Upstart Personal Loans Review | American News

Upstart is a lending platform that uses artificial intelligence to improve access to affordable credit. Based in California and founded by former Google employees in 2012, Upstart is also applying AI to reduce lending risk and costs for its banking partners. The lending intermediary provides unsecured personal loans from $1,000 to $50,000 to borrowers anywhere in the United States except West Virginia or Iowa.

  • Financing the next day: Upstart says that 99% of applicants who accept their loans by 5 p.m. EST Monday through Friday will receive their money within one business day. The exception is education expense loans, which are subject to a three-business-day waiting period under federal law.
  • No credit history required: Upstart offers loans to borrowers with no credit score, which traditional lenders cannot do. However, if you have little or no credit history, your loan will likely be more expensive.
  • No prepayment penalty: You can repay all or part of your loan at any time free of charge.

  • Creation costs: Upstart will deduct a non-refundable one-time fee assembly costs up to 8% of your loan proceeds before you receive it.
  • No co-signers: Upstart does not accept co-signers and only considers the borrower’s personal information during the application process.

Upstarts unsecured personal loans from $1,000 to $50,000 with fixed rates from 5.31% to 35.99% can be used for virtually anything. Rates and minimums vary by state, but the average three-year loan offered by Upstart has an annual percentage rate of 18.04% and 36 monthly payments of $34.27 for every $1,000 borrowed.

Common uses of loans include:

Borrowers cannot use loans to pay tuition in California, Connecticut, Illinois, Washington, or Washington, D.C.

personal loan search

Select your desired loan amount and purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

Before you borrow, you can check your rate on Upstart’s website without hurting your credit score. Your loan amount will be based on your credit, income, and other information on your application, such as your education, work experience, and credit history.

If you are ready to apply, be aware that the process will vary by lender. Upstart works with banks to match borrowers with loan offers, and each lender has their own requirements.

Lenders will need information like your name, address, and social security number to perform a credit check, and some may ask for pay stubs, tax returns, school transcripts, or SAT scores. .

Once you have been approved and accepted for your loan, you can receive your money in as little as 24 hours. In other cases, loans may take longer and student loans require a three business day waiting period before funding, per federal law.

Upstart loans have interest rate from 5.31% to 35.99%. Loans may also include these fees:

  • A set-up commission of up to 8%.
  • A late payment fee of 5% of the overdue amount or $15, whichever is greater, for each occurrence.
  • A returned check or $15 ACH return fee.
  • A one-time $10 fee to receive paper rather than electronic copies of your records.

Upstart requires borrowers to repay loans in 36, 60, or 84 monthly installments, depending on the loan terms you select. However, you can prepay your loan without penalty.

If you wish to benefit from an Upstart personal loan, you will need to:

  • Live anywhere in the United States except West Virginia or Iowa.
  • Be at least 19 years old in Alabama and Nebraska and at least 18 years old elsewhere.
  • Provide a valid email address, verifiable name, and social security number.
  • Have a regular source of income and a US bank account.

Borrowers need a minimum credit score of 300, but can also qualify without a sufficient credit history to generate a FICO score.

Your credit report may not have any overdue or collection accounts, overdue amounts, bankruptcies, or other public records within the past 12 months, unless paid by civil judgments or tax liens paid. Also, you will need to be under six credit applications in the last six months, not counting those for mortgages, car loans or student loans.

Upstart will verify your personal and credit information during the application process by obtaining a credit report with at least one of the credit bureaus. You may also need to provide your educational background, work experience, and intended use of funds. The loan amount you can qualify for depends not only on your credit, but also where you live.

A credit score as low as 300 may qualify for an Upstart loan, but the lower your credit score, the more expensive your loan.

However, credit score is not the only factor evaluated by lenders. Each lender has its own process for evaluating borrowers, but most look at credit history, debt-to-income ratio — the percentage of your monthly income you spend on debt repayment — and expenses.

Upstart Loans are available everywhere except West Virginia and Iowa.

In US News’ personal lender ratings, Upstart received 4.3 out of 5 stars overall, 4.0 for affordability, 4.3 for eligibility, and 4.6 for customer service. US News’ median overall rating for personal lenders is 4.0.

The Better Business Bureau gives Upstart, an accredited company, a B+ rating. Upstart has an excellent 4.9 out of 5 star rating on Trustpilot based on over 19,000 reviews.

The Consumer Financial Protection Bureau recorded 64 complaints in 2021 regarding Upstart personal loans, and all but one of the complaints received a quick response. The most common complaints were about getting the loan and unexpected fees and interest. There were 56 complaints closed with an explanation, and eight were ongoing as of January 2022.

Borrowers have several ways to contact Upstart: send a message using the online contact form, call or email [email protected]

If you prefer to speak with someone over the phone, Upstart provides general customer support from 9 a.m. to 8 p.m. EST, seven days a week. Payment assistance is available from 9 a.m. to 9 p.m. Monday through Friday and 10 a.m. to 7 p.m. ET on Saturday.

Upstart’s application process, from checking your rate to loan approval, can be completed online, but some applicants may need to verify information over the phone as an added security measure.

You can make payments, change your monthly payment date, or schedule recurring payments online through the Borrower Dashboard.

The online dashboard also displays your current obligations, along with instructions or clarifications on how your payments apply. You’ll see how much is owed and what to do if your account is overdue.

  • People who want an online lending experience.
  • People who want a fast loan process.
  • People who have no credit history.

About Judith J. George

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