An original loan based on your experience and education.
Founded in 2012 by former Google employees, this peer-to-peer lending company looks at more than just credit score to determine if you qualify for a loan.
|Product Name||Upstart Personal Loans|
|Min Loan Amount||$1,000|
|Max. Loan Amount||$50,000|
|Interest Rate Type||Fixed|
|Minimum Loan Term||3 years|
|Maximum Loan Term||5 years|
|Requirements||Must be 18+ and a US citizen or permanent resident. Must have good to excellent credit.|
- Must be a U.S. citizen currently living in the U.S., or a permanent resident currently living in the U.S.
- Must not be residing in West Virginia.
- Must be at least 18 years old (applicants from Alabama and Nebraska must be at least 19 years old).
- Must have a valid email account;
- Must have a verifiable name, date of birth and social security number.
- Have a regular source of income.
- Have a personal banking account at a U.S. financial institution with a routing transit number.
- Must meet their minimum credit requirements.
How does a personal loan through Upstart work?
Upstart is a connection service that works with you get personal loans based on your experience and education. Even though the approval process is not solely determined by credit score, you still must have at least a 620 score to qualify. If you haven’t had enough time to build credit, you may still be considered.
Applying is easy, online and can be done in minutes. Since Upstart caters to recent college graduates, factors like GPA, SAT score, work history and the college you attended can impact your loan decision. However, a college degree is not required to qualify for a personal loan.
After approval, you can get funded as soon as the next day. The average applicant is a college graduate, makes around $93,206 a year and has a FICO credit score of 689, and the average personal loan lasts three years and has an APR of 17% and 36 monthly payments of $35 per $1,000 borrowed.
How does Upstart compare to other online lenders?
What are the benefits of an Upstart personal loan?
- No prepayment penalties. You won’t be penalized if you make your payments ahead of schedule.
- Lower rates. Upstart claims it has around a 30% lower APR than other lenders. Rates range from 8.85% to 29.99%, and are fixed. Upstart will look at your overall online account profile and give you a grade, which is then used to determine your interest rate.
- Online application. You can apply for an Upstart personal loan online, and since Upstart conducts a soft credit pull at first, it won’t impact your credit.
- Unique approval process. Upstart’s application process focuses on factors like work history, GPA, and sometimes SAT scores.
- Quick funding. Once your application is approved, you can get funding the very next day.
- Multiple payment options. You can make your payments biweekly or monthly. There is no penalty for choosing to pay before the due date every month. If you run into financial trouble, you can work with Upstart to come up with a new payment plan.
- No check fee. Unlike many of its competitors, Upstart does not charge a fee for check payments.
- Fast turnaround. Because a percentage of its loan approval process is automated, you may hear back right away. For most loans, you’ll get a decision by the next business day. For education-related loans, you’ll hear a decision within three business days.
What to look out for
- Late fees. Upstart charges a late fee of $15 or 5% of the unpaid amount, whichever is greater.
- Origination fee. An origination fee of 0% to 8% of your total loan is deducted from your funds before you receive them.
- Nonsufficient funds fee. If your payment check bounces, you’ll be charged $15 per returned check.
- Low debt-to-income ratio required. Upstart accepts a max debt-to-income ratio of 18%, while most lenders allow up to 30%.
- May take time to process. Most Upstart customers claim to walk away happy, but some complain that Upstart can take several weeks to make a decision on an application status.
How much will I pay for a personal loan through Upstart?
How much you pay will depend on how much you borrow. Depending on your state, you may have to meet a higher minimum amount, like $6,000 in Ohio or $7,000 in Massachusetts. It’s important to completely read the terms of a loan contract before agreeing to it. Doing so will help avoid any surprising fees down the road, and guarantee you know exactly what you will be paying every month.
Upstart charges a 0% to 8% of the loan amount as an origination fee. Late fees are either $15 or 5% of the late payment amount.
When you’re repaying your loan, keep in mind that you can make early repayments without incurring any fees or penalties.
Is Upstart legit?
Yes, Upstart is a legitimate lending platform. Although Upstart is available in almost every state as well as Washington, DC, the specific loan terms and fees will vary by your state of residence.
Is it safe to apply with Upstart?
Yes. BBB accredited since 2015, Upstart has an A+ rating. Upstart employs several protocols to make sure your information and money is safe online.
- FDIC insured. Loans are funded by Cross River Bank, an FDIC-insured New Jersey–chartered commercial bank.
- Site encryption. Upstart encrypts personal and banking information on its website so no information is exposed, even if compromised by an outsider.
How to apply for a personal loan with Upstart
To apply for an Upstart personal loan, you’ll need to meet a few eligibility requirements.
- Have a FICO credit score of at least 620.
- Must not be a resident of West Virginia.
- Have a regular source of income or an offer of employment that starts within 180 days.
- Be a US citizen or permanent resident.
- Meet your state’s minimum age requirement.
During the application process, you’ll need to provide:
- Your full name and contact information.
- Proof of a government-issued ID, like a driver’s license or passport.
- Your Social Security number and date of birth.
- Your employment status and income.
- Your bank account details.
You may also need to provide your college transcript, SAT scores and employment pay stubs.
Upstart can be a good fit for younger applicants and potential borrowers who have little to no credit history. But rates and terms for Upstart loans can vary greatly. Before making a final decision, make sure to compare your loan options to make sure you’re getting the best deal for you.