An original loan based on your experience and education.
Upstart was founded in 2012 by ex-Google employees. This peer-to-peer lending company looks at more than just credit score to determine whether or not you are approved for a loan. Upstart caters to recent college graduates, so factors like GPA, SAT score, work history and college attended can impact your loan decision. However, a college degree is not required to qualify for a personal loan.
|Product Name||Upstart Personal Loans|
|Min Loan Amount||$1,000|
|Max. Loan Amount||$50,000|
|APR||9.57% - 29.99%|
|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 company that lets 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 could still be considered.
Applying is easy, online and can be done in minutes. 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.
The company itself is not a direct lender for personal loans. Upstart charges an origination fee, and matches you up with accredited investors. The average 3-year Upstart personal loan has a 17% APR, and 36 monthly payments of $34 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 9.57% 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, in minutes. The company conducts a soft credit pull, but applying will not impact your credit score. Upstart uses a tailored approach, and works to meet the needs of each individual applicant.
- Unique approval process. Upstart doesn’t just look at your credit to decide whether or not you qualify for a loan. The company especially caters to recent college grads, and the application process focuses on factors like work history, GPA, and sometimes SAT scores. Borrowers cannot be from West Virginia to qualify for a loan.
- 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.
How much will I pay for a personal loan through Upstart?
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. It’s important to note that the minimum loan amounts vary if you live in Ohio ($6,000) or Massachusetts ($7,000).
Upstart charges a 2.8% – 8% of the target amount origination fee that is determined by your profile grade. Late fees are either $15 or 5% of the late payment amount (whichever is more).
When you’re repaying your loan, keep in mind that you can make early repayments without incurring any fees or penalties.
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.
- Be a US citizen or permanent resident.
- Meet your state’s minimum age requirement.
- Must not be a resident of West Virginia.
- Have a FICO credit score of at least 620.
- Have a regular source of income or an offer of employment that starts within 180 days.
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 need to provide your college transcript, SAT scores and employment pay stubs.
If you recently graduated from college and have little to no credit history, Upstart personal loans are worth looking into. Before choosing Upstart, be sure to explore other loan providers that are similar.