Upstart
offers loans for credit card consolidation, auto refinance, and home
improvement, among others. Upstart loan applicants must have a credit score of
at least 300, though you may be able to get a loan with a lower credit score.
It can be an accessible option for customers who would not otherwise be able to
get a loan.
Upstart Pros
Upstart Cons
Types of Personal Loans Offered by Upstart
Upstart offers personal loans for a variety of reasons, ranging from debt consolidation to home improvement. There are very few prohibited uses for their personal loans, including some that vary by state.
Common loan uses | Prohibited uses |
Credit card consolidation | Illegal activity |
Debt consolidation | Purchasing weapons or firearms |
Wedding loans | Illegal drugs |
Moving loans | Educational purposes for borrowers in California, Illinois, Washington, or Washington, D.C. |
Medical loans | |
Home improvement | |
Paying off (refinancing) student loans | |
Auto refinance |
Upstart Loan Features
Upstart offers
fixed-rate personal loans between $1,000 and $50,000. However, there are
state-specific minimums in Massachusetts ($7,000), Ohio ($6,000), New Mexico
($5,100), Georgia ($3,100), and Hawaii ($2,100).
Payment on an Upstart loan will begin 20 to 40 days after the loan origination date. You can pay the loan principal and any interest accrued back in 36, 60, or 84 monthly installments, depending on the terms of your loan. You can prepay without incurring any penalties.
Loan terms | 3-5 years |
Repayment period | Monthly |
Loan amount | $1,000 -$50,000 |
Loan use limitations | None |
Upstart Interest Rates and Fees
Upstart charges an origination fee of up to 10percent, which is a one-time fee that’s deducted from the loan proceeds before they are delivered to the borrower. Upstart doesn’t charge prepayment penalties, but they do charge late payment fees and a fee for insufficient funds. Borrowers can also incur a one-time $10 fee if they request physical copies of their records or withdraw eSign consent. Interest rates vary.
Borrowing/origination fees | 0%-10% |
Prepayment fees | None |
Late payment fees | 5% of the past due amount or $15, whichever is greater. |
Other fees | $15 charge for failed bank transfers (ACH) or checks $10 fee for physical copies of records |
Interest rates | 5.40%-35.99% |
Upstart Qualification Requirements
Borrowers typically
must have a minimum credit score of 300 to qualify for a personal loan from
Upstart.Some applicants with lower credit scores may be accepted. In addition
to credit scores, Upstart considers variables such as:
- College education
- Job history
- Residence
- Debt-to-income ratio
- Bankruptcies
- Number of credit report inquiries in the past six months
Membership requirement | N/A |
Minimum credit score | 300, but some applicants with lower scores may be accepted |
Income requirements | $12,000 |
Debt-to-income (DTI) ratio, not including rent or mortgage | 50% or less; 45% or less in Connecticut, Maryland, New York, and Vermont |
Co-signer/joint application requirements | Not accepted |
Note: Applicants with a lower credit score are often offered
a higher interest rate because they are deemed a riskier borrower. Lenders also
want to make sure that you have enough income to make loan payments. Your
debt-to-income (DTI) ratio is how much debt you have compared to your gross
monthly income. If you have an approximately 36% DTI ratio or less, you’re
considered a good candidate for a personal loan by most lenders.
Upstart Application Process
Checking your rate on Upstart will not affect your credit
score. When you check your rate, Upstart makes a "soft credit inquiry."
Soft credit inquiries on your report do not lower your credit score, but you
may see this type of inquiry when you view your credit report.
If you are offered a loan and proceed with the application,
a "hard credit inquiry" will be completed to verify the accuracy of
your application. This action will be recorded as an inquiry on your report,
and it may impact your credit score.
All unsecured personal loans are originated by
Upstart-powered bank partners. The bank partner will depend on the state.
To begin the application process for a personal loan, enter
how much you would like to borrow, between $1,000 and $50,000.
Next, select the loan purpose.
Fill out your name.
Fill out your birthday.
Then, complete your address.
Upstart will ask you for your email address.
Upstart will also ask you for your phone number.
Next, select the highest level of education that you have
completed.
Depending on your level of education, the next page will ask
you further questions about your education.
Then, select your salary type and answer further information
about your primary source of income.
Upstart also asks for information about your savings.
Upstart wants to know whether you have taken out any other
loans in the past three months.
Next, create a password to access your account later.
Finally, you will need to agree to the terms and conditions
in order to check your loan rate.
Note: Unsecured personal loans in Maryland and Nevada are
originated by Cross River Bank, Member FDIC. Car refinance loans are not
available in Iowa, Maryland, Nevada, or West Virginia. Car refinance loans in
Illinois and Missouri are originated by Cross River Bank or Midwest BankCentre.
Car refinance loans in Colorado, Kansas, and Texas are originated by Cross
River Bank or Rising Bank, Member FDIC. Car refinance loans in Florida,
Georgia, and Alabama are originated by Cross River Bank or Drummond Bank, Member
FDIC. All other car refinance loans are originated by Cross River Bank, Member
FDIC.
Upstart Customer Support
Upstart offers a variety of ways to contact customer
support, including:
Phone
- 650-204-1000 (local)
- 1-855-438-8778 (toll-free)
- Monday to Sunday 9 am to 8 pm EST
Mail
- Upstart Operations Dept., P.O. Box 1503, San Carlos, CA
94070
Email
- support@upstart.com
Online ticketing form
In general, people seem satisfied with the customer support
from Upstart. Here is what a few customers said about their experience.
“This is the 2nd time I’ve used Upstart. It’s easy, safe,
and their customer service is top notch. Upstart will always be my first
preference when applying for a personal loan.”
“Loan application was quick and easy! Had to call support
once during the application process to make sure documents I uploaded were
received. The phone was answered right away by a representative and they
confirmed it within a couple of minutes.”
“It’s nice to work with a lender that understands customer
service. Upstart made the loan process simple and quick. I’ve actually enjoyed
the application and approval process. I feel like I’ve found a partner in
Upstart.”
However, there were a few customers who had a mixed
experience with customer service.
“Customer service is nonexistent! I've had perfect payment
history and on automatic payments. One payment (unknown to me) didn't go thru
then I seen experian say I missed a payment. I immediately called and tried to
make it right and told them I wasn't aware payment didn't go through and if I
paid would they remove it from my credit and they said no. Not only that but
monthly payments and interest is high. You're better off going through your
bank. Read reviews from other review places and you will see I'm not the only
person this has happened too. Even tried to show a bank statement showing my
payment.”
“I had issues accessing the site. So I contacted customer
service and they sent me more links to access their site. I sent them
screenshots of what it looks like when accessing their account. They went ahead
and sent me a link to their website again to read some qna or something. They
clearly didn't read my message with the fact that I can't access the site. They
just give cut copy answers to clients. They couldn't even be bothered to type
out an original email. Either that or they are missing some firing actions
upstairs. If you're looking for customer service, go somewhere else.”
Upstart Online Reviews
Overall, reviews of Upstart are mostly positive. Upstart received 97% “excellent” ratings on truspilot.com. People frequently comment on the quick and easy loan approval process. Many were happy with the experience and had no complaints. The negative reviews are mostly related to entering their information and having a hard pull on their credit, only to have been denied for a loan after. Others were offered a loan but were not happy with the terms and rates offered.
The positive reviews are related to | The negative reviews are related to |
Quick and easy loan approval process | Hard credit inquiry only to get denied for a loan |
Good customer service | Some not happy with the rates and terms offered |
Upstart Perks and Bonuses
Flexibility:
Upstart doesn’t offer much in terms of flexibility. The
lender does not offer discounts. Borrowers cannot modify their loan terms. But
Upstart may allow borrowers to access an alternative payment plan to avoid fees
during times of hardship.
Transparency:
Upstart maintains a professional website that is
informative, intuitive, and free of misleading advertising and sales gimmicks.
A February 2020 report from lending watchdog and advocate
Student Borrower Protection Center suggests that some recent grads who attended
minority-serving colleges may be assigned higher APRs than college graduates
from non-minority-serving schools with similar applications. Upstart has denied
this, noting that it regularly tests its model for bias and that its model
generates higher approval rates at lower APRs for graduates of historically
Black colleges and universities.
Technology
Upstart borrowers can make payments online. You have the
option of signing up for automatic payments, but autopay does not come with any
discounts. Upstart does not have a mobile app or loan management tools.
Upstart Compared to Other Lenders
There are a few other lender websites that you can compare to Upstart. Loan terms, loan amount, interest rates, minimum credit score, and co-signer requirement differ by lender.
Upstart | SoFi | Avant | Upgrade | |
Loan Terms | 3 or 5 years | 2 to 7 years | 2 to 5 years | 2 to 7 years |
Loan amount | $1,000 to $50,000 | $5,000 to $100,000 | $2,000 to $35,000 | $1,000 to $50,000 |
Interest Rates | 5.40% to 35.99% | 7.99% to 22.73% | 9.95% to 35.99% | 6.95% to 35.97% |
Min Credit Score | 300 | 680 | 580 | 560 |
Co-signer Requirement | Not accepted | Co-applicants and co-signers allowed | Not accepted | Co-applicants allowed but co-signers not allowed |
Final Thoughts
Upstart is an accessible lending platform for borrowers with poor credit. Upstart offers
loans for credit card consolidation, auto refinance, and home improvement,
among others. To start the loan pre-approval application process for a personal
loan, you must have a credit score of at least 300, though you may be able to
get a loan with a lower credit score. Unlike some other lenders, Upstart
doesn’t charge a prepayment penalty, though they may charge an origination fee.
Upstart can be an accessible and quick option for customers looking for a loan.
