UpStart Review

Company Profile

Upstart's approach extends beyond mere credit scores, enabling them to approve 27% more loans compared to traditional lenders. Founded by individuals with a tech industry background, their expertise led them to harness artificial intelligence technologies to enhance lending programs. This approach permits them to approve more loans without significantly increasing risk, resulting in lower interest rates.

Application Process

Upstart emphasizes a rapid, user-friendly application process, positioning themselves as one of the fastest options for credit approval. Initially, you provide basic information about yourself and your loan needs. They then assess your data through their proprietary system, determining loan eligibility and rates. Importantly, this initial rate check employs a soft credit inquiry, safeguarding your credit score.

Loan Types and Terms

Upstart accommodates a wide range of loan purposes, including credit card debt consolidation, auto purchases, education expenses, medical bills, relocation costs, refinancing, vacations, and major expenditures. Loan amounts range from $1,000 to $50,000, suitable for various needs except mortgages. Loan durations span three to five years, with interest rates ranging from 5.42% to 35.99%, often landing in the upper teens, tailored to individual profiles. 

Carefully review loan terms upon receiving an offer, as some partner institutions charge origination fees, potentially costly if overlooked. While common in the industry, avoiding such fees can lead to substantial savings.

Repayment Options

Once your loan is in place, you will be given specific instructions on how to make your payments. You can use recurring ACH payments, manual ACH payments, or send a check in each month. They so expect a payment to come in each month as agreed upon. The payment will be made to the bank that is partnered with Upstart.

One really important thing is that they do not have any type of early payment penalties. If you want to save money, you can pay a little bit extra each month to pay the loan off earlier, saving significantly on interest. If you come up with some extra money, you can put a lump sum onto the balance of the loan to cut down on the interest you will end up paying. If you have the cash, you can even pay off your loan entirely as soon as you want without any penalties or fines.

Customer Service

Upstart's customer service operates seven days a week, from 6 AM to 5 PM Pacific Time, except for New Year's Day, Thanksgiving Day, Christmas Eve, and Christmas Day. They can be reached via phone, email, or standard US postal service. Representatives are knowledgeable and eager to assist, offering ongoing support post-loan issuance.

For self-service, the website's help section categorizes topics and specific questions, providing rapid access to information.

Rates

Interest rates for Upstart loans range from 5.42% to 35.99% APR. Higher credit scores, larger incomes, and positive financial histories result in lower rates. Importantly, Upstart considers factors beyond credit scores, often offering lower rates to individuals with lower credit scores but stable incomes or no payment defaults.

Summary

Upstart is a compelling choice for those seeking loans with imperfect credit. Their unique approach often leads to lower interest rates for approved borrowers. Moreover, Upstart frequently approves applicants declined by other lenders. It's prudent to initiate an application and assess the outcome. Upstart stands as a reliable lender, providing exceptional customer support, setting them apart from competitors.