Upstart Personal Loans Review 2023 (2024)

Upstart provides borrowers with fair credit—those with a score of at least 600—access to personal loans by looking beyond credit history and considering several non-traditional credit indicators. This makes the platform a suitable option for applicants who need access to funds quickly but who might not otherwise be approved for a loan.

Upstart also offers minimum loans of just $1,000 in every state besides Massachusetts ($7,000), Ohio ($6,000), New Mexico ($5,100) and Georgia, so customers likely won’t have to borrow more than they need.

However, Upstart’s increased accessibility comes at a price. Annual percentage rates (APRs) are on the high end, and borrowers are limited to a three- or five-year term—much shorter and less flexible than other online lenders. Upstart may also charge borrowers origination, late, unsuccessful payment and paper copy fees. Still, Upstart is a good option for customers who don’t have a credit score that qualifies them for more inexpensive loans.

Upstart Loan Purposes

Loan Amounts & Terms

• Loan amounts. Upstart offers fixed-rate personal loans between $1,000 and $50,000. However, there are state-specific minimums in Massachusetts ($7,000), Ohio ($6,000), New Mexico ($5,100) and Georgia ($3,100).
• Loan terms. Borrowers have access to personal loan terms of three or five years—36 or 60 months.

Loan Costs

• APR. Rates range from 6.40% to 35.99%. Upstart does not offer autopay discounts like other providers.
• Origination fees. Upstart charges 0% to 8%. This is a one-time fee that’s deducted from the loan proceeds before they are delivered to the borrower.
• Late fees. If a borrower fails to pay the full monthly payment amount within 10 calendar days of its due date, Upstart charges a late fee equal to 5% of the past due amount or $15, whichever is greater.
• Prepayment penalty fees. Upstart does not charge prepayment penalties for borrowers who wish to pay off their loan early.
• Unsuccessful payment fee. There is a $15 charge per occurrence when bank transfers (ACH) or checks are returned or fail due to insufficient funds—or for any other reason.
• Paper copy fees. Upstart charges borrowers a one-time fee of $10 if they request physical copies of records and withdraw eSign consent.

Perks & Features

• Hardship program. Borrowers can apply to temporarily suspend loan payments if they experience economic hardship, like job loss. Keep in mind, however, that interest continues to accrue during this period.

Personal loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as income. Meeting the requirements below won’t guarantee approval, but they can help you decide if a personal loan is the right fit for you.

Credit Score Requirements

Borrowers must have a minimum FICO or Vantage score of 600 to qualify for a personal loan. However, Upstart does consider non-conventional variables—like college education, job history and residence. Even applicants who don’t have enough credit history to have a FICO score may be accepted. In addition to credit score, Upstart’s AI platform considers:

• The borrower’s debt-to-income (DTI) ratio
• Whether the borrower has any bankruptcies or delinquent accounts
• Number of credit report inquiries in the last six months, not including any inquiries related to student loans, vehicle loans or mortgages (must be fewer than six)

Income Requirements

Upstart borrowers must have a full-time job or offer starting in six months, a regular part-time job or another source of regular income—with a minimum annual income of $12,000. Furthermore, applicants must not have had a recent bankruptcy or outstanding delinquencies.

Co-signers and Co-applicants

Upstart does not allow prospective borrowers to apply for a personal loan with a co-signer. Likewise, co-applicants are not permitted—loan applicants are evaluated on their own merits.

Applying for a personal loan typically involves prequalifying for a rate, submitting a formal application and awaiting loan approval. Follow these steps to apply for an Upstart personal loan:

1. Prequalify. Start by submitting an online prequalification form to find out your interest rate and APR. In addition to basic contact information, the form will request details about your education, income, savings and recent loans. It only takes about five minutes to receive a rate quote, and Upstart will only run a soft credit inquiry so your credit score will not be impacted.
2. Verify your bank account. After submitting your rate inquiry, Upstart will ask you to verify your bank account. You may also be asked to upload supporting documents and may be contacted via phone to verify your information. At this time, Upstart will also run a hard credit check, which will show up on your credit report.
3. Await approval. With Upstart’s AI-driven system, it’s able to approve almost all loans immediately. In the first quarter of 2021, Upstart approved 71% of its loans instantly.
4. Sign loan agreement & receive funds. Once you sign, loan proceeds are sent directly to the borrower’s personal bank account within one or two business days.
5. Make payments. After loan funds are disbursed, borrowers can find their specific repayment date on their promissory note. Your first payment will be about 20 to 40 days from your loan origination date.

Time to Receive Funds

Most loans that are accepted before 5 p.m. EST, Monday through Friday are funded on the next business day. However, when loan terms are accepted after 5 p.m., the funds are not transferred until the following—or second—day. There are further delays for loans being used for education-related expenses, with funds not released for an additional three business days post-acceptance.

Overall, Upstart reports that 99% of loan applicants receive their money one business day after accepting their loan terms. Once the money is disbursed, borrowers have the ability to change their monthly payment date through Upstart’s online portal.

The best personal loans offer competitive rates, flexible loan amounts and a wide range of terms. Here’s how Upgrade personal loans stack up against other popular lenders:

*Example: A $5,900 loan with an administration fee of 4.75% and an amount financed of $5,619.75, repayable in 36 monthly installments, with an APR of 29.95% would have monthly payments of $250.30. If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

Upstart Vs. Upgrade

Upstart and Upgrade are designed to be able to lend to borrowers with less than good credit. While Upstart’s minimum recommended credit score requirement is 600, Upgrade’s is 580. If you qualify for Upstart, you may be able to receive larger loan limits—up to $50,000. However, Upstart only offers two terms—three and five years—whereas Upgrade offers terms between two and seven years. The best provider for you depends on how much money you need to borrow and how quickly you want to repay it.

Related:Upgrade Personal Loans Review

Upstart Vs. Avant

Similar to Upgrade, Avant’s recommended minimum credit score is 580, 20 points less than Upstart. Again, this makes it a solid option for borrowers who don’t have excellent credit but still need access to financing. What’s more, Avant offers more repayment options compared to Upstart. If you are approved for a loan with Avant, you’ll have access to terms between two and five years, depending on your credit score and other factors.

Related:Avant Personal Loans Review

Upstart Vs. Wells Fargo

Unlike Upstart, which is an online lender, Wells Fargo is a traditional bank. Applying for a personal loan through a bank like Wells Fargo is typically a good idea if you have an existing relationship with it. Wells Fargo offers personal loans between $3,000 and $100,000 with terms of one to seven years. Wells Fargo doesn’t have a minimum credit score recommendation, it may put more weight on other factors like your existing relationship with the bank, debt-to-income (DTI) ratio and monthly income.

Related:Wells Fargo Personal Loans Review

We reviewed Upstart based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Upstart based on the weighting assigned to each category:

• Loan cost: 35%
• Loan details: 20%
• Eligibility and accessibility: 20%
• Customer experience: 15%
• Application process: 10%

Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at credit score requirements, whether the lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated Upstart’s support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our .