Upstart Personal Loans Review (May 2024) (2024)

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Upstart

Best for Bad Credit

4.4

Loan Amounts****$1,000 – $50,000

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Upstart

Best for Bad Credit

4.4

Upstart Overview

While many lenders on this list require a good to excellent credit score, Upstart is designed for those with poor credit. You can borrow between $1,000 and $50,000. Upstart is not a direct lender — it’s a lending marketplace that can match you with eligible banks and credit unions when you apply. While this is good for comparing options, it may result in texts, emails and phone calls from multiple lenders.

Pros and Cons

Pros

Can have bad credit of 300 or above and still qualify
Can get funding within one business day
Generous loan amount range compared to those of other bad-credit lenders — between $1,000 and $50,000
No prepayment penalties

Cons

Higher maximum interest rates than many other lenders — up to a 35.99% annual percentage rate (APR)
Comes with origination fees, which may vary depending on the lender
May be inundated with calls, texts and emails

Why Upstart Stands Out

As a lending marketplace, you may be able to find loans with several different lenders through Upstart. While borrowers with low credit may benefit from considering Upstart, consumers with excellent credit may be better off with a different lender that has higher credit score standards coupled with potentially lower interest rates.

Our Thoughts on Upstart Personal Loans

MarketWatch Rating: 4.4 out of 5 stars

Upstart earned top marks for its low minimum advertised rate, low minimum borrowing requirements and willingness to loan money to borrowers with poor credit. Unfortunately, the lender does charge an origination fee, and its highest advertised loan rate of 35.99%* is above what many competitors charge.

While borrowers with poor or fair credit may find Upstart to be a viable option, those with solid financial credentials might consider looking into alternative lenders who may offer more affordable rates and terms.

Pros and Cons of Upstart Personal Loans

There are both pros and cons to borrowing with Upstart that you should weigh before deciding if this lender is right for you.

Pros

Upstart is open to lending to borrowers with credit scores as low as 300 or with no credit history at all.

Who Are Upstart Personal Loans Best For?

Upstart can be an ideal option for borrowers who have little to no credit history or who have poor or fair credit. These borrowers can benefit from Upstart’s review process, which takes factors beyond credit score into account, including education and employment — which the lender says can result in 43% lower rates*** than a credit score model alone.

On the other hand, borrowers with stellar credit and solid financial credentials may wish to consider an alternative lender that has a lower maximum interest rate and that provides funding without an origination fee.

How To Get an Upstart Personal Loan

Upstart makes applying for a loan simple with just three steps required. Here’s what you need to do in order to get a personal loan.

Application Process

To get a personal loan from Upstart, you’ll need to take the following steps:

Click on “Check Your Rate” to get the process started: You only undergo a soft credit check, so your credit score will not be impacted**** by this process. And you will see your rate within minutes.
Choose your desired loan term: You will need to specify the ideal loan amount you’d like to borrow as well as how long you’d prefer to take to pay back your debt. Upstart gives you a choice of three or five years.
Submit your full application and receive funding: Most borrowers receive their money the next business day after loan approval, although there is an additional three-day waiting period if you are borrowing to cover educational costs.

You will need to provide your Social Security number, birth date and contact information during the application process.

Approval and Funding

Upstart allows you to check your rate within five minutes. If you accept your loan offer prior to 5 p.m. EST on a weekday, you’ll receive your money the next business day*****. If you accept your loans outside of this cutoff, the money will be sent the following business day.

However, if you are using the personal loans for education-related expenses, there is a required three-day waiting period to comply with federal law.

Upstart Personal Loans Reviews

Upstart received an A+ rating from the Better Business Bureau (BBB), but unfortunately received an average of just 1.23 out of 5 stars over more than 200 consumer ratings on the BBB website.

Reviewers complain of “bait-and-switch” tactics in which they received higher rates than promised in promotional material.

“Bait and switch. Got a letter offering me 8.7% APR but the moment you enter your information they actually offered me a 36% APR loan!! My credit card APR is lower than that … And then they will just not quit emailing me to accept this outrageous loan, it feels like harassment. Once they got your info they feel like they can harass you for a predatory loan. There was no unsubscribe button.”
— Den C., Aug. 31, 2023, BBB

“We had no trouble getting several loans from them with the lowest rates on the web site. It seems like they do require a fairly high credit score (my guess is around 750+, usually), but they also look at other things like your current assets. Our FICO scores are in the 800’s and we have assets of something like a couple of million (mostly retirement accounts and home equity – house is worth 900K and almost completely paid off).”
— Gaius G.,Sept. 13, 2021, ConsumerAffairs

Other customers, such as those discussing Upstart on the ConsumerAffairs website, report the lender had problems verifying their information once the loan process was underway, which prevented them from ultimately receiving funds.

“After being approved via online and through my bank account, I then was asked to send supporting documents proving my account was my account. After calling the credit union, getting documents and sending proof over to them multiple times … they denied me for not verifying me before process was complete. I’m pretty sure this violates consumer protection laws! Stay away from this lender!“
— Chris, Omaha, NE, Dec. 14, 2022, ConsumerAffairs

Upstart did not respond to a request for comment on these reviews.

Some customers, however, did cite a good experience. Upstart received an average of 4.9 stars in more than 44,500 Trustpilot reviews, with many reviewers praising their easy approval process.

“After a quick decision to apply for a personal loan I clicked on the Upstart website and was taken through a fast, hassle-free application and approval process, with a user-friendly platform, and with loan terms that were easy to understand. Can’t imagine what else there is to ask for!“
— Michael, U.S., Sept. 14, 2023, Trustpilot

Potential borrowers should be aware of the mixed reviews and focus on the customer experience they receive during the application process to determine if Upstart is a good lender for their needs.

Eligibility Requirements for Upstart Personal Loans

There are certain requirements you must meet to be eligible for an Upstart loan, including the following:

Be at least 18 years old
Have a valid email address
Have a verifiable name, date of birth and Social Security number

Here are some of the other qualifying requirements to be aware of.

Credit Score and Financial History

If you have a credit score, it must be 300 or higher, and you cannot have any material adverse changes in your credit report between the time the loan is offered and the time it is funded. Other criteria that may disqualify you from an Upstart personal loan include the following:

Any bankruptcies within the past 12 months
Any public records (except for old judgments or paid tax liens) on your record within the past 12 months
Any currently delinquent accounts
More than six inquiries on your credit report in the last six months (not including inquiries for student loans, vehicle loans or mortgages)

Income and Employment

Upstart provides loans only to borrowers who have a full-time job or a full-time job offer starting within the subsequent six months from application submission. If you do not meet this requirement, you must have a regular part-time job, another source of regular income, or have been accepted to a partner bootcamp and looking for post-graduation employment.

You must also meet minimum debt-to-income (DTI) requirements, which measures your monthly debt versus your monthly income. Depending on the state where you live, your total debt must not exceed either 45% or 50% of your projected pretax income.

>> Related: Learn more about personal loan requirements

Citizenship and Residency

Upstart personal loans are available in the following states:

Upstart Personal Loans Usage Rules

You are allowed to use your Upstart loan proceeds for almost anything, however in some states there are restrictions on using loans for educational purposes. Some common uses for Upstart personal loans include these:

Debt consolidation or debt refinancing
Starting or growing a company
Medical expenses
Large purchases
Moving or relocation
Travel
Athletic training

Upstart Personal Loans Fees and Penalties

Upstart does charge some fees and waives others that you should be aware of, including the following:

Loan Origination Fees

Upstart charges a one-time origination fee equal to 0% to 12% of the amount you’re borrowing. The origination fee is not refundable, and the money will be deducted from the loan proceeds before the money is directly deposited into your bank account.

Early Repayment Penalties

Upstart does not charge prepayment penalties. This is important because if you want to make extra monthly payments or pay your loan ahead of schedule with a lump-sum payment, you don’t want to be penalized for trying to become debt-free faster.

>> Related: Learn more about loan origination fees

How Upstart Compares to Other Lenders

Doing research for a personal loan is important, and there are many other available lenders to consider when taking out a personal loan. Check out some alternatives to Upstart to find a lender that may help you accomplish your financial goals.

LightStreamoffers a lower maximum annual percentage rate (APR) than Upstart and also does not charge an origination fee. LightStream offers more choices for repayment terms, and its loan limit of $100,000 is double the maximum $50,000 Upstart makes available******.

However, LightStream provides loans only to borrowers with good or excellent credit, so those with poor credit, fair credit or no credit at all may not be eligible for a LightStream loan. With Upstart’s less stringent qualifying requirements, it may prove a better choice for those without a solid credit history.

SoFioffers loans up to $100,000, which is double the amount available from Upstart. Borrowers also have more flexibility regarding their loan term, with SoFi offering repayment terms between two and seven years, while Upstart requires repayment within three or five years. SoFi does not charge an origination fee, and its maximum APR is well below what Upstart offers.

However, SoFi has more stringent qualifying requirements, indicating that most lenders require a credit score of 670 or higher before approving a loan. Borrowers who cannot meet SoFi’s credit requirements may find Upstart is a more viable option because the lender looks beyond credit and considers income and employment in determining loan approval.

PenFed is a credit union, unlike Upstart, and credit union membership is required to secure a PenFed loan. It’s possible to become a member by opening a PenFed savings account with a $5 deposit. Upstart, on the other hand, doesn’t have any membership requirements, so borrowing can be simpler.

PenFed does have stricter qualifying standards, requiring a credit score of at least 580. Like Upstart, PenFed only offers loans up to $50,000, but it does provide repayment terms up to 60 months as well as a far lower maximum APR and no origination or repayment fees.

>> Related: Learn more about the best personal loans

The Bottom Line

Upstart may be able to provide the funding you need if you have imperfect credit or have no credit score at all. But be aware the lender charges an origination fee and its maximum APR is higher than many competitors. Prior to committing to any personal loan, be sure to research all your options to find a lender that can help you accomplish your financial goals.

How We Rate Upstart Personal Loans

Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories. Here’s how Upstart personal loans scored within each.

Affordability	28/35
Loan features	25/35
Customer experience	17/20
Company reputation	10/10
Total	80/100

Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.

Frequently Asked Questions About Upstart Personal Loans

If you have a credit history, you will need a minimum credit score of 300 to qualify for an Upstart loan. You also cannot have any current delinquencies, bankruptcies or judgments within the prior 12 months.

Upstart has an A+ rating from the BBB and has more than 2.8 million customers. The company has originated more than $35 billion in loans and works with more than 100 banks. While reviews are mixed in terms of customer service, there is no risk of securing a loan through Upstart as long as you understand the loan terms you’re agreeing to and can afford the monthly payments.

When you check your rate for an Upstart loan, you will undergo a soft credit check which does not affect your credit. If you move forward with applying for financing, you will have to initiate a hard credit check which can affect your credit history. Too many inquiries can reduce your credit score.

An Upstart loan can also temporarily have an adverse impact on your credit because adding a new account to your record will lower your average age of credit. However, if you pay your loan on time, any reduction in your score should be temporary, and your record of consistent payments on an installment loan could help you build credit.

Upstart makes it easy to apply for a loan. The lender looks beyond credit to consider employment and other factors. As a result, borrowers with no credit history or a score as low as 300 could potentially get approved for a loan. Upstart also allows you to check rates within minutes and get funds as soon as the next business day.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

Note: Rates accurate as of 5/2/2024

*The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.44% and a 8.64% origination fee of $864, for an APR of 22.88%. In this example, the borrower will receive $9136 and will make 60 monthly payments of $257. APR is calculated based on 5-year rates offered in March 2023. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

**Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.

***As of December 31, 2021, and based on a comparison between the Upstart model and a traditional credit-score only model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical credit-score only model used in Upstart’s analysis was developed in connection with the CFPB No Action Letter access-to-credit testing program and was built from a traditional credit score only model trained on Upstart platform data. APR for the scorecard was averaged for each given traditional credit score grouping.

****When you check your rate, Upstart checks your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, the lender does another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.

*****If you accept your loan by 5 p.m. EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education-related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

******Your loan amount will be determined based on your credit, income and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).

If you have feedback or questions about this article, please email the MarketWatch Guides team ateditors@marketwatchguides.com.

Christy RakoczyContributing Writer

Christy Rakoczy has been a financial writer since 2008. Christy has written about all kinds of topics but mostly focuses on personal finance and legal subjects. She has written blogs, news articles, SEO articles, textbooks and online courses on the topics of law, finance and history. Christy has a law degree from UCLA as well as a bachelor’s in English, Media and Communications from the University of Rochester. She currently splits her time between Florida and Pennsylvania and lives with her husband, two children and beagle.

Jared MacarinEditor

Jared is an editorial veteran who joined Home Solutions after more than 20 years in the newspaper industry. He has written, edited or designed more than 50 newspapers across the country, winning numerous awards. Jared has also edited and wrote for Forbes Advisor, Lending Tree, The Streamable and Lonely Planet. When he isn’t working, Jared enjoys spending time with his wife on outdoor adventures, watching sports and reading.