Refinancing or consolidating your student loans with Credible is a mixed-bag. On one hand, using Credible is an incredibly efficient way to shop around and check your rates with multiple student loan lenders. The downside with Credible is that it works with a limited number of lenders. It is missing enough notable lenders that it cannot be considered a one-stop place to refinance your student loans. That being said, Credible is a very useful tool to help you find the best deal, provided you use it correctly.
Credible Consolidation and Refinancing Basics
Unlike most of the companies offering student loan consolidation and refinancing services, Credible is not an actual lender. Instead, Credible partners with a number of different lenders to help borrowers find the lender offering the best deal.
The process is fairly simple. Borrowers complete one application and they get actual offers from the various lenders based upon their credit score, income, and other factors. Going this route helps borrowers quickly determine which lender on Credible is offering the best deal on consolidation.
Credible currently has the following lenders on their platform: Citizen’s Bank, Advantage Education Loans, Brazos, EdvestinU, ELFI, MEFA, PenFed and RISLA. The biggest strength of the Credible is that borrowers can check the best rates offered by many lenders. The biggest weakness with Credible is that it is missing many of the best lenders. Notable lenders not on the Credible platform include: SoFi, CommonBond, LendKey, and Laurel Road. In our most recent student loan refinance rankings, the top lenders on Credible are currently in 2nd, 7th, and 8th place.
Reviewing the Credible Process
One of my big concerns with Credible was that by filling out one application, I would have many undesirable lenders calling and emailing me. If you have ever used a similar tool to find a car loan or a mortgage, you have likely had a similar experience. What makes Credible different than other loan platforms is that the actual lenders only get your information if you want move forward with a loan with a particular lender. That means you can check your rate with all of the Credible lenders, find the company offering the best rate, and then fill out the application for the lender directly on Credible. This eliminates the risk of having companies you don’t want to deal with getting your information and contacting you.
Once I learned that the rate quotes were coming from Credible rather than directly from the lenders, my concern shifted to the possibility that Credible might say you qualify for rate one rate, but once the lender gets your information, they offer a higher rate or reject your application. I reached out to Credible to find out if this was a possibility. According to Credible, this happens very infrequently. If it does happen it is caused by inaccurate information entered on an application, typically the yearly income of the borrower. When this does happen it can result in a higher rate offered by the lender, or the application being denied.
Perhaps the best part of the Credible process is the ease of application. Completing the form and picking a lender is quick and simple. Credible does not charge any service fees, and none of the lenders charge loan origination or prepayment penalties.
Additionally, Credible is currently offering a $200 Bonus to borrowers who refinance using their platform. This bonus applies to all lenders on the Credible platform, and is paid out directly from Credible, not the actual lender.
Shopping around to find the best interest rate is essential when looking to refinance or consolidate your student loan, because the actual rates offered can vary greatly from one lender to the next. (Note: as long as you shop around within a 30 day window, it does not hurt your credit score)
Credible is a very useful tool because it borrowers to shop many lenders at the same time. However, it is critical that borrowers do not limit their rate checking to Credible alone. Credible is missing many top lenders and currently has only 4 of the top 13 national lenders that we have reviewed. Perspective borrowers should understand that using Credible is part of shopping around, but not the entire process. Even with its limitations, Credible does make the work of shopping around much easier. Click here to check your rate with Credible and claim your $200 refinance bonus, if you refinance using their platform.