Upstart Personal Loans Review 2024

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Upstart could be a good lender for you if you have a strong work and education history, but you have a low credit score or limited credit history. However, with relatively high APRs and origination fees of as much as 8%, borrowers with stronger credit may pay less for a loan with a different lender.

Key Features of Upstart Personal Loans

• Regular annual percentage rate (APR): 6.40% – 35.99% fixed
• Minimum credit score: 300 
• Loan amount range: $1,000 to $50,000 (borrowers in four states are subject to higher minimum loan amounts: Massachusetts: $7,000, Ohio: $6,000, New Mexico: $5,100, Georgia: $3,100)
• Loan term lengths are either three or five years
• Can have origination fees up to 8%
• Considers employment and education history when making loan approval decisions
• Loans made through one of several Upstart-powered bank partners

What Is Upstart ?

Upstart is a lending marketplace that employs an unconventional method of qualifying borrowers, using artificial intelligence and data including employment and education history in addition to their financial backgrounds. That makes it stand out from other lenders that focus on more traditional factors such as credit scores, existing debt, income, and assets.

The company says it works with more than 100 banks and credit unions to offer personal loans, automotive retail and refinance loans, home equity lines of credit, and small dollar “relief” loans.

Compare Personal Loan Rates

Upstart Personal Loan Eligibility and Application Process

Eligibility

In order to to qualify for an Upstart personal loan, you must meet the following criteria: 

• Have a verifiable name, date of birth and Social Security number
• Be at least 18 years old
• Have a credit score that meets the minimum credit underwriting requirements or, be a graduate of or currently enrolled in a degree program at an accredited college
• Have a US address
• Have a valid e-mail account
• Have a job or job offer you will start within 6 months or another verifiable source of regular income
• Meet Upstart’s minimum credit requirements
• Have a personal banking account at a US financial institution with a routing transit number

1. Prequalify for a loan on Upstart’s website. Submit an online form to find out your interest rate and APR. You’ll need to input your basic contact information, details about your education, income, savings, and past loans. The company will run a soft credit check, which won’t impact your credit score. You’ll get your rate quote within minutes. 
2. Review different loan offers and pick one. The company will present you with multiple loan offers with different rates and term lengths. Change the loan amount to see different offers. Choose one you can afford to make monthly payments on. 
3. Submit an application and await approval. When submitting a formal application, you’ll need to send in proof of income, like a W-2, tax returns, or other financial documents. Upstart uses an AI-driven system that approves a majority of applications immediately. 
4. Sign loan agreement and get your money. After you sign your loan agreement, you should get your funds within one to two days. 
5. Make a plan to repay your loan. Work your monthly payments into your budget, and make sure you have enough money to cover all of your financial responsibilities. 

Upstart Personal Loans Pros & Cons

Upstart Pros

• Approval isn’t dependent solely on credit scores. For people who have struggled with credit in the past, Upstart will factor in a few other pieces of information for a better shot at approval.
• Low credit score requirements. While Upstart does consider factors other than credit scores, it also has a low minimum loan credit score requirement for a personal loan at 300.  
• Get your loan quickly. If you accept your loan by 5 p.m. ET, Upstart will deposit loan funds into your designated bank account on the next business day. It may take a little longer if you’re using funds for education purposes or to pay off your credit card. 
• Small loans are available. Upstart offers loans with a minimum loan amount of $1,000. Many competing lenders start their minimum loan amount higher.

Upstart Cons

• Only 3-year and 5-year terms to repay. While other lenders offer several options on how long you’ll have to repay, Upstart only offers three-year and five-year terms. This choice could be impractical for borrowers on either extreme of the borrowing scale. However, there is no prepayment penalty, so you can pay your loan off at any time without a fee. 
• Potential for high origination fees. Upstart’s personal loans can have origination fees up to 8%. Compared to competing lenders, this is a very high maximum — similar lenders Avant and LendingClub top fees at 4.75% and 6%, respectively. 

Upstart Personal Loan Customer Experiences

Customer reviews and feedback on Upstart are mixed.

Reviews of Upstart at TrustPilot are overwhelmingly positive, with an average rating of 4.9 out of 5 among more than 45,000 reviews. Satisfied borrowers cite everything from and easy application process to quick loan approval and good customer service during their borrower experiences with Upstart.

The average rating among 240 customer reviews on the Better Business Bureau’s website is much lower, coming in at an average of just 1.2 out of 5. Some common complaints include denial of applications, fees, and poor communication. Even so, the BBB, which doesn’t take customer reviews into account when assessing companies, gives Upstart an A+ rating, reflecting the highest degree of confidence that the business is operating in a trustworthy manner.

Upstart Personal Loan Alternatives

Upstart vs. Avant Personal Loan

Both Avant and Upstart allow borrowers with poor credit to get approved. For borrowers who meet Upstart’s minimum credit score requirement of 300, this lender could have an advantage with a wider range of interest rates and higher loan amounts. 

Upstart vs. LendingClub Personal Loan

While Upstart has a clearly defined minimum credit score of 300 to apply for a loan, LendingClub is a little vaguer on requirements. Upstart has lower starting interest rates, but LendingClub has lower origination fees.

Upstart personal loan FAQs

Why You Should Trust Us: How We Rated Upstart

We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:

• Interest rate (20% of rating)
• Fees (20% of rating)
• Term lengths and loan amounts (15% of rating)
• Funding speed (15% of rating)
• Borrower accessibility (15% of rating)
• Customer support (7.5% of rating)
• Ethics (7.5% of rating)

Each category’s weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan’s terms, so they have less of an impact on the overall rating. 

See more on how we rate personal loans >>