What is Upstart and what do they do?
Now, let’s get started. Going forward, we will take a detailed look at the following broad topics that will help you grasp the concept of this topic:
What is Upstart?
Upstart is a platform that offers unsecured, fixed-rate personal loans. In other words, it is a money-lending platform that is in partnership with credit unions and banks to offer loans to consumers making use of non-traditional variables like education, and employment to determine creditworthiness.
Hence, if your credit score is not that high or your credit history is limited but you have a strong education and work history, Upstart may be the best option for you.
The company is based in California and was owned by former Google employees in 2012. It makes use of AI (Artificial intelligence) to enhance access to credit that is affordable, and also reduces costs and risks for its bank partners.
Upstart’s Loan Amount and interest rates
The loans range from $1,000 to $50,000, and is available anywhere in the united state, except for West Virginia or Iowa. When you compare Upstart to other lenders, the minimum loan is lesser. Hence, if you are looking for small cash to the tide, it is the best option.
But there are four states that are subject to higher minimum loan amounts:
- Ohio: $6,000
- Georgia: $3,100
- Massachusetts: $7,000
- New Mexico: $5,100
The upstart repayment option is of two types, the term lengths of 36 or 60 months. Though, there’s no prepayment penalty. Meaning, you can pay anytime without any fee.
Upstart interest rates range from 6.50% to 35.99% APR, compare it with other lending platforms like Avant’s APR range of 9.95% to 35.95% and LendingClub’s APR range of 8.30% to 36.00%.
Pros and cons of Upstart personal loans
- Loan approval does not depend only on your credit score
- Requires low credit score
- Loan payment is fast
- Small loans are available
- There are Origination fees, of up to 8%
- There are no co-signers
- There is a just three-year and five-year term
How Does Upstart Personal Loan Work?
You can use an Upstart loan for different purposes, which include the following:
- Debt Consolidation
- Moving expenses
- Medical expenses
- Home Renovation
- Want to start or expand a business
- Wedding cost
- Student loans
In getting a loan from Upstart, not just your credit score, where you work and your education are considered. Like the school, you went to and the course of study. So, this is a great benefit for people with college experience. The credit score should be a minimum FICO or Vantage score of 600.
Also, Upstart checks if borrowers’ credit report in the past six months and if the person has any bankruptcies or delinquent accounts. Of course, borrowers’ jobs and incomes are considered and no co-signers or co-applicants are required.
Hence, your loan amount depends on your credit score, job income, and the other information stated above. So, you can check your rate before you borrow on the Upstart website, it will not affect your credit score.
To Apply For Upstart Loan
If you have decided to apply for an Upstart loan, note that the company works with banks to link borrowers to loan offers. The application process may differ by lender.
The lender will request your name, address, and SSN to check your credit. While some other lenders may ask for school transcripts or SAT scores, tax returns, and pay stubs.
Once you have gotten approval for the loan and accepted the loan, you will get the fund in 24 hours. But in some cases, the loan may take longer. For example, if the loan is used for educational purposes and to pay off a credit card.
To qualify for Upstart Loan
If you want to be eligible for an Upstart loan, the following is required:
- Must reside anywhere in the United State, except Lowa and West Virginia
- Must be 18 years of age or more. For Alabama and Nebraska, must be at least 19 years
- You need a valid email address, name, and SSN( Social Security Number)
- A U.S bank account is needed and a good source of income
- On TrustPilot, Upstart has 4.9 stars out of 5 and has good reviews across many consumer platforms.
- BBB gives Upstart an A+ rating for the Upstart loan. BBB analyses business responses to consumers, business practices clarity, and honesty in ad
- On CreditKarma, Upstart rates 4.9 out of 5 based on over 700 reviews
- On NerWallet.com, it rates 4.5 stars out of 5
Upstart.com My Offer Customer Service
Mailing Address Upstart Operations Dept
P.O. Box 1503 San Carlos, CA 94070
The customer service team is available for calls from Monday –Friday from 6 am to 5 pm PST. Also, on Saturday and Sunday from 6 AM to 5 PM PST. But, they are not available on federal holidays.
Frequently Asked Questions
Is Upstart a legitimate company?
Yes, Upstart is a legitimate company as they enroll with the Better Business Bureau and have few Consumer Financial Protection Bureau complaints which are good for a finance company in the US.
How do I use an offer code on Upstart?
To make use of your offer code on Upstart, go to upstart and follow the prompt on the screen.
What bank does upstart use?
Checking your rate will not affect your credit score! All loans from Upstart-powered lenders. Loans from these states are made by Cross River Bank. All loans from Upstart-powered lenders.
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