Main advantages
Check rates from multiple lenders at once
The main appeal of using Credible is to compare personal loan rates from multiple lenders. Concretely, to do so without having to fill out half a dozen different prequalification requests.
Instead, you can fill out a single application and potentially see rates from over a dozen popular lenders. Credible can access rates from over a dozen major lenders, including:
- Before
- Axos Bank
- best egg
- Discover
- LibertyPlus
- loan club
- LendingPoint
- LightStream
- Marcus of Goldman Sachs
- OneMain Financial
- happy money
- PenFed
- Prosper
- SoFi
- Universal Credit Services
- Upgrade
- Reached
And because you’re prequalifying, not applying, your credit score won’t be impacted.
Wide range of options
Having lots of lending partners means Credible has lots of lending options. He works with lenders who are open to people from a variety of credit rating backgrounds, including those who have no credit or are in the process of building credit. You can also get loans of almost any size – from as little as $600 to $100,000 – and with a range of term options.
No fees to use Credible
Another advantage of Credible is that there are no fees for borrowers to use its marketplace. You can view your rates and apply for a loan for free.
Instead of charging borrowers, Credible makes money through commissions from its lending partners. So, Credible collects fees from the lender if you take out a loan that you found on Credible’s marketplace. Credible also announces that it will not sell your information.
What could be improved
Credible is not a direct lender
One important thing to realize about Credible is that it is not a lender. You cannot obtain a loan directly from Credible. It’s just the market. Credible works with external lenders, and these are the lenders you will get your loan from. In other words, you won’t receive any money from Credible, nor will you make any loan payments to it. (Think of it this way: Farmers’ markets don’t sell goods. The sellers at the farmer’s market are the people who actually sell their produce.)
Offers are prequalified and do not guarantee approval
While Credible can be a useful way to get an idea of the types of loans you might be eligible for, you’re not actually applying for a loan when you fill out the form. Instead, you get prequalified offers. Prequalification may be used to determine eligibility, but is not binding.
Once you’ve chosen a lender, you still need to make a formal application – and approval isn’t guaranteed. When you actually apply, the lender will do a thorough credit check. At this point, they may decide to offer you a different rate or term. It can also deny you completely.
