How to Get a Serious Personal Loan to Pay Off High Interest Debt

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Editor’s note: This article describes a product that is no longer available. As of March 12, 2020, Earnest will no longer offer personal loans. If you are looking for a personal loan, turn to Business Insider’s List of Best Personal Loans »

One thing that is certain about adult life is that it is expensive. Paying for rent, insurance, food, transportation, technology, and more add up quickly. That doesn’t include the big things in life like weddings, funerals, moves, and home improvement.

Given the cost of managing everything in your life, let’s face it, sometimes you just need extra cash. You need extra money and maybe you can’t wait to save and need it now. So what to do

A flexible and inexpensive option (compared to credit cards, for example) is take out a personal loan. Unlike student loans for school or a car loan for a car, personal loans can be used for personal reasons.

When you need money for Debt consolidation, Medical bills, starting a small business, moving house, etc., a personal loan can help fill the funding gap. One lender that offers personal loans is earnest.

About Ernst

Earnest is an online lender that works best for its. is known Refinancing product for student loans. But the company also offers personal loans.

Personal loans are unsecured loans which are repaid for a fixed term with fixed monthly installments. Unsecured means that you don’t have any collateral like a house or a car to secure the loan.

As it turns out, Earnest recently revamped its personal loan offerings to make them even more borrower-friendly.

Corresponding the company’s website, “With all of our lessons learned over the past five years and the hundreds of thousands of applications we’ve received, we will refine our personal loans in 2019 to create an even better way of borrowing.”

The company announced lower fixed prices from 5.99% APR and said it had streamlined the application process as well as the time to make a decision.

Interest, fees, etc.

Earnest offers competitive rates compared to other online lenders. Earnest’s fixed rates for personal loans start at 5.99% APR, and the highest interest rate is 17.24% APR.

Compare that to Avant, which has an APR of 9.95% to 35.99% on personal loans and has an administration fee of up to 4.75%.

The interest rate that you will be approved on an Earnest Personal Loan depends on your credit and your repayment deadline.

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From the graph above, you can see that the lowest interest rate on a hypothetical $ 10,000 loan is reserved for the shortest repayment period of three years. The highest interest rate, on the other hand, applies to the longest term of five years.

Your interest rate affects the total cost of the loan. So if you can get a low interest rate and be able to pay off your debt in a few years, you can see significant cost savings.

There are no fees associated with Earnest personal loans and you can borrow anywhere from $ 5,000 to $ 75,000. Compare that to Avant, which allows borrowers to obtain loans between $ 2,000 and $ 35,000.

If you need more cash, earnest is a great option. On the other hand, if you don’t need that much, Avant might be a better option – Earnest requires borrowers to borrow at least $ 5,000.

Advantages and disadvantages

Before you apply for a personal loan at Earnest, you should first weigh the pros and cons. As mentioned above, Earnest offers lower interest rates than some of its peers in the personal loan market. But what really sets it apart is that it has more than just reviews Your FICO credit score, unlike most lenders.

Earnest takes a broader approach and reviews things like your education, your savings, and your earnings potential. That way, they look at you as a whole, rather than just a three-digit number that is meant to inform your entire financial history. Earnest has a fuller picture of your financial life and history and can offer you the best price for your situation.

Also, according to the Earnest website, you will get a decision within five to ten days. After accepting the loan terms, you will receive the money within one to two working days.

In addition, Earnest claims that you always have access to someone when you need help. If you’ve ever searched for a phone number on a website or urgently needed help from someone guiding you through a problem, this is a perk.

One of the downsides to Earnest is that there is a $ 5,000 minimum. So if all you need is $ 2,000 to fix your car, this is a no-go.

Even if you need the money really quickly, the five to ten day turnaround time can be tricky. For example, Wells Fargo says Depending on certain factors, you can have a personal loan decision in a matter of minutes.

How to apply for an Earnest personal loan

If you go to … the earnest website, you will receive an offer with just a few clicks in two minutes.

You will then need to enter some personal information such as your full name, address, annual income and your social security number.

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After that, you can see the plan that you have been approved for. Once this has been approved and you think the interest rate is competitive, you can proceed with your Earnest personal loan application.

According to Fine print on the Earnest website“When you apply for a loan, we ask for your name, address, date of birth, and other information that enables us to identify you. We may also ask to see your driver’s license or other identification.”

Once you’ve received a decision within five to ten days, you should expect your money within a day or two. If you have the funds, you can use them for debt consolidation, home improvement, car repairs, etc. at will.

After that, you’ll want to manage your monthly payments based on your repayment deadline. You want to repay your personal loan and keep your loan in good shape.

A personal loan can help you get the money you need, but it can also be a slippery slope that leads to even more debt. Make sure that taking out a personal loan makes sense for your financial situation and that all other options have been exhausted before taking out a personal loan.

About Gloria Skelton

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