There is one thing that almost every college student has in common with other college students and it is: student debt. Today, roughly 1 in 4 American adults have student loans and are actively making payments. Roughly over 45 million Americans share $1.5 trillion in student debt and 8 out of 10 people that have student loans never consider to put any time or effort to managing their student loans. For that reason, I wanted to cover Credible student loan refinancing tool that allows you to do so much just on one site.
Unfortunately, just like in everything you do, if you don’t put some time into your loans, you will end up paying thousands of dollars extra.
Let’s dive right in and I hope you will see the possibilities of loan refinancing with Credible.
What is Credible?
Simply put, Credible is a Student Loan Refinancing company that compares options not just from one lender but multiple sources from all the top lenders you can think of. This has been the best source and place for years to finally have everything in one hand, without browsing around and opening new applications all over the place. Now, simply one site for all!
Credible makes it very easy for you to compare your options and lower your interest rate that you might be paying because of some few percent you might think will actually save you thousands of dollars throughout the life of your student loans.
Credible is like Expedia but for loans.
Why You Need to Look Into Credible
Simply put, if you have any private loans or any education loans and are paying the interest, then you are most likely have interest. Interest is how any loan work, this is how the lending companies make money.
If your current interest is higher than 7%, you need to consider Credible compare the rates around.
Here’s an example of interest and how much you could save:
Example 1: You borrow $30,000 for your student loans at 10% interest for 10 years.
10% interest per year = $3,000 in interest first year
After 10 years, your total amount including the interest equal to $47,574.24. Yes, $17,574.24 is the extra you are paying over the lifetime of your loan!
Example 2: You borrow $30,000 for your student loans at 6% interest for 10 years.
6% interest per year = $1,800 in interest first year
After 10 years, your total amount including the interest equal to $9,967.38. Your interest could be, $9,967.38 instead of the $17k in the first example.
It is your choice of course, but trust me, the more you borrow and longer the term – the interest you pay only gets worse. Especially with many private loan companies offering terms of 20 years or more, it can really add up.
Some Important Things to Know About Credible
You need to know that Credible is not the one that lends money, it mostly serve as the “comparison tool” that compares the rates across multiple sites, so in the end it is a win for you because again, you don’t have to apply to multiple sites and fill out your information over-and-over again.
There are few qualifications as well. You need to be 18 or older and have at least $5,000 in student loans that you are looking to refinance.
Credible also provides personal loans and the rates are pretty great! This is a little off-topic, but if you need to take out money for something other than school like getting all your credit cards into one as a loan, then this is the way to go.
I used Credible recently and loved the way how simple it was to use (3 minutes) and compare the rates lenders were offering. I highly recommend it to anyone who has private student loans and looking to get better interest rates.