January 31, 2015 0 Comments
Is Earnest the future of credit? In the U.S., student loan debt has amounted to a staggering $1.3 trillion––and those numbers are increasing every year with the rising cost of higher education. One startup aims to help today’s generation of college students efficiently manage their debt. Earnest is a San Franciso-based personal lender company that uses data points to give credit to people with little or no credit history. Data points are determined using Earnest’s sophisticated data software and a unique underwriting platform to develop a thorough understanding of a borrower’s financial profile. Unlike traditional lenders, Earnest offers merit-based loans instead of credit-based loans. This means Earnest will consider factors like education history, professional history and overall financial responsibility to determine the a borrower’s credit worthiness. Based on the borrower’s data, Earnest’s underwriting team will assess the borrower’s future and predict what his or her finances will look like down the road. By utilizing thousands of data points not used in a traditional credit check, Earnest is able to offer lower rates and more flexible terms for its borrowers. On the whole, Earnest’s goal is to lend to financially responsible people and by doing so, help these people achieve their dreams.
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