Best Upstart Personal Loans Review 2022

Upstart Personal Loans Review

Whether you’re consolidating debt or making a big purchase, Upstart’s personal loans have you covered — and credit score requirements are more flexible than other lenders. Upstart personal loans have some great advantages, including fast funding and flexible loan amounts.

Complete Upstart Personal Loan Review

These personal loans are perfect for: Borrowers with low or no credit scores looking for a small loan.

Top benefits

You can qualify with a low or no credit score: You don’t need good credit to apply. Borrowers can apply for a loan with a FICO® score of 300. Upstart also offers loans to people with no credit history — it will take education and employment into account when underwriting your loan. But keep in mind that upstart loan interest rates will be higher if you have a low credit score.

Wide range of loan options: Upstart personal loans range from $1,000 to $50,000. As such, it offers some of the best personal loans for people looking to borrow small amounts of money.

Next Day Funding: According to Upstart, 99% of the time, you should get your money within one business day. That means if you need money to cover emergency expenses, funds will be in your account faster.

Repayment Options: You have a choice of three-year or five-year loan repayment tenure. A five-year term will keep your monthly payments low, but a three-year term will save you money in the long run.

No Prepayment Penalty: If you want to pay off the Upstart Personal Loan early, you can. Since there is no prepayment penalty in Upstart Loans, you can make additional payments to reduce the loan principal. This will save you money in the long run.

Check your rate without affecting your credit score: Curious applicants can submit basic details and get a quoted loan rate without affecting their credit score.

Repayment grace period: If you do not repay your loan by the due date, Upstart will send you a reminder. You will not be charged late fee unless your payment is 15 days late. That’s unlike many lenders and credit card issuers who charge an automatic late fee to your account the day after you miss a payment. The grace period is a handy benefit, especially for borrowers who are working hard to manage their finances. However, you want to get that payment as soon as possible. The 15th day late fee is 5% of your payment amount or $15, whichever is greater.

What can be improved

High APR: Upstart has a higher end of its APR range than some competitors. If you can only qualify for a higher APR, be aware that the highest rate offered is one of the highest interest rates you’ll get. Depending on your credit card, it is unlikely to help if you want to consolidate credit card debt.

Origination Fee: Upstart charges an origination fee of 0% to 8% on its personal loans. This one-off fee is one of the highest origination fees. (Note: That will be factored into the APR you specify.) It’s a good idea to pre-qualify for several lenders before making a final decision to ensure you get the best loan for you — fees, interest rate and all.

Cosigners not allowed: You will need to qualify on your own.

Read Also: Best South Indian Bank Personal Loan Details 2022

How does Upstart work?

Upstart is not a bank. It is an artificial intelligence lending platform started by former Google employees. It uses AI to make lending decisions, helping lenders experience fewer losses with the goal of approving more borrowers.

To determine which borrowers are creditworthy, Upstart looks at many non-traditional variables that traditional lenders don’t consider. For example, your education, cost of living in your city and even how you approach your loan application. In contrast, traditional lenders are generally concerned with your FICO® score, your debt-to-income ratio and your assets. As a result, lending decisions are more accurate, it approves more applicants and its borrowers default on their loans less often.

Leaning on AI is not risky for consumers. Since its inception, the upstart Personal Loans has worked with state and federal regulators to ensure that its algorithms don’t create unintended biases that could further harm disadvantaged groups of people.

Does it work? Upstart’s data says yes. For example, it approves 30% more black applicants than traditional big bank lending models, and offers black borrowers interest rates that are 11% lower on average.

How to qualify for an upstart personal loan

• Upstart requires at least a 300 FICO® score if you have any credit score at all. Anyone can apply, including those with poor credit history.
• Make sure your debt-to-income (DTI) ratio is reasonable. In Connecticut, Maryland, New York, and Vermont, your DTI must be 45% or less. In all other states, Upstart Personal Loans allows up to 50% DTI.
• Your credit report should not show a bankruptcy or adverse public record in the last year.
• You may not have any delinquent accounts on your credit report.
• You cannot have more than six credit inquiries on your credit report in the last six months. A credit inquiry is an application for credit, such as a credit card, loan, HELOC, or similar. Having several within a short period of time can show that you are in over your head.

Every lender places restrictions on how you can use your loan, but at Upstart Personal Loans, limits are few and far between. You can use the funds in any of these ways:

Debt Consolidation: Personal loans can be used as debt consolidation loans. If you pay off high-interest debt, you can lower the overall cost of your debt. If you consolidate multiple debts into one, you can lower your total monthly payment.

Start or expand a business: Some lenders do not allow personal loans to be used for business, but upstart Personal Loans do.

Pay for medical or dental care: When you need to pay medical bills, get dental work done or go ahead with an elective procedure, a medical loan from Upstart is a good option to consider.

Travel: A personal loan can help you cover your family vacation, honeymoon or other trip.

Wedding: Personal loans can be used for wedding finance.

Relocate: Moving can be expensive. Personal loans help you spread expenses over time.

Home maintenance or remodeling: When you need a new roof or you want to upgrade the kitchen, you can use an Upstart Personal Loans as a home renovation loan to make it happen.

Make big purchases: The types of purchases you can make with a personal loan are almost unlimited.

Other: If you’re not sure if your requirement is valid, ask Upstart Personal Loans.

You cannot use an upstart personal loan for anything related to marijuana, even if it is legal. Also, you may not use the loan for any illegal, hateful or discriminatory purpose or to support any entity on the US sanctions list.

Application Process

Upstart makes it easy to apply for a personal loan. Here’s how it works:

• Apply online. (Residents of West Virginia and Iowa are not eligible to apply.) Upstart Personal Loans does a soft credit check that won’t affect your credit score.
• Once you submit your basic information, Upstart Personal Loans uses factors such as your credit score, debt, income, education and work experience to determine your rate. The term of the loan can also affect your rate and the total amount you pay.
• If you are satisfied with the conditions, you can submit the complete application. You can apply online and you will need to provide Upstart Personal Loans with basic information including your social security number and some details about your educational background, career and other
• creditors. Upstart Personal Loans then performs rigorous checks to verify the accuracy of your financial information. This usually lowers your credit score by a very small amount.
• Unless Upstart Personal Loans asks you to submit additional documents, you can expect a decision right away. Once the loan is approved, you can get your personal loan funds within one working day.

Options to consider

You owe it to yourself to shop around before deciding on the right personal loan. Upstart Personal Loans is not the best personal loan for everyone. Take a look at these other lenders before you make a final decision.

• SoFi is a great option for people with good credit looking for low rates.
• Marcus charges no additional fees — ever. It accepts credit scores that are at least fair or average and offers repayment terms of three to six years.
• Another good choice is for people with average credit scores. In fact, you can qualify with fair or average credit.