Earnest Personal Loans Review
What we like:
Unique underwriting process
| Rates (APR) | 6.99% – 18.24% |
| Loan Terms | 3 – 5 years |
| Loan Amounts | $5,000 – $75,000 |
| Fees | Origination fee: None Prepayment penalty: None Late fee: None |
Earnest was founded in the recent year of 2013 out of San Francisco as a technologically-oriented lending platform. Being a tech-lender, it sets itself apart from traditional lenders by utilizing a specially designed algorithm for the underwriting process. It is with this system that Earnest determines eligibility, rates, and terms for all of its services such as student loan refinancing, tech-academy loans, and personal loans.
Earnest offers unique products due to its special approach to the lending market. This approach reflects on all of its services, and it defines the customer experience with an Earnest loan. With that being said, Earnest offers personal loans for a number of different reasons at low interest rates and flexible payment options.
Earnest’s Personal Loan Offerings
Personal loans have gained a reputation for versatility and flexibility in their purpose. In other words, they can be used for almost anything. Earnest does not break this trend. Here is a list of all the different loan offers from Earnest:
Personal loans have gained a reputation for versatility and flexibility in their purpose. In other words, they can be used for almost anything. Earnest does not break this trend. Here is a list of all the different loan offers from Earnest:
- Debt Consolidation
- Relocation Expenses
- Vacation Expenses
- Security Deposit
- Wedding Expenses
- Home Improvement Expenses
- Career Development
- Other
While there are several common reasons listed, the range of eligible reasons for a personal loan is actually quite large due to the “Other” reason. It is clearly seen that an Earnest loan can apply to almost anything.
Loan Amounts
Earnest offers personal loans numbering between a $5,000 minimum and a $75,000 maximum. This is a standard range that is commonly found among many online personal loan lenders.
Rates and Repayment Terms
There are several different fixed annual percentage rates (APR) that are possible with an Earnest personal loan. Each payment plan is accompanied by a range of possible APRs, and there are a total of three different payment plan options: 3 years, 4 years, and 5 years.
A 3 year payment plan is accompanied by an APR range of 6.99% to 14.24%. A 4 year payment option comes with an APR range of 7.49% to 16.24%. The final 5 year plan pairs with an APR range of 8.24% to 18.24%. Keep in mind that these rates are all fixed, and these options define an overall APR range of 6.99% to 18.24%.
Fees
Earnest personal loans do not come with any origination fee, and there is no chance of a prepayment penalty for paying the loan off early.
Benefits
One of the best benefits of choosing Earnest for a personal loan is the underwriting process. Most personal loan lenders purely look at credit history to determine APR and loan approval. Like SoFi, Earnest is one of the companies that breaks this trend by analyzing credit history, savings habits, and earning potential. These help Earnest provide a tailored loan to one’s payment capabilities.
Since Earnest is a tech-lending platform, it is no surprise that it provides a mobile app to its borrowers and customers. This mobile app makes it easy for borrowers to stay on top of their monthly payments, and it lets them keep track of interest and the remaining principal balance on a personal loan.
Another definite positive of borrowing from Earnest is the speed of delivery. The funds for a personal loan are available within two business days of an approved application. This is extremely helpful to anyone who happens to find themselves in a pinch for cash.
Final Thoughts
Earnest is a reliable and useful source for personal loans. It follows the new tech trends that are beginning to define the lending marketplace. It has a quick and easy online application that can be finished within minutes, an updated underwriting system, and an instant notification of approval. These have all become standard for many online tech-oriented lending platforms, and Earnest does not fall short among its competition.
In addition to its adherence to online quality, Earnest is up to speed for annual percentage rates and loan offers. Its range of loan offers is right on the average, and its possible APRs are lower than some of the big name lenders.
The only limitation would be the payment plans which are three years or less, so an Earnest personal loan is most definitely a short term loan. This may not be such a bad thing for some borrowers, but those without the capability to pay a loan in that short time are screened out by this payment plan package.
