Founded by ex-Google employees, Upstart utilizes Artificial Intelligence to make lending decisions. Their underwriting process incorporates alternative data such as the applicant’s work experience and education level. As a result, it gives people with low FICO scores a better chance to get approved for unsecured loan products.
You can apply and qualify for loans offered by creditors in the Upstart Network. We’ll be reviewing available loan types, eligibility criteria, interest rates, and more.
Upstart loan types
Upstart offers various personal loan types; you can easily find what suits your current financial needs. You can utilize personal loans for individual use without any restriction — the loan amount goes from $1,000 - $50,000.
- Credit card consolidation: This loan allows you to consolidate outstanding credit card debt. As a result, you may end up with a lower APR on your new loan and save on interest charges.
- Debt consolidation loans: Dealing with one single monthly payment and one interest rate is far easier than having to pay off multiple debts. A debt consolidation loan allows you to clear all your outstanding debts and deal with one lender.
- Home improvement loans: Unexpected home emergencies such as roof repairs can be quite expensive and challenging to fund out of pocket. Upstart home improvement loans can help pay for upgrades, remodels, and repairs.
- Medical loans: Upstart provides loans to cover medical emergencies and elective surgeries. Medical loans can also help you pay costs that insurance might not cover, such as infertility treatments.
- Wedding loans: Weddings are quite expensive. You have to pay for venues, catering services, gowns, and many other things. Fortunately, Upstart provides wedding loans that can help to cover all these costs.
- Moving loans: With local moves costing about $2300 and long-distance moves $4300, according to The American Moving and Storage Association, the costs may be hard to finance without sufficient savings. Upstart moving loans can fund relocation expenses and security deposits.
- Car refinancing: Upstart allows you to refinance your current auto loan for a new interest rate that may be more affordable. You can even receive a cash-back if you have built up equity in your car.
You can apply for the following types of loans: credit card consolidation, debt consolidation, home improvement, medical loans, wedding loan, moving and relocation, and car financing.
|APR||3.5 - 35.99%
|Amount||$1,000 - $50,000
|Term||3 - 5 years
As you can see from the table the maximum loan amount is $50,000, and the APR starts at 3.5% for the best graded borrowers. The loan period varies from 3 to 5 years.
Upstart: pros and cons
|Diverse loan types – The platform provides access to a wide range of loans. Their loan amounts are very accomodating.
||High origination fee - Some Upstart-powered lenders charge an origination fee of up to 8%, which is relatively high.
|Quick lending decisions – Most customers receive their funds within the next business day after accepting the lending decision.
||Higher top rates – Some customers may pay up to 35.99% APR on personal loans. Some Upstart competitors like Peerform cap their rates at 29.99%.
|Excellent rating – Their Trustpilot page boasts of a 4.9-star rating. Most customers find the process super easy.
||Doesn’t allow co-signers - Upstart doesn't allow co-signers.
|No prepayment penalties – Customers can repay their loans early to save costs.
||Loan terms are not flexible - you can only get a loan for 3 - 5 years.
Applying for an Upstart loan
All borrowers on Upstart have to meet certain minimum requirements:
- A minimum credit score of 600. Borrowers with no or limited credit history may be accepted.
- A minimum debt-to-income ratio of 45% for residents of Connecticut, Maryland, New York, and Vermont; 50% for residents of other states.
- No bankruptcies or other public records within the last 12 months.
- Less than 6 hard inquiries in credit reports within the last 6 months, excluding hard inquiries related to student, vehicle, or mortgage loans.
Upstart will conduct a soft inquiry that doesn’t affect your credit score to determine if you qualify for an Upstart loan. Get started by visiting the loan application page and select your intended loan use. Next, fill out an online loan application form that asks for various details such as personal identification information, work experience, primary income source, and education level. You will then receive an estimated rate. The process is relatively fast and may take you only 5 minutes.
If you choose to proceed with your loan offer, the platform will perform a hard check, verify your credit score and credit history as part of the formal approval process. Upstart may require documentation to verify your income. They ask for recent pay stubs, W2 forms, or bank statements.
Self-employed and independent contractors can submit their last year's tax return, along with other documents that can verify income, such as business invoices or digital images of deposited checks. Persons with alternative income sources such as retirement benefits, alimony, disability payments, or child support can also supply evidence of their income by providing relevant documents.
Every customer has access to an online dashboard to communicate with the customer support team and upload relevant documents. Funding is facilitated through direct deposits to your bank account via ACH payments. For credit card consolidation loans, funds can be sent directly to creditors.
Note that the maximum and minimum loan limits are subject to state laws. Upstart doesn’t issue loans to applicants residing in West Virginia or Iowa.
Is Upstart worth it?
Upstart is a good loan company because of three primary reasons:
- They offer a wide range of unsecured loans that you can obtain without providing collateral. The loans have flexible limits — for instance, you can apply for a personal loan between $1,000 - $50,000.
- Borrowers with no or limited credit history can qualify.
- The platform is highly trusted, with excellent ratings from past customers.
What is the Upstart customer service phone number?
Is Upstart legit?
Upstart is a legit company that partners with credible banks in the US. They use an AI automated approval process to deliver lending decisions.
Does Upstart affect credit score?
Checking your rate will not affect your score, but getting approved for the final loan will involve a hard check that may affect your credit score.
Is Upstart a scam?
The Upstart Network is not a scam. It’s a legitimate business operating from San Mateo, California. They have not had any complaints from the Consumer Financial Protection Bureau. The agency issued a no-action letter, allowing Upstart to continue using AI for underwriting loans.
Does Upstart ask for proof of income?
Yes, they require proof of income before approving borrowers.
Is it hard to get an Upstart loan?
It's not difficult to get an Upstart loan provided you have a credit score of at least 600 and can provide sufficient proof of income. However, those with no or limited credit history can also apply.