By Niki · Follow: Twitter
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It’s so easy to get lost in the sea of the “best” rates for loans, be that for education or otherwise. But student loans can be the most difficult. Paying for college or continuing education programs is a HUGE investment and stressful enough. But what if a site existed that guaranteed you the best rate to refinance your existing loans? Well it does, my friends. And this site is SO CONFIDENT they’ll provide you the best student loan refinance rate, that they’ll give you $200 if you find a better one anywhere else.
Save Nearly $20k
Borrowers using Credible to refinance student loan debt into a loan with a shorter repayment term can expect to save an average of $17,3441 over the life of their new loan.
That is the good stuff. That’s an average of 2.13 percentage points on the actual rate. And this info came from an analysis of self-reported data provided by borrowers who refinanced their student loans using the Credible marketplace from Nov. 1, 2017, through Dec. 29, 2018. You know what that means? It’s not skewed because the data was reported by the actual borrower. Not someone who’s trying to sell you a product. If there’s one type of study you can trust, it’s the type done by customers just like you who are looking to achieve the exact same outcome – saving money. And who doesn’t want to save money to the tune of nearly $20K? This is wise financial stewardship, folks.
Lower Your Monthly Payments
Well, what if my goal is a lower monthly payment, not simply to save money in the long run? I’m so glad you asked. We totally understand that this may be the best option for people with tight financial situations, large upcoming purchases and unexpected expenses (children, preparing for the apocalypse, etc.). Credible offers options for this too. Most people who settle for a longer repayment term in exchange for a lower monthly payment will still receive loan offers with lower interest rates than they’re currently paying. While this doesn’t maximize your overall savings (like shorter repayment terms do), it still boasts many benefits to help improve your current financial situation.
On average, borrowers refinancing for longer payment terms reduced their interest rates by 1.82 percentage points, and lowered their monthly by $209.
Ok, But What is Credible?
Credible is an online lending platform that allows you to compare loan offers from multiple vetted lenders. Credible uses a soft credit pull to give lenders the info to provide these offers so it doesn’t affect your credit score and is therefore a risk-free endeavor. The application process takes around 5 minutes and is super straight-forward. Then the lenders, in essence, compete for your business so giving you the best rate is in their best interest (as well as yours). You shop around, compare offers and consult with Credible’s team for free – all without impacting your credit score. There are never any fees associated with using their service and their customer service team is outstanding.
But don’t forget the best part is that Credible will give you $200 if you find a better student loan refinance rate anywhere else.
Why Should I Refinance?
In summary, it can be a fantastic option to refinance your student loans for the following reasons:
- Pay off your loan faster
- Reduce your interest rate and/or the total amount paid on your loan
- Lower your monthly payments
- Remove a cosigner from the loan you’re refinancing and relieve them of their obligations
- Pay off multiple individual loans* and make a single monthly payment on a new loan
- Trade in a variable-rate loan for a fixed-rate loan
*Note: The difference between student loan consolidation and refinancing is this: federal student loan consolidation combines many individual loans into a single monthly payment but does not lower your interest rate. This type of consolidation does not allow you to combine government-issued and private loans. Refinancing is taking on a new loan with a lower interest rate or different repayment terms that can be used to pay off multiple loans of various originations (government-issued and private).
Something to Consider
Refinancing government-issued or federal loans means you’re giving up the right to utilize their benefits. Federal loans typically offer income-driven repayment and deferment/forbearance options as well as the ability to qualify for loan forgiveness after 10, 20 or 25 years of loan payments. However, if you do choose to utilize these options, especially those extending your repayment terms you will most likely end up paying considerably more over the life of your loan. Before choosing to refinance to a private lender, it would be wise to weigh these factors in your decision.
When Should I Refinance?
Typically the best time to refinance is after you’ve secured monthly income and have established strong credit. This is the main concern for students who are wanting to refinance. If students don’t have strong credit histories, they may still qualify for attractive refinancing options with a creditworthy cosigner. However, if you’re a parent and have a strong credit history to begin with, refinancing can really be done at any time. Regardless of your current financial position, checking your options with Credible is always free and never impacts your credit score. So go for it! It’s never a bad thing to know where you stand …
If you’re struggling to improve your credit score, take a look at these resources below:
In Summary
Here are the key takeaways from this article:
- Credible is an online lending platform that allows you to compare loan offers from multiple vetted lenders. Credible uses a soft credit pull to give lenders the info to provide these offers so it doesn’t affect your credit score and is therefore a risk-free endeavor.
- Borrowers using Credible to refinance student loan debt into a loan with a shorter repayment term can expect to save an average of $17,3441 over the life of their new loan.
- On average, borrowers refinancing for longer payment terms reduced their interest rates by 1.82 percentage points, and lowered their monthly by $209.
- Credible will give you $200 if you find a better student loan refinance rate anywhere else.
- It’s never a bad idea to know where you stand, so check your loan options with Credible today!
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