Variable APR starting at 4.98% ⁵
Pros
- Allows you to compare offers of several lenders together at same time
- You can check if you will qualify for the loan and the rate without undergoing a strict credit check.
Cons
- Borrowers must research every lender individually
- No discount for Credible customers
- Repayment policies vary based on the lender
- Co-signer is a must for International students
Credible is a personal finance marketplace where borrowers can search for refinancing offers for student loans. The company’s $200 guarantee for best rates is a testament to its confidence that customers will find the lowest rate on its platform and not anywhere else. If you do find a lower rate, Credible will send you $200.
With the recent increase in interest rates enforced by the Federal Reserve (with 4-6 more expected before 2022 ends), this might be the best time to look at refinancing options. To start the process, you can submit an application form and get the chance to lock in a comparably lower rate before the upcoming increase.
We tested Credible’s marketplace to find out the best rates we can get for refinancing student loans and here’s what we discovered.
Refinancing for Student Loans
Credible is not a direct loan provider but is instead a marketplace for loan refinancing. When you submit an application form, Credible will look for lenders with requirements that match your information. You can get up to 12 different offers and compare them to find out which ones have the best terms and rates.
Borrowers are required to have a minimum of $5,000 in student loan debt (this may vary per lender) to use Credible’s services. Although there is a minimum loan amount, Credible does not set a maximum value. You can refinance the total student loan debt as long as you can prove that it is the actual amount you owe or less.
Credible’s best rate guarantee promises customers that they will find the lowest rates on the website. If they find a lender with a lower offer, Credible will give them $200 and match that offer.
Different types of loans can be refinanced through Credible such as pirate student loans, federal student loans, a combination of the two, and parent loans. Borrowers with several student loans can consolidate their debts so they only need to make one monthly payment. One important reminder is that refinancing federal loans may make you ineligible for the protections and advantages they offer.
Loan Terms and Rates
Credible is confident that it can provide customers with some of the best rates and terms available. Borrowers can get offers from lenders for loans ranging from 5 to 20 years with fixed or variable rates from 4.99% to 16.20%.
Eligibility Requirements and Application Procedure
You need to fill out an application form on the website to get the actual terms and rates that you are qualified for in refinancing. This process only takes a couple of minutes and will not harm your credit score. You would need to provide these details in your application:
• Type of loan (your own or Parent PLUS)
• Purpose of refinancing
• Employment status
• Annual income
• Employer details
• School/University
• Field of study
• Highest degree achieved
• Own or rent a home
• Monthly mortgage or rent
• Last name
• Address
• Birthdate
• Citizenship status
• Email address
• Phone number
You will also be asked to agree to a soft credit pull before you get the actual rates. There is no need to worry because this will not impact your credit score. If your application gets approved and you want to work with one of the lenders matched with you, the next step will move you off of Credible’s platform and to the lender’s website or platform.
The approval time for your application will vary based on the lender that you choose to work with. According to Credible, most lenders can review and approve refinancing applications within 5 days.
Customer Support
Credible’s customer support team is available through phone, email, and live chat. The live chat function is available on the website and you can submit an inquiry any time although responses might still fall within business hours.
Overall Rating
If you are going to ask us, we believe now is the best time to look into refinancing loans with the Federal Reserve planning to increase interest rates before the year closes. You can easily compare rates and terms from different lenders to find the best refinancing option that matches your needs.
The $200 Best-Rate guarantee shows Credible’s conviction in offering the best rates to borrowers. If you find a better rate somewhere else, they will give you $200. Interest rates from lenders can go as low as 4.44% which is why Credible is becoming a valuable service for borrowers who want to refinance their student loans.
