Credible, who describes itself as a multi-lender marketplace will now offer personal loans on their website. They will offer borrowers access to multiple personal loan options allowing borrower to make the best credit decision for themselves. Previously, they only offered private student loans and student loan refinancing. There are several things that make Credible unique compared to their competitors who also offer comparison shopping for loans. We talked to Stephen Dash, Founder and CEO of Credible to learn more about the company and their key differentiators.
Credible was founded in November of 2012 and officially launched their student refinance product in February of 2014. In May, 2015 they launched their student loan origination product. This product is for students with co-signers or parents for a private loan while in school. Stephen noted that about 15% of total student loan originations are private representing about $10 billion of originations per year.
One of the key differentiators with Credible is that they put the borrower in control. Personalized offers from multiple lenders are given to the borrower before the borrower’s personal information is sent to the lender. Thus, the borrower is not contacted until they opt-in by choosing an offer, which makes for a better customer experience. What’s interesting is for Credible’s student loan product, Credible is actually running the underwriting on their side for pre-qualification which means no information is shared with the lenders until the loan is accepted. Once this happens, the borrower is taken to the lender’s website where the loan application process is already started and there is no need to input information twice. [Read more…]