Upstart is a lender that offers personal loans to individuals with bad or no credit. What sets Upstart apart from other lenders is its qualifying criteria. Upstart uses an AI-based program that looks at your college data, education details, assets, and income to determine if you qualify for their personal loan programs. Therefore, it is true that Upstart offers personal loans to people with bad credit.
The minimum credit score required to qualify for an Upstart personal loan is 300, and their loans charge an APR of 3.22% – 35.99%. Additionally, Upstart may charge an origination fee of up to 8% of the total loan amount.
Pros:
- Loan amounts from $1,000 – $50,000
- Accepts bad credit scores
- Offers soft credit checks
- Provides fast decisions and quick funding as soon as the next business day
Cons:
- May charge an origination fee of up to 8%
- Does not offer joint or co-signer loan options
- Only two repayment term options are available: three or five years
Use as Credit Debt Consolidation Loan:
Upstart offers personal loans for various purposes, such as debt consolidation, home improvements, and big purchases. Additionally, Upstart sends the loan proceeds to your credit card issuer company to automate the debt consolidation process.
Annual Interest Rate and Fees:
Upstart offers an APR of 3.22% – 35.99%, which is lower than other lenders in the market. However, the APR you receive depends on your application’s compliance with Upstart’s criteria. Your credit score and interest rate are inversely proportional, so a lower credit score will result in a higher APR.
A late payment fee of 5% of the overdue amount or $15, whichever is greater, is charged for each occurrence.
Minimum Credit Score Required:
The minimum credit score required for an Upstart personal loan is 300, which is relatively low compared to other lenders who use different criteria to validate loan applications.
Offered Loan Amount:
Upstart offers personal loans ranging from $1,000 to $50,000, depending on the qualifying factors. You can perform a soft credit check to ensure that you are eligible for the desired amount.
Eligibility Criteria:
To be eligible for a bad credit loan, you must meet some basic requirements, including:
- Being at least 18 years old
- Providing a valid ID proof or social security number
- Being a United States citizen or permanent resident
- Having a valid active US bank checking account
- Providing a valid email address and phone number
Required Documents:
To apply for an Upstart personal loan, you need to provide:
- Valid identity proof
- Date of birth
- Valid current mobile number and email ID
- Active American bank account
- Social security number
Repayment Terms:
The repayment period for Upstart personal loans is 24 to 60 months, which is two to five years.
Example of an Upstart Loan:
A three-year, $12,000 loan with a 20.5% APR would cost $449 in monthly payments. A borrower would pay $4,165 in total interest on that loan.
How to Apply for Upstart:
If you have decided to apply for an Upstart personal loan, go to their website and select the reason for needing the loan, such as auto finance, debt consolidation, or credit card payment.
Then, fill out the application form, which will not affect your credit score since Upstart offers pre-qualification online without a hard credit check.
You need to provide information like your full name, address, monthly housing cost, date of birth, contact information, social security number, income information, monthly net income, loan purpose, loan amount
Benefits of Upstart personal loans:
- Loan amount: Upstart offers personal loans ranging from $1,000 to $50,000, which is a good option for people who need a small to medium-sized loan.
- Bad credit score is accepted: Unlike traditional lenders, Upstart accepts borrowers with a minimum credit score of 300, which is lower than the typical requirement of 600-660.
- Soft credit check: Upstart allows you to check your pre-qualified rates with a soft credit check, which won’t affect your credit score.
- Fast decisions and funding: Upstart claims to provide quick decisions and funding, with funds available as soon as the next business day.
However, there are also some drawbacks to consider:
- Origination fee: Upstart may charge an origination fee of up to 8% of the total loan amount, which can add to the overall cost of the loan.
- No joint or co-signer loan option: Upstart only offers individual loans, which may not be suitable for borrowers who need a co-signer or joint loan option.
- Limited repayment term options: Borrowers can only choose between two repayment term options: three years or five years. This may not be ideal for those who need more flexibility in their repayment plan.
Upstart offers personal loans for various purposes, including debt consolidation, home improvements, and big purchases.
One unique feature of Upstart is that it can send loan proceeds directly to your credit card issuer to automate the debt consolidation process.
The APR for Upstart personal loans ranges from 3.22% to 35.99%, which is relatively low compared to other lenders in the market.
Your credit score and interest rate are inversely proportional to each other, so if you have a low credit score, you may receive a high APR, while a good credit score may result in a low APR loan.
There is also a late payment fee of 5% of the overdue amount or $15, whichever is greater, for each occurrence.
To apply for an Upstart personal loan, you need to be at least 18 years old, have a valid ID proof or social security number, be a US citizen or permanent resident, have an active US bank checking account, and provide a valid email address and phone number.
Upstart also requires you to provide some basic information such as your name, address, monthly housing cost, date of birth, contact information, social security number, income information, loan purpose, loan amount, and credit range.
In summary, Upstart personal loans are a good option for people with bad credit or no credit history who need a small to medium-sized loan.
With its AI-based program, Upstart uses a unique approach to qualify borrowers and provides quick decisions and funding. However, there are some drawbacks to consider, such as the origination fee and limited repayment term options.
Editorial Note: MakeHelpOf does not receive any commission from any website or third-party advertisers. This is just a review article based on consumers’ experiences from the internet. It’s accurate to the best of our knowledge when it’s posted. Please read all the information carefully before you make any decision.
