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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 amount range: $1,000 – $50,000
- Interest rate rage: 8.89% – 35.99%
- Terms: 36-60 months
- Origination fee: 0% to 8%
- Late payment fee: 5% of past due amount or $15 (the greater)
- Check Processing fee: None
- Prepayment fee: None
- Minimum credit score: 620
- Minimum income: $12,000 annually
- Debt-to-income ratio: less than 45%
- Funding: Typically one day
- 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
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.