A human touch

Since starting Doorsteps, one of our core principles has been to make the homebuying process human.

To us, that means talking to people in a tone that inspires trust and treating them the way we expect to be treated. We recently heard about Earnest, a company that has a very similar approach and we wanted to learn more.

Earnest is a new financial services company that offers “merit-based loans to financially responsible people”. Basically, they make lending decisions based on an applicant’s future earning potential, not just their past.

Inspired by an expensive relocation to New York City after graduating from college, CEO Louis Beryl started Earnest because he felt like the traditional lending process was cold, impersonal and failed to consider factors proving his ability to be a good borrower.

Most credit and lending decisions are usually tied to just a few basic financial metrics, focusing mainly on a credit report, which paints an incomplete picture of someone’s financial history. If you have low credit scores, rejections are doled out in a matter of seconds, in the form of an automated response, with no chance of an appeal.

But what about all of those considerations that aren’t recorded in a credit report? Rarely do lenders take into account an applicant’s unreported payment history, like rent payments, or recent educational achievements, like graduating law school. Beryl believed that these things matter just as much as a credit score.

So how exactly does Earnest approach the lending process differently from the rest?

1. An application process written in plain-English.

Take a look at the Earnest FAQ page. Notice that questions are presented exactly the way that someone might actually ask them. “How soon can I expect to receive the loan?” or “What if I cannot make my payments on time?” Some companies might hide policies and disclaimers in small text on the bottom of a page, but Earnest surfaces them front and center.

By avoiding confusing industry jargon, they’re able to connect with customers in a way that inspires trust.

2. Real life stories from users.

Sharing a story about a customer who used Earnest to successfully pay off a loan is a great way to make potential customers feel like this is something they could actually accomplish too. They highlight Bruce, a recent college graduate looking for a way to pay off some of his outstanding bills as he started a new career. Most traditional lenders would have flagged the application as high-risk and either completely denied it or charged him an outrageous interest rate.

Earnest was willing to consider his application more holistically and ended up offering him a favorable rate and terms which he paid off in under a month.

3. Simplifying through technology.

Technology might not always make things more human or relatable, but there are some instances in which it’s entirely the case. The loan calculator on the Earnest homepage might seem really simple at first glance. But compare it to calculators on other financial websites, it’s more fun to use and easier to understand.

By creating a delightful way for users to interact with their website and explore their product, Earnest demonstrates how technology can actually make an industry more human rather than less.

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When companies spend more time focusing on helping users do exactly what they want to do with clear language and user-friendly technology, everyone benefits. Earnest does a great job making a complex process much more approachable. And that’s something we can get behind.

- The Doorsteps Team

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