Credible, a multi-lender marketplace for student and personal loans, has closed on a $10 million Series B funding round, according to Crowdfund Insider.
This brings the Fintech startup firm’s total funding to $23 million. Founded in 2012, the San Francisco-based company previously raised $2.7 million in seed funding. This recent round comes after a period of heavy growth, with loan volume growing a whopping 400 percent in 2016.
Part of Credible’s rapid success has been from its loan pre-qualification application called “LenderExpress,” which allows borrows to receive multiple offers for loans in a matter of minutes. The site works with credit bureaus and lenders to provide a personalized rate, but customers don’t need to leave the site and no hard credit pull are initially done. This means applying doesn’t affect a borrower’s credit score, and the lender only gets involved when a borrower actually accepts a quote.
Credible works similar to the travel site Kayak, matching its customer base with viable lenders in minutes, without requiring a great deal of information from the borrower. Credible allows customers to control what and how much data the site collects and is sent to potential lenders, causing many consumers to trust the site.
“We’ve built a unique core technology that is flexible, has vast applications, and has been extremely well received by both borrowers and lenders,” says Stephen Dash, Credible’s founder and CEO. He pointed out that this new funding will allow the site to continue to new products and focus on the needs of its customers.
Credible is used by some of the most prestigious organizations in the country, including the American Medical Association, the American Pharmacists Association, and Georgia Tech Alumni Association. The company works with multiple banks that consolidate student loans; it also help provide a way to compare student loan options for prospective students.