At Earnest, we believe in your potential and are here to support your journey. Your education, career trajectory, and financial habits all tell a story, which is why we’ve built lending products that are as flexible and forward-thinking as you are. While your Earnest Personal Loan comes with a fixed interest rate that will never increase during your repayment term, our Rate Drop Reward gives you the opportunity to actively reduce your interest rate as you build positive financial momentum and pay down your balance.
What Is the Rate Drop Reward?
The Rate Drop Reward lets eligible borrowers reduce their fixed interest rate by up to 0.75% over the life of their loan - stacking on top of our 0.25% Auto Pay discount for even greater savings. As long as your account remains in good standing, you can automatically earn a 0.25% rate reduction at each of these three repayment milestones:
- 25% Principal Paid: After paying down 25% of your principal and completing 12 consecutive on-time monthly payments in full.
- 50% Principal Paid: After paying down 50% of your principal while maintaining your on-time payment history.
- 75% Principal Paid: After paying down 75% of your principal while maintaining your on-time payment history.
Discounts are applied automatically once the criteria are met and your loan remains in good standing. Once applied, future interest accrues at your new, lower rate, helping you save on finance charges and direct more of every payment toward your remaining balance.
To keep your rate reductions active and qualify for upcoming milestones, your account must remain in good standing with on-time payments:
- Late Payments: A late payment resets the count of consecutive on-time monthly payments required for an interest rate reduction, requiring 12 consecutive on-time monthly payments after the late payment before you can qualify again.
- Additional Payments: You can pay more than your monthly amount due at any time with zero penalties or fees, helping you reduce your balance and reach your 25%, 50%, and 75% milestones faster
If you have questions about your loan terms or want to check your current progress, sign in to your Earnest account or reach out to our Client Happiness Team by clicking the "Get In Touch" button below.