Earnest Personal Loan Review

Eligibility requirements

• Minimum credit score: Earnest requires a minimum credit score of 680.
• 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.

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.

LendingClub, established in 2007, works with borrowers with credit scores as low as 600, though their minimum credit requirements are not specified on their website, which is lower than Earnest’s minimum credit score of 680 though APR rates are as high as 35.99%. Unlike Earnest however, LendingClub will conduct a Soft Pull of your credit; it will not affect your credit score and will allow you to get rates and terms before deciding to apply.

Like LendingClub, Upgrade is an online lender available to those with fair credit that also offers a Soft Pull. A LendingClub loan may be a quicker turnaround than Earnest — once your application is approved, the money will be transferred to your bank account within four business days.

This relatively new line of personal loans was launched by Goldman Sachs Bank USA. The lender offers no-fee personal loans, which sets it apart from others in this list, but its APR rates are somewhat higher than Earnest’s. Marcus will conduct a Soft Pull on your credit to generate rates and offers borrowers the option to defer one payment without accruing extra interest or fees. More than 80% of borrowers last year had a credit score of at least 660, according to Goldman Sachs’ most recent annual report.