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Are you waist deep in student loan debt?
Are your loans preventing you from getting ahead in life because the debt burden is so big?
The reality is there is over $1.5 trillion in student loan debt out there right now. So you aren’t alone.
Is your student debt keeping you up at night, leaving you wondering how you are going to make your next payment?
Sometimes, you feel like there is no viable way out of the situation.
This holds especially true if your monthly payments are too high.
Fortunately, there is a solution and it is easy to do.
You need to consider refinancing your student loans.
By refinancing, you save you money every single month by lowering the cost of your student loans.
Unfortunately, there are many refinancing choices on the market for you to sift through.
It can be hard to find the best deal, given the amount of time and sheer volume of options.
- You need to find a company that is legit.
- You need to find a company that gives you an accurate quote.
- You need to find a company that makes refinancing a walk in the park.
The good news is I’ve done all the work and have found the best solution to refinance your student loans for you.
Credible is the answer to resolving your financial burden.
- Ease of Use
- Customer Service
If you are struggling to pay your student loans each month, you need to consider refinancing. Not only will you lower your monthly payment, but you will also save thousands in interest charges. Credible makes refinancing easy. Just enter your information and get competitive quotes in seconds. Best of all, it's 100% free! Click here to see how much money you will save with Credible.
Table of Contents
Credible Review | The Smartest Way To Refinance Your Student Loans
What is Credible?
Credible is an online marketplace where lenders compete for your business.
You can refinance both private and federal student loans at no cost to you.
To use Credible, you take 2 minutes to enter the information about your student loans.
From there Credible will crunch the data and give you the interest rates from its partners.
It is then up to you to move forward with the refinance process or skip it.
There is zero cost to you to see how much money you will save by refinancing.
Here is a quick video explaining Credible.
So who is Credible?
The company was founded in 2012 as way for borrowers to take control of their finances.
It has since expanded into other areas to help people take control of their debt.
How Credible Works
Now that you know what Credible is, let’s look at the process of refinancing your student loans.
It’s a simple 3 step process that takes a couple minutes to complete.
#1. Find My Rate
You begin the process by entering your email address and details about your finances.
For example, some of the questions include:
- What kind of refinancing opportunity are you looking for?
- What type of students loans you’re currently in debt with?
- Degree type that you have obtained?
- Graduation status?
- Your annual income?
- Extra income you would have access to?
- Household members income (this applies to your parents or marital partner)?
- Mortgage or rent amount?
- Amount to you want to refinance?
- Your current residential address?
The process of completing this information takes less than 2 minutes.
#2. Compare Your Options
Credible takes the information you entered and crunches it to find offers from up to 10 of its partners.
If you find a rate that works for you, you can click on it and continue the process.
If you don’t find a rate that you like, you can leave without taking any further action.
#3. Apply For Your Refinance
After you click on an offer that interests you, you apply with the lender and wait for approval.
Once approved, your new lender will pay off your old student loan.
You will have a new student loan at a lower interest rate that you will begin to pay off.
How do you improve the chances of getting approved for a refinance?
The vast majority of Credible’s lending partners establish minimum loan requirements for their offers.
In most cases, lenders are looking for at least $5,000 to refinance.
Many of the lenders look for student loan debt of $10,000 or higher for them to consider making a deal with you.
In other words, the larger your student loan debt is, the more viable this website can be for helping you.
Your credit score is also crucial to the process.
Most of the lenders look for a credit score of 650 or greater for approval.
Understand credit score is not the only factor reviewed.
Your debt-to-income ratio and your employment history are considered as well.
In a few cases, these factors weigh heavily in determining their offer.
If you do not meet their outlined criteria, hope is not lost.
You could use a co-signer to help you get more favorable terms.
Just how much money could you save by refinancing your student debt?
Scroll down to the frequently asked questions section to find out.
Other Credible Services
Besides to refinancing student loans, Credible also refinances other types of debt as well.
Here is a brief rundown of these services.
Credible Personal Loans
Credible offers personal loans to consumers as a low cost alternative to borrow money.
If you have high interest credit card debt, you could get a personal loan through Credible.
You could then use the money to pay off your high interest debt and save money.
Then you just pay off the personal loan.
Another great reason to consider a personal loan is if you take out tax advance loans.
The interest rate on these types of loans is extremely high and the term is extremely short.
A personal loan has the same ending benefit but at a much lower interest rate and longer term.
Credible Mortgage Refinancing
As a homeowner, one of the easiest ways to save money is to refinance your mortgage to a lower rate.
The problem is getting and comparing quotes from various lenders.
With Credible, you can get a handful of rates within minutes.
Credible Private Student Loans
If you are still in college, you can use Credible to find low rate private student loans.
The process is the same as with refinancing.
The only difference is you are borrowing the money to pay for school, not pay off other student loans.
Advantages And Drawbacks
Here is a quick summary of the advantages and drawbacks of using Credible.
Fast. You can have up to 10 quotes in less than 5 minutes.
Competitive. By offering up to 10 quotes from various lenders, you know what is a competitive interest rate.
Saves money. By refinancing your student loans, you can save thousands of dollars in interest.
Pay off debt sooner. Not only will refinancing save you money, but you can pay off your loans early too.
Soft credit check. Getting a quote from Credible won’t impact your credit score.
Third party lenders. To complete a refinance, you need to fill out a detailed application with the lender. This is after you get a quote from Credible.
Quote not always accurate. Because Credible does a soft credit check, in some cases the quoted interest rate is not accurate. This the exception and not the norm.
Limited lenders. Not all lenders partner with Credible. So while you will see competitive interest rates, you could get a lower rate from another lender.
Frequently Asked Questions
Here are the questions I get asked the most about Credible.
Is Credible legit?
Credible has been in business since 2012. It is listed on the Australian stock exchange, with headquarters in San Francisco, CA.
The company currently has an A+ rating from Better Business Bureau.
How much does Credible cost?
To use the Credible marketplace, users don’t pay anything. It is 100% free to get a student loan refinance quote.
How does Credible make money?
Credible makes money from its partners.
When Credible sends one of its partners a lead for the services it provides, it earns a referral fee.
For example, if Credible sends ABC Company a refinance lead, ABC will pay Credible $500.
Does Credible affect my credit score?
No, using Credible will not affect your credit score.
Credible uses a soft credit check when looking at your credit score.
What is a soft credit check?
There are two types of credit checks, a soft credit check and a hard credit check.
A soft credit check is when a company looks at your credit for promotional purposes.
This is also known as a soft pull.
For example, you get credit card offers in the mail. To determine who the credit card company sends out the offers to, they do a soft pull on your credit.
This soft check does not impact your credit score.
A hard credit check is when a company takes a deeper look at your credit and your credit score to approve you for a loan.
This is also known as a hard pull.
This happens when you apply for a car loan, a mortgage, or student loan refinance.
There is a myth out there about the impact of a hard credit check on your credit score.
While a lot of hard credit checks can have a negative impact on your credit score, the impact is usually minor.
Is Credible safe?
Credible takes your security and personal information serious.
For starters, they use 256-bit encryption and as well as a SSL Certificate to ensure privacy.
From there, they put in place a timeout feature to protect your information.
This timeout automatically logs you out of the website after a period of time.
What lenders work with Credible?
Credible partners with many of the top lenders in the nation.
Here is a small sample of the some of their partners:
- Citizen’s Bank
- College Ave
- MEFA (Massachusetts Education Financing Authority)
- RISLA (Rhode Island Student Loan Authority)
Does Credible work with bad credit?
Yes, you can have poor credit and still be able to refinance using Credible.
Understand that your interest rate will be higher than if you had a higher credit score.
Should I refinance federal loans?
In most cases, you don’t want to refinance these loans.
This is because these loans have built in benefits.
For example, federal loans offer better terms and rates. They also offer many repayment methods.
You can read about these benefits here.
When you refinance your federal student loan, you lose these benefits.
How much money will I save refinancing my student loans?
The answer to this depends on the amount you borrow and your interest rate.
But to help you get an idea, below are 2 examples.
Let’s say you have $35,000 in student loans at 8% interest for 20 years.
During this 20 year period, your monthly payment will be close to $300.
And you will pay over $35,000 in interest!
If you refinance into a new 20 year loan at 3% interest, your monthly payment drops to under $200.
And you will pay less than $12,000 in interest!
Not only will you save over $20,000 in interest, but you will have an extra $100 every month.
Here is one more example.
Let’s say you have $15,000 in student loans at 6% interest for 20 years.
Your monthly payment is just over $100 and you will pay close to $11,000 in interest.
If you refinance at 3% interest, your monthly payment drops to $80 and you pay less than $5,000 in interest.
The bottom line is, if you can get a lower interest rate from refinancing your student loans, you should do it.
Not only will you save thousands in interest, but you will free up money every single month.
Alternatives To Credible
There are many alternatives to Credible out there.
To keep things simple, I am highlighting the two largest competitors of Credible.
Credible vs. SoFi
The biggest difference between Credible and SoFi is that Sofi is an actual lender.
When you refinance with SoFi, you take out a loan from SoFi and make payments to them.
Credible is a marketplace where you compare many lenders, terms and interest rates.
The benefit of using Credible is you see competitive interest rates.
With SoFi, you only see the rate they are offering, without knowing if there is a lower rate out there.
The good news is SoFi is a partner with Credible. So by getting a free quote on Credible, you will see what interest rate SoFi offers you.
Credible vs. LendEDU
LendEDU is also an online marketplace for refinancing student loans.
The process is similar to Credible as well.
The only major difference is LendEDU offers a few different lenders than Credible does.
Since both are free to use with no obligation, it would be smart to get a free quote from both.
This will give you up to 20 lenders and find the absolute lowest interest rate.
If your student loan debt is a problem for you, the easiest solution is to refinance them.
And Credible makes this process a breeze.
It saves you hours from having to call up separate banks and lenders.
And seeing there is no cost to you for using the service, there is nothing for you to lose.
Your credit score does not suffer one bit from using the marketplace Credible provides.
All you have to give is less than 5 minutes of your time.
In exchange, offers are made available to you to help ease the burden caused by your student debts.
I urge you to give Credible a try today and see how much money you can save by refinancing your student loans.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.