans
Finally, Credible has also smartly expanded into personal loans. Personal loans have really risen in importance since the pandemic began as people borrow more money to stay afloat.
Take a look at the below chart. The spread between the average credit card interest rate and the average personal loan rate is at a 20-year high. As a result, those of you with expensive credit card debt should consider consolidating your debt into a lower interest-rate personal loan.
Credible has a comprehensive marketplace for personal loans. Get prequalified personal loan quotes in no time after you fill out an application. There’s no reason why you should pay expensive revolving credit card debt or any other type of debt in a low-interest rate environment.
Credible Review: How Its Loans Works
Here’s how Credible student loan refinancing works:
1. Fill out a short form to get personalized rate estimates
Fill out a short form on Credible’s website about your education history and finances, including the total amount you want to refinance. Then, you’ll be asked to create a Credible account. There is NO hard credit check to get personalized prequalified personal loan rates, so your credit score won't be negatively affected. This is one of the best features of Credible.
2. Compare The Best Rates And Lenders
Next, you’ll see a dashboard with refinance rates you’ll likely qualify for. You’ll probably see multiple options from each lender because most offer several term lengths and both fixed and variable interest rates. Adjust the filters to narrow your choices based on what you’re looking for.
3. Pick The Best Rate And Lender For You
Once you've done your due diligence on the best rate and best lender, you can choose the best one with confidence. All lenders are already pre-vetted and highly qualified to be able to compete for your business on Credible.
Credible is easy and very straightforward to use. To get prequalified quotes, it'll take you only about two minutes.
Credible Review: A Great Lending Marketplace
Thanks to incredible innovation, funding, and a desire to help borrowers everywhere lower their interest rates, Credible has risen to be one of the best lending marketplaces today. My Credible review has determined Credible is better than LendingTree, another popular lender.
As someone who is based in San Francisco, I've had the privilege of meeting, analyzing, and experiencing the fintech boom, which Credible is a part of. I've been reviewing financial products and writing about personal finance on Financial Samurai since 2009.
I highly recommend finding a great rate on Credible today. It's free and easy to use. You'll get prequalified quotes in just two minutes, which could end up saving you thousands over time!
Take Control Of Your Finances
It's important to track all of your financial accounts often. In addition, you should be monitoring your investments regularly to make sure you're comfortable with your positions. I highly recommend signing up for Empower, a free online wealth management tool that utilizes the latest technology. It enables you to easily and securely monitor your finances.
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Definitely open up an account with Empower today. See how your finances are shaping up for free.
About the Author:
Sam worked in investment banking for 13 years at GS and CS. He received his undergraduate degree in Economics from The College of William & Mary and got his MBA from UC Berkeley. In 2012, Sam was able to retire at the age of 34 largely due to his investments that now generate roughly $250,000 a year in passive income. He spends most of his time playing tennis and taking care of his family.
Financial Samurai began in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month. Credible Review is a FS original post. Join 65,000+ others and sign up for the free Financial Samurai newsletter.
