Credible Personal Loan: A Review of How it Works
Posted on March 12, 2021 in Loans
Whether you’re faced with unexpected medical costs, need to consolidate your debt, or want to do a home remodel, Credible personal loans provide a cash infusion that can make it possible. Unfortunately, many lenders are reluctant to issue personal loans, or they will add high interest rates and fees to them. And credit cards are not always ideal for one-time large expenses.
To find a personal loan that suits your unique goals and financial situation, check out Credible loans. It is an intuitive platform that matches you to prospective lenders, allowing you to find the best options without impacting your credit.
Read on to learn how Credible works and how it can help you get the best personal loan for your needs.
Credible Personal Loan Requirements
Credible connects you to personal loan offers from a variety of lenders, based on the amount you need and what it’s for. While each lender has its own requirements, most require you to be a U.S. citizen or permanent resident, at least 18 years of age, and have steady income. Many require good credit, but there are some options for those with lower credit scores.
Before using Credible to find loan options, figure out the amount you actually need to borrow to achieve your goal. For example, if you want to do a home renovation project, obtain an estimate before deciding how much you want to borrow. Don’t request more than you need. This way, you can get more accurate quotes.
When considering loan options, assess your current debt-to-income ratio and figure out how much you could afford to pay on the loan every month. Remember that the repayment amount will always include interest, and the shorter your term, the less interest you will pay overall. Calculate the total cost of your loan (borrowed amount multiplied by your APR), then divide by 12 to estimate your monthly payment.
Credible Personal Loan Rates
Personal loans typically have lower APRs than credit cards, but they often have higher interest than other types of installment debt, e.g., auto loans. However, your loan APR depends a lot on your credit history and score.
Depending on your credit, you could have an APR as high as 35.99% or as low as 3.99% on a personal loan. Your APR will usually be lower if you have a good credit score and/or choose a shorter repayment term.
Borrowers with average or low credit scores can still qualify for personal loans, especially if they have a good payment history and no derogatory marks. However, they will likely pay more interest.
Credible Personal Loan Calculator
Credible makes it easy to figure out what you could expect in a personal loan. While nothing is set in stone until a lender makes you an offer, you can use Credible’s filters and calculators to predict your overall loan amount, APR, and repayment term.
Getting Approved for a Personal Loan Quickly
Credible works fast. You can see your customized personal loan options in just a few minutes. This saves you a lot of time because you don’t have to hunt down various lenders yourself. Plus, you can be sure that you’re getting offers that suit your goals.
Once you review your options, you then tell Credible which lender you want, and they will facilitate your actual application. The lender may ask for more information. They’ll also perform a hard credit inquiry. This process generally takes 1-2 business days.
Once you are approved, most lenders send funds within one business day, although some take longer.
Credible Personal Loan Credit Score
As with any sort of credit or loan, lenders will take your credit score into account. A low score suggests that you are riskier to lend to, while a higher score demonstrates that you are able to handle your debts. However, your overall debt-to-income ratio, the purpose for the loan, and other factors all affect your final offers and approval.
Different lenders have different requirements, but as a rule of thumb, your credit score should be at least 610 to 640 to obtain a personal loan. However, good payment history and a low debt-to-income ratio can help you get better loan offers.
Does A Credible Loan Hurt Your Credit?
Shopping for loans on Credible does not hurt your credit, as it is merely a comparison and connection platform, not a lender. It uses soft credit inquiries (which do not affect your score) to show you potential rates.
However, your final loan offer and APR will only be sent after you pursue a possible lender. At that point, there will be a hard credit pull, which makes your score drop a few points (but only temporarily). So, only move forward with a lender you feel suits your needs and with whom you have a strong chance of approval.
Once you take on a personal loan, its effect on your score depends entirely on your payment history. If you miss payments, expect your score to take a hit. If you make all payments, expect it to improve (assuming that you handle your other debt obligations as well).
Can You Pay Off A Credible Loan Early?
Almost all lenders allow you to pay off a personal loan early. So, if your income increases or other debt obligations are resolved, you can pay off before your term ends. Some lenders do charge a prepayment penalty. Always check the terms of any loan offer to see their prepayment policies.
Credible Personal Loan Login
One of Credible’s best features is its dashboard, where you can log in to check status of a loan request, make and manage payments, and obtain information about your loan. Credible’s user-friendly design makes it much easier to stay on top of your personal loan.
Does Credible Offer Good Debt Consolidation Loans?
Personal loans are a popular option for debt consolidation. If you qualify for a good rate, you can often save hundreds or even thousands of dollars in interest. Plus, one monthly payment on your personal loan is much easier to manage than multiple payments to various creditors. The two most common types of loan consolidation are student loan consolidation and credit card consolidation.
Student Loan Consolidation
Many student loans have been sold to companies that add high interest rates to the debt. Plus, borrowers often have multiple accounts, which can make repayment hard to manage. A personal loan can consolidate all student loan debt into a single obligation, often with a lower monthly payment.
On Credible, most lenders achieve this through refinancing. That is, they purchase the debt and offer you a different repayment term and interest rate. You can shop various options, but be sure to compare potential savings with your current repayment plan.
You should only pursue student loan consolidation if you:
- rely on benefits and protections for federal loans, such as deferment, forbearance, and income-driven repayment options
- are not seeking loan forgiveness (e.g. through public service or working in education)
- do not have regular income
- currently have a short repayment term or are well into your repayment term, because a personal loan will simply extend this
Credit Card Consolidation
If you have several credit accounts with high APRs, interest could prevent you from paying down your debt, even if you are making payments every month. Often, credit card companies will lock you into rates. So even if your income increases and you can afford more, your monthly payments are still getting eaten up by interest.
You may end up paying less interest by getting a single, lower-APR personal loan. If you use this tactic, be sure to actually pay off your credit cards with the loan proceeds. Keep them open to improve your credit utilization rate, but do not add to your debt. (Small monthly purchases that you pay off immediately are okay and can boost your score even more.)
When you apply for a personal loan via Credible, request an amount that can consolidate your current debt obligations (or at least your high-interest ones).
Credible Personal Loan Customer Service & Phone Number
Credible is well known for its strong customer service and ease of use. They have a strict policy against selling personal information, so their goal is to help you recover your finances and get a successful personal loan. Their lender partners compensate them if you obtain a loan through the platform. That means it’s in Credible’s best interest to help you out.
You can ask questions and get support any time with your loan requests and repayment by emailing firstname.lastname@example.org or calling 866-540-6005.
Is Credible A Good Personal Loan?
Credible lives up to its name. As a legitimate comparison site and lender shopping platform, it has helped many people find the best personal loan for their needs. This saves a lot of time and prevents customers from getting the wrong sort of loan with predatory lenders. Even one’s established bank may not have the best options. Credible can help you customize your search and feel more comfortable borrowing.
Credible has hundreds of positive reviews from customers who easily found the right personal loan for them. Some people were in debt and needed a consolidation loan. Others simply wanted to save time while shopping for personal loan options. Either way, Credible has a very good reputation and a safe, intuitive platform.
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