Upstart Personal Loans 2020 Review – Latest Update

When you’re shopping for the best personal loans, it’s important to consider all of the features that affect your total loan cost. These include interest rates, fees, and repayment timeline.

Here are a few of the key things you need to know about Upstart personal loans:

• You can borrow between $1,000 and $50,000.
• APRs range from 4.73% to 35.99%.
• Interest rates are fixed, so your rate and payment don’t change over the life of the loan.
• You’ll have a choice of a three-year or five-year repayment term.
• You can get a loan from Upstart as quickly as one day.
• There’s no prepayment penalty, so you can repay the loan early without incurring fees.
• You may only need a FICO® Score in the low 600s for an Upstart loan, depending on your income and other debts. Upstart also considers your career and educational history and is willing to provide loans to borrowers who are still working on building credit.
• Upstart charges an origination fee between 0% and 8% of the borrowed amount.

How to qualify

There are three major criteria you need to meet in order to qualify for a personal loan through Upstart:

• Credit score: If you don’t have enough information in your credit history to generate a credit score in the first place, you might still be eligible. However, if you do have a credit score, eligibility requirements include a credit score of at least 580 (in most states).
• Employment: You’ll need a regular source of income or be able to demonstrate that you have a job offer starting within the next 6 months.
• Residency: You need to be a U.S. citizen or U.S. resident, and you can’t live in West Virginia or Iowa (where loans on Upstart aren’t available).

Loan amounts and interest rates

If you’re a go-getter with a thin credit file or less-than-perfect credit looking to borrow between $1,000 and $50,000, Upstart could be a good option for you. But if you need to borrow more than $50,000, there are some lenders who offer personal loans up to $100,000.

If you have thin credit or less-than-perfect credit, you can expect to pay relatively high rates. Upstart reports that the average APR on a three-year loan offered through its platform is 21%.

Fees

Like many lenders who offer personal loans, Upstart charges an origination fee of anywhere from 0% to 8% of the loan balance, depending on your credit report and state of residence, and other fees. Fees charged by any lender will be reflected in your annual percentage rate (APR).

The good news is that Upstart does not charge prepayment penalties. So if you want to repay your entire loan balance ahead of time, you won’t have to pay any extra fees.

Fast loan approval

Once you accept your loan, Upstart says it can put the money right in your bank account as soon as the next business day after approval³.

Repayment

You can make your monthly payments electronically, either by authorizing automatic withdrawals from a bank account or by making electronic payments manually. You can also send checks by mail.

Upstart Personal Loans Pros & Cons

Pros

• No prepayment penalty
• Considers your education, area of study, and job history for loan approval
• Quick and easy application process
• Upstart may accept applicants with fair credit or even those with no credit history.
• Loans as low as $1,000 are available.
• The lender offers a credit dashboard to see the impact of loan repayments.

Cons

• No borrowing terms greater than 5 years
• Origination fee applies
• Potential for a high interest rate
• Upstart charges an origination fee of up to 8% on some loans.
• Loans are not available to Iowa or West Virginia residents.
• Co-signers are not accepted.

How to Apply for a Personal Loan from Upstart

Before you apply for an Upstart personal loan, it’s helpful to know their minimum qualification requirements. To receive a loan, you’ll need to:

• Have a permanent street address in the U.S. (unless you’re active duty military)
• Live in a state other than West Virginia or Iowa
• Be at least 18 years old in most states or at last 19 in Alabama and Nebraska
• Have a valid email account, name, date of birth, and Social Security number
• Have verifiable employment or a full-time job offer that starts in six months or less
• You must have a valid U.S. bank account
• Have a credit score of 620

Applying for a personal loan from Upstart is easy thanks to their convenient online portal. It all starts with getting “pre-qualified for a loan” through their interface, which you can do after submitting information such as your name, income, employment details, address, phone number, and email address.

Once you’re pre-qualified, you can decide whether you like the loan terms you were offered. If you do, you can move forward by completing the application with your Social Security number. If you’re approved for a personal loan, you may receive instant notification verifying your new loan details. You may also have your loan funded with an automatic deposit in your bank account as soon as the next business day.