Credible Student Loan Refinancing Review


Hey guys, Robert from The College Investor
here. I am excited to talk to you today about one
of my favorite tools when it comes to student loan debt, and that’s Credible. So Credible is a student loan marketplace
comparison tool and that sounds a little crazy, but basically what it does is it allows you
to compare student loan refinancing companies. And I think that is awesome because I think
if you have private student loans, you should always be looking to refinance to the lowest
rate. And that can be hard though because there
are dozens of different student loan lenders out there. The cool thing with Credible is it compares
some of the best ones out there and in about two minutes it gives you the best rates and
terms that you might qualify for without even doing a hard credit check. So you can see right here it says like instant
request, this will not affect your credit. Credible also, even though they’re known for
student loan refinancing, they do the same thing for private student loans so if you
need an in-school loan, they offer in-school private student loans, and they also offer
personal loans. Rarely should people get a personal loan but
you know there’s some options there that could make sense for it. So we’re going to dive right in and I’m going
to like show you how quick and easy Credible is. What do I want to do? I want to, let’s just look at lowering our
monthly payment. So when you come in here, this is the two
minute check and I’m going to be talking to you so it might take a little longer than
two minutes, but let’s go through here. What undergraduate school did I go to? Let’s say UCLA and we’ll go to University
of California Los Angeles. I got my Bachelors. I majored in, what should I major in? I’m going to say I majored in computer science,
all right, and I didn’t go to graduate school. Then you have to have your financial thing. Do you have at least two years of full-time
work experience? Yeah. What’s my annual income? Say I make $85,000 a year. Other individual monthly income, what can
be included here? You could have a second job, dividends, interest. Yeah, we could say I make $50 a month in dividends. Annual household income from other members? No, I don’t have any. Total loan balance I want to refinance. Let’s say I have $40,000 still in student
loans and my monthly housing payment is $1,800 a month. All right, let’s see what happens here. Then I put my name, address, and all this
good stuff in here. All right, so after you entered all your information
in there, you get your offers here on the screen. So it says congratulations, you received 12
options to refinance $40,000 in your student loan debt. So you can review the options here a and what
you want to do. So, the cool thing is it gives you a lot of
ways to sort this out and there might be multiple options from different lenders so you have
one here from Citizens Bank because they have a variable rate loan and they have a fixed
rate loan, and they also have different term lengths. This is where it can get tough for you. You have to decide what kind of offer works
for you. So, if you’re looking to refinance to lower
your monthly payment, you could sort here by monthly payment. You could sort by the term length if you’re
trying to shorten your loan. You could search by just rate type or you
could just delete certain rate types if you don’t want a fixed or variable rate. You could do the rate, you could sort by that. So there’s different things that you have
to ask yourself what is important for you. Some people have concerns when it comes to
fixed rate or variable rate loans. I personally am a fan of the variable rate
student loan today, and here’s the reason why. It depends on the terms, so like don’t just
take it for granted every variable rate’s good. But most variable rate student loans typically
will outperform, and by outperform I mean cheaper for you than fixed rate loans because
the spread in interest rates is so big. So let’s just talk about the Citizens Bank
one right here. Right now the variable rate starts at 3.30%
and the fixed rate is at 5.44%, so that’s over two percentage points difference. So you have to see what the actual terms are,
but typically these rates won’t rise by say more than 1% a year. By already, it would take two years and you’d
still actually be even lower than this so it would actually be almost three years until
you are above your fixed rate loan. But you’re going to get three years of savings
in there and that’s also expecting interest rates to rise a full two or three percentage
points over that time. What we’ve seen in the last decade is that
interest rates are typically rising maybe a quarter to a half a percent a year, and
so like honestly the only scenarios where a variable rate loan don’t outperform a fixed
rate loan is if interest rates were to rise dramatically within the first couple years
of the payment. So you know, it is a gamble but in many times
it’s a good gamble to take. But it’s up to you. It’s your comfort level. It’s your loan. You need to do that math yourself and see
what works for you. The cool thing is there’s my little spiel
on fixed versus variable rates, but you can open this up and you can see the different
lenders. You can see what they ask for. This rate right here includes a auto-debit
discount so you would have that right there, and then what’s going to be required. You need a driver’s license, a pay stub, your
tax returns, and a recent loan statement for the loan you’re going to refinance. Here’s a 30-day pay statement. It just tells you everything you need all
the way through here. If you want to go with these lenders, I mean
you just click Choose This Lender and then it’s quick and simple, and you’re going to
do it. You’re just going to go on right into it. I’m not going to apply for this loan right
now. So it’s just important, so here we go. We’ll click on it, and then here’s all the
info so you’re actually going to start applying for that loan right here. Cool, so beyond refinancing student loans,
Credible also offers private student loans which is the exact same process right here
except you’re going to go through and you can take your loan in three minutes, and then
you also have personal loans. And in 60 seconds they can see if you can
get a personal loan up to $40,000. Honestly, Credible is awesome because they
connect you with all these major lenders right here. I mean, you’re not working with random people. You’re working with mainstream lenders. Right here, I mean, just mainstream companies. They offer great loans. It lets you see what you qualify for quickly. That’s huge for me. I think comparison shopping is the way to
go, and anything that makes it easy to comparison shop is super important. So hopefully you see that Credible is a super
easy tool to use to find your student loans and compare them. Hopefully you found this video value added. If you did, please leave a comment, tell us
your experience. I’d love it if you’d subscribe to our YouTube
channel, and check back with us. We are always putting out new content here
about anything to do with getting out of student loan debt and building wealth for the future. So thank you guys, and I look forward to seeing
you in the future.

One comment on “Credible Student Loan Refinancing Review”

  1. Alexandra4real says:

    Never do variable rate loans!

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