Upstart Personal Loans Review 2024 (2024)

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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, if 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 disbursem*nt: 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.

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, or Washington, D.C.

Time to Receive Personal Loan Funds

Upstart boasts quick disbursem*nt 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).

According to the company, 99% of personal loan funds are sent within one business day after signing the loan agreement.

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. And the company operates an affiliate program. Those with websites, blogs, or other social media platforms can promote Upstart and earn 1% of each funded loan.

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.

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