When it comes to choosing a private student loan, finding the best rate and terms can be overwhelming. Business Insider’s personal finance team has evaluated Credible’s student loan marketplace against other top private student loans in 2024, and determined it to be a leader in both user experience and competitive rates. Here’s an in-depth look at what Credible has to offer and how it compares to its competitors.
What Is Credible?
Credible is not a direct lender, but rather a loan marketplace designed to simplify the borrowing process. For those who want to avoid the hassle of individually applying to multiple lenders, Credible provides a platform where you can compare various loan options in one place. It’s an ideal solution for borrowers who want to ensure they’re getting the best possible rate without the need to shop around manually. By filling in a few basic details, borrowers can access a comprehensive list of personalized loan offers.
How Does Credible Work?
Credible connects borrowers to a wide network of private lenders. The platform works by asking users to enter their personal information—such as credit score, income, and the amount of money they need—and then matches them with suitable loan offers from various lenders. While eligibility criteria differ depending on the lender, there are some common qualifications most lenders require, including:
- A qualifying credit score, or a cosigner with a qualifying score
- A sufficient income level or debt-to-income ratio (or cosigner)
- Enrollment in an eligible educational program
- US citizenship or legal residency with a Social Security number
- Being at least 18 years old with a high school diploma (or equivalent) or having a cosigner
- Using the loan for educational purposes only
Credible also emphasizes that borrowers should explore federal loan options before opting for private loans. Federal student loans often offer better terms, including lower interest rates, income-based repayment options, and deferment protections that private loans might lack.
One important detail to note is that roughly 85% of Credible borrowers require a cosigner to meet loan qualifications.
Credible‘s Key Features
Loan Comparison Tool
Credible’s main strength is its loan comparison tool, which simplifies the task of evaluating multiple lenders. The marketplace works with several trusted lenders, presenting competitive rates for borrowers to choose from. Credible earns commissions from these lenders when users secure loans through their platform, but this doesn’t add any additional cost to the borrower.
The loan comparison tool allows you to filter through loans based on interest rates, loan terms, and lender-specific features. For those new to student loans or refinancing, this feature can save a significant amount of time and help identify the best loan quickly.
User-Friendly Interface
Credible has designed its platform with simplicity in mind. The interface is intuitive and easy to navigate, making it accessible even for those who may not be familiar with loan terminology. The platform is free to use and does not impact your credit score, as the initial inquiries are “soft pulls” on your credit report. Additionally, borrowers won’t face origination fees or prepayment penalties on the loans they secure through Credible, meaning you can repay your loan early without incurring extra charges.
Transparency and Trustworthiness
Credible prides itself on being a transparent and trustworthy marketplace. It holds an A+ rating from the Better Business Bureau (BBB), which is a strong indicator of its focus on customer satisfaction and ethical business practices. The platform has not been involved in any significant controversies, providing borrowers with added peace of mind when using their service.
Loan Types Available on Credible
Credible covers a wide range of student loans and refinancing options. Whether you’re a parent financing your child’s education, a graduate student, or a professional pursuing an MBA, Credible has options tailored to your specific situation. Some of the loan types you can compare include:
- Undergraduate loans
- Graduate loans
- Parent loans
- Medical school loans
- MBA loans
- Law school loans
- Student loan refinancing
Credible’s diverse offerings ensure that nearly every borrower, regardless of educational path, can find a suitable loan.
Pros and Cons of Using Credible
Advantages:
- No origination fees: While some lenders charge origination fees, which reduce the overall amount of your loan, none of the lenders on Credible’s platform impose this additional cost.
- Wide variety of loan types: From undergraduate to law school loans, Credible offers options for a variety of educational needs. Additionally, those with existing student loans can refinance their loans through the marketplace to potentially secure better terms.
- $200 rate match guarantee: If you find a better rate from a lender outside of Credible after receiving prequalified offers, Credible will give you a $200 gift card, provided you meet the conditions.
- Flexible repayment terms: Borrowers can choose from loan terms ranging from five to 20 years, depending on the lender they select. This flexibility allows you to tailor your loan to your financial situation.
Disadvantages:
- Varying loan details: Since Credible is a marketplace, loan specifics such as interest rates and terms can differ significantly depending on the lender you’re matched with. Borrowers must dive deeper into the fine print of each offer to understand the full cost and conditions of their loan.
- Reliance on partner lenders: Credible’s offerings are limited to the lenders on its platform, so if a lender not partnered with Credible offers better terms, you won’t see those options in your comparison.
User Experience and Reviews
Credible is generally well-received by its users, boasting an impressive 4.8-star rating on TrustPilot. The majority of reviews highlight the ease of comparing loan options and the quick, streamlined application process. Many borrowers mentioned that Credible helped them secure a loan after being turned down by other companies, thanks to the wide network of lenders available on the platform.
Some users have expressed appreciation for the straightforward nature of the platform, noting how it simplifies a process that would otherwise require a significant amount of time and effort. The ability to view multiple loan offers side by side has made it easier for many to make informed decisions.
Competitor Comparison: How Credible Stacks Up
Credible vs. Splash Financial
Both Credible and Splash Financial offer student loan refinancing options with term lengths ranging from five to 20 years. While both platforms make it easy to compare rates from multiple lenders, Credible distinguishes itself with its $200 gift card rate match guarantee if you find a lower rate from an external lender. Splash Financial, on the other hand, specializes more heavily in student loan refinancing and may offer a better deal for borrowers focused on that specific service.
Credible vs. Earnest
Like Credible, Earnest offers private student loans and refinancing options with no origination fees or prepayment penalties. However, Earnest provides a unique feature that Credible does not—borrowers can skip one payment per year, provided they’ve made six consecutive on-time payments. While this flexibility can be appealing, it’s important to remember that interest will continue to accrue during the skipped payment period, and the loan term will be extended.
How to Apply for a Loan on Credible
The application process on Credible is simple and straightforward:
- Input your details: Begin by entering basic personal information such as your name, email address, Social Security number, and education level. If you have a cosigner, they will need to provide similar details.
- Compare loan offers: After inputting your information, Credible will generate a list of loan offers that match your profile. You can compare rates, terms, and other conditions before selecting the best option.
- Sign the loan agreement: Once you choose a loan, you’ll finalize the process by signing the loan agreement. Your new loan will then be disbursed according to the terms of the lender.
Frequently Asked Questions About Credible
- What types of loans can I compare on Credible? You can compare various types of private student loans, including undergraduate, graduate, parent, medical school, MBA, and refinancing loans.
- Is Credible free to use? Yes, the platform is free for borrowers. Credible earns commissions from the lenders listed on its marketplace.
- How accurate are the loan comparisons? The offers presented on Credible are based on the information you provide and the lenders’ criteria, making them reliable, though they may vary slightly once your application is fully processed.
- Does using Credible affect my credit score? No, the initial comparison only involves a soft credit pull, which won’t impact your credit score.
- How secure is my information on Credible? Credible uses industry-standard encryption and security measures to protect user data, ensuring that your information is kept safe.
Conclusion: Is Credible Right for You?
For borrowers looking to simplify their student loan search, Credible offers a convenient and user-friendly way to compare multiple lenders at once. With competitive rates, flexible repayment terms, and no hidden fees, Credible is a strong option for both new loans and refinancing. However, it’s important to thoroughly review each offer, as specific loan details will depend on the partner lender you choose. With its strong customer satisfaction and transparent practices, Credible stands out as a top contender in the student loan marketplace for 2024.