Upstart is a lending platform that primarily provides loans for education and career advancement. College-educated borrowers can usually take out a loan with good terms and low interest rates through Upstart. Those who have high income levels and bad credit can usually find a loan easily too. Here is a more thorough review of Upstart, so you can determine if they’re right for you:
Requirements to Borrow from Upstart
You can only borrow from Upstart if you have a credit score of 620 and higher. The average credit score of borrowers on Upstart is 692. Upstart is willing to lend to borrowers who don’t have a credit score yet, as long as they have a good academic history or a full-time job.
When it comes to income level, the company doesn’t have a minimum requirement for borrowers. The average income of borrowers from Upstart is $97,234, which is $43,577 higher than the U.S. national median. If you decide to obtain a loan through Upstart, you may be asked to submit your SAT score, college transcript, or pay stub.
Good for People Who Want to Build Technical Skills
Upstart has multiple partnerships with coding boot camps. Anyone who is accepted into one of those coding programs has the option to borrow money from Upstart to cover tuition. Upstart will waive their requirement that borrowers have either a job or a college degree in this situation.
How You Are Evaluate Depends on Your Situation
The lender’s underwriting process depends on a person’s credit history. For example, if you are a recent graduate with little or no credit history, then Upstart will evaluate you based on academic performance.
Upstart is a Platform That Connects Borrowers with Individual Investors
It is important to mention that Upstart doesn’t personally lend the money to borrowers. They are a platform that brings investors and borrowers together. Upstart charges a small origination fee of 1%-6% when you obtain a loan through their site.
What Determines Your Interest Rate from an Upstart Loan
The interest rate you’ll have on the loan is determined by the grade assigned to you by Upstart. Information that you provide for qualification is used to determine the grade. Upstart allows you to check your potential interest rates without affecting your credit score. It only takes a few minutes to show you what your interest rates are most likely to be.
Why Upstart is Ideal for Education and Career-Related Loans
Upstart is a great company to find a loan through if you plan on using the money for furthering your education or advancing your career because they offer lower interest rates for people who do.
Common Terms of Upstart Loans
The minimum loan amount at Upstart is $1,000 and the maximum is $50,000. You will typically have 3-5 years to repay the loan. It depends on how much you borrowed and what your income level is. When you take out a loan, you’ll receive the funds by the next day if it’s not for education. A loan for education has a three-day waiting period. Upstart’s APR rates range from 6.25% to 29.99%. They charge a late fee of $15 or 5% of the payment amount depending on which is higher. Returned payments have a $15 fee.
Overall, Upstart is a great place for college-educated borrowers, people who want to advance their careers, and those who are fresh out of college without any credit history yet. For those who haven’t built a credit score yet, they will be qualified for loans based heavily on academic performance. Upstart also offers better terms with lower interest rates if you take out a loan to improve your career or further your education.