Personal loans can be used for a variety of financial needs, from debt consolidation to paying off taxes, home improvement, or financing a major purchase, securing a fixed-rate loan with a predictable monthly payment can be more cost-effective than a double-digit interest-rate credit card.
Several lenders offer personal loans, including credit unions and traditional banks. Some borrowers may, however, find themselves in a better position to get the funding they need through an online lending platform such as Upstart as it uses more than your credit score to approve you for a loan.
Check out what the company has to offer with its personal loan line-up and continue reading our Upstart review if you need a personal loan this year.
Who is Upstart?
Founded in May of 2012, Upstart is a technology-driven lending platform that focuses on providing affordable, easy, and quick personal loans. Upstart prides itself on making access to affordable credit more streamlined through its artificial intelligence platform.
The online company works with several different lenders to provide loan offers to qualified borrowers, all while boasting higher approval rates with fewer losses over time. The process of getting a personal loan through Upstart is fully digital, with nearly 70% of loans now completely automated.
Since the start of the company, Upstart has generated billions in loan originations, serving over one million borrowers across the United States. The business currently has an excellent rating on Trustpilot based on tens of thousands of Upstart loan reviews from customers.
Personal Loan Options through Upstart
Although personal loans from Upstart are not specifically tied to a specific need, borrowers may find that the loan offers they receive are a better fit for their overall needs.
Upstart Loan Amounts
Upstart offers unsecured personal loans, meaning no collateral is needed, with loan limits ranging from $1,000 up to $50,000.
Repayment Length, Annual Percentage Rate (APR)
Repayment terms for Upstart personal loans are either three or five years in length, based on the borrower’s needs. Interest rates are fixed for every Upstart loan, ranging from 7.4% to 35.99% APR.
What You Can Use an Upstart Personal Loan For
Borrowers are not limited to what they can spend the personal loan proceeds on. Upstart loan offers can be used to pay for things like medical bills, home remodeling projects, debt consolidation, weddings, vacations, income tax debt, moving costs, or something else.
Checking Rate with Upstart Doesn’t Affect Your Credit Score
Individuals interested in an Upstart loan begin the application process online by inputting some basic information such as their name, email address, and the amount of money needed.
A soft credit inquiry is completed to help provide an initial loan amount and rate the borrower may qualify for with partner lenders. Borrowers are then able to check their rates, see lender-specific offerings, and select which loan option best fits their needs.
Once a loan application is approved and an offer is selected, borrowers can receive funding in as little as one business day.
The Fine Print on Upstart Personal Loans
While Upstart is a transparent lending platform bringing together borrowers and lenders, there may be some fine print to pay careful attention to in the process. Luckily, no-prepayment penalties are charged on any Upstart personal loans, meaning paying off the loan balance in full before the last payment is due can be done without issue!
Upstart Loan Origination Fees
However, lenders that partner with Upstart may charge origination or funding fees as an up-front cost of getting a loan. Although each lender is different, these fees can range from 0 to 12% of the loan amount. A higher origination fee increases the overall cost of the loan, so it is crucial to evaluate this charge before signing on the dotted line.
Upstart Borrower Creditworthiness
Additionally, Upstart evaluates more than a borrower’s credit score to determine who is a good fit for a personal loan. The company mentions briefly that the application process, powered by artificial intelligence, also takes a close look at education and job history when evaluating a loan application.
While this may be beneficial to some borrowers who have less than ideal credit or bad credit as low as a 300 credit score, the interest rate charged on a new loan can sometimes be a bit higher than comparable banks or credit unions for people with good to excellent credit. So be sure to fully evaluate your options before accepting an offer through them.
The maximum interest rate is 35.99%, which is similar to many online lenders, but it does exceed most credit cards as well.
Upstart Loan Availability
Finally, Upstart loans are available in all 50 states, but borrowers may be subject to different qualification requirements, loan limits, and other terms depending on where they live. Each state dictates the rules surrounding personal loans, and for some borrowers, this could mean a smaller loan amount is available.
Also, borrowers in some states are limited to the lender offers they receive, based on the partnership Upstart has with specific loan providers operating in the state.
As with any personal loan, it is essential to understand these nuances, along with the fees charged, to ensure the loan you receive is truly the best option for your financial situation.
Upstart Contact Information
Individuals interested in using Upstart to obtain a personal loan can find more information about current rates, the application process, and check borrower-specific offers by calling 1-855-438-8778 and through the company’s online platform.