There has never been a better time to get your financial house in order. With skyrocketing inflation and an unstable economy, smart consumers are cutting costs, reducing debt and generally being smarter with their home budgeting. If you’re considering a loan consolidation or if you’re looking for a better interest rate, Upstart may be right for you!
Check rates instantly to see how much you could save!
Top perks offered by Upstart!
You can qualify with a low or no credit score: Some borrowers may qualify for a loan with a FICO® Score of 580. Upstart also offers loans to people with no credit history -- it will take education and employment into account when underwriting your loan. But keep in mind that Upstart loan interest rates will be higher if your credit score is low.
Wide range of loan options: Upstart personal loans range from $1,000 to $50,000. As such, it offers some of the best personal loans for people looking to borrow smaller amounts of money.
Next day funding: According to Upstart, 99% of the time, you should get your money within one business day. That means that if you need money to cover an emergency expense, funds will be in your account quickly.
Repayment options: You have a choice of a three-year or five-year loan repayment term. The five-year term will keep your monthly payments lower, but the three-year term will save you money in the long run.
No prepayment penalty: If you want to pay Upstart personal loans off early, you can. Since Upstart loans have no prepayment penalty, you can make additional payments to reduce the loan principal. This will save you money long term.
Check your rate without impacting your credit score: Curious applicants can submit basic details and get a quoted loan rate without impacting their credit scores.
How to qualify for an Upstart personal loan
- You'll need a minimum credit score of 580. Upstart also issues loans for people with no credit history.
- Make sure your debt-to-income (DTI) ratio is reasonable. Upstart does not specify the DTI it's looking for, but according to the Federal Reserve, anything over 40% indicates financial stress. Here's what that means: If you're spending close to half of your income on debt payments each month, you may have too much debt to qualify for a loan.
- Your credit report should be free of bankruptcy.
- Have fewer than six credit inquiries on your credit report in the last six months. A credit inquiry is an application for credit, like a credit card, loan, HELOC, or similar. Having several in a short space of time could show you're in over your head.
Application process
Upstart makes applying for a personal loan easy. Here's how it works:
- Apply online. Upstart loans conducts a soft credit check that will not impact your credit score.
- Once you've submitted your basic info, Upstart uses factors like your credit score, debt, income, education, and work experience to determine your rate. The loan term could also affect your rate and the total amount you pay.
- If you're satisfied with the terms, you can submit a full application. You can apply online, and you'll need to provide Upstart with basic information, including your Social Security number and some details about your academic background, career, and other creditors. Upstart then makes a hard inquiry to verify the accuracy of your financial information. This generally lowers your credit score by a very small amount.
- Unless Upstart asks you to submit additional documents, you can expect a decision right away. Once the loan is approved, you may obtain your personal loan funds within one business day.
Our Loans Experts
The Ascent brings financial expertise, trusted advice, and unbiased analysis to the world of daily personal finance decisions. Our mission is to help you live more richly.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Motley Fool has positions in and recommends Upstart. The Motley Fool has a disclosure policy.