Ash The Great | Oct 31, 2017 | 0
Credible Student Loan Marketplace Review – A Comparison Site For Student Loan Companies
Credible is a company that was established in 2012 and was built for students. In simple terms, it is a little like a comparison website. You enter your details, and it presents you with a number of student loan options. A Credible student loan doesn’t mean you get a loan directly from Credible. The company doesn’t lend you money; it puts you in touch with lenders that allow you to lower your student loan interest rates by refinancing your loans.
Credible is a student loan comparison company and a student loan refinancing company. It offers a multi-lender marketplace, which may also be defined as a student loan refinancing marketplace. It is a third-party student loan refinancing company, which makes them a sort of intermediary between you and a number of different lenders, which is why many people call credible a comparison service or comparison website.
Disclaimer – This Is A Review, It Is Not Financial Advice
This is a review based on our dealings with the Credible student loan website. It is not a recommendation that you use it, nor are we trying to dissuade you from using it. We are not saying it is legitimate or illegitimate, and we are not giving advice as to if you should refinance your student loans, and/or if you should refinance through this company. Again, this is a review based on our dealings with the Credible student loan website and based on the comments and stories our readers have given us.
The information given is to the best of our knowledge and research, and should be treated as opinion and not financial advice or suggestions. For example, in the section below we say that you get loan options from vetted lenders because the Credible student loan website says it vets its lenders. We cannot check to see if all their lenders have been vetted.
Why such a long and timid disclaimer?
Firstly, because we don’t want any trouble from people claiming they acted on our advice. Secondly, refinancing your student’s loans is a very big deal, and it is paramount that you do not trust any single article or source when making your decision. Refinancing requires massive amounts of work and effort from you because if you screw it up then you may be stuck with your loans for many more years than you would have otherwise had.
What Is Credible All About?
The Credible student loan website allows students to enter their details and see a number of applicable lenders. The search is a soft search, which means it doesn’t show up on your credit report. Make your search, and the lenders will appear with a few details about the possible offer they may have for you.
The search is only based on the limited amount of information you give the Credible comparison tool. Just because a lender appears, it doesn’t mean the lender will definitely lend to you, it just means that the Credible comparison website thinks the lender might lend to you.
The Credible student loan website claims that all of the lenders are vetted before they are allowed to apply for a place on their Credible comparison tool. Each search only takes around 90 seconds, and Credible claims that it gives every student 100% control of the searching process.
Very Similar To A Comparison Website
The Credible comparison tool and website is similar to a comparison website because they offer you options that include numerous lenders. You only give limited information to the Credible website, and that information is not shared with the lenders when you make your search, it is only shared with the lender(s) if you select one of them and go through with the application.
There are some people that claim that Credible share the information with spammers, but I couldn’t find proof of that. I only found partial evidence that it is the lenders that sell contact information to spammers; Credible are not selling to spammers so far as I know.
The Credible student loan website claims (we cannot check the validity) that students save an average of $18,668 over the life of their loan if they use the Credible services. They claim that students are able to reduce their interest rate, their loan term and the total time it takes to repay the loan.
To put things in perspective, we cannot check the validity of the claim…and neither can you. Furthermore, the savings figure is an average, which means statistical clustering and so forth may be an issue. In addition, there is no way of knowing if $18,000 is a good saving. After all, could leave college and have five banks offer you $20,000 of savings if you re-finance with them.
Which Lending Companies Will You Probably Encounter?
When you use the comparison tool on the Credible student loan website, you will probably see quotes from Citizens Bank, College Ave, CommonBond, iHelp, and RISLA. You may play around with the tool a little to see if you can create different results. Enter different snippets of information to see if different deals come up.
There are no minimum requirements if you wish to try the Credible student loan website tools and services. However, a typical borrower will have a credit rating of over 700+ according to Nerd Wallet (not according to Credible), and the typical user has an annual income of over $70,000 according to Nerd Wallet.
After you have picked the lender and the deal you want, and after you have finished entering your details and applying, one of two things will happen. Either, the lender will generate a message that says one of their sales team will contact you. Or, you will be sent to the lender’s website to fill out the application form again and apply in that manner. Obviously, it is more convenient if the lenders say they will contact you, but that is not always the way it goes.
The Pros And Cons Of Credible Student Loan Comparison Services
Based on our research, our dealings with the Credible student loan website, and the stories our readers have told us, here are the pros and cons of Credible. Remember that Credible is not the only website that offers a search engine for student loan refinancing, some of its competitors are very similar to the point where some students have mistook another website for Credible.
The closer you are to the end of your loan, the better your rate seems to be. Some people claim they have had five years left on their loan and they were able to trim two years off their total by agreeing to raise the amount they pay per month just a little.
Con – Your Loan Will Be Re-Sold
The company you refinance your loan with will sell off your loan very quickly. In less than a week, your loan will be sold off to another company. It would be nicer if they either kept the debt a little longer and didn’t treat it like a hot coal that they cannot touch for too long.
Pro – A Co-Signer May Help You Get A Better Deal
Like many refinancing companies, if you have a co-signer and/or a guarantor of some sort, then you will get a better rate. It is true of most refinancing companies, and it is taken into account when you use Credible. If you choose a company and apply, they may lower your original quote if you have a co-signer.
Con – Some Of The Lenders Are Selling Your Contact Details
Your information will be passed on to lenders, and most of them are decent companies, but some of them will sell your information and you will receive epic amounts of spam emails and cold-calling phone calls. Credible are shopping their customers out to lenders, which is fair enough if they wish to, but Credible has no right to play fast and loose with your information in the way they do.
Pro – Using Credible Is Always Quick
The service is quick, which makes it convenient. Many people have said to us, and mentioned online, that the Credible student loan website company has a very swift service that gets things underway quickly.
Con – You May Have To Start And Start Again
Once you have found the quote you want and the company that suits you the best, you will be sent to the lender’s website where you will have to start the application process again. Your information will not be stored from the Credible student loan website, so you will have to start from scratch on the lender’s website. That is if the lender doesn’t agree to contact you first, which sometimes happens.
Pro – Non-Graduates May Still Used Credible
You are able to search for refinance options even if you did not graduate. What is more surprising is that you may even find refinancing options via the comparison tool. It is surprising because other websites that are similar to Credible and they do not allow you to search if you didn’t graduate.
Con – Students Are Not Allowed To Use Credible
You cannot use Credible’s service if you are currently enrolled in education on a full-time basis. It may even be tricky if you are part-time. Apparently, even part-time students will have trouble repaying their refinanced loans.
Pro – Sign Up For Auto-Pay Direct Debits
If your lender offers it, you should sign up for direct debits, which they call auto pay. Check to see if the lender offers a discount for auto-pay and sign up for it if they do. Even a tiny saving is better than nothing.
Conclusion – Snatch A Better Deal From A So-So Company
It would be nice to sing the praises of this company, but they are only selling your custom on to lenders. The fact that their service makes searching for a loan or refinancing a little easier is a plus, but Credible could try a little harder to make the whole process a little more user friendly and convenient.
People should be able to enter their details into Credible and have that same information appear on the websites and application forms of the lenders they choose. Credible is a good convenience tool, but it will not knock your socks off.