San Francisco-based Credible is a free online loan marketplace that allows you to shop for the best loans. Credible’s main focus is on student loans, mortgages, and personal loans.
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, mortgage rate, and personal loan rate is to do so online. Credible makes shopping around a cinch.
Pros Of Credible
- One stop shop to compare multiple lender offers at the same time
- No hard credit check, which means your credit score is not negatively affected before seeing if you qualify
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.
- Not 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’s bread and butter product is 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.
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 single form, and it will compare multiple lenders at once for you, so you can find the best rate and terms for your student loan.
Some of the top lenders on the Credible platform include: Advantage Education Loans, Brazos, Citizens Bank, College Ave, EDvestinU, ELFI, MEFA, PenFed, RISLA and SoFi.
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 Mortgage Refinancing
Credible is a great way to get multiple real mortgage refinance quotes all in one place.
Mortgage rates have collapsed to 5-year lows as the Fed announced on June 20, 2019 they would be taking a very accommodative stance going forward. The Fed is on a rate cutting path like through 2020.
As a result, not only is there an opportunity to invest in real estate in 2020 and beyond due to increased affordability, now is the time to take advantage of lower mortgage rates by refinancing.
I personally refinanced my primary residence at the end of 2019 to a 2.625% 7/1 ARM at no cost. I actually got a $500 credit to refinance! It is incredible that after a 35% appreciation in my property since I bought it in 2014, I’m now paying 30% less a month as well.
Check out Credible Mortgage Refinancing if you’re looking to lower your monthly mortgage rate. You’ll get up to six mortgage offers where you can refinance into an ARM or a 30-year fixed mortgage. You can also do cash-out refinancing if you wish.
Credible Personal Loans
Finally, Credible has also smartly expanded into personal loans.
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 the most comprehensive marketplace for personal loans. Get real personal loan quotes in no time after you fill out the application. There’s no reason why you should be paying expensive revolving credit card debt or any other type of debt in this low-interest rate environment.
How Credible 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 which may negatively affect your credit score. 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 a real quote, it’ll take you only about two minutes.
Credible Is 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.
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 a real quote in just two minutes, which could end up saving you thousands over time!
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 was started in 2009 and is one of the most trusted personal finance sites on the web with over 1.5 million pageviews a month.