Upstart personal loans review: Non-traditional underwriting to help fair credit borrowers

What makes Upstart shine

Upstart’s underwriting process is the most unique benefit of the lending platform. Upstart utilizes artificial intelligence (AI) and considers nontraditional data, such as your education, grades, and job offer letters, when making a lending decision.

This approach may make it easier for some borrowers – including those with a limited credit history or low credit scores – to qualify for a personal loan. Unlike most lenders, it accepts scores as low as 300 in most states, as long as you meet Upstart’s other criteria.

To qualify, you have to make at least $12,000 per year (or have a job offer letter with a start date within six months), and have no bankruptcies or account delinquencies on your credit report. If approved, you can get your funds in as little as one business day.

Where Upstart falls short

The biggest drawback to an Upstart loan is how much it could cost you. If you have excellent credit, you could get rates as low as 7.8%, but the average APR for a five-year loan across Upstart customers is 25.05%. You could end up with no origination fee — or pay up to 12%.

Your qualifications even determine how much of a loan Upstart may offer you, along with your state’s loan limitations. You don’t have to pay a down payment or prepayment penalty, but if you only meet the minimum requirements, your loan could still be expensive.

Upstart loan details

How to qualify for Upstart

To qualify for a personal loan from Upstart, you must meet these requirements:

• Credit score of 300 (although the customer average is 654)
• Debt-to-income ratio not exceeding 45% to 50%, depending on your state
• Regular source of income or a valid job offer letter
• Personal US bank account
• No bankruptcies in the past 12 months
• Fewer than six credit inquiries in last six months

How to apply

Upstart’s application should only take a few minutes. You’ll need to enter basic information about yourself — including information about your education and grades, as well as your current savings and investments – which may differ from what other lenders may ask.

Next, follow the prompts to have Upstart run a soft credit check. If preapproved, Upstart will provide instructions on how to finalize your loan request. You may also need to provide your college transcript, SAT scores and pay stubs. However, Upstart states that most borrowers won’t need to provide additional documentation when they apply.

If you aren’t approved, you can apply again within 30 days.

How Upstart compares to other lenders

Compare Upstart’s rates, terms and features to other popular personal loan providers.

Upstart personal loans

★★★★★

Finder rating 4.2 / 5

Go to site

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APR

7.80% to 35.99%

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Loan term

36 or 60 months

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Loan amount

$1,000 to $50,000

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Min. credit score

300

LightStream personal loans

★★★★★

Finder rating 4.8 / 5

Go to site

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APR

7.49% to 25.99%

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Loan term

24 to 144 months

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Loan amount

$5,000 to $100,000

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Min. credit score

Good to excellent credit

PenFed Credit Union personal loans

★★★★★

Finder rating 3.6 / 5

Go to site

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APR

7.99% to 18%

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Loan term

1 to 5 years

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Loan amount

$600 to $50,000

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Min. credit score

580

Upstart reviews and complaints

Upstart has thousands of reviews on Trustpilot, which are overwhelmingly positive. The majority of customers report being happy with the simple application process and the speed at which they received funds. While fewer in number, some customers complain about being denied for a loan after being preapproved and submitting documentation.

Upstart is accredited with the Better Business Bureau (BBB) and earns an A+ business rating for its handling of customer complaints over the past three years. But it gets poor customer reviews on the site from customers who report billing errors, inaccurate payoff information and high interest rates.

Is Upstart legit?

Upstart is a legitimate online lender: Loans are funded by Cross River Bank, an FDIC-insured New Jersey chartered commercial bank. It uses GoDaddy software to protect your personal information. And it breaks down how it collects and shares your information in its privacy policy.

Along with personal loans, Upstart offers auto refinance loans.

Always explore your options before deciding and, if possible, compare similar lenders to find the best deal.

Frequently asked questions

How many Upstart loans can you have?

You can have two Upstart loans at a time. Your first loan must exceed $50,000 in principal and you should have made on-time payments for the past six months.

How long does it take an Upstart loan to deposit?

Funds are sent to the banking institution within 1 day after your origination date.

Does Upstart let you skip a payment?

Upstart allows a 15 day grace period, but if you can’t pay within that period they recommend filling out a hardship assistance request form. As a result, you may receive an alternative payment plan.

What documentation is required to verify my Upstart loan?

When applying for an Upstart loan, you’ll need to verify your income. Documentation can be verified by pay stubs, bank statements, tax returns, or other relevant financial records.

What are the minimum credit requirements to receive a loan?

Upstart states it takes applicants who have a minimum credit score of 300, as long as you don’t have any bankruptcies, current delinquent accounts or other disqualifying factors.