Your loan option is just a step away
You’ve already seen the full range of loan options available through Credible. Now, let’s go deeper with the real characteristics, advantages, and requirements behind each one.
Picking the right loan isn’t just about knowing it exists, it’s about understanding whether it actually fits your situation.
Here’s what you need to know about each option before you compare your rate.
💰 Personal Loans
Personal loans are installment loans. You get a lump sum upfront and repay it in fixed monthly payments over a set term, unlike the revolving balance of a credit card.
Key characteristics:
- Interest rates range from 6.24% to 35.99% APR, depending on credit profile
- Loan amounts typically range from $1,000 to $100,000+, depending on the lender
- Repayment terms usually run from 2 to 7 years
- Most lenders can fund approved loans within a few business days, some as soon as the same day
What they’re most commonly used for:
- Debt consolidation (40% of loans funded through Credible)
- Credit card refinancing (26%)
- Home improvement (9%)
- Major purchases (8%)
- Paying bills or rent (5%)
Requirements:
- A steady, verifiable source of income
- A credit score that meets the lender’s minimum (many prefer a FICO score above 670, though some lenders accept fair or bad credit)
- A manageable debt-to-income ratio
Why it’s worth considering: Personal loans typically cost significantly less than credit cards.
For example: a $10,000 balance paid off in 2 years could cost around $1,282 in interest on a personal loan, versus roughly $2,469 in interest on an average-rate credit card.
🎓 Student Loan Refinance
If you already have student loans (private, federal, or Parent PLUS) refinancing replaces them with a new private loan, ideally at a better rate or term.
Key characteristics:
- Fixed APRs range from 3.98% to 10.99%; variable APRs range from 3.65% to 10.99%
- Repayment terms typically range from 5 to 20 years
- None of Credible’s partner lenders charge origination fees or prepayment penalties
Requirements:
- A credit score generally in the mid-600s or higher (the lowest rates usually require a score in the mid-700s or above)
- Stable, consistent income
- A debt-to-income ratio of 35% or less is considered favorable
- A cosigner can help you qualify or secure a better rate if you don’t meet the credit or income requirements alone
Important to know: Refinancing federal loans turns them into private loans, which means giving up federal protections like income-driven repayment and forgiveness programs.
It tends to make the most sense if you hold private loans, or if you have federal loans but no longer plan to use those federal benefits.
📚 Private Student Loans
For students who still have a funding gap after scholarships, grants, and federal aid, private student loans can cover up to 100% of school-certified costs.
Available for:
- Undergraduate students
- Graduate students
- Medical school students (including loans with deferment through residency)
- Law school students (including bar study loans)
Requirements:
- Enrollment at an eligible school, certified by the institution
- A creditworthy cosigner is often required for undergraduate borrowers with limited credit history
- Lenders evaluate the borrower’s (and cosigner’s, if applicable) credit and income
🏠 Home Purchase (Mortgage)
For those buying a home, Credible lets you compare multiple mortgage lenders in minutes, with support at every step of the home-buying journey.
Key characteristics:
- Compare rates across multiple lenders instead of applying one by one
- Support for various fixed-rate terms, including 30, 20, 15, and 10-year options
Requirements:
- Proof of income and employment
- A credit score that meets the lender’s minimum requirement
- A down payment (amount varies by loan type and lender)
- A manageable debt-to-income ratio
🔁 Home Refinance
Home refinancing replaces your current mortgage with a new one — ideally with better pricing or terms.
Key characteristics:
- Transparent, accurate pricing from multiple refinancing lenders
- Options include rate-and-term refinancing or cash-out refinancing
Requirements:
- Sufficient home equity (varies by loan type)
- A credit score that meets the new lender’s requirements
- Updated proof of income and current mortgage standing
🏦 Home Equity (HELOC)
A home equity line of credit lets you borrow against the equity you’ve built in your home, functioning like a revolving credit line rather than a lump sum.
Best for:
- Homeowners with built-up equity who want ongoing access to funds
- Renovations, debt consolidation, or large planned expenses
Requirements:
- A minimum amount of home equity (typically at least 15-20%)
- A credit score that meets the lender’s minimum
- Proof of income and manageable debt levels
🚗 Auto Loans & Auto Refinance
Whether buying a vehicle or refinancing an existing auto loan, Credible lets you compare rates before committing.
Auto Loans are best for: buyers who want to know their rate before negotiating at the dealership.
Auto Refinance is best for: current car owners looking to lower their monthly payment or interest rate on a loan they already have.
Requirements (both):
- Proof of income
- A credit score that meets the lender’s requirement
- Vehicle information (for refinance: your current loan details and vehicle value)
You Now Know What Each Loan Option Really Offers
From personal loans to mortgages, every option works differently, and now you know which one actually matches your situation, not just its name.
The next step is simple: see your real, personalized rates, with no impact to your credit score.
