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Upstart

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James B. Upstart
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Upstart offers personal loans to individuals through a quick loan system that evaluates the borrower’s past as much as their future. Using non-traditional variables, such as regular income and promising financial prospects based on education, Upstart provides fast funding opportunities for those with slim credit histories against a share of their future earnings. Loans range from $1,000 - $50,000, and funds can be available to you as fast as one business day after your application is approved. Student loans take longer and are usually approved in up to 3 business days. Beyond its online lending platform, Upstart provides “Software-as-a-Service” technology to banks and credit unions, among others.

What Loans do Upstart offer?

As the first lending platform to leverage AI/ML, founded by ex-Googlers, Upstart provides 3 to 5-year fixed-rate interest loans to high-quality borrowers. Upstart loans are available for several purposes, including weddings, moving house, credit card and debt consolidation, home improvement, college tuition, and medical loans. Upstart credit card consolidation provides a solution to pay off credit card debt, by taking on a new loan at a fixed interest rate, ideally lower than those variable rates on your cards. Once your credit cards are debt-free, you are left with one monthly payment at a fixed rate, which enables you to pay off your debt much faster.

Some of the benefits of this system are:

1) The fixed-rate won’t vary over time.

2) One single monthly payment as opposed to multiple due dates for several credit cards.

3) Scheduled pay-off day by the end of the lending term.

Upstart Medical Loans

Given that most health insurance doesn’t cover all medical costs, Upstart offers medical loans that can be used to cover the gaps. Such credits can be applied to unexpected hospital bills or specific medical treatments and elective procedures. Another option that Upstart offers in to consolidate existing medical loans into one personal loan, which can be a good way to save some money on your repayments.

The following procedures are an example of what Upstart medical loans can be used for:

Upstart Veterinary Loan

In addition to medical loans, Upstart offers the option to apply for a veterinary loan. The lack of health insurance for pets can be a real issue when your pet faces complex medical procedures due to unforeseen situations.

Upstart Refinancing Options

Hundreds of reviews from clients rated Upstart 4.5/5 star by the beginning of 2020. Most customer reviews focus on fast approval and disbursement, excellent customer service, and reasonable rates (Est. APR 9.57-29.99%).

Upstart Customer Service

Upstart has a team of professionals working seven days a week to guide you, as well as online access to your inquiries, where you can check on your application status. There’s a help center available online where you can check on FAQs, eligibility, and application procedures.

Upstart Fees

Pre-payment fee: None

Origination fee: 0.0% - 8.0%.

Late fee: 5% of the past due amount or $15, whichever is higher.

Upstart Pros and cons

Pros:

  • New to Credit borrowers
  • Fast funding
  • Financing educational courses or boot camps
  • Assess applicants job history and education beyond the score
  • Checking their rates won’t affect your credit rating
  • High Probabilities of Approval

Cons

  • Origination and late fees
  • Joint applications

How to apply for Upstart loans

The application process is tailor-made for each borrower, taking into consideration not only your credit history but as well your education and employment history. No minimum credit line or years of credits are required. In order to apply for an Upstart loan, you can fill out the application on their website. Enter the amount you would like to borrow and fill in the inquiry referring to education level, credit score, job history, and source of income. Upon completion, you can see an estimated rate for a loan as initial guidance. 

If you have a credit history, Upstart requires a score of 620 minimum and a clean record as far as bankruptcies or delinquent loans go. As well, you need to have less than six inquiries in the past semester on a credit report, excluding student loans, mortgages, and car loans.

Qualifications for Eligibility

Minimum credit score: 620

Minimum age: 18

Minimum credit history: None

Immigration Status Considered: U.S. Citizen / U.S. Permanent Resident

Bank Account Required 

Minimum annual income: $12,000

Max debt-to-income ratio: 45%.

Employment Statuses Considered: Employed Full-Time / Part-Time

Retired

Self-employed

Verification Documents Required: Proof of Income

Recent Pay Stubs

Driver License (or other photo ID)

Proof of citizenship/residency (Green Card)

Furthermore, permanent residency in specific states might affect your eligibility as Upstart sets minimum loan amounts on different states. This may have an impact on approval when applying for smaller loans.

For instance, see Upstart minimum loan amount in the following states:

Massachusetts: $7,000

Ohio: $6,000

New Mexico $5,100

Georgia $3,100

Conclusion - Upstart services

When considering lending companies, Upstart can be a reliable partner for youngsters with a promising financial future with a fair credit score, even with little to no credit history. If you consider yourself such an individual, you will likely get competitive terms through their unique lending platform. 

Although origination fees and late payment fees are relatively standard within the lending industry, applicants should be fully aware of them. The fact that there are no prepayment penalties nor check processing charges and loans are disbursed within a business day of approval makes Upstart unsecured personal loans a great option if you require fast funding.  

With a vast loan portfolio, positive customer reviews, and flexible eligibility based on non- traditional evaluation of applicants, Upstart is worth looking into. If you fit their minimum requirements, you could find a reliable partner to help you plan your future and meet your financial needs.