Upstart Personal Loans Review: Top Lender for a Range of Credit Scores

Name: Upstart
Brand: Upstart

by: Dana George | Nov. 3, 2020

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Upstart offers fixed-interest-rate personal loans that you can use for almost any purpose. Whether you're consolidating debt or making a big purchase, Upstart personal loans have got you covered -- provided you have at least a 580 credit score and meet other requirements.

Upstart has some big advantages, including fast funding and flexibility in the amount you can borrow. Its loan minimum is below many competitors', making Upstart personal loans an ideal choice for borrowers who need only a small amount of money. That said, Upstart's interest rates are higher than those of some competitors, so you'll need to shop around to make sure you're getting the lowest-cost loan you can qualify for. Read our in-depth Upstart personal loans review to see if it's worth applying with this lender.

Ratings Methodology

Lending Partner	Best For	Rating	Min. Credit Score	Loan Amounts	APR Range	Next Steps
Upstart	Best For: Reducing high interest debt	Rating image, 4.5 out of 5 stars. 4.5 stars	Min. Credit Score: 580	Loan Amounts: $1K - $50K	APR Range: 7.98% - 35.99%	Check Rate On Secure Website.

Full Upstart personal loans review

2020 award winner

Upstart Personal Loans topped the podium in the following category for The Ascent's 2020 personal loan awards:

Best personal loan for bad credit

Top perks

A low or no credit score will not automatically disqualify you: Some borrowers may qualify for a loan with a minimum required FICO® Score of 580. Upstart even says it offers loans to people with no credit history. But keep in mind that the lower your score, the likely higher your interest rate will be.

Wide range of loan options: You can borrow up to $50,000. Upstart also offers some of the best personal loans for people looking to borrow as little as $1,000.

Fixed-rate interest: Interest rates are fixed, so your rate and payment won't change over the life of the loan.

Repayment options: You'll have a choice of a three-year or five-year repayment term.

Early payoff potential: There's no prepayment penalty, so you can pay Upstart personal loans off early without incurring fees.

Check your rate without impacting your credit score: Curious applicants can submit basic details and get a quoted loan rate with out impacting their credit scores.

What could be improved

Interest rates: Upstart interest rates range from 7.98% to 35.99%. This is one of the highest interest rates in the personal loan market and may not make sense if you're consolidating credit card debt.

Origination fees: Upstart charges an origination fee of 0% to 8% on its personal loans. On the high end, this is one of the highest origination fees on the market.

How to qualify for an Upstart personal loan

Have a minimum credit score of 580. Upstart also does issue 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.
Have a credit report free from bankruptcies.
Have fewer than six credit inquiries on your credit report in the last six months.

Application process

Upstart makes applying for a personal loan easy. Here's how it works:

Apply online. Upstart loans will conduct a "soft credit check" that will not impact your credit score.
Once you've submitted your basic info, your rate will be determined by your credit score, education history, and work experience. The loan term could also affect your rate and the total amount you pay. A loan with a longer term costs more in the long run: Your monthly payment will be lower, but you'll be paying interest for a longer period. If you want to pay as little interest as possible, you should opt for a shorter-term loan if you can afford the monthly payments.
If you're satisfied with the rate offered, you can submit a full application. A hard inquiry will be made to verify the accuracy of your financial information, and this generally lowers your credit score by a very small amount. You can submit the application 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.
Most borrowers get a decision right away, unless they're asked to submit additional documents such as college transcripts. Once the loan has been approved, you may obtain your personal loan funds within one day.

Alternatives to consider

You owe it to yourself to shop around before deciding on the right personal loan. Take a look at these partner lenders before you make a final decision.

SoFi is a great option for people with good credit.. The company offers loans from $5,000 to $100,000 and repayment terms up to 84 months (seven years).
Marcus by Goldman Sachs® charges no extra fees -- ever. It accepts credit scores that are at least fair or average and offers repayment terms of 36 to 72 months.
FreedomPlus is another good choice for those with an average credit score. In fact, you can qualify with fair or average credit. FreedomPlus offers loans from $7,500 to $40,000, with repayment terms of 24 to 60 months.

This personal loan is right for you if:

As an extra safety measure, make sure these points apply to you before applying for an Upstart personal loan:

Your credit history has some dings and you don’t qualify for a personal loan with no origination fee or a 0% APR credit card balance transfer.
You haven't had time to create much of a credit history and need a lender that will consider other positives, such as a college degree.
You want to borrow a lower amount than offered by most lenders.

Depending on your situation, Upstart could be a good place to start as you make the important decision of which personal loan is best for you. 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 wait.

Check Rates with Upstart Personal Loans

About the Author

Dana George

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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