Upstart is a personal loan provider that offers financial solutions primarily for recent college graduates and young professionals. What separates Upstart from other personal loan providers is its unique approval process. For a recent college graduate, this means Upstart would look heavily at the applicant’s GPA, SAT scores, and areas of study instead of only credit history. Because this process is tailored to meet the individual applicant, Upstart states it is able to save its borrowers over 25% compared to high-interest credit card rates.
High Likelihood of Approval
Upstart is an excellent choice for applicants with little to no credit history and have a quality education or a high-paying job. Upstart personal loans are tailored to meet the needs of the individual applicant. This is especially helpful for young professionals or recent college graduates. There is a minimum credit score requirement of 640 but there is not a minimum lines of credit or years of credit history required in order to apply. Factors that go into determining eligibility include:
- Areas of Study
- Job History
- FICO Score
- Years of Credit
Flexible Options, Fast Disbursement
With the application process being tailored to better meet the needs of the applicant, Upstart is able to pass on its savings directly to the borrower. This can be seen in its 4.99%-29.99% APR Range, low fees, and competitive max loan term (5 years).The process, from start to finish, is also incredibly fast. Most borrowers are able to receive their funds the day after they applied/were approved (it takes up to three days for education loans). This is at least a day faster than some other top personal loan companies.
Not Ideal for Debt Consolidation
Although the approval process is tailored to meet the needs of the individual applicant, being approved can be challenging. The average Upstart personal loan borrower has the following credentials:
- Credit Score of roughly 620
- Debt-to-Income Ratio 18%
- Mid-twenties to mid-thirties
Since most borrowers are looking to consolidate debt, the above credentials can be difficult to meet.
Fees Can Add Up
Upstart personal loans do have fees to consider. It enforces an Origination Fee of 1%-6%. This fee is taken out of the loan before the funds are disbursed to you, meaning 1% to 6% of the total amount of the loan is taken out. This percentage is determined by how qualified the borrower is, with higher rates going to less qualified applicants. Upstart also charges late fees at a standard 5% or $15 (whichever is greater). Unlike some of its competitors, Upstart does not charge a Check Processing Fee. There also is no Prepayment penalty, making these loans a solid choice for consolidating debt or paying off high-interest credit cards.
*Chances for Approval: Star rating is determined by evaluating APR Range, Minimum Credit Score Requirement, Max Loan Length, and other related approval data.