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Link to original content: https://www.investopedia.com/upstart-personal-loans-review-4843810
Upstart Personal Loans Review 2024

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Upstart Personal Loans Review for 2024

Upstart logo
Investopedia’s Rating
4.0

Our Take

Upstart can be a good choice for those with less-than-perfect credit or no established credit history. But with Upstart’s high average APRs and origination fees, borrowers with good to excellent credit can likely find better rates elsewhere.

  • Pros and Cons
  • Key Takeaways
  • Company Overview
  • specifications
Pros and Cons
Pros
  • Loans can be used for education expenses

  • No credit score minimum

  • Broad range of loan amounts

  • Quick loan disbursement


Cons
  • Potentially high origination fee

Key Takeaways
  • Upstart uses an artificial intelligence (AI) platform to evaluate applicants.
  • Upstart’s platform connects borrowers to its partner credit unions and banks. 
  • All of its personal loans are unsecured, and it offers loans up to $50,000.
  • Upstart also offers small business loans and car loan refinancing.
Company Overview

Upstart was incorporated in 2012 as a platform to connect borrowers with lenders. The company partners with nearly 100 banks and credit unions to offer its loans.

Upstart utilizes an AI-driven algorithm to evaluate applications. According to the company, its AI model results in higher approval rates than lenders that use traditional underwriting methods. Because its algorithm takes into account factors besides your credit score, Upstart can be a good choice for individuals with no credit history or less-than-perfect credit.

specifications
APR Range
7.40% - 35.99%
Loan Amount
$1,000 - $50,000
Loan Terms
36 months - 60 months
Recommended Minimum Credit Score
300
Average Origination Fee
0.00%–12.00%
Late Fee
5% of the late payment amount or $15, whichever is greater
Why Trust Us
59
Lenders reviewed
45
Loan features considered
2,655
Data points analyzed
284
Primary data sources used
Investopedia collected data from dozens of lenders to evaluate the factors most important for borrowers. We used this data to rank each lender based on APRs and fees, loan amounts, repayment terms, customer experience, and more to provide unbiased, comprehensive reviews and help you make the right borrowing decision for your needs.

Upstart is one of several lenders that offer loans for people with less-than-perfect credit. See more of the best personal loans for bad credit.

Pros Explained

  • Can be used for education expenses: Most personal loan companies prohibit borrowers from using loan funds for education-related expenses, such as college tuition or student loan repayment. But Upstart explicitly states that those expenses are permissible uses for its loans.
  • No credit score minimum: Upstart states that its credit score minimum is 300 (which is the lowest possible score), but it may also accept borrowers with no credit history at all, so long as they enrolled in or graduated from a degree program. Many lenders require scores that are good to excellent—a score between 670 and 850—so Upstart’s low minimum is a standout feature.
  • Broad range of loan amounts: While some lenders have maximums of $25,000 or less, Upstart offers up to $50,000 in personal loans.
  • Quick loan disbursement: Some personal loan lenders can take days to disburse funds after approving your application. With Upstart, most loans are disbursed within one business day.

Cons Explained

  • Potentially high origination fee: Upstart charges origination fees. Depending on the lender and the borrower’s profile, the fee can be as high as 12% of the loan amount. Not all lenders charge origination fees, so borrowers with strong credit profiles should shop around.

While $1,000 is Upstart’s minimum loan amount in most states, there are a few exceptions to this rule:

  • Georgia: $3,100
  • Hawaii: $2,100
  • Massachusetts: $7,000

Types of Personal Loans Offered by Upstart

All of Upstart’s personal loans are unsecured, so there’s no collateral. Loans originated through Upstart can be used for a wide range of purposes, including:

  • Financing a dream wedding
  • Renovating your kitchen or bathroom 
  • Consolidating credit card debt
  • Paying for elective medical procedures
  • Moving to another state

Lenders usually prohibit borrowers from using personal loans for education expenses or student loan repayment. But Upstart allows borrowers to use its personal loans to pay for college tuition or certificate programs, and you can even use the loan to pay off your student loan debt.

However, loans cannot be used for education purposes in California, Connecticut, Illinois, Washington state, or Washington, D.C.

Since personal loan rates are typically higher than student loan rates, it’s usually not a good idea to pay off student loans with personal loans. Learn more about student loan refinancing and browse our best picks to see if you qualify for a lower interest rate.

Time to Receive Personal Loan Funds

Upstart boasts quick disbursement times. It takes just a few minutes to apply online, and you usually receive a decision within minutes. Personal loan funds may be transferred the next business day as long as you accept the loan terms before 5 p.m. ET, Monday through Friday (loans used for educational purposes are subject to a three-day wait period).

Borrower Requirements

To qualify for a loan from Upstart, you must meet the following criteria: 

  • You must have a valid U.S. address and Social Security number
  • You must be at least 18 years old
  • You must have a job, job offer with a start date within six months, or another verifiable source of regular income
  • You must have a personal banking account at a U.S. financial institution
  • You must have an email account
  • You must have a credit score of at least 300 or insufficient credit history to generate a credit score

Upstart Personal Loan Features

Upstart uses AI-driven algorithms to review loan applications. Its AI platform considers other factors besides credit scores, such as education and employment, to determine borrowers’ eligibility for a loan. As a result, borrowers without established credit histories or less-than-perfect credit may be more likely to get a loan through Upstart than with other lenders. 

Upstart also has educational tools and calculators customers can use to better manage their finances. Additionally, the company operates an affiliate program. Those with websites, blogs, or other social media platforms can promote Upstart and earn 1% of each funded personal or auto loan.

Before taking out a personal loan, use our personal loan calculator to estimate your monthly payments and see how much you’ll pay in interest over time.

Co-Signers and Co-Applicants

While some lenders allow co-signed or joint applications, Upstart doesn’t offer that option; you must qualify for the loan on your own.

Can You Refinance a Personal Loan With Upstart?

If your credit or income has improved since you took out a loan, you may consider refinancing your debt to get a lower rate. Unlike some lenders that allow borrowers to refinance and adjust the terms of an existing loan, Upstart doesn’t have a specific option for personal loan refinancing.

However, borrowers can take out a second Upstart loan and use it to pay off existing debt.

You can qualify for a second loan through Upstart if:

  • You've made on-time payments for the six previous consecutive months
  • You have no past-due payments
  • You have no more than one outstanding Upstart loan
  • You have no more than $50,000 of outstanding principal

Customer Service

Customer support is available through phone or email seven days a week. 

Medium Contact When
Telephone (650) 204-1000 (local) 1-855-438-8778 (toll-free) General Support (M–Su): 9:00 a.m.–8:00 p.m. ET Payments: M–F: 9:00 a.m.–9:00 p.m. ET Sa: 10:00 a.m.–7:00 p.m. ET
Email support@upstart.com Not disclosed

Customer Satisfaction

Our Combined Consumer Review metric, which is calculated by aggregating Trustpilot, Google, and Better Business Bureau (BBB) reviews, gave Upstart a score of 4.882 out of 5.

Upstart has a mixed reputation among customers. On Trustpilot, Upstart has a score of 4.9 out of 5 based on over 48,650 customer reviews. However, on the BBB, it has a score of 1.25 out of 5 based on 215 customer reviews.

In the 2024 J.D. Power Consumer Lending Satisfaction Study, Upstart got a below-average score of 666 out of 1,000.

How to Qualify and Apply for an Upstart Personal Loan

Upstart has a pre-qualification tool you can use to check your eligibility and view available rates. The pre-qualification process takes just a few minutes, and it doesn’t impact your credit. 

If you decide to proceed with applying for a loan, the following is a step-by-step explanation of how you can apply online:

  1. Pre-qualify: Click the "Check Your Rate" on the Upstart website to begin the pre-qualification process.
  2. Complete the pre-qualification form: You'll need to fill out some basic details about yourself, including your education information, total savings and investments, and contact information. From there, you'll get a custom quote.
  3. Complete loan application: If you decide to proceed, you can select your desired loan term and loan amount and complete an application online. The application will prompt you to enter your contact information, Social Security number, and income. Upstart will also ask you to consent to a hard credit check.
  4. Receive your loan funds: Once you've accepted your loan offer and completed your application, you should receive your funds the following business day, so long as you accept the loan terms before 5:00 p.m. ET, Monday through Friday.

While Upstart has a loan pre-qualification tool, your actual rate may be different based on your credit history and other factors. When you submit your application, Upstart will perform a hard credit inquiry, which can affect your credit.

Compare Upstart With Other Personal Loan Lenders

Upstart Upgrade LightStream
APR Range 7.40%–35.99% 8.49%–35.99% 6.94%–25.29%
Loan Amounts $1,000–$50,000 $1,000–$50,000 $5,000–$100,000
Loan Terms 36–60 months 24–84 months 24–144 months
Recommended Minimum Credit Score 300 580 680
Origination Fee Up to 12% Up to 9.99% None
Time to Receive Funds 1 day 1 day Same day

Upstart can be a good option if you have poor (or no) credit, but borrowers with better credit scores may find better options elsewhere. Browse our top picks to check your rates with a few different lenders.

The Bottom Line

Upstart stands out from other lenders with its AI-driven platform, low credit score requirements, and high available loan amounts. Borrowers without established credit histories or lower credit scores who have struggled to find lenders willing to work with them may find that they have a better chance of getting a loan through Upstart. 

However, Upstart’s APRs can be high, and origination fees can be as high as 12%. For borrowers that have good credit, Upstart’s loans may be too expensive, and they may be better off shopping around. You can get quotes from leading personal loan lenders that offer lower-than-average APRs, and some shopping around could save you some money.

Is Upstart a Credible Lender?

Upstart partners with nearly 100 banks and credit unions to connect borrowers with lending options. Loans are originated by Upstart's partners, and Upstart's role in the process is to use its AI-driven algorithm to evaluate applications.

Is It Hard to Get a Loan Through Upstart?

One of Upstart's objectives is to try and connect borrowers with less-than-perfect credit to lending opportunities. Its algorithm takes into account more than just an applicant's credit report or credit score to determine risk. In some ways, this alternative approach can make it easier for those with lower credit scores to get approved.

How Much Will Upstart Approve for Me?

Upstart approves loans for as much as $50,000, but the amount approved for any single individual is determined by risk factors. Applicants with the best credit are more likely to be approved for the full amount.

How Does Upstart Verify Income?

Upstart will require different documentation depending on your income type. All documents must include your name and the company name listed, be recent (i.e., no older than 30 days), and be clear and complete (i.e., all four corners must be visible and all parts of the document must be legible).

Methodology

Investopedia’s list of the best personal loans is based on comprehensive research of 59 lenders. 

To evaluate and rank personal loan providers, we collected and scored over 2,600 data points from 59 lenders, including traditional banks, credit unions, fintechs, and finance companies. We researched and evaluated 45 criteria such as APRs, loan amounts and terms, fees, customer experience, and more. Research and data collection occurred from July 23 to October 18, 2024. 

We organized the 45 criteria into four categories and weighted 26 (involving more than 1,500 data points), using the others for background and editorial richness. We then scored and weighted each criterion to develop our overall star rating for each lender. The categories and their weights for this project are:

  • Borrowing Requirements: 24.00%
  • Lender Features: 24.00%
  • Loan Costs: 30.00%
  • Loan Terms: 22.00% 

Learn more about how we evaluated personal loans in our complete methodology.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
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