With the average college graduate carrying $37,172 in student loan debt as of 2016, there’s no question that student loan debt is a serious burden on many college-educated people.
For the 44+ million Americans owing money to student loan lenders, student loan payments have become a way of life.
And with an average student loan payment for people aged 20 to 30 being $351, it’s safe to say that those payments may be putting a huge dent in many millennials’ dreams of financial security.
While a fast loan payoff might be a dream of student loan carrying college graduates, their post-graduate income and other financial obligations might not make quick student loan payoff possible.
What is Credible?
Credible founder and CEO Stephen Dash founded Credible in 2012 “because of sheer disbelief at the burden student debt places on young Americans”.
Knowing that student loan debt was hindering many young people from achieving their dreams, Dash created a company that would function as a student loan marketplace. This is similar to how Expedia or Priceline are marketplaces for the best travel rates.
When people apply for student loans or student loan refinancing on Credible, the company gathers potential lender deals in one place. This way, borrowers can see where they’ll get the best rate and term on their student loans.
Why Would I Want to Refinance My Student Loans?
Student loan refinancing isn’t the best option for everyone, but depending on your individual student loan situation you might want to refinance your student loans in order to:
- Get a better interest rate
- Lower your monthly payments
- Combine all of your loans to make one easy monthly payment
- Shorten your loan term to get your student loans paid off faster
If you are in a situation where any of the above ideas sound appealing, a student loan refinance through Credible could be right for you.
Getting a lower interest rate can help student loan borrowers pay off their loans faster and potentially have lower payments as well. This can result in potentially big money savings.
Can I Apply for a New Student Loan?
Yes! Credible lets you apply for a new student loan provided you are in college at least half-time in a qualifying educational program.
How Easy is it to Apply on Credible?
Credible makes it really easy to apply to get the best possible deal on your student loan or student loan refinance.
First, you’ll enter a few easy-to-find pieces of information, such as:
- Your approximate student loan balance(s)
- Current loan interest rates
- Your current income
- Your current housing costs
Credible will also ask you for your name, your date of birth, and your address for verification purposes. But, Credible does a soft credit check which means applying with Credible won’t affect your credit at all.
The whole application process shouldn’t take any more than two or three minutes if you’ve got all of your information available.
What Happens After I Apply with Credible?
As soon as you apply, Credible is able to immediately deliver personalized offers thanks to their integrations with numerous lending partners.
Once you look over and choose the best offer based on the information you provided initially, you will be taken to a longer, lender specific application on Credible’s site. This seamless transition avoids you having to enter in your personal information all over again and gets you to the end result much quicker.
Note: The last 10% – 15% of your application process will be completed on the specific lender’s site.
What Lenders Does Credible Work With?
Credible works with a quality group of lenders and is seeking to add new lending partners to their team all of the time.
Some of the more popular or well-known lenders they work with include Citizens Bank, Discover, Earnest, and Connext.
Credible only works with reputable lenders that have a long-term history of lending.
What Should I Know Before I Consider Refinancing My Student Loans?
Refinancing student loans may not be for everyone. First, it’s important to remember that if you transfer your student loans from a federal lender to a private lender, you may be giving up certain benefits that only come with federal loans.
For instance, you might give up income-based repayment programs or potential loan forgiveness for those who hold public service jobs.
Similarly, you may have to give up deferment options if you privatize your student loans.
It’s important to remember too that if you stretch out your loan term in order to get a lower payment, you could potentially be paying more in interest in the long run depending on the interest rate you qualify for.
Also, if you refinance to a variable interest rate as opposed to a fixed interest rate, keep in mind that the variable rate can fluctuate at any given time. This may result in lower or higher payments and more or less interest paid over the life of the loan.
What Else Should I Know About Credible?
Credible’s services are only available to current U.S. citizens and permanent residents. Also, Credible is free to use; there’s no cost to use the service.
Another important fact is that Credible provides services to those who want personal loans as well as student loans.
You can apply for a personal loan of up to $50,000 with Credible, and the company helps clients find the best credit cards for their needs as well.
Another thing I like about Credible is it works with their lending partners to fund your approved loan quickly. This is often within 24 hours via direct deposit to your checking or savings account.
And of course, keeping your personal information secure is a top priority at Credible as well. The company uses SSL security with a minimum 256-bit encryption. This means there are around 339 trillion code combinations that could be protecting your information.
My Last Thoughts
Credible is working to revolutionize student loan lending. They are helping borrowers to know all of their loan options. This will ensure they find the best loan rates and terms for their student loan balances.
If you’re interested in finding out how you might be able to save money, lower your monthly payment or lower your loan term on your student loans, learn more about Credible today and learn more about how they might be able to make student loan management easier for you.