Finding a loan isn’t the most exciting thing in the world, but it doesn’t have to be difficult, thanks to online loan matching services that show you your loan options all in one place.
Today we’ll be talking about CreditSnap—a fairly new service that makes pre-qualifying for a loan about as easy as it can get.
What is CreditSnap?
Founded in 2017, CreditSnap is a loan-matching service that helps you prequalify for auto refinancing or a personal loan. CreditSnap performs soft-pulls on your credit rather than hard-pulls, so your credit isn’t affected when you prequalify. And, it’s totally free to use!
Navigating CreditSnap’s site was easy, but it’s a bit bare bones. They don’t include a whole lot of easy-to-access information. So, let’s talk a little bit about what they do offer.
As mentioned above, one loan type offered by CreditSnap is auto refinancing.
Refinancing a car loan involves taking out a loan with a lower interest rate to pay off a high-interest loan. This saves you money over the long run because you’re not saddled with the high interest debt you got from another lender or the car dealership.
CreditSnap pairs with a variety of banks and credit unions—although, I had a hard time finding which ones exactly.
Car buying resources
I wasn’t too impressed with the “resources” section of CreditSnap. There are two sections: “New Car Buying Tips” and “Used Car Tips”.
Both seem to be ways to promote their own product. The first tip in each section is to check your pre-approval rates (by using CreditSnap, of course) to see how much you’ll qualify for.
Yes, this is a good tip, but the rest of the tips seem pretty straightforward: Do your research, find the best deal on the market—tips like that.
The other loan type that CreditSnap offers is personal loans. You can use a personal loan for just about anything. CreditSnap suggests some categories: debt consolidation, wedding, medical expenses, etc.
How does CreditSnap work?
CreditSnap is powered by an AI that’s designed to find the best rates relevant to your personal information. They go into more depth on the AI in their product pitch to lenders.
When people hear the word AI, some (myself included) get a little uneasy. While the evolution of technology has brought about great changes—like being able to easily qualify for a loan—it’s brought a lot of security threats as well.
CreditSnap claims that their service is entirely secure. They even have an encryption policy.
CreditSnap’s application process is about as easy as you can get. You answer a few basic questions (pictured below) and CreditSnap does the rest.
CreditSnap says they only work with select banks and credit unions that have the lowest interest rates, so you’re guaranteed as low of a rate as possible.
This simple pre-qualification process has no effect on your credit score whatsoever.
Step one: Basic loan information
The first step is to determine what loan you’d like.
But first, a quick note. You do have to set up an account with CreditSnap to see your loan options. Some sites don’t require this step and allow you to see your prospects by just answering a few simple questions. However, it may be more likely that you’ll be approved for a loan offered by CreditSnap since you do have to give more information by signing up.
As I mentioned above, CreditSnap offers auto refinancing and personal loans. Personal loans can be used for almost anything, but I selected “Medical expenses” for this example.
Step two: Your basic information
The next step involves talking a little bit about yourself. While CreditSnap doesn’t do a hard credit check, it does require your name, your monthly expenses, where you live, as well as how long you’ve lived there and if you rent or own.
This can seem a little personal, but lenders want to learn as much about you as possible to offer the loan that’s right for you.
Step three: Professional information
Finally, the application asks a few more questions—including your social security number, where you work, and your phone number.
Essentially, CreditSnap wants to make sure you’re actually employed and can pay back your loan.
Step four: Choose your lender
The final step is to pick a lender that CreditSnap offers.
I was a little disappointed with my results, as I was only given one offer (and I have good/excellent credit), with a high APR of over 27 percent.
I appreciated the lengthy term options, but overall, I wouldn’t choose this loan.
Eligibility for certain loans will depend on the lender you go with. That being said, anyone can apply for a loan through CreditSnap—it’s just a matter finding loans you can be approved for.
However, CreditSnap only shows offers that you’re 99 percent qualified for, so you shouldn’t have a problem getting approved through the lenders CreditSnap offers. That’s a huge advantage that CreditSnap has over its competitors.
The pros and cons of CreditSnap
Pro: If you have poor credit, you’ll still qualify for a loan
The draw for CreditSnap is obviously the lack of a credit check to prequalify for a loan. As I mentioned above, CreditSnap doesn’t do a hard pull on your credit, so your score won’t be affected.
Con: If you have good or excellent credit, you may not qualify for the best loan you could
If you have excellent or even good credit, you can qualify for good loan terms anyway. While pre-qualification is a good way to see the lenders available, your APR shown will likely be a lot higher than what you’ll actually qualify for.
Pro: Long repayment terms
As show above in my example, CreditSnap offers a decent range of repayment rates. Since you can qualify for large loans, having some repayment options to choose from can be a big help.
Cons: There may be a better pre-qualifying service out there
While CreditSnap is a simple, easy-to-use service, it’s still relatively new and doesn’t offer anything exceptional. As you’ll see below, we suggest some other lenders and loan matching services with a few more bells and whistles.
Should you use CreditSnap?
There’s nothing wrong with using CreditSnap, but it’s not revolutionary. If you’re looking for a quick application process to see the best rates available, CreditSnap is a good fit.
If you have good or excellent credit, chances are you’re already going to qualify for the best rates and pre-qualifying might be a waste of time.
CreditSnap compared to other loan aggregators and lenders
|Lender/Aggregator||Loan amount||Loan length|
|CreditSnap||Varies depending on lender||Varies depending on lender (I was offered a 60-month repayment)|
|FreedomPlus||$10,000 to $35,000||24-60 months|
|GuidetoLenders||$5,000 to $35,000||Varies depending on lender|
FreedomPlus offers personal loans, but they focus on debt consolidation. You can borrow between $10,000 and $35,000 from FreedomPlus. And, perhaps one of the biggest perks of FreedomPlus, you can get your money in as little as three days.
All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 4.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 4.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $16,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you qualify.
While CreditSnap is new, GuidetoLenders has been around for a while. They’re also an aggregator and offer personal loans, mortgages, and home loan refinancing from a ton of reputable lenders. They also offer loan terms for as long as 84 months.
CreditSnap is a simple platform that can show you all your lending options in one place. But it’s simplicity may be unhelpful at times. When I applied for pre-qualification through CreditSnap, I was offered just one loan option with a high APR. I would have liked to see a little more variety.