Upstart is a lending platform that offers personal loans to individuals with a wide range of credit scores, including those who may not qualify for traditional bank loans. Upstart has assisted over 2.7 million consumers and originated over $34 billion in loans. The company uses an innovative and unique underwriting model that considers factors such as education, employment history, and other non-traditional data points to determine creditworthiness.
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Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000). The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 7.50% origination fee of $750, for an APR of 22.50%. In this example, the borrower will receive $9250 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in September 2024. There is no down-payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
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Upstart is an online lending platform specializing in personal loans for individuals with varying credit scores. Compared to regular bank loans, Upstart gives access to loans for those who may not match the qualifying criteria for bank loans. Since its founding, Upstart has assisted over 2.7 million borrowers and funded over $34 billion in loans. Upstart’s cutting-edge underwriting process, which goes beyond traditional credit scores and considers factors such as education, employment history, and other unconventional data points to evaluate a borrower’s creditworthiness, is one of its distinguishing features.
Upstart provides access to fixed-rate personal loans through an innovative underwriting approach. Instead of relying solely on credit history and credit score, they evaluate non-traditional factors such as educational background, grades, and earning potential to assess a borrower’s creditworthiness. The unique underwriting approach has enabled Upstart to lend loans to individuals who regular banks would have denied.
Upstart was founded in 2012 by four ex-Google employees: Dave Girouard, Anna Counselman, Paul Gu, and Michael Kitchen. Upstart, headquartered in Palo Alto, California, was formed because traditional banks relied on outdated metrics such as credit scores and other variables, preventing a significant percentage of borrowers from obtaining loans. The team created a platform that used artificial intelligence and machine learning algorithms to assess borrowers’ creditworthiness based on non-traditional factors such as job history and education.
Google Ventures, Third Point Ventures, KPCB, Khosla Ventures, Founders Fund, First Round Capital, Eric Schmidt, and Mark Cuban are among the banks and investors who have backed Upstart since its inception. In 2019, the platform went public, raising $240 million in an initial public offering (IPO). Upstart has a market capitalization of roughly $9 billion as of 2021.
Upstart’s partnership with banks allows it to offer personal loans ranging from $1,000 to $50,000 for a range of purposes, such as home improvement, medical expenses, and debt consolidation. Once approved, borrowers can expect to receive their funds in as little as one business day.
Upstart has taken advantage of the latest technology advancements, particularly in artificial intelligence and machine learning, to create a sophisticated income and default prediction model. This model is used to assess the creditworthiness of potential borrowers. Unlike traditional lenders, who rely primarily on FICO scores, income, and credit reports, Upstart’s model considers additional factors such as academic performance and work history to create a complete statistical picture of borrowers’ financial strength and the likelihood of repaying their loans. By incorporating these non-traditional criteria, Upstart can provide more accurate assessments of a borrower’s creditworthiness and offer loans to a broader spectrum of individuals, including those who may not fulfill the tight qualifying restrictions of traditional lenders.
Personal Loans for Debt Consolidation: – Upstart provides personal loans for debt consolidation, such as high-interest credit card balances or medical debts. Borrowers can simplify their payments and save money on interest by combining various loans into a single loan.
Personal Loans for Credit Card Refinancing: – Loans from Upstart can also be used to refinance high-interest credit card balances. Borrowers who refinance their credit card debt with a personal loan can save money on interest.
Personal Loans for Home Improvement: – Upstart provides personal loans for home improvement projects such as kitchen remodels and bathroom improvements. These loans can assist homeowners in financing projects without using their home equity.
Personal Loans for Weddings: With an Upstart personal loan, borrowers can easily cover wedding expenses such as venue rental, catering, and photography. By consolidating all costs into a single loan, borrowers can streamline their payments and save on interest.
Personal Loans for Medical Expenses: Upstart provides personal loans for medical needs such as unexpected medical bills, surgeries, or procedures. Medical bills can quickly mount up and financially strain individuals and families. Borrowers can use Upstart loans to pay medical expenses without tapping into their savings or retirement accounts.
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Lender Type | Lending Marketplace |
BBB Rating | A+ Rating |
APR | 7.4% – 35.99%* |
Credit Score | 300 above |
Loan Amount | $1,000 to $50,000 |
Loan Term | 3 or 5 years |
Origination Fees | Up to 12%* |
Time to Receive Funds | 1 to 2 business days* |
Fast Funding: – Upstart loans offer fast funding, with the possibility of receiving your funds as soon as one business day following approval. This makes it an excellent option for those who need money quickly.
Competitive Rates: – Upstart provides interest rates that are highly competitive and usually lower than what traditional lenders offer.
No Prepayment Penalty: – With Upstart loans, you won’t face any prepayment penalty, which means you can settle your loan ahead of time without any extra charges.
Flexible Repayment Terms: – Upstart loans provide flexible repayment terms with options for 36 or 60 months, allowing you to choose the repayment speed that works best for you.
Easy Application Process: – Applying for an Upstart loan is a breeze with a quick and straightforward application process that can be completed entirely online.
Upstart has a distinctive approach to assessing creditworthiness by utilizing artificial intelligence and machine learning algorithms to streamline the loan process; their advanced data science model considers various factors, including the applicant’s education, SAT scores, GPA, work history, earning potential, and more. This enables Upstart to make more informed decisions regarding an applicant’s creditworthiness, even with a limited credit history.
As a result, Upstart is an ideal alternative for individuals who have been denied by other lenders owing to a lack of credit history, as they can still be approved depending on additional factors. Upstart’s innovative use of technology distinguishes them from other lenders in the industry who rely exclusively on credit history to evaluate borrowers.
Upstart does not place restrictions on the use of funds for personal loans. Borrowers can use the loan for various purposes, including paying off credit card debt, medical expenses, tuition fees, student loan repayment, and even starting or expanding a business. Upstart understands that everyone has different financial needs, and they aim to provide the flexibility to help borrowers achieve their goals.
Upstart offers fixed-rate personal loans, but each applicant’s specific interest rate is determined by factors such as education, work history, credit history, and income. To fully comprehend the overall cost of the loan, it’s crucial to examine the annual percentage rate. This rate includes the interest rate and other fees associated with the loan.
Upstart provides fast funding for personal loans, with funds available as soon as the next business day if approved and accepted before 5 pm ET Monday-Friday. If the application is approved and accepted after 5 pm ET Monday-Friday, the borrower should receive their loan amount within two business days. Loans used for educational purposes have an additional three-business-day waiting period.
Borrowers can choose loan amounts ranging from $1,000 to $50,000 and repayment terms of 3 or 5 years, providing flexibility to suit their financial needs.
Note that some states may have state-specific minimum loan amounts.
Upstart’s online dashboard allows borrowers to manage their loan payments easily. Users may quickly modify and track payment schedules, change recurring payment amounts, and cancel scheduled payments as needed using the dashboard. This feature gives borrowers the freedom and control to adjust their loan repayment based on their financial situation.
Using the Upstart dashboard, borrowers can make additional one-time payments at no extra cost without affecting their scheduled monthly payments. Furthermore, there are no costs for making additional manual payments to pay off the loan.
The platform also provides payment schedule flexibility, allowing borrowers to choose their preferred payment frequency. For example, if you get paid twice a month, you can set up bi-monthly automatic recurring payments to match your income pattern, subject to specific requirements.
The state’s serviced may change without prior notice; visit the lender’s website for up-to-date information.
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Most frequent questions and answers about personal loans from Upstart
Upstart is not a direct lender; instead, it is a loan marketplace that collaborates with banks to manage the loan application and approval process before connecting you with one of its partners who will fund the loan. They use technology to evaluate applications and recommend loan approval to their bank partners.
With Upstart, you can borrow up to $50,000, but the exact amount you are eligible for may depend on factors such as your creditworthiness and income.
Upstart personal loans are unsecured; thus, borrowers are not required to provide any collateral (like a car or house) to obtain the loan. Instead, Upstart assesses borrowers’ creditworthiness and ability to repay the loan based on their income, education, work experience, and credit history.
With Upstart, borrowers have the flexibility to use personal loans for a variety of purposes. These include debt consolidation, home improvements, weddings, education expenses, medical bills, and credit card consolidation. Upstart does not restrict the use of personal loans to specific purposes, allowing borrowers to use the funds as per their unique requirements.
No, Upstart only performs a soft credit inquiry, which has no negative influence on your credit score. Borrowers can use this option to search for loans and compare offers without fear of causing damage to their credit scores. If you accept a loan offer and continue the application process, Upstart partners may perform a hard credit inquiry that could impact your credit score.
Upstart charges an origination fee, which is deducted from the loan proceeds when the loan is disbursed. The fee ranges up to 12% of the loan amount, depending on the borrower’s creditworthiness and other factors.
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