Imagine being able to apply for a personal loan using your schooling and future career prospects as qualifications. You can’t normally do that, because most borrowers rely heavily on credit scores and revenue. With Upstart, an online lender that uses a unique method of valuing creditworthiness, you can improve your chances of getting approved.
It provides personal loans for a variety of reasons that the customers can use. Whether you’re looking to consolidate other loans, pay an unexpected bill or meet another fee, Upstart’s personal loan can provide you with the cash you need.
Read more about the lending practices of the business in this study, and how it can help you fulfill your financial needs.
Upstart is a unique online lender which former Google executives founded in 2012. The company is moving into the extra mile as the first lending platform to use artificial intelligence to simplify the lending process and offer loans to a broader consumer base. Since its inception, Upstart has funded $3.2 billion in loans, 60% of which have been automated.
Where most lenders rely on your FICO score when they accept you for a personal loan, Upstart uses its advanced technology to measure risk by looking beyond your credit score. Upstart believes that, based on their projections, lenders using a more intuitive credit model would consider twice as many borrowers without by default.
On the consumer side, Upstart has been able to offer to borrowers with less than ideal credit high quality personal loans with low rates and acceptable terms. Upstart also features mainly five-star user reviews on TrustPilot, and as early as the next business day many of their borrowers get their loans funded.
Upstart personal loans are available in amounts between $1,000 and $50,000.
Repay your loan over three or five years.
Fixed interest rates are offered between 7.54% and 35.99%.
Checking your rate on Upstart will not affect your credit score.
These loans come with no prepayment penalty, but you may have to pay an origination fee of up to 8% of your loan amount.
You’ll need a minimum credit score of 620 and minimum annual income of $12,000 to qualify.
What you need to know about Upstart personal loans
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.
You can use Upstart personal loans for almost anything. Common uses include:
Business startup or expansion
Borrowers can’t use Upstart loans for:
Purchasing weapons or firearms
“Over 75% of our borrowers use their loans to consolidate credit card debt,” says Jane Penner, head of communications for Upstart. “Our borrowers save an estimated 23% compared to their credit card rates.”
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%.
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.
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
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.
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.
Upstart has an A+ rating with the Better Business Bureau. In 2018, the Consumer Financial Protection Bureau received five personal loan-related complaints about Upstart. Issues were mostly related to getting a loan and unexpected interest and fees.
Upstart provided a timely response to the CFPB for all complaints, with all five closed with an explanation.
People with fair credit or limited credit history
People who don’t mind paying an origination fee
Those who want fast access to funds
FAQs about Upstart Personal Loans
What personal loan APRs does Upstart Personal Loans offer?
Upstart Personal Loans offers a fixed APR personal loan product that ranges from 6% APR up to 29.99% APR.
Your APR can vary depending on several factors, such as your credit score. Find out what your credit score is and whether there is any false or inaccurate information in your credit history with these credit monitoring tools.
How much can you borrow via Upstart Personal Loans?
Loan amounts start at $1,000 and go up to $50,000.
What can a personal loan from Upstart Personal Loans be used for?
Personal loans from Upstart Personal Loans are typically used for special purchases, debt consolidation, home improvement projects, weddings, medical expenses & procedures, unexpected expenses or similar purposes.
What is the maximum loan term you can get with Upstart Personal Loans?
Upstart Personal Loans offers personal loans with terms ranging from 36 to 60 months. Having the option of longer terms allows borrowers to take on larger loan amounts while keeping monthly payments more affordable. However, the longer the term of your loan, the more interest you will pay.
Does Upstart Personal Loans charge an origination fee?
Upstart Personal Loans charges a loan origination fee of 0% to 8% of the loan amount. Upstart Personal Loans deducts the fee directly from your loan amount before depositing your money, so make sure you take this fee into account when deciding how much you need to borrow.
Does Upstart Personal Loans charge a late fee?
Yes, Upstart Personal Loans may charge borrowers a late payment fee of up to $15
Does Upstart Personal Loans charge prepayment fees?
No, Upstart Personal Loans does not charge prepayment fees. This means you will not have to pay additional fees if you decide to pay the loan off early.
If you are looking for competitive rates and a quick turnaround, upstart personal loans are perfect. APRs start at 5.67 percent, and you may be able to get your money after approval just one business day.
For apply you just need to have a decent score. And besides looking at your credit score, when deciding the rate for which you qualify, it also considers certain variables like your education and employment background.
This comes with steep origination fees as high as 8 percent, though— it’s possible to find borrowers who don’t charge at all these. It also has strict requirements for the debt-to-income ratio compared with other lenders out there. So you can’t apply to register with a co-signer.
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