Upstart Review: Personal Loans for Bad Credit Borrowers
- Max. Loan Amount
- $50,000
- APR
- 7.80% to 35.99%
- Min. credit score
- 300
Our verdict
This online lender considers multiple factors, including your education and work experience.
For many borrowers, Upstart's non-traditional underwriting criteria may make it easier to get approved for funding. It's also quick to fund, with most loans paying out within one business day after loan approval. However, it can be a pricey option for borrowers who barely meet its minimum requirements.
Best for: Borrowers who need fast funding and don’t qualify for less expensive loans.
Pros
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Loans up to $50,000
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Rates starting at 7.8%
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Considers education and career in underwriting process
Cons
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Origination fees up to 12%
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APRs as high as 35.99%
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Only offers two loan terms
Is Upstart legit?
Upstart is a legitimate lending marketplace that has been in operation since 2012. It became a publicly traded company in December 2020.
As of July 2024, it has partnered with more than a hundred banks to provide $39 billion in loan funds to over 3 million customers.
What makes Upstart shine?
Upstart’s underwriting process is the most unique benefit of the lending platform. Upstart utilizes artificial intelligence (AI) and considers nontraditional data, such as your education, grades and job offer letters, when making a lending decision.
This approach may make it easier for some borrowers — including those with a limited credit history or low credit scores — to qualify for a personal loan. Unlike most lenders, it accepts scores as low as 300 in most states as long as you meet Upstart’s other criteria.
To qualify, you must make at least $12,000 per year (or have a job offer letter with a start date within six months) and have no bankruptcies or account delinquencies on your credit report. If approved, you can get your funds as soon as the next business day.
Borrowers in a bind may also appreciate Upstart’s temporary hardship assistance program. You’ll need to apply for it through your online account and may have to submit supporting documentation. It’s unclear exactly how it works, but if approved, you may be able to temporarily suspend or lower your monthly payments.
Upstart also offers a 15-day grace period on loan payments before a late fee is charged. This leniency is a nice change of pace from creditors that charge a fee for being only one day late.
Where Upstart falls short
The biggest drawback to an Upstart loan is how much it may cost you. If you have excellent credit, you could get rates as low as 7.8%, but the “representative example” on its website for a five-year loan lists an interest rate of 19.74%. Plus, you may also be on the hook for an origination fee of up to 12%.
Your qualifications also determine how much of a loan Upstart may offer you, along with your state’s loan limitations. While no down payment is required and there are no prepayment penalties, only meeting the minimum requirements could result in a higher loan cost and a lower amount than you need. If you like Upstart, but are interested in seeing if you could get lower rates with another lender, there are sites like Upstart on the market.
Upstart loan details
| Minimum credit score | 300 |
| APR | 7.80% to 35.99% |
| Loan amounts | $1,000 to $50,000 |
| Terms | 3 or 5 years |
| Approval turnaround | As soon as the same day |
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How to qualify for Upstart
You must meet the following minimum requirements to qualify for an Upstart loan:
- Have a verifiable name, date of birth and Social Security number
- Be at least 18 years old
- Have a US address
- Have a valid email address
- Have a verifiable personal US checking account
- Have a job or other verifiable regular source of income or a job acceptance to start within six months
- Have a minimum credit score of 300 or meet educational or job requirements
- Live in a state that Upstart services
How to apply
It’s easy to apply for an Upstart loan and should only take a few minutes.
- Visit its website and select Get Your Rate.
- Answer the questions as prompted.
- Review your rate. If you accept it, Upstart will prompt you to formally apply and verify your bank account information.
- Read the disclosures and sign the promissory note if approved for the loan.
- Receive your funds, usually by the next business day.
Please note that you may be required to submit proof of income, school transcripts or other documentation. However, Upstart states that most borrowers won’t need to provide additional documentation when they apply.
How Upstart compares to other lenders
Compare Upstart’s rates, terms and features to other popular personal loan providers.
Upstart reviews and complaints
| BBB accredited | Yes |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.23 out of 5 stars, based on 232 customer reviews |
| Trustpilot Score | 4.9 out of 5 stars, based on 47,276 customer reviews. |
| Customer reviews verified as of | 27 August 2024 |
Upstart has thousands of reviews on Trustpilot, which are almost all positive. The majority of customers report being happy with the simple application process and the speed at which they received funds. While fewer in number, some customers complain about poor customer service or being denied a loan after being preapproved and submitting documentation.
Upstart is accredited with the Better Business Bureau (BBB) and earns an A+ business rating for its handling of customer complaints over the past three years. But it gets poor reviews on the site from customers who report billing errors, inaccurate payoff information and high interest rates.
What do people on Reddit say?
Some Reddit users say Upstart charges interest rates that are much too high — in some cases, worse than credit card rates. Others report good personal experiences getting loans from the company. A few people suggest that all personal loans are predatory, but if you’re going to get one, make sure to pay it off early and always make more than the minimum required payment.
Frequently asked questions
What is Upstart doing to prevent fraudulent activity?
Upstart uses an AI-based fraud and verification process that — in most cases — nearly eliminates the need for human interaction, manual review and manual uploading of documents.
This system is meant to reduce time and hassle for the borrower and lower underwriting costs for lenders while driving down fraud rates. Upstart says it’s reduced fraud to less than .03%, according to an internal data analysis.
What if I’m a victim of identity theft and an Upstart loan appears on my credit?
If you find a loan that originated with Upstart on your credit report, Upstart recommends you call immediately to report the fraud. From there, an identity theft specialist starts an investigation on your behalf.
You’ll also need to fill out an identity theft report with the Federal Trade Commission (FTC) at Identitytheft.gov. Upstart advises that you report the fraud to all the major credit reporting agencies and put a fraud alert or freeze on your reports. You may also want to file a police report.
How many Upstart loans can you have at once?
You can have two Upstart loans at a time. Your first loan must not exceed $50,000 in principal, and you should have made on-time payments for the past six months.
How fast is it to get money from Upstart?
In most cases, funds are transferred to your account within one business day after loan approval. However, if you’re using the loans for educational purposes, you’ll need to wait an additional three business days for funding in accordance with federal law.
Does an Upstart loan hurt your credit?
Lenders typically conduct a hard credit check when you apply for a loan, and hard credit inquiries cause your credit score to drop a few points. However, the impact on your credit score is only temporary, and as you continue to make on-time payments, your score can actually improve.
What documentation is required to verify my Upstart loan?
When applying for an Upstart loan, you’ll need to verify your income. Documentation can be verified by pay stubs, bank statements, tax returns or other relevant financial records.
What are the minimum credit requirements to receive a loan?
Upstart states it takes applicants with a minimum credit score of 300, as long as they don’t have any bankruptcies, current delinquent accounts or other disqualifying factors.
Compare Upstart to other lenders
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Lacey Finder
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Harold Finder
July 17, 2017
Hi Jelene,
Thank you for your inquiry.
You do have an option to refinance your current home loan. Click on that link to learn more.
I hope this information has helped.
Cheers,
Harold
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Jelene
July 16, 2017
I own my home but with my life estate the house will go to my son. i have a loan that i paid for years and on time.. my son took it over past 6yrs nd recently it went into forecloser. my daughter saved my house but i would like to refinance it i owe 11,000 on the loan but i have 85,000 in equity
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