Upstart Personal Loans Review

Our take on Upstart

Upstart offers fast funding and a wide range of loan amounts to fund a wide range of loan purposes to borrowers across the credit score spectrum. Plus, low credit score and income requirements, along with the availability of secured loans might make it easier to qualify with Upstart relative to other lenders. But drawbacks such as potentially high rates and origination fees, and limited options for repayment terms mean that Upstart isn't the ideal choice for everyone. 

Who (or what) is Upstart best for?

• Relatively easy prequalification: More people were able to prequalify with Upstart than with any other lending partner on the Credible personal loan marketplace, according to 12 months of prequalification data. Prequalification isn't an offer of credit, but it can give you an idea of the rates and terms you might qualify for. 
• Fair-credit borrowers: Upstart considers borrowers with FICO scores as low as 620 through Credible, whereas most lenders prefer a 640 minimum credit score or higher. And since its AI-powered underwriting model evaluates a broad set of criteria, you could qualify with a limited credit history based on other factors — for example, Upstart considers your earning potential when determining your eligibility.
• Fast loans: The average funding time for Upstart personal loans was 2 days, according to 12 months of Credible marketplace data. But you could receive money as soon as the next business day once approved. Most Credible partner lenders took 3 or more days to fund loans.
• Large and small loans: Upstart offers small loans ($1,000) up to large loans ($75,000). Few lenders offer as wide a range.

What is Upstart not best for?

• Low rates for fair and good credit: Although Upstart considers fair credit scores, average APRs for FICO scores between 580 and 669 were the second-highest of all Credible lending partners. Rates for good credit weren't much better. 
• Extended repayment terms: Upstart’s maximum repayment term is 5 years. While that’s not uncommon, quite a few lenders offer terms up to 7 years or longer. Extended repayment terms are especially helpful if you’re taking out a large loan (which Upstart offers).
• Residents of certain states looking for smaller loans: While Upstart personal loans generally start at $1,000, minimum loan amounts vary in certain states. For example, in Massachusetts, the minimum loan amount is $7,000. Maximum loan amounts may also vary by state.

Pros and cons

Details on the pros

• Relatively easy to prequalify: Borrowers on the Credible marketplace had the highest prequalification success rate with Upstart, according to 12 months of personal loans prequalification data. Prequalification lets you see estimated rates and terms in minutes without affecting your credit score. 
• Considers borrowers with limited credit history: It’s possible to qualify for a loan from Upstart with a limited credit history based on other factors, such as your education level and earning potential.
• Instant application decision for most applicants: According to Upstart, the majority of unsecured personal loan applicants receive an instant decision after submitting their online application to Upstart without needing to upload additional documents.
• Competitive starting APR: Personal loans through Upstart start at 6.60% APR. Bear in mind, the lowest APRs are reserved for borrowers with excellent credit.
• Fast funding for most borrowers: According to Upstart, 99% of personal loans are funded the next business day after the loan agreement is signed. 
• Auto-secured personal loans: Depending on your application, Upstart’s lenders may offer you the option of using the title to your vehicle on a secured loan, which could help you qualify for a lower APR. However, keep in mind that defaulting puts your vehicle at risk of repossession.
• Excellent Trustpilot rating: Upstart has a 4.9/5 star rating on Trustpilot based on more than 60,000 customer reviews. Positive reviews mention low rates, easy application, and fast approvals. 

Details on the cons

• Rates may be above average, or even high: Despite its starting APR of 6.60%, 12 months of Credible marketplace data show that Upstart's average rate was higher than average for borrowers with fair, good, very good, and excellent credit, compared with other lending partners. Its average rate for fair credit was not only higher than average, but the highest of any partner lender.
• Origination fees: An origination fee is calculated as a percentage of the total loan amount and deducted from the loan funds upfront. Upstart origination fees can range from 0% to 15%, with 15% being the highest percentage of any Credible lending partner.
• Only two repayment term options: Upstart offers only three-year or five-year repayment terms. If you’re looking for more flexibility with a long-term personal loan, you’ll need to apply elsewhere. 
• No available discounts: Unlike some other lenders, Upstart doesn't offer rate discounts for setting up automated payments or sending debt consolidation loan funds directly to creditors. 

How to qualify for an Upstart personal loan

Upstart’s personal loan qualification requirements depend on the lender you’re paired with. If you're applying through Credible, you need:

• A minimum credit score of 620 or higher
• A minimum annual income of at least $12,000

Upstart lending partners also evaluate applications based on criteria including:

• Credit history
• Debt-to-income ratio
• Level of education completed
• Field of study
• School attended
• Employment history
• Earning potential

Lenders will also check to ensure you don’t have any of the following, which may result in denial:

• Recent bankruptcies or unpaid public records in the last 3 years
• Delinquent accounts or loans in default
• Excessive recent credit inquiries

Additionally, Upstart may reconsider your loan approval if a “material adverse change” in your credit history is verified before the loan is funded. These changes can include a substantial drop in your credit score, an increase in outstanding debt, or a new delinquency or collection showing up on your credit report. 

So if you're applying for an Upstart personal loan, make sure you don't have any impending delinquencies, don't open any other credit accounts, and don't put any big purchases on your credit card.

Upstart personal loan purposes

The purposes below are not all-inclusive.

Upstart fees and penalties

Depending on the lender issuing your personal loan, you may be charged the following fees:

• Origination fee
• Late payment fee
• ACH or check return fee

Upstart personal loans do not come with prepayment penalties, so you can repay your loan early or make extra payments at any time without incurring additional fees. 

Upstart vs. other lenders

Upstart company details and history

Upstart is a lending marketplace that leverages AI technology to connect borrowers with banks and credit unions. It has more than 3 million customers and has facilitated more than $50.4 billion in loan originations. Upstart offers personal loans, auto retail and refinance loans, home equity lines of credit (HELOCs), and small-dollar relief loans. 

As an online financial services company, Upstart has no physical branches. Its corporate headquarters is located in San Mateo, California. Upstart personal loans are available nationwide, though loan amounts and rates may vary. The availability of other loan products varies by state. 

Contact information

The best way to get help with an existing Upstart loan is to log in to your account, select the loan you need help with, and navigate to the Contact Us section at the bottom of the page. You can also find a variety of help articles in the borrower support center or manage your loan with the Upstart mobile app if you’re an Apple user.

If you’re not an existing customer or you’re having difficulty logging in, you can contact Upstart:

• By phone at 855-438-8778: Hours of operation for loan application support are 9 a.m. to 8 p.m. ET seven days a week. Hours of operation for personal loan and auto loan payment support are 8 a.m. to 9 p.m. ET weekdays and 10 a.m. to 6:30 p.m. ET weekends. Note: Residents in parts of California's San Mateo and Santa Clara counties can also call local at (650) 204-1000.
• By email: [email protected]

Customer support is unavailable on Thanksgiving Day, Christmas Day, and New Year's Day, with limited hours on Christmas Eve and New Year's Eve.

You can also mail Upstart at:

Upstart Operations Dept.

P.O. Box 1503

San Carlos, CA 94070

Methodology

Credible evaluated 32 lenders across 1,184 data points to choose the best lender overall plus top picks for different borrowers and use cases. Across lenders, we collected data on customer experience and service options, minimum and maximum fixed interest rates, minimum and maximum loan amounts, funding times, loan terms, fees, discounts, third-party reviews, and more.

We assigned a score to each attribute based on how that feature compared with the same feature for every other lender in the set. Scores were weighted according to their relative importance — for instance, maximum origination fee scores received a high weight since loan cost is among the most important factors in determining loan value. Individual attribute scores were then added to determine each lender's overall star rating. 

Attributes were grouped into categories; each category contributed to lender scores as follows: 

• Borrower cost (22.5%): Origination fee ranges and minimum and maximum APRs measure upfront and overall costs and lender accessibility across credit score groups.
• Flexibility (22.5%): Maximum loan terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint and secured loans measure the range of options for loan size, repayment terms, and loan types.
• Eligibility and availability (22.5%): Minimum income requirements, funding speed, minimum credit score requirements, and state availability measure how easily and how quickly borrowers can access personal loans.
• Reputation (15%): Trustpilot, Better Business Bureau, and J.D. Power ratings measure customer satisfaction.
• Discounts, customer service, and account management (12.5%): Discounts for autopay and direct pay, plus availability of mobile apps and live customer support chat, measure borrower perks and ease of loan management.
• Partner lender data (5%): Data from loans closed by our partners, including average rates, loan amounts, funding time, and eligibility criteria, measure real-world performance and borrower outcomes.

Non-partner lenders were evaluated based on the same criteria but not assigned star ratings. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.