Find the Best Personal Loan for Your Needs
Personal loans are an increasingly popular form of finance that individuals use to cover a variety of different costs. If you’re someone who needs some extra cash, you’re probably considering a variety of different funding methods. If you want to ensure that you get the money you need at a reasonable interest rate, personal loans can often be a great option. Many people shy away from personal loans because they associate them with traditional lenders.
But times have changed – there are now online lenders that provide their customers with personal loans. If you’re someone who would rather apply for a loan from the comfort of your home, you can do so by using many of these online lenders. There are literally hundreds of online personal loan companies currently making the process much simpler. The entire process is streamlined, which makes it much easier to obtain financing when you need it. It also reduces the cost and the amount of time that it takes to get the funding you need – most loans are done automatically through electronic bank transfer.
In this Upstart loan review, we’ll take a look at Upstart – they’re one of the leading personal loan providers on the internet. If you’re going to apply for financing, it’s always important to ensure that you know who you’re working with. Considering you have hundreds of companies to choose from, there’s no reason you should work with a finance company that doesn’t meet up to industry standards. Make sure to take in all the information provided on this site to better understand if Upstart is the right personal loan company for you and your family.
Upstart: The Company
Upstart isn’t like other online lending companies. They provide a marketplace for investors and borrowers – they’re a peer-to-peer platform for lending. The company is aimed towards people who are trying to receive non-traditional finance. Instead of applying for a loan from a bank, Upstart connects you with other individuals that want to lend money as investment. You are borrowing from investors, rather than a traditional lender.
Their platform is online and uses a variety of different variable to determine how creditworthy you are. They don’t just look at credit score – though this is a component. The company was started by ex-Google executives. The company first started operating in 2012. It is currently headquartered in San Carlos, California.
Upstart Personal Loan Features
If you’re going to obtain an Upstart loan, it’s important that you understand the features of the loan. With so many competitors available, you should never settle for a lending company that doesn’t provide you with the features you’re looking for. Check out the features below:
Upstart Personal Loan APR: 8.85% to 29.99%
Minimum Loan Amount: $1,000
Maximum Loan Amount: $50,000
All Upstart personal loans are unsecured personal loans.
Minimum Credit Score: 620
As mentioned previously, the loans at Upstart are peer-to-peer – their website is a marketplace for investors and borrowers. It’s a great way to stray away from the traditional lending trends you might currently be involved in.
Everything is done entirely online. You won’t have to leave your home to apply for a loan through Upstart. It’s a great way to speed up your application process – you can receive a decision very quickly using Upstart. Often, traditional lenders can take weeks to get you your money.
Unique Credit Worthiness Decision
Instead of just using your credit score, Upstart uses a variety of factors to determine how likely you are to pay back the money you owe. They use credit score, years of credit, areas of study, job history and more to determine how much they should offer you and at what rate. It’s a good option if you don’t have a good credit score but have other variables in your life that can help you get financing.
No Prepayment Fees
If you want to pay off your loan early and save some money, you won’t have to worry about paying any prepayment fees at Upstart. It’s nice to know you can pay off your loan early without a penalty.
Rate Quote Without Credit Damage
If you want to find out what rate you can be offered through Upstart, you can check without having your credit score damaged. It’s a great way of checking how much interest you will end up having to pay.
What is a Personal Loan?
With personal loans, you have much more flexibility. The lender transfers you the money and you use it for whatever you please. People use the loans for a variety of different purposes. There are two types of personal loans – secured and unsecured loans. Most personal loans are unsecured loans, meaning that they aren’t tied to any collateral or asset. These also tend to carry higher interest rates. Other loans are secured – they’re tied directly to an asset you offer up as collateral. These loans are riskier for borrowers, but they also come at much lower interest rates.
Reasons for Obtaining Personal Loans
So, you may be wondering what individuals use personal loans for? There are a variety of different reasons that people obtain personal loans. As mentioned previously, you can obtain a personal loan for literally any purpose. In this section of the article, we’ll overview some of the most common reasons that people obtain personal loans. It’s a great way to get an idea of what you might be able to use this type of funding for.
Home Repairs or Improvements
Many people use personal loans to spread out the costs of home repairs or improvements. You might have the money to repair your home already, but spreading out the cost can reduce some of the financial burden and make it easier to get the repairs or improvements you need. If you can obtain a low interest rate, this is always a good option.
Another reason that personal loans are often used is debt consolidation. Credit cards and student loans often have extremely high interest rates. If you’re trying to escape debt, using a personal loan is a great way to reduce the burden of your current interest rates. If you can obtain a lower interest rate through a personal loan, you might want to consider this as viable option. It also means that you can consolidate all your payments into one and reduce you overall burden.
If something pops up, like a car accident or medical cost, you might find that you don’t have the money to cover the costs. Using personal loans for emergency costs is a great way to ensure that you pay the money needed for your emergency. You can then pay back the loan over a number of years.
Pros and Cons of Upstart Personal Loans
You should always make a list of pros and cons before you decide to work with a specific lender. It’s a great way to ensure that you make the correct decision. We’ve taken the pain out of the process by developing our own pros and cons section for our readers. Check out the advantages and disadvantages of Upstart below:
Upstart Personal Loans Advantages
- Quick – Upstart loans are quick and easy to apply for. They make the entire process extremely simple – head online and submit your information for a rate quote.
- Not Just Credit Scores – Upstart takes other information into consideration when giving loans. If you’re someone who is well educated and has a good work history, this can help you overcome a bad credit score.
- No Prepayment Fees – If you want to pay off your loan early, you won’t have to worry about any prepayment fees.
- Good Online Reviews – Upstart has extremely good online reviews when compared to many other online personal loan companies.
- Large Loan Amounts – While Upstart doesn’t provide the highest amount in terms of personal loans, their max loan size of $50,000 is actually much higher than most of their competitors.
Upstart Personal Loans Disadvantages
- Interest Rates Not Low – Upstart’s minimum interest rate of around 9% tends to be much higher than other people in the industry.
- More Invasive – Because Upstart asks more questions about your background to determine creditworthiness, the process is slightly more invasive.
Preparing Your Application for Upstart
It’s important to ensure that you’re ready for your application. If you don’t put effort into applying for a personal loan, you might end up being rejected swiftly. This will also damage your ability to get the financing you need in the future. If you are rejected, this will be recorded on your credit report as an inquiry and will reduce your score. This is why it’s always important to choose the right lender and prepare for your application. Below are some common preparation tips that can help improve your chances.
Pay Off Credit Card Debt
This might not be an option for people who have a large amount of debt, but if you can pay off some of your credit card debt, it can quickly improve your score. Your credit card debt makes up around 30% of your overall credit score. The less you use of your available credit, the better your credit score will be! You can see improvements in as little as four weeks!
Check and Repair Credit Score
It’s always important to look at your credit report. You can obtain a free credit report from the reporting bodies once a year, so you don’t have to worry about paying to see your report. If there are mistakes, you can request that they be removed – mistakes on credit reports are much more common than you may think. You can also use credit repair companies to remove certain items from your credit report, though this does cost a small fee. Either way, this is a good option if you want to repair your credit quickly before an application.
Consumer reputation is also a key deciding factor that you should consider if you want to work with Upstart. A good indicator of how you will enjoy their services is how much others have enjoyed their services. Upstart loan reviews are a great way to ensure you’re working with a company you can trust. You can head online and find consumer watchdog groups that provide platforms for people to review services. It’s a great way to get an idea of what the company you’re working with is like.
Better Business Bureau (BBB)
The BBB is one of other foremost consumer watchdog groups in the nation. The company provides a platform for individuals to review companies they work with. It’s a great way to ensure you have a reputable view of a company before you decide to work with them. BBB also does their own rating of a company through their accreditation process. They’ve given Upstart an A+ rating. In fact, Upstart is one of the few personal loan lenders that also has more positive than negative reviews on the BBB. Keep in mind there isn’t a huge sample size. If you want to check out Upstart.com reviews, head to the BBB website.
Trust Pilot is effectively the same thing as the BBB – they provide customers with the ability to see reviews of certain companies and businesses. Trust Pilot gives Upstart an amazing 9.6/10. This is an extremely high score when compared to many other personal loan companies. You can find Upstart reviews on the Trust Pilot website.
As you can see, Upstart is a solid company to work with if you want to obtain a loan through a peer-to-peer lending network. They have good reviews and use factors aside from just your credit score to help determine your ability to pay back your loan. They also have plenty of resources on their website to help you better understand how the process works.
We don’t just provide Upstart customer reviews. If you still think you’d like to work with a different lender, make sure to check out some of the other information on our website. We have reviews of plenty of lenders.
Introduction to Upstart Personal Loan
If you are new to Upstart Personal Loan, use this section as a guide to get basic information about their services. You will find a list of frequently asked questions by those who are new to or are using their service for the first time.
What is Upstart?
Upstart is a lending company that operates online, although they do have storefronts in various states in the US. It offers personal loans using non-traditional variables for evaluating creditworthiness of borrower.
What is Upstart network?
Upstart Network is the company behind Upstart Network, which provides an online lending marketplace. It uses a variety of factors to lend money to interested borrowers.
Is Upstart legit?
Yes. Upstart Personal Loan is a legitimate lending company. As of 2019, it has provided more than 200,000 loans to consumers.
Is Upstart a good company?
Upstart is a solid lending company that is suitable for young borrowers with good credit score. It is also great for those with little or no credit.
Is Upstart worth it?
If you are in need of funding and you are looking for a borrower that is more forgiving, Upstart makes a good option. It depends on your financial needs and your qualifications.
Is Upstart a scam?
No. Upstart is a legitimate company that offers online lending services to consumers. In fact, they have various storefronts on various states in the US.
Who owns Upstart?
Upstart was co-founded by ex-members of Google: Dave Girouard, Paul Gu, and Anna Counselman. But in terms of ownership, this is a peer-to-peer lending platform so it relies on private investors for funding.
What credit bureau does Upstart use?
Upstart reports to all three major credit bureaus. Your credit report will therefore contain the soft inquiry made on your account by Upstart.
Are Upstart loans safe?
Yes. Upstart is a legitimate company so you can rest assured that it is through legal funding.
Is Upstart a payday loan?
No. It is a peer-to-peer lending platform that gets funding from private investors. It works like a traditional loan wherein you must repay a certain amount over a specific period of time, along with the interest.
Is Upstart or Prosper better?
Both are reliable options for those who need extra cash. These two are considered peer-to-peer lending platforms that provide personal loans to interested borrowers. Both are good but Prosper has been around longer.
What type of loan is Upstart?
Upstart limits its offerings to the personal loan type. They do not offer any other types of loan.
What's the difference between Best egg and Upstart?
Upstart and Best Egg are two of the fastest rising online lending platforms. However, Upstart might be a better choice for those with an average credit score. With Egg Best, you need to have excellent credit and an income of over $100,000 to qualify (whereas Upstart only requires an annual income of $12,000).
Using Upstart Personal Loan Services
Would you like to learn about how Upstart Personal Loan works? In this section, you will find questions that will enlighten you about their loan offerings and other benefits.
How does Upstart work?
Upstart is a peer-to-peer online lending that offers loans to various consumers. The funding relies on private investors and they will in turn earn profit from the interest on the loan. The borrower will have their loan managed through Upstart.
Does Upstart affect credit score?
No. Upstart will perform a soft credit check but it won’t affect your credit score. It won’t lower your score although it will note that an inquiry was made.
Does Upstart report to credit bureaus?
Yes. The soft inquiry during your application is reported to credit bureaus and when you have any delinquencies on your account.
How long does Upstart loan take?
It takes only about 1 week from the time you send your application to the time of the release of funding. The underwriter will take no more than 48 hours to decide on your application.
How to pay Upstart loan?
The most common payment method is through automated payment. But you can also pay your loan via electronic payments or via check.
Are Upstart loan interest rates fixed?
Upstart loans can offer fixed rate but they also offer individual rates. The latter will vary according to every person’s income, credit history, and more. The interest rate won’t change throughout the life of the loan.
Can I add to my Upstart loan?
No. Once you have been approved for a loan amount, and after you have signed your promissory note, there is no way to add to your loan.
Can I have more than one Upstart loan?
Yes. You can qualify for a second loan if you have record of on-time payments in the past 6 months (consecutive). It is also important to only have one outstanding loan during the time of application.
Can Upstart loans be refinanced?
Yes. You can use Upstart loans for refinancing.
Can you pay Upstart loan quicker?
No. You won’t have to pay for any prepayment fees when you decide to pay off your Upstart loan early.
Does an Upstart loan have origination fees?
While there is no prepayment fee from Upstart, you might have to pay for origination fees.
Does Upstart offer hardship?
You can contact Upstart if you are experiencing financial hardships. The servicing line is 855-451-6753.
Does Upstart use Transunion?
Yes. Upstart send reports to the three major credit bureaus, which includes Transunion.
How does Upstart calculate interest?
Upstart employs a simple formula to calculate the interest on your loan. The interest rate is based on income, credit, and other basic information.
How does Upstart transfer money into account?
Once you are approved for a loan, you must identify and verify your bank account. You will receive your loan proceeds no more than two days after your application was accepted. You are not allowed to use a business bank account.
How fast does Upstart work?
Upstart is pretty fast when it comes to providing their loan application decision. You will know if you were approved or rejected within 24 hours. The loan itself will be funded within 7 days (from the time you submitted your application).
How much are the payments for Upstart loan?
The payments will vary from one person to another, as your loan amount will differ along with your credit score. There are various factors that are used to determine the interest placed on your loan. In most cases, this interest rate will vary from one state to another. It is best to ask for a quotation so you can determine how much interest will be charged.
How soon can I reapply for Upstart loan?
You are eligible to apply for a second loan (if you have an existing one) if you have paid on time for 6 consecutive months (which includes the 15-day grace period for payment schedule).
How to fund first payment for Upstart loan?
You need to have enough money on your bank account as payments will be automatically debited from your account.
Is origination fee included in loan amount Upstart?
The origination fees are deducted from your loan amount once the approved loan application is deposited to your bank account.
Is using Upstart hurting my chances of buying a house?
No. Upstart won’t affect your credit score negatively unless you default on your loan or unable to make timely payments. It won’t affect your ability to buy a house via mortgage loan.
Should I give bank account access to Upstart?
It is up to you – automated payment from your bank account is just one option available to make payments to Upstart. You can opt for check payments if you are uncomfortable about automatic debit payments.
What are the rates in Upstart?
For loans that are 36 to 60 months in term, there is an origination fee of 1-5%. When it comes to interest rate, this could be anywhere from 6% to 30% depending on your credit score.
What bank does Upstart use?
In 2018, Upstart has revealed that BankMobile is their first SaaS partner. This means that the bank will be able to offer their personal loan program through Upstart and will become available in 43 states in the US.
When does Upstart fund their loans?
Once accepted in your loan application, you can expect for the funds to arrive in your bank account within 24 to 48 hours from the time you were notified of the approval.
Qualifying for Upstart Personal Loan
If you are interested to apply for an Upstart Personal Loan, use this section to find the information you need so you can get started.
Does Upstart verify income?
Yes. Upstart performs soft credit check on those who are interested in borrowing through their lending platform.
What credit score do you need for Upstart?
The minimum credit score requirement to qualify for Upstart personal loan is 620. They do, however, accept applicants with insufficient credit history.
Do you need a college degree for Upstart loan?
No. A college degree isn’t required to qualify for an Upstart loan but your education and work details can have an impact on your loan application.
Does Upstart accept cosigner?
Yes. Getting a cosigner can help improve your chances of getting approved for a loan but it is not required.
Does Upstart contact your employer?
Yes. Upstart might contact your employer in order to verify your income as part of the application process.
Does Upstart require documents?
During application, you will be required to submit documents to verify your income and personal information.
How do I change my income information on Upstart?
Once you have submitted your application, you will not be able to edit your documents. It is important to double check it prior to submitting the documents.
How does Upstart reject application?
When your application is rejected, you can log into your Upstart account online. You will receive an Adverse Action Notice on your Message Box. This is where you will find details about the reason for rejection, along with your credit score. You can still re-apply even if your initial application was rejected.
How easy is it to get approved by Upstart?
You need to have average or better credit to qualify for an Upstart loan. Other qualifications include a credit score of at least 620 and an annual income of $12,000 or more. You need to be at least 18 years of age, as well.
What do you need to verify loan Upstart?
You will be asked to provide a variety of documents to verify your income and college degree, if you claim to have one. The amount of verification required will be based on the discretion of the loan officer who will evaluate your application.
What documents does Upstart require?
Since credit score and income are used to evaluate your loan application, you must provide documents to support your income and credit score. You will also be asked to provide personal documents to verify your age as only those above the age of 18 can qualify.
Will applying for an Upstart loan affect another loan application?
It will depend on your credit score. Some lenders will only limit the amount you can borrow based on your personal credit. If they are aware that you have another loan application, it can affect your loan application, but it will be based on your credit score and history.
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Christine has a solid background in personal finance as she spent the last eight years working at one of the biggest banks in the US. She managed her own team of financial advisors that helped hundreds of people with their financing needs. Her innate understanding of different financial products and loans helped her move up the ranks quickly after graduating with a degree in Business Administration.