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Whether you're consolidating debt or making a big purchase, Upstart's personal loans have got you covered -- and the credit score requirements are more flexible than those of some other lenders. Upstart personal loans have some big advantages, including fast funding and flexible loan amounts. Read our in-depth Upstart personal loans review to see if you should apply.
As of Dec. 02, 2021
| Lending Partner | Best For | Min. Credit Score | Loan Amounts | APR Range | Next Steps |
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Rating image, 4.0 out of 5 stars.
4.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
Best For: Reducing high interest debt | Min. Credit Score: 580 | Loan Amounts: $1,000 - $50,000 | APR Range: 4.81% - 35.99% |
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On Secure Website. |
BEST OF 2022
Full Upstart personal loans review
This personal loan is a good fit for: Borrowers with low or no credit score looking for a small loan.
Pros
- Accepts borrowers with low credit scores
- Wide range of loan amounts
- No prepayment penalty
Cons
- High upper-range interest rate
- High origination fees
Top perks
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.
What could be improved
High APRs: Upstart's upper end of its APR range is higher than some competitors. If you can only qualify for the higher APR, be aware the highest rate offered is one of the higher interest rates you'll find on the market. Depending on your credit card, it's unlikely to help if you're looking to consolidate credit card debt.
Origination fees: Upstart charges an origination fee of 0% to 8% on its personal loans. This one-off fee is one of the highest origination fees. (Note: It will be factored into the APR you are quoted.) It's a good idea to prequalify for several lenders before making a final decision to ensure you find the best loan for you -- fees, interest rate, and all.
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.
Alternatives to consider
You owe it to yourself to shop around before deciding on the right personal loan. Take a look at these other lenders before you make a final decision.
- SoFi is a great option for people with good credit looking for a lower rate.
- Marcus charges no extra fees -- ever. It accepts credit scores that are at least fair or average and offers repayment terms of three to six years.
- FreedomPlus is another good choice for those with an average credit score. In fact, you can qualify with fair or average credit.
| Lender |
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FreedomPlus
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| Rating |
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| Min. Credit Score |
680
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660 FICO score
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640
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| Loan Amounts | $5,000 - $100,000 | $3,500 - $40,000 | $7,500 - $50,000 |
| APR Range | Fixed: 5.74-20.28% APR (with all discounts) | 6.99% - 19.99% | 7.99% - 29.99% |
| Next Steps |
This personal loan is right for you if:
If you want to borrow a lower amount of money or have a limited credit history, Upstart personal loans are worth a look. Upstart considers other positives (such as a college degree) when evaluating your application.
However, it's worth shopping around to see if you qualify for a personal loan that does not charge an origination fee -- or even if a 0% intro APR balance transfer card might be a better fit. And if your credit score is good or excellent, you may find a better deal elsewhere.
And remember, if you don't find an interest rate and terms you like, you can always take the time to build your credit score. Low-interest personal loans are worth the time and effort it takes to give your credit score a boost.
About the Author
Dana has been writing about personal finance for more than 20 years, specializing in loans, debt management, investments, and business. Her work has appeared on San Jose Mercury News, The Detroit News, Oakland Tribune, and Dun & Bradstreet. After moving around the globe, she's thrilled to be living in her hometown of Kansas City.
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**Upstart disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
*SoFi Personal Loan Disclaimer
Fixed rates from 5.74% APR to 20.28% APR APR reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 1/18/22 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
