There are many private student loan lenders available. Credible is one which is like a hub that combines all other private lenders, it is a bit different from other private lenders. We can say credible is a student loan market place. In this article, you can know more about credible.
Table of Contents
- About Credible
- The Process at credible
- Different lenders on credible
- Caution to the borrowers
- Concluding thoughts
Credible is like a hub, it is a single place where you can find paths to different private lenders. Instead of approaching each private lender individually a borrower can reach up to credible. A borrower can fill out a Credible application and get prequalified rates from many student loan companies. This process makes an easy way for the borrowers to know their eligibility and interest rates at various student loan companies. However, there are some drawbacks and limitations that you should know about Credible.
The Process at Credible
The process for student loans at credible is similar to that of any other private student loan lender. At credible your information is kept secure, it is not given to any private lender. Once when you submit an application at Credible there will be a soft credit check. After a soft credit check, you will be given the details of your eligibility and interest rates on a student loan at different private student loan companies. You also get to know the benefits offered by various lenders.
As credible keep your information within their premises, the private lenders cannot reach out to you by any forms. Any of the lenders can contact you only when you choose to move forward on the loan with them. Credible is very helpful for the borrowers to choose among the lenders by comparing the interest rates and benefits offered by them.
Different lenders on Credible
This covers a good number of lenders but still, there are many other lenders who are not in association with credible. Borrowers are not restricted to credible for finding student loan lenders. They can explore more lenders and choose the best according to their requirements.
Caution to the borrowers
Credible has its advantages for the users, but there are few disadvantages also. As a potential borrower, one must understand those disadvantages.
Credible restricts its lenders’ list only to private student loan lenders even though there are federal student loans with more benefits than the private loans. A borrower is always suggested to go for federal student loans rather than a private loan. A private loan is an option only when you do not qualify for a federal student loan or if you have exhausted your federal student loans.
Credible has only a limited number of lenders who have tied up with it. There are many other private companies out there who can offer student loans. And some of those companies may provide better benefits when compared to the ones associated with Credible.
As the process at credible is so quick, you might miss out on some important information about the companies and their terms.
It is not always guaranteed that you will qualify the student loan at a private company through Credible. You may pass the prequalification stage and may end up losing the chance of getting a student loan in the later stage. This may happen when you had a better debt-to-income ratio in the beginning but in the later stage, it might have become worse. Credible doesn’t deal with any of such situations.
Credible is definitely useful and a helpful place for the borrowers who are confused to choose their lenders among the wast range of student loan lenders. The quick comparison among the lenders given by the Credible is a unique feature. But don’t restrict your options only to the lenders available at credible. And also understand the details and important terminologies used in the loan world to end up choosing the best student loan. It is always better to have more choices, and credible gives you a few among them. If you want to explore more, check out each and every option available for you.