(NECN) – If you need a loan, you probably know the drill: The lender checks your credit and tells you if you’re approved.
But what happens when you’re just starting out and you don’t have much of a credit history? That’s where a new borrowing option comes in.
Louis Beryl, CEO and co-founder of “Earnest,” is taking a different approach to lending.
“We do $1,000-$10,000 loans at 6 percent interest rate for one year, and what we do is we really try to understand people better,” he says.
Beryl says the company is hoping to attract people with jobs and dreams with a focus on those who are making transitions in their lives.
“At the end of the day, we believe that … the purpose of a bank is to help people realize their hopes and dreams, and so what we want to do is really take the time to understand people, go beyond that typical credit score and lend to them at lower rates,” he said.