Credible Student Loan Refinancing Review - YouTube

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.