Upstart Reviews on its Personal Loans & Debt Consolidation
Is Upstart a legitimate loan company? Upstart is absolutely a legitimate and reputable loan company. This publicly traded company (ticker symbol: UPST) is a top-rated AI lending marketplace, offering a much higher approval rate than traditional lenders who rely solely on credit scores. Since 2012, Upstart has provided a full range of credit solutions, including credit card refinancing, debt consolidation, personal loans, and automobile loans.
Upstart loans are especially attractive for refinancing high-interest debt, like credit card balances and medical bills. This is because applicants with lower credit scores, who would typically qualify for subprime loans with high-interest rates through credit-score-only lender models, can qualify for debt consolidation loans with a lower APR when using Upstart.
Upstart is a licensed, accredited, BBB A+ rated online lending platform. As of the end of 2023, Upstart partners with over 100 banks and credit unions. Their Artificial Intelligence (AI) loan qualification model uses non-traditional variables, like education and employment, to predict creditworthiness.
Key Takeaways:
- Upstart’s AI model approves more borrowers with fewer defaults than traditional lenders using credit score-only models.
- Thanks to their unique approach, Upstart has 44% higher approval rates and 36% lower interest rates.
- Refinance high-interest debt and simplify your finances with Upstart’s debt consolidation loans, featuring direct creditor payments.
- Get free rate checks without impacting your credit score.
The company lands on our list of the best debt consolidation companies. Upstart is also ranked #3 for the best personal loans for 2024.
Get Top-Rated Prequalified Loan Offers for 2024
Pros
Options for borrowers with little to no credit history
Able to fund loans one business day after the borrower accepts a loan offer
Allows borrowers to choose and change payment dates
No prepayment fees
No minimum credit score to qualify
Pre-qualification won’t affect credit score
Cons
No mobile app is available
Origination fee may apply
Only two repayment term options
No rate discount for autopayments
Cannot include a cosigner for loans
What’s different about Upstart loans?
- Upstart offers personal loans to borrowers with lower credit scores and limited credit history.
- Borrowers can be approved for an Upstart loan within minutes without providing any documents or paperwork.
- After being approved, customers can receive their funds within 24 hours or faster.
- Additionally, Upstart offers direct creditor payments for debt consolidation loans, simplifying the process of managing multiple monthly payments and reducing the risk of late payments.
Check Upstart loan rates for free. When checking loan rates through Upstart, there is no negative effect on your credit.
What other companies offer loans similar to Upstart?
Several other companies claim to offer loans similar to Upstart, including Best Egg, Upgrade, Achieve, and Avant. However, these claims might be disputable. Notably, these alternative lenders fall short in providing a comparable “high approval rate” on loans. Moreover, they lack the sophisticated proprietary AI technology that distinguishes Upstart.
Dave Girouard, Upstart’s CEO, initially departed Google to establish the company. Under Girouard’s leadership, Upstart has become a technology-focused entity dedicated to revolutionizing the lending landscape. Recognizing an opportunity to assist banks in extending loans with lower risk and enhancing consumer access to borrowing, Girouard’s tech expertise, combined with Upstart’s proprietary AI technology, positions the company as a standout in the competitive loan industry.
Despite Upstart’s technological prowess, it’s important to note that the repayment options offered by the company are relatively rigid. If you need more flexibility in your loan repayment term, we recommend checking loan rates and terms through Credible.com, a free and easy-to-use platform for comparing top-rated lenders. Additionally, Upstart’s personal loans are available through Credible.
Compare Upstart vs. other reputable loan options
| Lender | Fixed (APR) | Loan Amounts |
Minimum Credit Score
|
| Upstart Personal Loan | 7.80% to 35.99% | $1,000 to $50,000 | 620 |
| LightStream Personal Loan | 6.94% to 25.29% | $5,000 to $100,000 | 700 |
| Discover Personal Loan | 7.99% to 24.99% | $2,500 to $40,000 | 660 |
| PenFed Credit Union Loan | 8.49% to 17.99% | $600 to $50,000 | 700 |
| Upgrade Personal Loan | 9.99% to $35.99% | $1,000 to $50,000 | 600 |
| Sofi Personal Loan | 8.99% to 29.99% | $5,000 to $100,000 |
Does Not Disclose
|
| Best Egg Personal Loan | 6.99% to 35.99% | $2,000 to $50,000 | 600 |
| LendingClub Personal Loan | 8.91% to 35.99% | $1,000 to $40,000 | 660 |
| Avant Personal Loan | 9.95% to 35.99% | $2,000 to $35,000 | 550 |
| Universal Credit Personal Loan | 11.69% to 35.99% | $1,000 to $50,000 | 560 |
| OneMain Financial Personal Loan | 18% to 35.99% | $1,500 to $20,000 |
Does Not Disclose
|
| Zable Personal Loans | 12.95% to 30% | $1,000 to $35,000 | 600 |
| Happy Money Debt Consolidation Loan | 8.95% to 17.48% | $5,000 to $40,000 | 640 |
Source: Top 5 Best Personal Loans for Fair Credit, Good Credit and Excellent Credit
Upstart Features and Benefits
Upstart offers an impressive list of features to its customers.
- Uses artificial intelligence to determine creditworthiness
- No minimum credit score
- Soft credit check to pre-qualify
- Get funding in one day
- Payment date flexibility
- Available in all 50 states
- Online application and approval
- Borrowing options for new credit histories
- Offers direct payment to creditors for consolidation loans
- Allows borrowers to choose and change payment dates
- No prepayment fees
- Loan Amount $1,000 to $50,000
- Interest Rate 7.80-35.99%
- Loan terms 36 or 60 months
- In business since 2012
- A+ BBB rating
Upstart Loans Editorial Rating
Trusted Company Reviews Rating Score for Upstart: 7.4
“Upstart offers fast loan options for borrowers with lower credit scores but does not have a mobile app.”
Upstart Loan and Debt Consolidation Facts
Upstart offers quick approval times. The company’s site claims you’ll know your interest rate in about 5 minutes and you can receive money in as little as a single business day. Following are Upstart facts to keep in mind.
| Interest Rates | 7.80-35.99% |
| Origination Fee | 0% – 12% of initial amount |
| Late Payment | Greater of 5% of past due amount or $15 |
| Returned Check/ACH | $15 |
| Paper Documentation Fee (optional) | $10 (one-time fee) |
| Loan Terms | 36 or 60 months |
| Minimum Credit Score | 300 |
| Loan Amount | $1,000 to $50,000 |
| Limitations | To qualify, the borrower:
|
Is Upstart a direct lender?
No, Upstart is not a direct lender. Instead, it is a lending platform that connects borrowers with banks and credit unions. This means that when you apply for a loan through Upstart, you are not actually applying to Upstart itself, but rather to one of its lending partners.
Upstart uses a proprietary algorithm to assess borrowers’ creditworthiness, which considers factors beyond just their credit score. This means that borrowers with fair or average credit may be more likely to be approved for a loan through Upstart than through a traditional lender.
Once you are approved for a loan through Upstart, you will be matched with a lending partner who will fund the loan. You will make your monthly payments directly to the lending partner, not to Upstart.
Upstart Interest Rates
The company offers a wide range of interest rates that individuals may qualify for. In general, the better your creditworthiness, as determined by Upstart’s non-traditional approval approach, the lower your loan rate could be.
Upstart uses a collection of data points to determine your rates, including but not limited to your credit score, credit history, income, education, and work experience. However, none of those individual attributes will automatically qualify or disqualify a borrower.
How to Get an Upstart Loan or Debt Consolidation Loan
Getting an Upstart Loan requires approval. Upstart recommends determining your credit score, how much you need to borrow, and knowing your comfortable loan payment amount before committing to a personal or debt consolidation loan.
To start the debt consolidation process, you can prequalify with Upstart on the company’s website by providing some personal and financial information. Upstart then performs a soft inquiry on your credit report and shares your information with lending institutions. The soft inquiry won’t appear on your report or affect your score or inquiry count. The prequalification step doesn’t equate to loan approval.
Approval and Acceptance
After prequalification, Upstart will present loan options from various lenders along with information, such as interest rates and other fees, that accompany each potential offer. You can now choose a lender and apply for the option you wish.
The lender you choose will then perform a hard inquiry on your credit, which will affect your report and appear as an inquiry. If approved, the lending company will provide a final offer and details for your loan.
Finally, you’ll be asked for identification and various documents to prove your income, age, social security number, and address—After which you can accept the personal or debt consolidation loan.
How long does it take Upstart to review your application?
Upstart’s loan review process is like a cheetah on the hunt: swift, agile, and precise. Most borrowers receive a decision within 24 hours, but it can take up to two weeks if your application is more complex.
Unlike other lenders who rely solely on your credit score, Upstart considers a variety of factors, including your education, employment history, and income, to predict your creditworthiness. This means that even if you have a lower credit score, you may still be approved for a loan.
Once you submit your application, Upstart’s AI-powered algorithm will quickly review your information and make a decision. If you are approved, you can receive your loan funds as soon as the next business day.
So, how long does it take Upstart to review your application? It depends, but the cheetah analogy is a good one to keep in mind. Upstart is fast, efficient, and committed to helping borrowers get the loans they need.
Upstart Loan or Debt Consolidation Loan Requirements
Using a non-traditional approval process allows Upstart to approve some consumers who may not otherwise qualify for a debt consolidation loan. However, there are some minimum requirements to qualify.
- $12,000 annual income
- 300 minimum FICO score or no score if credit history is short
- 18 years of age or older
- No significant credit score drops between the offer and acceptance
- Must meet minimum debt-to-income ratio depending on state of residence
- No bankruptcies in past year
- No unpaid civil judgment or tax liens in previous 12 months
- No current delinquencies on credit report
- Five or few hard inquiries on your credit report
Upstart Credit Score Requirements
Upstart states that a credit score is only necessary for personal or debt consolidation loan approval if the consumer’s report consists of insufficient history to generate a score.
However, if the history is enough to create a score, the credit score must be 300 or higher.
How Does Upstart Make Money?
Upstart only connects consumers to lenders. As such, the company doesn’t generate its primary income directly from interest rates like a typical lending institution. The company instead makes most of its money through fees charged to its partnering companies for referrals, volume, and loan servicing.
Upstart Personal Loans Reviews
Upstart Personal Loans earns good ratings on several review platforms, but it falls short of several competitors. It receives an A+ grade from the Better Business Bureau, reflecting its commitment to resolving customer issues and concerns.
Upstart has average ratings of 3.2 to 3.6 out of five stars. Higher-than-average origination fees and limited loan length options are often cited as the reasons for imperfect review scores. This is despite Upstart’s ability to provide loans to some consumers who may not qualify elsewhere.
Is an Upstart Debt Consolidation Loan Right for You?
A debt consolidation loan is a big commitment. In practice, debt consolidation effectively replaces several smaller payments with a single, typically larger, monthly debt payment. Upstart proves that its AI platform works for approving customers that other companies may not qualify for a loan.
However, Upstart loans and debt consolidation often come with higher origination fees than some of its competitors—Origination fees for some borrowers can be as high as 12%.
An Upstart debt consolidation loan will likely appeal to lower to moderate-income borrowers with a below-average credit score or short credit history looking to consolidate a moderate amount of high-interest debts.
Upstart Loans Vs. SoFi
Which is better, Sofi vs. Upstart?
Upstart and SoFi both offer personal and debt consolidation loans and sport A+ grades at the BBB. However, that’s where the similarities end. Where Upstart operates as a platform that connects consumers to appropriate lenders, SoFi is a completely online bank that offers numerous services beyond debt consolidation.
As a bank, SoFi also offers checking and savings accounts, credit cards, and other financial services.
While SoFi provides more services and term arrangements than Upstart, its requirements for loan approval are more stringent. Here’s how they stack up by the numbers.
| Feature | Upstart | Sofi |
| BBB Grade / Rating | 1.24 / A+ | 1.23 / A+ |
| Average Reviews Rating | 3.4 | 4.0 |
| Interest Rates | 7.80 – 35.99% | 8.99 – 29.99%
*with autopay and direct deposit account |
| Origination Fee | 0% – 12% of initial amount | 0% |
| Loan Terms | 36 or 60 months | 24,36,48,60,72, or 84 months |
| Minimum Credit Score | 300 | 680 |
| Loan Amount | $1,000 to $50,000 | $5,000 to $100,000 |
Frequently Asked Questions
Is Upstart loans legit?
Is Upstart a good loan company?
Does Upstart loans require collateral?
Is it hard to get a loan through Upstart?
How many loans can you have with Upstart?
Can I refinance my Upstart loan?
Does an Upstart loan hurt your credit?
What are Upstart loan complaints at BBB about?
Is Upstart a good company for auto refinancing?
Conclusion
About Upstart
- Legal name: Upstart Network, Inc.
- Address: 2950 South Delaware Street, Suite 410, San Mateo, CA 94403
- Upstart’s loan license number: NMLS ID: 936133. Email licenses@upstart.com with questions related to its license.
- Website: www.upstart.com
- Phone: 833-212-2461 / Toll-Free Number: 833-212-2461
- Time in business: 02/27/2012
- Publically listed? Yes. Ticker Symbol: (UPST)
Disclosure
Upstart Loan Disclosures: What You Need to Know
Loan Amounts
Upstart loan amounts range from $1,000 to $50,000. The amount you are eligible to borrow is determined by a variety of factors, including your credit score, income, and education level. Upstart also uses artificial intelligence (AI) to predict your creditworthiness, which means that you may be approved for a loan even if you have a lower credit score than traditional lenders require.
Minimum Loan Amounts by State
The minimum loan amount varies by state. In Georgia, the minimum loan amount is $3,100. In Hawaii, it is $2,100. In Massachusetts, it is $7,000.
Speed of Approval
Upstart loans can be approved within 24 hours. If you accept your loan by 5:00 PM EST (excluding weekends and holidays), you will receive your funds the next business day. However, if you are using your loan to fund education-related expenses, there is a three-business-day wait period between loan acceptance and funding, as required by federal law.
Security
Most Upstart loans are unsecured; however, certain lenders may place a lien on other accounts you hold with the same institution. It is important to review your promissory note carefully before accepting your loan to understand the full details of your loan agreement.
Credit Reporting
When you check your rate on Upstart, a soft credit inquiry will be performed. This type of inquiry does not affect your credit score. However, if you accept your rate and proceed with your application, a hard credit inquiry will be performed. This type of inquiry will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
APR Calculation
Upstart’s APR calculation compares the Upstart model to a traditional credit-score only model. The calculation is based on the average APR offered to borrowers up to the same approval rate. The hypothetical credit-score only model used in Upstart’s analysis was developed in connection with the Consumer Financial Protection Bureau’s No Action Letter access-to-credit testing program.
Decision Time
The majority of Upstart borrowers receive an instant decision upon submitting a completed application, without providing additional supporting documents. However, final approval is conditioned upon passing the hard credit inquiry. Loan processing may be subject to longer wait times if additional documentation is required for review.
Deane Biermeier
