Credible Review 2019 – Should You Use Them?

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Can we be honest?
 
You’re thankful for your education. But you also dread the fact that your “new normal” involves thousands of dollars of debt.

You feel stuck. But you have options. 

So today I want to give you my honest Credible review.
 
I first found out about student loan refinancing after college, and I had no idea what it meant. Then I learned it’s a way to lower your interest rate and monthly payment.
 
I thought it sounded like a scam. But I had over $76,000 worth of debt.
 
So I threw minimum monthly payments at it and tried my best to stay afloat.
 
Then I stumbled on Erik’s book, How to Manage Your Money When You Don’t Have Any, and it inspired me to take action.
 
I started researching the best ways to pay off debt, and I stumbled upon Credible. So let’s dive in. 

What does Credible do?

Credible is a personal finance company that matches you with a better loan with a lower interest rate. A lower interest rate will save you hundreds or more in interest charges. And according to their research, the average Credible user saves $18,886 in interest over the life of their loan.

Credible offers two main services:

1. Student Loan Refinancing
2. Personal Loans
 
Here’s how it works:
 
Student Loan Refinancing

When you refinance your student loans, you combine one, (or all) of your existing loans into one new loan. Your new loan comes with a lower interest rate and lower monthly payments.

For example:

When I refinanced with a Credible loan, they lowered my interest rate from 6.03% to 4.96%.
 
This saved me $3,816 in interest just by doing this step. I recommend choosing a fixed APR over a variable APR. Fixed APRs are better because your interest rate stays fixed so you lock in those savings. 

Personal Loans

Student loan refinancing only works for student loans. Personal loans, however, work for other debt like credit cards or car loans. Because when you get a personal loan, they loan you the money directly.

Think about it:

The average credit card interest rate is over 19%. Credible’s personal loans start around 5%. Much better.

Does Credible charge any fees?

Nope. Not at all. It was important to me that I addressed this question in this Credible review.

So here’s the deal:

Credible doesn’t charge application fees or anything else. It’s free to use their service. 
 
Will checking my rates and terms on Credible affect my credit score?

Nope, checking your rates will not affect your credit score.
 
But, if you continue your application and choose a service, they’ll do a hard credit pull which will affect your score.
 
How much will the credit pull affect my score?

In general, inquiries have a small impact on your credit score. For most people, one credit inquiry will take less than 5 points off their credit score.
 
Of course, this will vary from person to person based on credit history.

For example, inquiries can have a greater impact if you have fewer accounts or short credit history.

Is it possible to refinance both federal and private student loans?

Yes!

Should I choose a fixed interest rate or variable interest rate loan?

I always recommend choosing a fixed interest rate. Variable interest rates can rise and fall with the market, which makes them risky.

One minute you could have a super low-interest rate (which is good) and the next you could have a super high-interest rate (bad).

My recommendation? Don’t bet your odds. Just go with fixed instead.
 
What are the requirements to qualify?

Here are the requirements directly from their website:

  • A US citizen or permanent resident.
  • Hold a 4-year undergraduate or graduate degree.
  • Good employment history. Currently employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days.
  • In good standing on current student loans.
  • Strong monthly cash flow.
  • A responsible financial history.

 
Notice how it says strong monthly cash flow above? That’s extremely vague, and it’s ultimately up to Credible to determine what ‘strong’ means in your situation.
 
With that said, the pre-approval process is quick, and you’ll know if you qualify within 2 minutes.

Pros and Cons

This wouldn’t be a Credible review if we didn’t talk about the pros and cons.

So let’s jump in.  

Pros

woman thinking
 
1. You don’t need collateral
 
Credible’s personal loans don’t require you to put up property or other assets. This makes Credible less risky.
 
2. Competitive Interest Rates
 
Credible offers some of the lowest rates around. This can save you hundreds – if not thousands – in interest alone.
 
3. You can refinance or borrow a little or a lot
 
With other financial institutions, you have to refinance or borrow at least $30,000. With Credible, the minimum is much lower.
 
4. Quick and easy application process
 
You’ll know if you’re pre-qualified within 2 minutes.

Cons

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1. Longer funding process
 
While their application is quick and easy, the underwriting takes more time.
 
It can take up to 7-15 days to refinance your loan or give you the money from your personal loan.
 

How do I get started with Credible?

1. Fill out the online application.

2. Select your interest rate and repayment term.

3. Choose between a variable or fixed interest rate. (I recommend fixed)

4. Confirm your info by uploading necessary documents. (ID, old loan documents)

5. Electronically sign

Ending Thoughts

Refinancing my student loans with Credible kicked off my debt payoff journey. There were many times that I wished I had done it sooner.

But, better late than never.
 
If Credible works for you, then share your story with your friends and family. You never know who you might help.
 
And let me know in the comments:

Do you have any questions?

Thanks for reading.
 

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