We provide an overview of Credible, the personal loans marketplace, that will now offer comparison shopping for a wide range of credit products.
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.
Credible also has a unique borrower acquisition strategy. Although they have a diverse range of channels, increasingly partnerships have become the largest. They have partnered with 70 membership organizations. This includes alumni groups, professional groups, blogs like NerdWallet etc. which means they have access to high quality borrowers who are often dentists, lawyers, doctors, accountants and teachers. Stephen noted that they are also in discussion with employers as well.
We asked Stephen why these organizations wouldn’t want to instead partner with a company like SoFi who offers both student loans and personal loans. Stephen stated that Credible wants their members to have access to more than one product and their membership is very diverse. These are national organizations with members in all 50 states that have different credit profiles, credit scores, debt-to-income ratios etc.
Michigan State University Federal Credit Union or MSUFCU, headquartered in East Lansing, Michigan, is the largest university-based credit union in the world in membership and asset size. MSUFCU is a federal credit union chartered and regulated under the authority of the National Credit Union Administration (NCUA). A variety of financial...
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