Upstart Personal Loan Review 2020

Rating:
4.3/5
4.3 stars out of 5

We adhere to strict standards of editorial integrity to help you make decisions with confidence.However, this article may contain references to products from our partners. The review is not a recommendation, the actual rates/fees may be different.

Upstart – About The Lender

Upstart is a new peer-to-peer marketplace with over $2.7 billion in loan originations since 2017. It is based out of San Carlos, CA, and started by former Google employees. “Upstart is an online lending marketplace that provides personal loans using non-traditional variables, such as education and employment, to predict creditworthiness.”

Upstart “identifies high-quality borrowers based on signals of their potential, even if they have limited credit and/or employment experience. We call these consumers “future prime” borrowers.” Upstart claims their AI (artificial intelligence) systems are constantly learning and have instantly approved of 58% of applications.

Loan Specification

Here are the basic specifications & requirements of Upstart personal loan:

FeatureUpstart Personal Loan
Loan Amount Range$1,000 - $50,000
Interest Rate Range8.89% - 35.99%
Term36-60 Months
Late Payment Fee5% of past due amount or $15 (the greater)
Origination Fee0% to 8%
Check Processing FeeNone
Prepayment FeeNone
Minimum Credit Score620
Minimum Annual Income$12,000
Debt To Income RatioLess Than 45%
Funding1-2 Day
Documents To Provide
  • Personal Information (including address, phone number, email, and SSN)
  • Pay Stubs
  • Bank Statements
  • Copy of college transcripts or diploma
  • Tax returns

Upstart Loan Pros & Cons

As we know, each lender has its own pros & cons  – here are the relevant things we found for potential borrowers:

Pros

Cons

What Can a Upstart Personal Loan Be Used For?

Upstart loans can be used for many different things. They do not provide upfront much information about what their loans can be used for, but they do provide a short list of items. 

For example, Upstart can be used to refinance credit cards, other debts, and even student loans. Many providers do not allow their personal loans to be used for refinancing student loans or for post-secondary education, but Upstart allows for both.

Upstart loans can be used to pay for personal expenses. The items listed on Upstart include paying bills including rent and medical bills, home improvement costs, moving costs, taxes, vacations or wedding expenses. 

They can also be used to buy a car or for other large purchases. Upstart loans can also be used to expand or start a business.

Upstart Application Process

The Upstart application process only takes a few minutes. 

You will fill out a short form with some basic questions about yourself, including your full name, contact information, date of birth, employment status, education, how much you have in savings, income, and preferred form of repayment. 

This form is for a soft pull, meaning the credit inquiry will not affect your credit.

You will get to see what your rate would be if approved. You will review the terms and conditions

Then if you want to move forward, you may need to provide some verification of items stated on the application such as your picture ID, social security card, bank statements, pay stubs, copy of college transcripts or diploma, or tax returns.

Upstart Loan is Best for..

Upstart has a unique process for assessing risk of their borrowers and approving loans. They use AI to assess their applications. Upstart is a newer company, but is growing fast. Upstart is best for borrowers who have just started their careers and do not have a long credit history or strong income.