Upstart Personal Loans Review
Founded by former Googlers in 2012, Upstart was the first lending platform to use machine learning and artificial intelligence to automate the process of borrowing. In fact, 70% of Upstart’s loans are fully automated. They even provide their technology “Software-as-a-Service” to banks, credit unions, and other financial institutions.
Upstart offers consumers fixed-rate personal loans for a variety of purposes, such as for refinancing, paying for personal expenses, education, starting a business, or making a big purchase. The application process is quick, easy, and all online. You can have funds in your account as soon as the next day4.
While Upstart has a minimum credit score of 580, they also quantify your risk by assessing your future potential. They’ll factor in education, job history, and even your area of study if you’re a student, which many lenders don’t consider.
Upstart Loan Types and Terms
|Loan types||Personal Loan|
|Loan amount||$1,000 – $50,000 (varies by state, see website for state-specific ranges)|
|Repayment terms (in months)||36 – 60 months|
|APR (interest rate in %)||5.40 – 35.99% (see Upstart’s homepage for latest rates, subject to state restrictions)|
|Minimum credit score||580|
|Lender type||Lending platform|
|Good for||Average Credit, No Credit History, Fast Cash|
Who Upstart is Good For
- Average Credit
- No Credit
- Fast Cash
Upstart touts itself as being the first online lending platform to provide personal loans to those with no credit score or credit history, making it a popular choice for students and recent grads who need a loan either for their education or personal use. Upstart is unique in that they evaluate a borrower’s creditworthiness on factors like education, area of study, and job history to determine a borrower’s potential.
For borrowers who have a credit score and history, they require a minimum score of 580 to get approved for a personal loan, which is considered average credit. Upstart will also check to see if you have any significant debt obligations, bankruptcies, or delinquent accounts.
Additionally, Upstart is a solid option if you need fast cash. If you accept your loan by 5PM EST on a standard business day, you will receive funds the next day4. However, loans being used to fund education expenses are subject to a three business day wait period by law.
Upstart Personal Loans: Pros
- Fast and easy online application process
- Competitive APR rates
- Upstart considers more than just credit score
- Credit history is not needed to get approved
- No prepayment penalties
- Offers a variety of personal loan types, such as loans for refinancing, student loans, car loans, or business loans
- Great customer service
Upstart Personal Loans: Cons
- Have origination fees ranging between 0% – 8%
- Late payment grace period is 10 days whereas other offer 15 days
- If you are looking for longer loan terms, Upstart caps it at 60 month
How to Apply
Like many others, Upstart prides itself on ensuring a quick and painless application process that will run a soft credit check that won’t harm your credit score. It’s only when you select an offer that a hard credit check will be made.
The loan amount is based on things like your credit, income, and other info in the loan application. So keep in mind that you may not qualify for the full amount requested.
You can get started on your application by first selecting what your loan will be used for. This can be debt consolidation, credit cards, medical bills, and several other categories. You’ll then be required to enter how much you’d like to borrow.
Here are a few more details you’ll need to provide in the initial application:
- Name and contact information
- Highest level of education
- What university you attended and area of study
- Basic employment details, such as occupation and annual income
- Amount in savings and other assets
If approved, you’ll be presented with an offer which will include the APR, monthly payment, and the origination fee. The loans are made by Cross River Bank, an FDIC insured commercial bank. Before accepting an offer, you can read through their disclosures.
Terms & Requirements
Let’s take a look at the terms and requirements when securing a personal loan with Upstart.
- FICO score minimum of 580
- There cannot be any significant drops in your credit score or any additional debt obligations between the time the loan was offered and receiving funds.
- Borrowers must not have any current delinquent accounts
- Borrowers must have fewer than six credit report inquiries in the past six months. This does not include inquiries relating to mortgages, student loans, or vehicle loans.
- Typical APR rates range from 5.40 – 35.99% (see Upstart’s homepage for latest rates, subject to state restrictions)
- A personal loan amount ranges from $1,000 – $50,0001 (varies by state, see website for state-specific ranges)
- No prepayment fees
- Upstart has a late payment grace period of 15 days.
- 0%-8% origination fees
- Some states have a loan amount minimum. For example, GA is $3,100 and MA is $7,000.
- 36 – 60 months
Privacy & Security
Upstart keeps your personal information safe from unauthorized access by maintaining electronic and physical safeguards that are in compliance with the law, such as secured buildings and files.
You can get in touch with Upstart customer service via their phone number or email. Their operating hours are seven days a week from 6 AM to 5 PM PST. Additionally, they provide an online help center that answers questions related to a variety of topics, such as applying for a loan, borrower eligibility, verification, about Upstart, making loan payments, and financial fitness.
When reaching out to Upstart via email, they were quick to respond, helpful, and friendly, which can make the loan application process that much easier.
2950 S. Delaware Street, San Mateo, CA 94403
If you search online for reviews on Upstart, overall, they’re pretty positive. They offer flexible options and fast funding. And best of all, you can quickly and easily get a rate in just a couple minutes without harming your credit score.
Upstart is a great option for students or recent grads who may not have any credit history since they look at other factors, such as your education and area of study. It’s also a good option for those with average credit. If you have excellent credit, however, you can probably secure a lower rate with another lender who places more emphasis on one’s credit score than Upstart does.
Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100. The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 15% and 36 monthly payments of $33 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved. If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.