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.
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.