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Upstart Personal Loans Review

Upstart is a lending platform that helps people get convenient loan options for their long-term financial needs. The company provides quick access to loan funds and accepts borrowers with less-than-perfect credit. However, it also charges origination and late fees and offers high APRs to borrowers with bad credit.

WRITTEN BY:

RONALD JOHNSON

EDITED BY:

LARRY HENDERSON

REVIEWED BY:

SHANTEL MYERS

TIME TO READ

4 MIN

UPDATE DATE:

JANUARY 10, 2025

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Upstart is a lending platform that helps consumers get convenient loan offers for their financial needs. The company uses over 49 factors, such as a quick soft credit inquiry or monthly payments, that allow consumers to get approved for Upstart personal loans.

Upstart Personal Loan Features

EST.APR

7.40% – 35.99%

LOAN AMOUNT

$1k – $50k

LOAN TERM

36 – 60 months

MIN CREDIT SCORE

300

Pros

Quick access to loan funds;
No prepayment penalties;
Flexible monthly payments;
Beyond credit score verification (soft credit check);
Flexible loan amounts.

Cons

Origination fees up to 10%;
High annual percentage rate;
Co-signers aren’t allowed;
Limited repayment loan terms.

Who Can Choose Upstart Loans?

Upstart personal loans are suitable for borrowers who need money quickly. The company transfers personal loans on the next business day, provided that you accept your loan before 5:00 pm EST Monday to Friday.

This platform also suits people with bad credit due to low minimum credit score requirements and soft credit checks at the pre-approval stage. However, a hard credit check will be performed if you proceed with the final loan application.

Upstart Personal Loan Review: Loan Details

Want to find out more about Upstart loans? We’ve put together their key features to help you decide whether it’s the right option for you:

Wide range of loan amounts: Upstart provides fixed-rate personal loans ranging from $1,000 to $50,000.
Limited repayment options: Borrowers can get personal loans for 3 or 5 years only.
Potentially high APR: The interest rate varies from 7.80% to 35.99%, making their loans quite expensive for borrowers with bad credit.
No APR discounts. Unlike some other competitors, Upstart does not give interest rate reductions for autopay or direct deposits to creditors.
Origination fees: Upstart charges origination fees of up to 12%. It is a one-time fee deducted from your loan amount.
Fees for late payments: If a borrower fails to make their monthly payment within 15 days of the due date, Upstart charges a late fee of 5% of the past due amount or $15, whichever is greater.
No penalties for early repayment: Borrowers who choose to pay off their loan early will not have to pay a prepayment penalty.
Fee for unsuccessful payment. Upstart has a fee for insufficient funds or bounced checks, which is $15 per failed transaction.
No excellent credit score needed: Applicants aren’t required to have a good credit score. Although the company doesn’t guarantee approval, borrowers with bad and fair credit can still qualify.

Eligibility Criteria for an Upstart Personal Loan

To be eligible for the best personal loan amounts from Upstart, you need to meet the following requirements:

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 have graduated from or be currently enrolled in an associates degree at an accredited school;
Provide a valid US address;
Have a valid email and phone number;
Prove your stable source of regular income;
Have a personal banking account at a U.S. financial institution with a routing transit number;
Have no bankruptcies on any of their consumer reports within the last 12 months;
Have no current delinquent accounts listed on your credit report
Have fewer than 6 inquiries on your credit report in the last 6 months.

What are the Application Steps for an Upstart Personal Loan?

Applying for an Upstart loan is easy. Here are the steps you need to follow:

Apply online. Visit the Uptart website and fill out a simple form. You need to provide some details about you, your education, work experience, and loan amount and purpose.
Check your rates. Upstart will perform a soft credit check and show your terms and rates you can expect to get based on the data provided. It typically takes just a few minutes.
Complete an application. If the terms suit you, fill out a final application form and provide the required documents.At this stage, Upstart will obtain your consumer credit report to verify your personal and credit information;
E-sign the agreement. If approved, check the interest rate and other loan terms once again to ensure they meet your expectations. Then, e-sign the loan contract.
Receive the money. After all the formalities, you can access the money within one business day of approval.

Upstart Personal Loan Alternatives

While Upstart loans can be a good option for fair and bad credit borrowers, you should compare their loans with other competitors to make an informed decision. Here are some alternatives you can consider:

	Upstart	Upgrade	SoFi	OppLoans
Our Rating	4.5	4.5	4.5	4.0
APRs	7.80% – 35.99%	9.99% – 35.99%	8.99% – 29.49%	160% – 195%
Fees	Origination fees of up to 12%Late fees and NSF fees of $15	Origination fees of 1.85% to 9.99%Late and NSF fees of $10	Optional 6% fees	No origination, late, or prepayment feesNSF fees may vary by state
Minimum Credit Score	300	Not Specified	Not Specified	None
Loan Amounts	$1,000 – $50,000	$1,000 – $50,000	$5,000 – $100,000	$500 – $4,000
Repayment Terms	36 to 60 months	24 to 84 months	24 to 84 months	9 to 18 months
Funding Times	1 business day of approval	One business day after clearing verification	1 business day	1 business day
Who It Suits for?	Poor credit borrowers who can’t qualify for traditional personal loans	Fair-credit borrowers who need the money quickly	Applicants with good to excellent scores who want to consolidate debt, make major purchases, or cover their long-term needs	Bad credit borrowers looking for last-resort financing options

Methodology

When evaluating lenders, BadCredify uses a rating with a maximum of 25 points that a company can get. These points determine the overall rating with a five-star maximum. Points are awarded based on the following key features (maximum 5 points for each parameter):

Loan accessibility. We look at how easy it is to get a loan and pay attention to options for bad credit borrowers, if any.
Interest rates and fees. Our experts are focused on how much the loan costs and whether the lender offers competitive APRs.
Loan terms. We pre-qualify for loans and look at how transparent and reasonable loan terms are.
Customer service. We contact the company’s customer support managers to assess the service it provides.
Customer reviews. Our team of experts looks at what other clients say about their borrowing experience and evaluates the company’s reputation.

Based on these data, we calculate the total number of points and determine the final rating.

Frequently Asked Questions

Will applying with Upstart affect my credit score?

Prequalifying with Upstart won’t affect your credit score, but if you proceed with your loan application, you’ll undergo a hard credit pull that could affect your credit score.

When will I receive my Upstart personal loan?

You’ll receive the personal loan from Upstart within one business day if you accept your loan terms before 5 pm EST Monday through Friday. Otherwise, you will get the funds 2 business days later.

Can I pay off my personal loan early with Upstart?

Yes, and you won’t be charged any prepayment penalties for early repayment.

Ronald Johnson

FINANCE WRITER AT BADCREDIFY

Ronald specializes in mortgages, personal loans, and small business financing. His articles cover topics such as homeownership, starting a business, and managing personal debt.