Earnest is a new and unique type of lender that uses data-intensive modern technology to predict financial reliability. The lender is merit based instead of credit based and therefore has one of the largest credit boxes in the market. Earnest's goal is to use data points to predict the client's future and not focus on the client's financial past.
Earnest may request more financial information, specifically about assets, which the lender says helps borrowers to get a better rate that's more individually customized. However, some may find the application and analysis process to be too invasive.
Read on for more information, as well as verified Earnest reviews.
This company is merit based rather than based. This is extremely useful for students just coming out of school who have little to no . When prospective borrowers apply for , Earnest analyzes them on thousands of data points to understand their financial behavior. This process helps Earnest to predict future financial strength and reliability. The company requires a minimum FICO of 650 and does not require a minimum income amount, and borrowers need only $5,000 in to qualify.
Customers love the unique flexibility Earnest offers. can set their own monthly payments and change between fixed and variable rates without any fees when . They also have the ability to skip payments in some cases. For example, if borrowers pay six months of on-time payments, they can every 12 months. This could be helpful when unexpected life events happen. The skipped 's principal and interest is then spread out across the other monthly payments.
Earnest has lower than average rates in the industry. Not only that, but the company is also very transparent and does not require origination, application, or prepayment fees. Earnest provides customers with the option to consolidate their private and federal loans into one payment. Borrowers can reduce their rates even more by signing up for bi-weekly payments and also for auto payments (reduces the rate by 0.25%).
Because the Earnest application process investigates several aspects of an applicant's financial outlook, it can offer more customized repayment terms than many other competitors. Student loan borrowers may find their terms to be more positively reflective of their circumstances than what another private lender could offer them.
The company conveniently offers a grace period option. Borrowers simply need to provide Earnest with grace period documentation from their previous servicer, and Earnest will match that period up to six months.
Earnest's customer service is a standout. The company is upfront about promising not to pass borrowers off to third-party clients, and representatives will assist borrowers every step of the way. Additionally, the company employs a Client Happiness team that is eager to answer all questions and solve any issues.
The company provides loan refinancing in 47 states. Check your availability with Earnest.
Applicants must be employed or have a written job offer in order to be eligible for student loan refinancing.
While the website provides the lowest available rate information for fixed and variable interest rates, it does not provide any additional information. Many of Earnest's competitors in the industry include the average variable and fixed interest rates for each of the offered terms directly on the websites.
However, Earnest's application process is fast, and you can usually get a rate with more specific qualifications within two minutes from the website.
Since Earnest is merit based and does not rely solely on credit, the application process is very thorough and in depth, or in some borrowers' opinions, invasive. Many other companies in the industry do not require personal information beyond your name and address. To confirm financial reliability, Earnest researches prospective borrower's bank account, education history, employment and salary information, and more.
The evaluation process looks at financial habits and analyzes all transactions. While the company used to require access to a potential customer's LinkedIn account, it no longer asks for this. Borrowers have the ability to connect their LinkedIn account to input information faster. Earnest does emphasize the fact that client privacy is a priority. The company will not disclose any personal information.