About lender
Earnest is an online lender focusing on student loans. The company offers student loan refinancing, a private student loan product, loans, and credit cards. There is also an option to take a personal loan.
Earnest is a financial technology company based in San Francisco, California, that provides personalized lending solutions to individuals. Founded in 2013, the company was created with the aim of revolutionizing the lending industry by offering transparent and affordable loans to people who may not have access to traditional banking systems.
One of the key features of Earnest is its unique underwriting process, which involves analyzing a borrower's financial habits, employment, credit history and education to determine their creditworthiness. This approach enables the company to offer loans at lower interest rates than traditional lenders, as they can identify borrowers who are likely to repay their loans on time.
Earnest offers a range of loans, including student loans, personal loans, and home loans. Their student loan refinancing program is particularly popular, as it allows borrowers to refinance their existing student loans at a lower interest rate, potentially saving them thousands of dollars over the life of the loan. Earnest's personal loans are also popular for people looking to consolidate debt or finance a major purchase, as they have competitive rates and flexible repayment terms.
In addition to their lending services, Earnest also provides a range of financial tools and resources to help borrowers manage their money more effectively. These include budgeting tools, debt calculators, and educational resources on topics such as investing and saving for retirement.
Overall, Earnest has quickly established itself as a leading player in the fintech industry thanks to its innovative approach to lending and commitment to providing affordable, transparent loans to people who traditional lenders may have overlooked.
Key features
Here are some of the key features of Earnest:
- Personalized underwriting. Earnest uses a unique underwriting process that takes into account a borrower's financial habits, employment history, and education, allowing them to offer personalized loan options to each applicant.
- Low-interest rates. By using their personalized underwriting process, Earnest can offer loans at lower interest rates than traditional lenders.
- Flexible repayment options. Earnest offers flexible repayment terms that allow borrowers to choose their preferred payment frequency and loan term.
- No hidden fees. Earnest loans come with no origination fees, prepayment penalties, or hidden fees, making them transparent and easy to understand.
- Quick and easy application process. The application process for an Earnest loan is fast and easy, with most applicants receiving a decision within minutes.
- Variety of loan options. Earnest offers a range of loan options, including student loan refinancing, personal loans, and home loans.
- Financial tools and resources. Earnest provides borrowers with a variety of financial tools and resources to help them manage their money, including budgeting tools and educational resources.
- Exceptional customer service. Earnest is known for its exceptional customer service, with a team of experts available to assist borrowers throughout the lending process.
Overall, Earnest stands out as a lender that prioritizes transparency, affordability, and personalized service. Their commitment to using technology to provide innovative lending solutions has earned them a loyal following among borrowers looking for an alternative to traditional lenders.
Pros and cons
Pros
- You can customize Earnest student loans by choosing suitable payments and loan terms.
- There is an option of a skipped payment once in 12 months.
- You can pre-qualify for an Earnest student loan. It won't hurt your credit score.
- A nine-month grace period on all loans.
- The minimum credit score required is 580.
- Earnest doesn't charge any fees.
Cons
- No co-signer release. To release your co-signer, you can only refinance.
- Private student loans aren't available for Kentucky and Nevada residents.
- You need to enroll full-time to be eligible for Earnest private student loans.
Products
Earnest offers a variety of loan products that are designed to help borrowers manage their finances more effectively. Here are two of their most popular products:
- Student loan refinance. Earnest's student loan refinancing program allows borrowers to refinance their existing federal and private student loans at a lower interest rate. This can help borrowers save money on interest over the life of the loan and simplify their loan repayment process by combining multiple loans into a single, easy-to-manage payment. Earnest's refinancing program offers competitive rates and flexible repayment terms, allowing borrowers to customize their loans to fit their unique needs.
- Private student loans. In addition to refinancing existing student loans, Earnest also offers private student loans to students who need to borrow money to cover the cost of tuition and other education-related expenses. Earnest's private student loans offer competitive interest rates, flexible repayment terms, and no fees.
- Personal loans. Earnest also offers personal loans that can be used for a variety of purposes, such as debt consolidation, home improvements, or unexpected expenses. These loans offer competitive interest rates and flexible repayment terms.
- Home loans. Earnest provides home loans for individuals who are looking to purchase or refinance a home. These loans offer competitive rates and a streamlined application process.
- Financial tools and resources. In addition to their loan products, Earnest offers a variety of financial tools and resources designed to help borrowers manage their finances more effectively. These include budgeting tools, debt calculators, and educational resources on topics such as investing and saving for retirement.
Overall, Earnest offers a range of lending products and tools that are designed to help individuals achieve their financial goals. By using technology to provide personalized lending solutions and educational resources, Earnest has established itself as a leader in the fintech industry.
Reliability
Earnest has established itself as a reliable and trustworthy lender in the fintech industry. Here are some that contribute to the reliability of Earnest:
- Strong financial backing. Earnest is backed by reputable investors such as Andreessen Horowitz and Battery Ventures, which indicates confidence in the company's business model and financial stability.
- Secure platform. Earnest's platform is secure and encrypted, which ensures the safety of borrowers' personal and financial information.
- Transparent lending practices. Earnest is known for its transparent lending practices, which include no hidden fees, clear loan terms, and competitive interest rates.
- Excellent customer service. Earnest has a team of experts available to assist borrowers throughout the lending process, providing exceptional customer service.
- Positive customer feedback. Earnest has received positive reviews from customers, who praise the company for its personalized approach to lending and flexible repayment options.
- Regulatory compliance. Earnest is licensed as a lender in all states where it operates and complies with all relevant regulations.
Overall, the combination of strong financial backing, a secure platform, transparent lending practices, excellent customer service, positive customer feedback, and regulatory compliance make Earnest a reliable and trustworthy lender in the fintech industry.
Funding a loan
Earnest checks your eligibility almost instantly, and it takes just a few minutes. Once you receive a favorable decision on your application, you can sign the loan agreement.
Earnest issues loans directly to the schools. It needs to contact your school to verify your information and disburse funds. This process can take a long, up to a month.
You can take a credit card to receive funds from Earnest. You can then make a payment towards your student loan refinancing or personal loans with the cash back or redeem a card for a statement credit. As for cash back, you can earn 3% and 2% depending on your highest-spend categories. The combined sum of cash back should not exceed $500. Any other purchases will earn you 1% cash back.
Then, if you want to redeem the accumulated sum, select the option of whether to receive a statement credit or make payments towards your loan. You can change this choice every month.
Conditions
The company can pre-qualify with a soft credit check for private student loans and refinancing. You can get to know the exact terms you can qualify for with Earnest.
Loan amounts available for student loan refinancing range from $5,000 to $500,000. You can get terms from 5 to 20 years and choose a suitable loan repayment term yourself.
Loan terms for Earnest private student loans are 5, 7, 10, 12, and 15 for co-signer loans. For other borrowers, the terms are 5 and 7 years. The loan amounts for undergraduate and graduate students range according to the school's cost and start at $1,000.
Interest rates for private student loans change according to the market. Nowadays, you can qualify for rates from 3% to 13% for fixed and from 1% to 12% for variable interest rates. You will need to check the Earnest website to find the current rates for student loans.
There are no fees if you apply for an Earnest student loan. You won't pay late fees if you miss a due payment date. However, be ready to contribute $8 as a returned payment fee.
Earnest offers flexible repayment terms that allow borrowers to make loan payments that best fit their financial situation. Here are some details about Earnest's repayment terms:
- Loan terms. Earnest's loan terms range from 5 to 20 years, depending on the type of loan and the borrower's creditworthiness.
- Interest rates. Earnest offers fixed and variable interest rates, which are determined based on factors such as the borrower's credit history, income, and employment status.
- Loan payment frequency. Borrowers can choose to make monthly, biweekly, or semi-monthly payments, depending on their preference.
- No prepayment penalties. Earnest does not charge prepayment penalties, which means borrowers can pay off their loans early without incurring additional fees.
- Grace period. Earnest offers a grace period of up to 9 months for student loan refinancing, during which borrowers can defer payments while they are still in school or during a period of economic hardship.
- Repayment assistance. Earnest offers repayment assistance programs, such as forbearance and deferment, to borrowers who experience financial hardship or other circumstances preventing them from making payments.
- In addition, you may extend the final payoff date, depending on your program eligibility.
Overall, Earnest's flexible repayment terms are designed to help borrowers manage their loans more effectively by offering a range of payment options and repayment assistance programs. By allowing borrowers to customize their loan terms, Earnest helps them achieve their financial goals while minimizing financial stress.
Additional services
In addition to its lending products, Earnest offers a range of additional services to help individuals manage their finances more effectively. Here are some of the additional services offered by Earnest:
- Budgeting tools. Earnest offers budgeting tools that help borrowers track their income and expenses, create a budget, and identify areas where they can save money.
- Debt calculators. Earnest provides debt calculators that help borrowers estimate their average monthly payment and interest costs for various loan options, such as student loan refinancing and personal loans.
- Job search assistance. Earnest offers job search assistance to borrowers struggling to find employment or advance their careers.
Overall, these additional services demonstrate Earnest's commitment to helping individuals achieve their financial goals beyond simply offering lending products. By providing borrowers with resources and support, Earnest helps individuals make informed decisions about their finances and achieve long-term financial success.
Earnest vs. Sallie Mae
Earnest and Sallie Mae are both lenders that offer student loan refinancing and private student loans, but there are several key differences between the two companies:
- Underwriting process. Earnest uses a personalized underwriting process that takes into account factors such as employment history and education level, while Sallie Mae primarily looks at credit score and income.
- Interest rates. Earnest offers both fixed and variable interest rates that are competitive with other lenders, while Sallie Mae also offers both types of loans.
- Repayment terms. Earnest offers flexible repayment terms that allow borrowers to customize their payment frequency and loan term, while Sallie Mae has more limited repayment options.
- Fees. Earnest does not charge any fees for its student loan refinancing or personal loan products, while Sallie Mae charges origination fees and prepayment penalties on some of its loans.
- Customer service. Earnest is known for its exceptional customer service, with a team of experts available to assist borrowers throughout the lending process. Sallie Mae's customer service has received mixed reviews.
Earnest is known for its personalized underwriting process, flexible repayment options, and excellent customer service. At the same time, Sallie Mae offers more traditional student loan products with fixed interest rates and limited repayment options. Ultimately, borrowers should carefully consider the differences between these two lenders and choose the one that best fits their unique needs and financial situation.
Earnest vs. SoFi
Earnest and SoFi are both fintech lenders that offer a range of lending and financial products, but there are several key differences between the two companies:
- Underwriting process. Earnest uses a personalized underwriting process that takes into account a borrower's financial habits, education, and employment history, while SoFi primarily looks at credit score and income.
- Interest rates. Earnest offers both fixed and variable interest rates that are competitive with other lenders, while SoFi offers variable interest rates that can be lower than other lenders.
- Repayment terms. Earnest offers flexible repayment terms that allow borrowers to customize their payment frequency and loan terms. In contrast, SoFi offers longer loan terms and some unique repayment options, such as career coaching and unemployment protection.
- Loan products. While both Earnest and SoFi offer student loan refinancing and personal loans, SoFi also offers mortgages, investment accounts, and insurance products. Earnest offers personal loans in addition to student loans.
Earnest is known for its personalized underwriting process, flexible repayment options, and transparency. At the same time, SoFi offers longer loan terms, a wider range of products, and unique benefits such as career coaching and unemployment protection. Ultimately, borrowers should carefully consider the differences between these two lenders and choose the one that best fits their unique needs and financial situation.
Earnest vs. College Ave
Earnest and College Ave are both lenders that specialize in student loans and personal loans, but there are several key differences between the two companies:
- Underwriting process. Earnest uses a personalized underwriting process that takes into account a borrower's financial habits, education, and employment history, while College Ave primarily looks at credit score and income.
- Interest rates. Earnest offers both fixed and variable interest rates that are competitive with other lenders, while College Ave offers fixed interest rates that can be relatively high and also variable rates.
- Repayment terms. Earnest offers flexible repayment terms that allow borrowers to customize their payment frequency and loan term, while College Ave has more limited repayment options.
- Loan products. While both Earnest and College Ave offer student loans and personal loans, College Ave also offers student loan refinancing, parent loans, and graduate student loans. Earnest also offers personal loans.
- Customer service. Earnest is known for its exceptional customer service, with a team of experts available to assist borrowers throughout the lending process, while College Ave's customer service has received mixed reviews.
Earnest is known for its personalized underwriting process, flexible repayment options, and excellent customer service. At the same time, College Ave offers a wider range of loan products and focuses more on student loans specifically. Ultimately, borrowers should carefully consider the differences between these two lenders and choose the one that best fits their unique needs and financial situation.