Upstart Personal Loan: Everything You Need To Know

If you ever need to borrow an amount of money or you have a limited credit history whether you want to consolidate debts or you plan you plan on making a huge purchase then Upstart personal loan is what a trial as they consider various positives when your application is being evaluated and they also offer fast funding and flexible loan amounts.

As you read on, we will be providing you with in-depth knowledge on upstart personal loans to help you decide whether you will love to apply or not.

What is Upstart Personal Loan?

Upstart was among the first companies to use artificial intelligence in order to improve access to affordable credit and they are also known to use non-traditional data such as college education, residence, and job history to qualify borrowers.

Unlike traditional lenders like banks that focus on your credit reports, debts, assets, and income. They have proven to be the best loan company for prospective borrowers especially those with no credit or fair credit.

Aside from all these upstart has proven themselves by standing out in some of the following ways

  • Fast funding: as a borrower, you are pre-qualified to see their rates in less than 5 minutes and their loan approval does not take longer than one working day after signing the loan agreement.
  • Direct payment to creditors: for personal loans used to clear off credit cards, upstart has taken it upon themselves to send your loan to your credit card issuer to ease the whole debt consolidation process.
  • Flexibility payment: a borrower can change their monthly payment date as many times as they want via an upstart online portal
  • Multiple ways to pay: upstart allows the borrowers to pay via mail checks, over their phones, or even with the automatic payment. So you can pay in any way that you feel comfortable with.

you can read this: Upstart Personal Loans Reviews 2022

Types of Personal Loans Offered by Upstart

Upstart offers fixed-rate personal loans that can be utilized for various purposes or cover different expenses but before applying for the loan, borrowers will need a minimum credit score of 300 or insufficient data to generate a score and a regular source of income. 

Upstart also has some state limitations where the loans can’t be used for student loans or educational expenses but no other restrictions on what loan proceeds can be used for. Here are some of the reasons or purposes that upstart personal loans can be used for:

  • Medical expenses
  • Wedding cost
  • Moving cost
  • Debt consolidation
  • Home improvement expenses or project
  • Refinancing student loans(except in states that have restrictions).
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Requirements  For an Upstart Personal Loan

In order to qualify for an upstart personal loan, certain requirements or criteria are expected to be met by the borrower. These requirements include:

  • A minimum credit score of 580. Although upstart also issues loans to people with no credit history.
  • A reasonable debt-to-income (DTI) ratio, upstart has no specific DTI but according to the federal reserve, anything above 40% is indicating financial stress because it means you are spending more than half of your income on debt and that way you can’t qualify for a loan.
  • A credit report that is free from bankruptcy
  • Less than six(6) credit inquiries on your credit history in a period of six months or less will also be of great advantage to you.

Application Process For Upstart Loan

Upstart has made applying for a personal loan quite easy. Here is how to go about it:

Apply online as upstart carries out a soft credit check that will not affect your credit score.

After you have submitted the basic info, upstart uses some factors like your credit score, income, education, debts, and even work experiences to conclude your rate. The loan term can also have an effect on the total amount to be paid and your rate.

Read the terms and conditions, and accept or agree to them if you are satisfied. Then you can apply online and provide upstart with all the basic information and details they require.

Upstart will verify the authenticity of your financial information by making a hard inquiry which will in turn reduce your credit score by a little amount( it won’t change anything though)

You can now relax and await a decision almost right away except upstart asks you for additional information. Once your loan has been approved, you can access your loan within one working or business day.

After the loan has been disbursed, borrowers will find their repayment date on their promissory note. The first payment is usually between twenty(20) to forty(40) days of the loan’s origination date. Borrowers also have the ability to change their monthly payment date via the upstart’s online portal

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Who is Upstart Personal Loan Right For?

Upstart is an online personal loan company that provides borrowers with fair credits to those with a score of at least 580 access to personal loans by looking beyond their credit history and putting several non-traditional credit indicators into consideration which makes the platform a very suitable option for applicants who might need quick funds for one reason or the other.

Upstart offers minimum loans of $1,000 in all states except in some states like Massachusetts($7,000), Ohio($6,000), New Mexico($5,100), and Georgia, so customers won’t have to borrow more than they need. Although upstart increased accessibility to loans comes at a price.

The annual percentage rates(APRs) are on the high ends, borrowers are also limited to a 3 to 5 year (36 to 60 months) loan term which is shorter and less flexible than other online lenders.

Overall, upstart is still a good option for borrowers who don’t have a credit score that qualifies them for more inexpensive loans.

Upstart Personal Loans Review

We have concluded that an Upstart loan is worth it, especially for borrowers with no credit score that are searching for small loans.

PROS

  • Acceptance of borrowers with low credit scores or borrowers new to credit
  • Wide range of loan amounts: 
  • No prepayment penalties
  • Fast funding within one working day
  • Offers direct payment to creditors with credit card consolidation loans
  • Permits borrowers to change their payment date through their online portal.

CONS

  • Upstart may charge an origination fee.
  • Borrowers are only limited to choosing between two repayment term options.
  • There’s no mobile app to manage loans, unlike some other lenders who have mobile apps for borrowers to make payments and access their current credit score and payment history.
  • High upper range interest rates.

Upstart Loan Purposes

As we have started earlier, upstart loans can be used for various personal reasons like credit card consolidation, wedding loans, debt consolidations, moving loans, medical bills, home improvement, refinancing student loans, and so on.

Prohibited uses include illegal activity, purchase of weapons and firearms, firearms, and student loans or educational purposes for borrowers in places like Connecticut, Illinois, California, and Washington D.C. 

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Also, you can check this: Best Personal Loans of 2022

Customer Reviews

Generally upstart has received positive reviews across a number of platforms which focuses on how easy the application process is and the convenience of their upstart’s credit card consolidation loans and they have also rated 4.9 stars on Trustpilot.

Although they have good reviews it is still okay to have negative reviews in order to create room for improvement. The negative reviews seem to focus on the bill payments and the customer support response.

CONCLUSION

Upstart’s personal loans don’t come with the most amazing features but they have proven to be a fast funding loan platform for their borrowers even with low credit scores and a strong earning potential or income.

We also strongly advise those that plan on using the loan for student loans and anything related to finding out if it is acceptable in their state to avoid disappointments but overall Upstart is a good and reliable loan platform.

FAQs on Upstart Personal Loan

Can you pay your upstart loan early?

Yes, you can prepay your loan at any point without penalty whether whole or partially.

Does upstart pull hard?

Upstart performs a hard inquiry when you apply for a loan. The credit report inquiry done will drop your credit score by 5 to 10 points but not to worry, you will be able to get it back when you make your payments on time.

How long does it take to upstart to make a decision?

How much time the upstart takes before making a decision depends on when and where you are applying for your personal loans.

But generally, it takes as little as one working day when you have all documents available.

What are the benefits of using upstarts?

  • They accept borrowers new to credit.
  • Fast funding
  • Easy to apply and transparent throughout the whole application process.

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