Earnest is fast on the heels of SoFi as one of the leading lenders in student loan refinancing. Its motto is “refinance student loans the new-fashioned way,” and it lives up to it – borrowers are saving an average of $12,588, according to its website.

How? Earnest looks at other factors besides credit score when it comes to determining whether or not to lend to borrowers. It has low merit-based rates as it wants to give borrowers the best terms they deserve, and it offers a lot of flexibility not seen from other lenders.

Refinance Terms Offered

When refinancing with Earnest, you can refinance both private and federal student loans.

The minimum amount to refinance is $5,000 – there’s no specific cap on the maximum you can refinance.

Earnest offers 5, 10, 15, and 20-year loan terms, but you can create your own based on the minimum monthly payment you’re comfortable making. Yes, you can actually choose your monthly payment, which means the loan can be customized to your needs.

You can also switch between variable and fixed rates freely – there’s no charge. (Note that variable rates are not offered in IL, MI, MN, OR, and TN. Earnest isn’t in all 50 states yet, either.)

Fixed APRs range from 3.89% to 6.32%, and variable APRs range from 2.57% to 5.87% (this is with a .25% autopay discount). The caps on variable loans are 8.95%, 9.95%, or 11.95%, depending on your loan term.

If you refinance $25,000 on a 10 year term with an APR of 5.75%, your monthly payment will be $274.42.

The Pros and Cons of Earnest’s Student Loan Refinance Program

Similar to SoFi, Earnest offers unemployment protection should you lose your job. That means you can defer payments for three months at a time, up to a total of twelve months over the life of your loan. Interest still accrues, though.

The flexibility offered from being able to switch between fixed and variable rates is a great benefit to have should you experience a change in your financial situation.

As you can see from above, variable rates are much lower than fixed rates. Of course, the only problem is those rates change over time, and they can grow to become unmanageable if you take a while to pay off your loan.

Having the option to switch makes your student loan payments easier to manage. If you can afford to pay off your loans quickly, you’ll benefit from the low variable rate. If you have to take it slow and need stability because you lost a source of income, you can switch to a fixed rate. Note that switching can only take place once every 6 months.

Earnest also lets borrowers skip one payment every 12 months (after making on-time payments for 6 months). Just note this does raise your monthly payment to adjust for the skipped payment.

Beyond that, Earnest encourages borrowers to contact a representative if they’re experiencing financial hardship. Earnest is committed to working with borrowers to make their loans as manageable as possible, even if that means temporary forbearance or restructuring the loan.

Lastly, if you need to lower your monthly payment, you can apply to refinance again. This entails Earnest taking another look at your terms and seeing if it can give you a better quote.

Who Qualifies to Refinance Student Loans With Earnest?

Earnest doesn’t have a laundry list of eligibility requirements. Simply put, it’s looking to lend to financially responsible people that have a reasonable ability to pay their loans back.

Earnest describes its ideal candidate as someone who:

• Is employed, or at least has a job offer
• Is at least 18 years old
• Has a positive bank balance consistently
• Has enough in savings to cover a month or more of regular expenses
• Lives in AR, AZ, CA, CO, CT, FL, GA, HI, IL, IN, KS, MA, MD, MI, MN, NC, NE, NH, NJ, NY, OH, OR, PA, TN, TX, UT, VA, WA, Washington D.C., and WI
• Has a history of making timely payments on loans
• Has an income that can support their debt and routine living expenses
• Has graduated from a Title IV accredited school

If you think you need a little help to qualify, Earnest does accept co-signers – you just have to contact a representative via email first.

Application Process and Documents Needed to Refinance

Earnest has a straightforward application process. You can start by receiving the rates you’re eligible for in just 2 minutes. This won’t affect your credit, either. However, this initial soft pull is used to estimate your rates – if you choose to move forward with the terms offered to you, you’ll be subject to a hard credit inquiry, and your rates may change.

Filling out the entire application takes about 15 minutes. You’ll be asked to provide personal information, education history, employment history, and financial history. Earnest takes all of this into account when making the decision to lend to you.

Who Benefits the Most From Refinancing With Earnest?

Earnest states that if your interest rates are above 6%, you should be able to save money by refinancing.

Because Earnest only uses a soft pull initially, there’s no harm in applying to get your estimated rates. If you’re already responsible with your money and could benefit from a lower interest rate, it’s worth checking out.

It’s important to note that if you’re refinancing federal student loans, you’ll lose benefits exclusive to them. Options such as income based repayment, deferment, forgiveness, and forbearance are lost when refinancing. Some lenders, like Earnest, offer flexible payments, but private lenders aren’t guaranteed or required to offer these options.

The Fine Print

There aren’t any hidden fees – no origination, prepayment, or hidden fees exist. Earnest makes it clear its profits come from interest.

There are also no late fees, but if you get behind in payments, the status of your loan will be reported to the credit bureaus.

APPLY NOW Secured

on Earnest’s secure website

Alternative Student Loan Refinancing

While Earnest offers very competitive rates and flexible terms, if you’re not eligible to refinance with it, you might want to look at the other choices you have.

SoFi is the leading student loan refinance lender, with rates just slightly lower than Earnest. Its fixed APR ranges from 3.90% to 7.80%, and the variable APR ranges from 2.51% to 7.55%. It also has a max term of 20 years, and there’s no cap on how much you can refinance.

As mentioned, SoFi offers unemployment protection as well, and it also uses a soft pull to estimate your rates. However, it only allows co-signers on a case-by-case basis, and there’s no co-signer release.

There are no hidden fees with SoFi either – the only catch is that certain schools and programs are eligible. You can call or attempt to fill out the application to find out if your school is on the list.

APPLY NOW Secured

on SoFi’s secure website

*referral link

Citizens Bank is another good option if your school or program is not eligible for SoFi’s refinance program. Its fixed APR ranges from 3.50% to 8.69%, and its variable APR ranges from 2.75% to 8.20%. While its rates are slightly higher, there are no special requirements when it comes to schools or programs.

You can refinance on terms of up to 20 years, and the amount you can refinance varies depending on your degree. Those with a bachelor’s degree can refinance up to $90,000; those with a graduate/doctoral/MBA degree can refinance up to $130,000; and those with a professional degree can refinance up to $170,000.

Citizens Bank allows co-signers on the loan and has a co-signer release after 36 months of consecutive payments. It also offers forbearance to those who can’t afford to make their payments. The only downside is they use a hard credit inquiry, so you can’t “preview” your rates like you can with Earnest or SoFi.

APPLY NOW Secured

on Citizens Bank (RI)’s secure website

Check Around For the Best Rates

You’re never obligated to go with a loan you’re not comfortable with. If you don’t receive favorable terms from one lender, check with another. Each use different criteria, especially when other factors (aside from your credit score) are being considered.

You don’t have to worry if a lender uses a hard credit inquiry – shopping around within a 30-day window won’t harm your credit score as much as shopping around sporadically over the course of a few months. Interest rates make a big difference in the overall cost of your loan, and it’s important to go with a lender that’s willing to work with you.

*We’ll receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations. You can learn more about how our site is financed here.

The post Earnest Student Loan Refinance Review appeared first on MagnifyMoney.

Updated August 21, 2017

Earnest is anything but a traditional lender for unsecured personal loans and student loans. They offer merit-based loans instead of credit-based loans, which is good news for anyone just starting to establish credit. Their goal is to lend to borrowers who show signs of being financially responsible. Earnest is working to redefine credit-worthiness by taking into account much more than just your score.

They have a thorough application process, but it’s for good reason – they consider different variables and data points (such as employment history, education, and overall financial situation) that traditional lenders don’t.

Earnest*, unlike traditional lenders, says their underwriting team looks to the future to predict what your finances will look like, based upon the previously mentioned variables. They don’t place as much emphasis on your past, which is why a minimal credit history is okay.

Additionally, as their underwriting process is so thorough, Earnest doesn’t take on as much risk as traditional lenders do. With their focus on the financial responsibility level of the borrower, they have less defaults and fraud, which allows them to offer some of the lowest APRs on unsecured personal loans.

Personal Loan (Scroll Down for Student Loan Refinance)

Earnest offers up to $75,000 with terms ranging from 36 to 60 months.. Their APR ranges from 5.49% to 18.24%.. They claim that’s lower than any other lender of their type out there, and if you receive a better quote elsewhere; they encourage you to contact them.

Not available everywhere

Earnest is available in the following 36 states (they are increasing the number of states regularly, and we keep this updated): Arkansas, Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Tennessee, Texas, Utah, Virginia, Washington, Washington D.C., West Virginia, Wisconsin and Wyoming.

Get on LinkedIn

Earnest no longer requires that you have a LinkedIn profile. However, if you do have a LinkedIn profile, the application process becomes a lot faster. When you fill out the application, your education and employment history will automatically be filled in from your LinkedIn profile.

What Earnest Looks for in a Borrower

Earnest wants to lend to those who know how to manage and control their finances. They want borrowers to know the importance of saving, living below their means, using credit wisely, making timely payments, and avoiding fees.

They look at salary, savings, debt to income ratio, and cash flow. They want borrowers with low credit utilization – not those maxing out their credit cards and experiencing difficulty in paying.

Borrowers must be over 18 years old and have a solid education background. Ideally, they attended college or graduate school, have a degree, and have a history of consistent employment, or at least a job offer that gives them the opportunity to grow.

Overall, Earnest wants to make sure borrowers are taking their future as seriously as they are. After all, they’re investing in it! The team at Earnest knows that money often holds people back when it comes to being able to achieve their dreams and goals, and they’re all about helping borrowers get there.

For that reason, Earnest seeks to learn more about those that apply for loans with them. They review every line of your application, and they want to develop a lifelong relationship with their borrowers. They genuinely want to help and see their borrowers succeed.

The Fine Print – Are There Any Fees?

Earnest actually doesn’t charge any fees. There are no late fees, no origination fees, and no hidden fees.

There’s also no penalty for prepaying loans with Earnest – they encourage borrowers to prepay to reduce the amount of interest they’ll pay over the life of the loan.

Earnest states that one of its values is transparency (and of course, here at MagnifyMoney, that’s one of ours as well!), and they are willing to work with borrowers who are struggling to make payments.

Hala Baig, a member of Earnest’s Client Happiness team, says, “We would work with the client to make accommodations that are appropriate to help them through their situation.”

She also notes that if borrowers are late on payments, they do report the status of loans on a monthly basis.

What You Can Do With the Money

The $75,000 loan limit is enough to pay off debt such as an undergraduate student loan, medical debt, or consumer debt, relocate for a job, improve your home or rental property, help you fund a down payment, or further invest in your education.

Earnest’s APR is much, much better than you’ll receive on many credit cards, and it could be a viable way to decrease the burden of debt you’re currently experiencing.

APR

5.49%
To
18.24%

Credit Req.

660

Minimum Credit Score

Terms

36 to 60

months

Fees

No origination fee

LEARN MORE Secured

on LendingTree’s secure website

The Personal Loan Application Process

Earnest does a hard inquiry upon completion of the application. They’re very open about this on their website, stating that hard inquiries remain on credit reports for two years, and may slightly lower your credit score for a short period of time.

Compared to Upstart, their application process is more involved, but that’s to the benefit of the borrower. They aim to underwrite files and make a decision within 7 business days – it’s not instantaneous.

However, once you accept a loan from Earnest and input your bank information, they’ll transfer the money the next day via ACH, so the money will be in your account within 3 days.

Student Loan Refinance

When refinancing with Earnest, you can refinance both private and federal student loans.

The minimum amount to refinance is $5,000 – there’s no specific cap on the maximum you can refinance.

We encourage you to shop around. Earnest is one of the best options, but there are others. You can see the best options to refinance your student loans here.

Earnest offers loans up to 20 years. Unlike other lenders,Earnest allows borrowers to create their own term based on the minimum monthly payment you’re comfortable making. Yes, you can actually choose your monthly payment, which means the loan can be customized to your needs. Loan terms start at 5 months, and you can change that term later if needed.

You can also switch between variable and fixed rates freely – there’s no charge. (Note that variable rates are not offered in IL, MI, MN, OR, and TN. Earnest isn’t in all 50 states yet, either.)

Earnest Fixed APRs range from 3.89% to 6.32%, and variable APRs range from 2.57% to 5.87% (this is with a .25% autopay discount).

For example: If you refinance $25,000 on a 10 year term with an PR of 5.75%, your monthly payment will be $274.42.

The Pros and Cons of Earnest’s Student Loan Refinance Program

Similar to SoFi, Earnest offers unemployment protection should you lose your job. That means you can defer payments for three months at a time, up to a total of twelve months over the life of your loan. Interest still accrues, though.

The flexibility offered from being able to switch between fixed and variable rates is a great benefit to have should you experience a change in your financial situation.

As you can see from above, variable rates are much lower than fixed rates. Of course, the only problem is those rates change over time, and they can grow to become unmanageable if you take a while to pay off your loan.

Having the option to switch makes your student loan payments easier to manage. If you can afford to pay off your loans quickly, you’ll benefit from the low variable rate. If you have to take it slow and need stability because you lost a source of income, you can switch to a fixed rate. Note that switching can only take place once every 6 months.

Earnest also lets borrowers skip one payment every 12 months (after making on-time payments for 6 months). Just note this does raise your monthly payment to adjust for the skipped payment.

Beyond that,Earnest encourages borrowers to contact a representative if they’re experiencing financial hardship.Earnest is committed to working with borrowers to make their loans as manageable as possible, even if that means temporary forbearance or restructuring the loan.

Lastly, if you need to lower your monthly payment, you can apply to refinance again. This entails Earnest taking another look at your terms and seeing if it can give you a better quote.

Who Qualifies to Refinance Student Loans With Earnest?

Earnest doesn’t have a laundry list of eligibility requirements. Simply put, it’s looking to lend to financially responsible people that have a reasonable ability to pay their loans back.

Earnest describes its ideal candidate as someone who:

• Is employed, or at least has a job offer
• Is at least 18 years old
• Has a positive bank balance consistently
• Has enough in savings to cover a month or more of regular expenses
• Lives in AR, AZ, CA, CO, CT, FL, GA, HI, IL, IN, KS, MA, MD, MI, MN, NC, NE, NH, NJ, NY, OH, OR, PA, TN, TX, UT, VA, WA, Washington D.C., and WI
• Has a history of making timely payments on loans
• Has an income that can support their debt and routine living expenses
• Has graduated from a Title IV accredited school

If you think you need a little help to qualify, Earnest does accept co-signers – you just have to contact a representative via email first.

Application Process and Documents Needed to Refinance

Earnest has a straightforward application process. You can start by receiving the rates you’re eligible for in just 2 minutes. This won’t affect your credit, either. However, this initial soft pull is used to estimate your rates – if you choose to move forward with the terms offered to you, you’ll be subject to a hard credit inquiry, and your rates may change.

Filling out the entire application takes about 15 minutes. You’ll be asked to provide personal information, education history, employment history, and financial history. Earnest takes all of this into account when making the decision to lend to you.

The Fine Print for Student Loan Refinance

There aren’t any hidden fees – no origination, prepayment, or hidden fees exist. Earnest makes it clear its profits come from interest.

There are also no late fees, but if you get behind in payments, the status of your loan will be reported to the credit bureaus.

APPLY NOW Secured

on Earnest’s secure website

Who Benefits the Most from Earnest

Those in their 20s and 30s who have a good grip on their finances and are just getting started with their careers will make great borrowers. If you’re dedicated to experiencing financial success once you earn enough money to actually achieve it, you should look into a loan with Earnest.

If you have a history of late payments, being disorganized with your money, or letting things slip through the cracks, then you’re going to have a more difficult time getting a loan.

Amazing credit score not required

You don’t necessarily need to have the most amazing credit score, but your track record with money thus far will speak volumes about how you’re going to handle the money loaned from Earnest. That’s what they will be the most concerned about.

What makes you looks responsible?

Baig gives a better picture, stating, “We are focused on offering better loan alternatives to financially responsible people. We believe the vast majority of people are financially responsible and that reviewing applications based strictly on credit history never shows the full picture. One example would be saving money in a 401k or IRA. That would not appear on your credit history, but is a great signal to us that someone is financially responsible.”

Conclusion

Overall, it’s very clear that Earnest wants to help their borrowers as much as possible. Throughout their website, they take time to explain everything involved with the loan process. Their priority is educating their borrowers.

While Earnest does have a nice starting fixed APR at 3.89%, remember to take advantage of the other lenders out there and shop around. You are never obligated to take a loan once you receive a quote, and it’s important to do your due diligence and make sure you’re getting the best rates out there. If you do find better rates, be sure to notify Earnest. Otherwise, compare rates with as many lenders as possible.

Shopping around within the span of 45 days isn’t going to make a huge dent in your credit; the bureaus understand you’re doing what you need to do to secure the best loan possible. Just make sure you’re not applying to different lenders once a month, and your credit will be okay.

APR

5.49%
To
18.24%

Credit Req.

660

Minimum Credit Score

Terms

36 to 60

months

Fees

No origination fee

LEARN MORE Secured

on LendingTree’s secure website

*We’ll receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations. You can learn more about how our site is financed here.

The post Earnest: Personal & Student Loans for Responsible Individuals with Limited Credit History appeared first on MagnifyMoney.

Updated October 25, 2017
There has been a wave of new financial startups in recent years. From incredible investing apps to innovative money software, it seems like the sky is the limit when it comes to what entrepreneurs can create in terms of financial services.

Of course, some of my favorite financial startups are the ones that directly help consumers get out of debt. Credit card debt is a massive problem in the United States. There is so little financial education about getting out of debt and with interest rates skyrocketing, uninformed consumers could be paying off their debt for a very, very long time. Fortunately, innovative financial startups have started to address how to help Americans ditch debt.

Ready for Zero

I currently use Ready for Zero to assess my student loan debt. What I like about Ready for Zero is that it syncs with your actual accounts so there’s no disconnect between the debt you think you have and the debt you actually have.

I entered in the user name and password for my federal student loans, and Ready for Zero showed me just how long it would take to pay those bad boys off by paying the minimum. Move the circles to the left or right to adjust the numbers and find out how much you will save in interest by paying above the minimum. Although I knew empirically that I needed to be paying above the minimum, Ready for Zero was a real wake up call for me and showed me that I really needed to get on track and put more efforts towards my loan payoff.

Payoff*

Payoff is an incredible financial services company that helps you payoff your credit card debt. Basically, it takes all your information and they offer you a consolidation loan so that instead of worrying about 9 different credit cards with varying interest rates, you can instead just pay one monthly fee.

The negatives of Payoff is that they are only for credit cards at this time so if you had several personal loans or several student loans, they can’t offer you a consolidation loan for those.

Payoff does a soft pull of your credit report to determine your loan rate. A soft pull means it won’t hurt your credit score to find out your loan rate. Payoff provides loans at rates between 8% APR and 25.00% APR. The rate you’re offered in prequalification is subject to change, but it gives a good sense about whether or not moving forward with Payoff would be right for you.

You also get to talk to a real person when you call Payoff, which can’t always be said of your credit card company’s customer service.

SoFi*

What I like about SoFi is that they refinance student loans, issue personal loans, and mortgages.

One of the interesting things about SoFi is that it offers a valuable network of entrepreneurs. If you borrow money for your MBA, it actually offers complimentary career coaching for SoFi members. The only downside is that it’s only available at specific universities. So, if you are thinking of going into debt for school, just know there are other options and customizable solutions to reduce the impact of that debt, ones that actually include career counseling like SoFi as opposed to a random bank or federal loan with minimal customer service.

Upstart*

Upstart offers personal loans for a wide range of different credit profiles, but they primarily target recent graduates and those that might not have had the time to develop a strong credit score. Instead of relying on the traditional indicators of financial health, such as your credit history and available credit, they use a proprietary algortihm that determines worthiness based on education, career, job history, and standardized test scores. For recent graduates that might have debt they want to consolidate but also have a limited credit history, Upstart provides financial options that previously were out of reach.

Earnest*

I love Earnest because it’s another loan company taking much more into consideration than just your credit score. It’s refreshing to read about a company that wants to get to know its customers. After an extensive process reviewing your financial and work history, Earnest will offer you an interest rate for your personal loan based on your total picture. They even check out your LinkedIn profile as part of its process!

Earnest favors borrowers who don’t max out their credit card and who are well educated. Unfortunately their loans aren’t available in all 50 states, but they are growing. Right now, Earnest is offered in the following states: California, Colorado, Connecticut, Florida, Georgia, Illinois, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Utah, Washington, Washington D.C., and Wisconsin.

There no penalty for pre-paying, a major plus for those dedicated to digging out of debt fast. You don’t need a lengthy credit history. You just have to be a responsible person and be able to prove it.

Gradible

Many millennials complain that they can’t find work they love or that they don’t earn money to make extra payments on their student loans. Gradible is changing all of that. It partners with different companies (like Craigslist or market research firms) to offer tasks its users can complete.

These tasks pay around minimum wage depending on how quickly you work and the money is applied directly to student loans. You can post things on Craigslist on behalf of companies, you can write articles for blogs, or you can simply “like” a few businesses on Facebook. There are countless tasks to choose from and you can work as much or as little as you like. The best part is that there is no agonizing over whether you should pay towards your student loans or something else because Gradible sends your payment directly to your student loan provider for you.

Use These Tools to Earn Freedom

So, if you are currently in debt, whether it’s student loan debt like me or extensive credit card debt, there are so many tools to help you get out of it. Whether you consolidate your debt or just become more aware of the impact of your interest rate, use the companies above to help you meet your goals and get on the path to financial freedom.

*We receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations. You can learn more about how our site is financed here.

The post 7 Financial Startups That Want You to Get Out of Debt appeared first on MagnifyMoney.

What is Earnest?

Perhaps best known for its student loans — Earnest was acquired last year by Navient, the nation’s largest student loan servicer — the online lender offers personal loans, too. Earnest is designed for borrowers who have good credit scores but lack a long track record. The San Francisco-based company considers savings patterns, career trajectory, education and each borrower’s unique financial situation to determine rates and terms of a loan. Earnest is looking for applicants who are financially responsible, even if their credit score is still a ways from excellent.

Earnest personal loan highlights

• Low rates: Earnest’s approach to lending does require an in-depth application process and longer turnaround time, but successful applicants likely will receive a loan with competitive terms and rates.
• No fees: Unlike rivals, Earnest charges No origination fee or, for that matter, any fees. This means you never pay more than your monthly payment and you can pay off the loan early without incurring a prepayment penalty.

APR

5.49%
To
18.24%

Credit Req.

660

Minimum Credit Score

Terms

36 to 60

months

Fees

No origination fee

LEARN MORE Secured

on LendingTree’s secure website

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.... Read More This is great for recent graduates and those who are just beginning to establish credit.
In addition, they offer some of the most flexible terms among all personal loan lenders, allowing for borrowers to get a customized loan and repayment plan that fits their financial situation.
Earnest offers lower-rate, no-fee personal loans with fixed rates that start at 5.49% APR. You can borrow up to $50,000. But the ranges vary for South Carolina ($7,500-$50,000) and New Mexico ($5,000-$50,000.) Read Less

Earnest personal loan details

Fees and penalties

Terms: Earnest loan terms range from 36 to 60 months. APR range: The APR for this loan is 5.49% to 18.24%. Loan amounts: You may borrow between $5,000 and $75,000. Time to funding: Earnest aims to respond to most loan applications within five to 10 business days. Hard pull/soft pull: Earnest performs a hard inquiry on your credit and only shows your rates once you have submitted your loan application, though the company says it’s working on a rate check for personal loan applications. This inquiry will appear on your credit report and will slightly lower your credit score.

Not only are there no fees, if you find yourself in a difficult situation that affects your ability to repay your loan, Earnest will work with you. It offers several ways to help borrowers. Late payments: Earnest extends a seven-day grace period beyond the originally scheduled payment date to all clients. The lender also allows borrowers to adjust their monthly auto-payment date. Unexpected financial changes: Earnest staff are available to immediately discuss borrowers’ situations with them. Death or disability: If the borrower dies or becomes permanently and completely disabled, the executor of of the borrower’s estate can petition Earnest for relief.

Eligibility requirements

• Minimum credit score: Earnest requires a minimum credit score of 660.
• Minimum credit history: The lender looks for those with enough savings to cover two months of expenses, spend less than they earn, do not carry large amounts of credit card debt and have a history of making payments on time.
• Maximum debt-to-income ratio: Though Earnest’s website does not specify a certain debt-to-income ratio, the lender consistently describes its target audience as responsible borrowers who keep their credit levels relatively low.

Earnest personal loans are not available everywhere — residents of Alabama, Delaware, Kentucky, Nevada and Rhode Island are ineligible. You must be 18, a U.S. citizen, long-term permanent resident alien or conditional permanent resident alien or hold certain visas through the life of the loan. Applicants must show that they are paid in U.S. dollars and have a consistent income.

Applying for a personal loan from Earnest

Earnest’s loan application process starts online like many other lenders, but it may require you to submit more information than competitors. The process begins with the borrower selecting a loan amount, terms and reason for applying such as credit card consolidation, debt refinance, or paying for a home improvement, security deposit on a rental property, vacation or honeymoon, wedding, a move or career development. “Other” also is an option.

The borrower must then create an account, providing name, state of residence and email address.

Applicants also will be asked to provide:

• Education and employment information: The application will ask for all of your educational background and work history. Underwriters will use the information to get a picture of your academic and career growth as well as your earning potential to assess how likely you are to pay back your Earnest loan.
• Financial information: You must provide Earnest with read-only access to financial transactions in your bank accounts by linking them to your Earnest profile. Underwriters will look at your balance history and transactions only, not your charges, and will use secure data from your accounts and LinkedIn profile to verify your identity. Earnest doesn’t sell any personal data or ever have access to your usernames or passwords.
• Personal information: Earnest does not operate physical branches where staff could verify an applicant’s identity in person, so applicants are asked to securely upload a government-issued photo ID such as a driver’s license. You also will be required to enter your Social Security number so that Earnest can run a hard pull on your credit.

Earnest communicates through email once you submit your loan application. You may check the status of your loan during the review process by signing in to your Earnest account and clicking on “My Loans” at the top of the page. You may receive an email asking for additional information, and the final decision will be emailed. You can find more details about your loan offer when you sign in to your Earnest account.

You have seven calendar days to accept an offer. Earnest encourages successful applicants to contact the company during this period with any questions or concerns. Earnest will transfer the money to you by the next business day after you accept the offer and provide your bank account information. The funds should appear in your account within one to two days of signing.

Pros and cons of an Earnest personal loan

Pros:

Cons:

Low rates. Earnest has some of the lowest rates on the market, with a maximum APR of 18.24%. Smooth application process: Despite the lengthy application process, Earnest’s reviews praise its ease and helpful customer service. Comprehensive website: Earnest is upfront about its terms, rates and loan requirements, and its website is easy to navigate and provides detailed information about Earnest personal loans.

Extensive application: Earnest has a more involved application process than many other lenders, and it requires documentation of your financial, personal, education, and employment information. Hard pull: Personal loan applicants will not receive their rate until their loan is approved, a process which requires a hard pull on your credit. Responsibility required: Even though Earnest doesn’t base its loan decisions solely on credit scores, borrowers must prove they are financially responsible. Applicants who have struggled to pay bills in the past and whose finances are disorganized likely will not be approved.

Who’s the best fit for an Earnest personal loan?

Earnest personal loans are an excellent option for people in their 20s and 30s who have a college education and are establishing their careers but need to build credit. Unlike most lenders, Earnest will make a decision about their loan application based on their potential and career trajectory rather than just their past. As long as underwriters can determine that an applicant is financially stable, financially responsible and likely to pay back the loan, the applicant likely will be approved.
Borrowers who want a good deal on a versatile loan also should consider Earnest. The lender does not charge any fees, and its APR range is lower than many other lenders. While Earnest personal loans cannot be used to repay student loans or for businesses, they can be used for everything from consolidating debt to new job expenses to relocation.

Alternative personal loan options

Before you sign up, it’s important to research other lenders who offer different terms, stipulations and rates to make sure you get the best loan for your situation. MagnifyMoney’s online tool for comparing personal loans will give you a comprehensive look at your options.

This roundup includes loans that allow you to check rates with a soft pull.

Lending Club

APR

6.16%
To
35.89%

Credit Req.

600

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

LEARN MORE Secured

on LendingTree’s secure website

APR

6.87%
To
35.97%

Credit Req.

620

Minimum Credit Score

Terms

36 or 60

months

Fees

1.00% - 6.00%

LEARN MORE Secured

on LendingTree’s secure website

APR

6.99%
To
24.99%

Credit Req.

Varies

Minimum Credit Score

Terms

36 to 72

months

Fees

No origination fee

LEARN MORE Secured

on LendingTree’s secure website

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