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    Student Loans Compared: CommonBond Vs. Credible Student Loans

    Judy Miller
    Judy Miller - 2020-10-18T21:00:00.000Z
    CommonBond Vs. Credible

    The competition among the lenders providing personal student loans is getting tougher. When it comes to selecting between CommonBond and Credible for degree financing, the choice becomes quite challenging. Keep reading to review some points designed to help you determine the best option. 

    CommonBond Student Loans 

    CommonBond is among the lenders that believe in extending the bond between the community and borrowers. Operating in this area since 2012, the lender has been providing students with private financing at lower costs thanks to the mandatory inclusion of a cosigner for most loans. 

    Who It’s Best For 

    • CommonBond is best for borrowers seeking flexible repayment options 
    • Good for borrowers with balances looking for refinancing with low rates 
    • Borrowers who want to select from plans with multiple repayment options 
    • For people looking for loans at reduced rates of interest 
    • Individuals who are seeking a quicker cosigner release option
    • Borrowers looking for a lender granting competitive loan terms to graduates, undergraduates, as well as MBA students

    CommonBond Pros and Cons

    Pros

    • CommonBond offers among the most generous forbearance program with deferments up to 24 months during the financial crisis
    • Offers a personalized interest rate without impacting applicant credit scores with a hard inquiry
    • An easy and quick application process can be handled from any device
    • Through Pencils of Promise, the company’s loans cover the entire cost of education
    • Zero origination or prepayment charges and no fees for early payments

    Cons

    • Services only available for limited states and universities
    • Having a cosigner is mandatory for any loan plan except certain eligible MBA programs
    • Upon refinancing, the benefits from federal loans are eliminated

    How To Qualify

    To qualify for a CommonBond Student Loan, the borrower has to be a citizen or permanent resident of the United States.

    Students applying for a student loan should graduate or be enrolled at least half-time with one of the approved schools. 

    Approval Process

    Prospective borrowers can directly visit the official website of the company to start with the application process. While applying for the loan, the borrowers need to provide all the basic information along with the details of social security and cosigner.

    After the application, the company will contact you regarding the status of the application. 

    Fees

    CommonBond charges zero fees in the form of prepayment penalties or application charges for any loan plan.

    However, borrowers are charged with late payment fees, which are the lesser of $10 or 5% for the unpaid amount. The company also charges $5 for checks that bounce. 

    Credible Student Loans

    Credible features a network of student lenders that consists of respected banks, private lenders, and credit unions that are active in the industry.

    The company also helps with mortgage refinancing, mortgage loans, credit card offers, and personal loans. An easy and quick application process and immediate pre-qualification rates are the prime attraction of this offering. 

    Who It’s Best For 

    • Credible is the best option for borrowers looking for a private student loan with a reduced interest rate to help pay off loan balances faster
    • This is for borrowers who are looking forward to paying off their federal student loans quicker. For borrowers who hold RePAYE, PAYE, and IBR loans and are making monthly payments from their income at a high-interest rate, Credible is the best option to pursue
    • For students who carry debts across multiple credit cards 

    Credible Pros And Cons

    Pros

    • Credible offers a comparison with multiple lenders to help qualify for the right loan per your unique requirements
    • Credible delivers a clear and straightforward application process. Instead of applying on various lender sites, it offers a single application facility to determine your rates and qualifications
    • The lender helps by comparing various offers and rates without making any compromises or damaging your credit score
    • None of the lenders within Credible’s network charge origination fees or prepayment penalties

    Cons

    • Credible only offers access to limited lenders at the time of comparison which excludes Earnest, CommonBond, and Laurel Road
    • Credible is missing out on loyalty discounts, forbearance policies, multiyear approval, and other features due to its role as a lending marketplace

    How To Qualify 

    To qualify for a Credible student loan, a primary borrower or cosigner must be a citizen of the United States.

    The minimum age of the borrower should be 18 years or above. If the borrower is not 18 years old, a cosigner is required when applying for private student loans. 

    Approval Process 

    Borrowers can visit Credible's website directly to apply for student loan refinancing, private student loans, or refinancing other debts.

    The borrower needs to fill in a questionnaire with education qualifications, personal information, income history, college or school particulars, and other relevant details.

    Within two to three minutes of submission, applicants can compare available loan options and terms. 

    Fees

    The company ensures that none of its lending partners charge borrowers any origination fees or even prepayment penalties. Although certain lenders in Credible’s student lender network may charge other fees like late penalties, this depends on the chosen lender.

    Bottom Line

    Both CommonBond and Credible are prominent companies in the field of student lending. However, selecting the best plan for your student loan depends on your requirements, income, eligibility criteria, and various other personal factors.

    Take time to compare available options and check the main differences between both companies from the points listed above to get a loan that best suits you.