Student Loan Shopping Site Credible Raises $10M
Credible Labs in San Francisco has completed a round of seed financing that it says will fuel further growth of its student loan refinancing business.February 19
San Francisco-based Credible announced Monday the launch of a service that will allow private student loan borrowers to price-shop online for a refinanced loan.February 24
Credible, a comparison shopping site for private student loans, announced that it has raised $10 million from a group of investors that includes some big names in marketplace lending.
New investors in the San Francisco-based company include Soul Htite, a co-founder of Lending Club who later started a Chinese loan platform called Dianrong.com, and Prosper Marketplace President Ron Suber.
Credible allows consumers to compare student loan offers from online lenders such as CommonBond and Pave, as well as from traditional financial institutions like Citizens Bank. Borrowers use the loans either to finance higher education or to refinance existing student loans at a lower interest rate.
Credible plans to use the new funding to continue building its online platform, including efforts to simplify the shopping process for consumers, said Chief Executive Officer Stephen Dash.
[Coming this November: Marketplace Lending + Investing. Hear how participants in this fast-growth niche are using data and technology to propel lending into the 21st century.]
Dash added that the company will likely expand into different consumer loan products over time, but not right away. "We're very focused on student loans right now," he said.
The company will also continue to pursue partnerships with professional organizations that refer members with student loan debt to refinance through Credible, according to Dash. The company currently has partnerships with the American Medical Association and the American Pharmacists Association, among other organizations.
Credible, which currently has 33 employees, was founded in late 2012. The firm had raised $2.7 million in earlier rounds of funding.