Upstart is a lending platform that uses artificial intelligence to improve access to affordable credit. Based in California and founded by former Google employees in 2012, Upstart also applies AI to reduce lending risks and costs for its bank partners. The lending intermediary provides unsecured personal loans from $1,000 to $50,000 to borrowers anywhere in the U.S. except West Virginia or Iowa.
- Next-day funding: Upstart says 99% of applicants who accept their loans by 5 p.m. Eastern time Monday through Friday will get their money in one business day. The exception is loans for education expenses, which are subject to a waiting period of three business days, according to federal law.
- No credit history required: Upstart offers loans to borrowers with no credit scores, which traditional lenders may not do. If you have little or poor credit history, your loan will likely be more expensive, however.
- No prepayment penalty: You can repay all or part of your loan anytime without being charged a fee.
- Origination fees: Upstart will deduct a one-time, nonrefundable origination fee of up to 8% from your loan proceeds before you receive them.
- No co-signers: Upstart does not accept co-signers and only takes the borrower’s personal information into account during the application process. Co-signers can help borrowers with limited or poor credit histories obtain better interest rates.
Upstart’s unsecured personal loans of $1,000 to $50,000 with fixed rates from 7.86% to 35.99% can be used for virtually anything. Rates and minimums vary by state, but the average three-year loan offered by Upstart has an APR of 25.42% and 36 monthly payments of $37 per $1,000 borrowed.
Common loan uses include:
Borrowers may not use loans to:
- Pay for education expenses in California, Connecticut, Illinois, Washington or Washington, D.C.
- Fund illegal activities, such as buying drugs.
Personal Loan Finder
Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.
Before you borrow, you can check your rate on Upstart’s website without hurting your credit score. Your loan amount will be based on your credit, income and other information on your application, such as your education, work experience and credit history.
If you are ready to apply, know that the process will vary by lender. Upstart partners with banks to match borrowers with loan offers, and each lender has its own requirements.
Most lenders will require information such as your name, address and Social Security number to perform a credit check. Some lenders may ask for pay stubs, tax returns, school transcripts or SAT scores.
Once you’ve been approved for and accepted your loan, you can receive your money in as little as 24 hours. In other cases, loans may take up to one month to be funded, and education loans require a waiting period of three business days before funding, according to federal law.
Upstart loans have interest rates from 7.86% to 35.99%. The loans can also include these fees:
- An origination fee of up to 8%.
- A late payment fee of 5% of the overdue amount or $15, whichever is greater, for each occurrence.
- A returned check or ACH return fee of $15.
- A one-time $10 charge to receive paper rather than electronic copies of your records.
Upstart requires borrowers to repay loans in 36, 60 or 84 monthly installments, depending on the loan terms you select. That said, you can prepay your loan without penalty.
If you want to qualify for an Upstart personal loan, you will need to:
- Live anywhere in the U.S. except West Virginia or Iowa.
- Be at least 19 in Alabama and Nebraska and at least 18 elsewhere.
- Provide a valid email address, a verifiable name and a Social Security number.
- Have a regular source of income and a U.S. bank account.
Borrowers need credit scores of 580 or better but can also qualify without sufficient credit history to generate a FICO score.
Note that your credit report can’t have delinquent or collection accounts, past-due amounts, collection accounts in the last three years, or charge-offs unless they are below certain thresholds. You should have no bankruptcies or other public records on your credit report within the last 12 months, unless they are paid civil judgments or paid tax liens. Also, you will need to have fewer than six credit inquiries, not including those in the last six months for mortgages, auto loans or student loans.
Upstart will verify your personal and credit information during the application process by obtaining a credit report from at least one of the credit bureaus. You will also need to provide your academic history, work experience and intended use for the funds.
The loan amount you can qualify for depends not only on your credit but also on where you live. Upstart loans range from $1,000 to $50,000, but state minimums apply.
A credit score as low as 580 can qualify for an Upstart loan, but the lower your credit score, the costlier your loan.
However, credit score isn’t the only factor lenders evaluate. Each lender has its own process to assess borrowers, but most look at credit history, debt-to-income ratio – the percentage of your monthly income you spend on debt payments – and expenses.
Upstart loans are available everywhere except West Virginia and Iowa.
The Better Business Bureau gives Upstart an A rating, but the company also receives a score of 1.63 out of 5 stars based on 41 customer reviews.
Upstart has earned an Excellent rating of 4.9 out of 5 stars on Trustpilot based on more than 7,600 reviews.
The Consumer Financial Protection Bureau recorded 25 complaints in 2020 about Upstart personal loans, and all but one complaint received a timely response. The most common complaints were about problems when making payments, incorrect information appearing on credit reports and being charged unexpected interest or fees.
Borrowers have several ways to reach Upstart: Send a message using the online contact form, call or email [email protected].
The online contact form is available on the “Contact us” page, beneath “Borrower support” at the top left. Simply click on “Contact Us Now” to bring up the form and type your message.
If you would prefer to speak with someone by phone, Upstart provides general customer support from 9 a.m. to 8 p.m. Eastern time, seven days a week. Payment support is available from 9 a.m. to 9 p.m. Monday through Friday and from 10 a.m. to 7 p.m. on Saturday.
Upstart’s application process, from checking your rate to accepting the loan, can be completed online, but some applicants may have to verify information by phone as an added security precaution.
You can make payments, change your monthly payment date or schedule recurring payments online through the borrower dashboard.
The online dashboard also displays your current obligations, along with instructions or clarifications on how your payments apply. You’ll see how much is due and what to do if your account is past due.
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