Borrowing money may not always be ideal, but there really are times when taking out a loan is the best way to reach your goals. You may benefit from borrowing money to consolidate debt at a lower interest rate, for example. Borrowing money for college can also benefit you, as an investment in your career. The more training you’ve received, the more money you can earn later on.
But, where should you borrow money? This is a tough question that many consumers struggle with, especially when they don’t have ties to a major bank. There are enough lenders out there to make your head spin at first glance, and that doesn’t even take into account each company’s unique details and loan offerings.
With that in mind, many people prefer to shop around using a loan marketplace that lets them compare multiple offers with a single loan application. Credible is one of the most popular loan marketplaces online since it lets consumers see and compare multiple options without taking the time to shop around with several banks or lenders.
If you need to borrow money with minimal hassle and stress but know you should compare more than one loan option, keep reading to learn more.
Credible: Key Takeaways
- Credible is a loan marketplace that lets you compare loan rates and offers from multiple lenders in one place.
- Credible’s partners offer personal loans with rates as low as 5.99% APR.
- There are no hidden fees for using Credible, and you may be able to borrow up to $100,000 with a personal loan.
- Student loan refinancing is available with rates as low as 3.49%. You can also apply for new student loans you can use to pay for school.
Credible Review: Loan Options for Nearly Everyone
While Credible offers student loans, student loan refinancing, and mortgage refinancing, the bulk of their business is in personal loans. Still, the most important detail to note about Credible is the fact this company doesn’t offer the loans themselves; instead, the company functions as a loan marketplace that allows you to fill out a single application and compare competing offers from more than one lender.
In almost every case, shopping around and comparing rates and loan terms will leave you better off. Using Credible to shop for a personal loan or student loans can not only help you save money, but it can help save you time and the stress involved in filling out multiple loan applications.
Fortunately, Credible works with many, er, credible lenders when it comes to both personal loans student loan refinancing. Companies they frequently partner with include Best Egg, Avant, LightStream, Prosper, and LendingClub, among many others.
When it comes to Credible personal loans, they let consumers get pre-qualified without a hard inquiry on their credit report. That’s a big plus for borrowers since it can help them gauge whether they can qualify without hurting their credit score.
While Credible personal loans may be offered in amounts as high as $100,000, the marketplace notes that most of their personal loans fall between $30,000 and $50,000. It’s also important to note that various lenders who use the platform have their own income and credit requirements. Generally speaking, however, you may get approved for a loan through Credible if your credit score is in the mid-600’s or higher. Also be aware that lenders will consider other factors such as your income, debt-to-income ratio, and employment before they approve you for a loan.
Why could you possibly need a loan? While you can take out a personal loan for any reason, Credible says their loans work best for situations such as:
- Debt consolidation
- Paying for a wedding
- Credit card refinancing
- Career development
- Starting a new business
- Home improvements and additions
- Automobile financing
- Moving expenses
Credible offers affordable personal loans with rates as low as 5.99% APR, but this platform is also valuable for people who want to refinance their student loans at a lower rate. Currently, some lenders on the platform offer student loan refinancing interest rates as low as 3.49% APR for those who qualify. Considering most Federal student loans come with rates between 6% and 7%, it’s easy to see how refinancing with a different lender could help students save money and pay down their student loans faster.
Overall, we like Credible because it allows borrowers to save money by shopping around. Since you can also get pre-qualified for a loan and complete the entire application online, using this website for your loan needs can also help you save time. Borrowing is never fun, but at least Credible makes the process as painless as possible.
Credible: What to Watch Out For
The main downside of Credible is the fact that this website is not a direct lender. As we mentioned already, Credible is a loan marketplace that lets you shop around with multiple lenders after completing a single loan application.
While using the platform for your loan or refinancing needs may not be problematic at all, just remember that you’ll have to conduct due diligence with each lender to ensure you’re getting a good deal. Not only do you need to read individual lender reviews to find out the quality of the loan you’re receiving, but you’ll need to compare all loan fees including any application fees or loan origination fees.
Credible advertises personal loan rates as low as 5.99%, but these rates are only available to consumers with the best credit scores. Rates can be considerably higher for consumers with fair credit or poor credit, as well as those with low incomes or a high debt-to-income ratio. The only way to find which loans you can qualify for is by filling out the information to get pre-qualified on the Credible website, which takes around two minutes.
The bottom line: Credible can help you compare loan amounts, terms, monthly payments, and interest rates across multiple lenders, but you’ll still need to do some research on the lender you plan to choose. After all, the lender is the company who you will ultimately work with, send payments to, and deal with if any aspect of the loan process goes awry. Credible is a helpful intermediary, but they won’t be involved with your loan once you accept an offer from a participating lender.
Who Credible Personal Loans Are Best For:
- Consumers who want to fill out a single application and compare several loans in one place.
- Anyone who has the time and energy to research individual lenders before pulling the trigger.
- Busy professionals who want to apply for a loan online instead of visiting a traditional bank.
How We Rank Credible Personal Loans
At The Simple Dollar, we aim to provide a general overview of a lender’s products and services through a standard rating process. After a thorough research and discovery period, here’s how Credible stacks up:
|Credible at a Glance|
|Affordability (interest rates, fees, and terms)||🌕🌕🌕🌑🌑|
|Availability (credit requirements, geographic reach)||🌕🌕🌕🌕🌑|
|Ease of Use||🌕🌕🌕🌕🌕|
How to Apply for a Personal Loan with Credible
One huge advantage of using Credible is the fact that you can get “pre-qualified” without a hard inquiry on your credit report. However, you’ll also love the fact you can complete your entire loan application online and from the comfort of your own home.
Applying for a personal loan with Credible is easy and hassle-free. You can start by sharing the following information to get pre-qualified on the Credible website:
- Your name
- Social Security number
- Employment situation
- Credit score range
- Housing information, including your monthly rent or mortgage payment
Once you enter all the required information to get pre-qualified, Credible will present you with a list of loan options you can consider. If you decide you like one of the loan options available to you, you can take steps via the Credible website to complete the loan application and receive full approval. However, the information you’ll have to provide at that point in the process will vary depending on the lender you choose and their unique loan process.
No matter your credit score, you can apply for a personal loan or student loans using the Credible website. There are huge advantages for doing so, including the ability to shop around and compare rates and the potential to have your loan funded online without ever visiting a bank.
Still, it’s important to know why you need to borrow money before you pull the trigger. Make sure you’ve taken a close look at your finances to see if there is a way to get by without borrowing. If you do need a loan, look closely at your monthly budget to make sure you’ll have the funds to pay it off. If you borrow money you can’t pay back, you could inflict drastic damage to your credit score and over all credit health.
At the end of the day, borrowing money could help your finances or hurt your finances. The impact of your loan depends on you.