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Update: Earnest no longer offers personal loans. See the best personal loan lenders here.
Earnest offers low-cost personal loans for debt consolidation and important life expenses to financially responsible applicants with promising professional futures. The online lender collects and analyzes thousands of data points, not just credit score and history, to assess risk and offer low rates, even to those with short credit histories.
Launched in 2014, Earnest offers loans with fixed rates as low as 5.99% for loan amounts ranging from $5,000 to $75,000.
Not just a lender, Earnest prides itself in building long-term relationships with their borrowers by ensuring customer satisfaction with their specialized Client Happiness team.
Like what you’re reading so far? Find out the good, the bad, and my breakdown of Earnest personal loans below.
Borrower Averages
| Credit Score | Above 720 |
| Credit History | Short |
| Annual Income | $114,000 |
Borrowers are evaluated beyond credit scores and include saving habits, education and earning potential. Earnest likes to see that you have enough savings to cover at least 2 months of normal expenses, you spend less than you earn, you have increasing bank account balances, you do not carry large amounts of credit card and personal loan debt, you have a history of making payments on-time and you are not regularly charged late, overdraft or NSF (Non-Sufficient Funds) fees.
The Good
- No collateral required. Don’t own a house? It’s not going to be an issue here.
- Simple application process. Just head over to Earnest’s website and apply online.
- No origination fee. There’s no “middleman” fee, so you’ll receive the full amount of your loan.
- Flexible fund use. A personal loan through Earnest can be used for refinancing high-interest credit card debt, buying an engagement ring, renovations, weddings, and more.
- Competitive fixed rate. With excellent credit, your APR could be as low as 5.99%, and that won’t budge for the entire duration of your loan term.
- Low fees. There are no prepayment, late or check processing fees. There is an NSF fee of $8, but that’s lower than the industry standard of $15.
- Client Happiness team. Personal customer care that will handle any service questions or issues for the life of your loan.
- Earnest app. Manage your loan and make payments directly from your smartphone. You have full access to your dashboard and can even adjust your payments or make additional payments.
The Bad
- High standards. Earnest likes creditworthy borrowers, so you must have a decent credit score, high income and projected credit potential in order to get your loan approved.
- Not available in all states. You can’t apply for an Earnest personal loan if you live in Alabama, Delaware, Kentucky, Nevada or Rhode Island.
- Funding time. Earnest has unique underwriting standards, which takes time. It will be at least a few business days before you receive your funds.
- Online only. Earnest does not have any brick-and-mortar branches to make payments or ask questions in person.
Eligibility Requirements
All applicants must have a minimum credit score of 680 and must not have declared bankruptcy in the last 3 years nor have any open collections accounts. There is no minimum annual income requirement and no debt-to-income ratio requirement.
Earnest Rates, Terms & Fees
| Loan Amounts | $5,000 – $75,000 |
| Loan Terms | 3 to 5 years |
| Repayment Options | Monthly |
| Origination Fee | None |
| Time To Funding | Within a week |
| Repayments | Monthly payments over 3 to 5 year terms |
| APR | 5.99-17.24% |
| Prepayment | None |
| Late Payment | None |
| NSF Payment | $8 |
| Check Processing | None |
The Breakdown
Applying to Earnest for a personal loan is quick and easy, with no collateral required. There are no origination, prepayment, check processing or late fees, and the insufficient funds fee is almost half of what their competition charges. If you’re creditworthy, Earnest rates can be as low as 5.99%. After you receive your loan, things should be smooth sailing with the high-tech Earnest app and the help of their Client Happiness team.
Sample Loan
| Loan Size | $30,000 |
| Loan Term | 48 months |
| APR | 10.0% |
| Total Interest | $6,522.12 |
| Monthly Payments | $760.88 |
To qualify for Earnest’s low end of rates, you must have a decent credit score, high income and projected credit worth. Otherwise, you could pay as high as 17.24% APR. Funding takes about a few business days. Unfortunately, personal loans at Earnest are not available in Alabama, Delaware, Kentucky, Nevada or Rhode Island, and there are no brick and mortar branches.
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