Credible simplifies student loan refinancing by offering a marketplace business model.
San-Francisco-based startup Credible has launched a service to help recent graduates extricate themselves from high fixed costs, find alternative lenders, and save money on their student loans.
With more college grads waiting on the sidelines of the job market, it’s not too bold to say that Credible might just be the light at the end of the tunnel. The online platform’s rate comparison model makes it easier for people to figure out if it’s possible for them hold lower interest rates and if it’s beneficial for them to switch lenders.
Users will be able to see how their loans stand against other borrowers, an extremely beneficial feature, considering many people are uninformed of those facts. Instead of scouting out different lenders and filling out multiple applications, users can find out their eligibility in a single 7-question process, which include questions about their current employment, salary, credit score.
This “marketplace-style” approach to student loan refinancing is modeled after the way Kayak.com has been feeding cheap rates to their site users, explains Stephen Dash, founder of Credible.
With an optimistic outlook for his company, Dash also shared that one of its student borrowers is now looking to save more than $40k in interest payments. Since launch, Credible has over 30k students sign up, but that number is expected to grow as more lenders take part in the exchange – it recently closed a $500k round of seed financing from venture capital funds and angel investors.
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