Upstart Review

Pros

• Borrower qualifications are lower than what banks require
• Rates tend to be inexpensive
• No prepayment penalties
• Funds are disbursed quickly

Cons

• Financing isn’t available in some states
• Low borrowing amounts

What Is Upstart?

Upstart is an online lending platform that offers consumer loans to qualified borrowers. Upstart loans can also be used for business purposes. Because these loans are tied to your personal ability to repay and not your business’s ability to repay, Upstart is a very startup-friendly company.

And while credit scores are a consideration, those with little or no credit history are still eligible to receive capital.

Services Offered By Upstart

Upstart offers very specialized personal lending services. You won’t find typical business loans, lines of credit, or SBA loans, but Upstart’s personal loans can be used for business. The company’s lending limits are okay for a personal loan but may be on the smaller side for some business purposes. All in all, these points get Upstart a 3.4/5 star rating for this section.

Here are all of the types of personal financing available with Upstart:

• Personal Loans: Upstart offers personal loans that can be used for business, among other purposes.
• Debt Consolidation: Upstart’s debt consolidation services include loans to pay down credit card debt and other types of debt.
• Vehicle Refinancing: This service includes car loan refinancing to lower your APR or reduce your monthly payments.
• HELOC: Home equity line of credit that uses your home’s existing equity to secure funding.

Upstart Borrower Requirements

Upstart’s borrower requirements are quite flexible and easy to qualify for. Because Upstart offers personal loans, you won’t find time in business or business revenue requirements, which could make Upstart a good option for startups or side hustle businesses.

There is no real credit score requirement, but the higher your personal credit score, the better your rates will be.

To qualify for an Upstart loan, you must also meet these requirements:

• Be a US citizen
• Be at least 18 years old (19 in Alabama and Nebraska)
• Have an email account
• Have a name, date of birth, and social security number
• Have a regular source of income
• Have a bank account
• Have a credit score of 300 or above (however, Upstart might accept applicants with insufficient credit history to produce a score)

Upstart Interest Rates & Fees

When it comes to rates and fees, Upstart is a mixed bag. The company is mostly transparent about fees, but APR, in particular, is not disclosed and will require an online application to check. Customers have mixed levels of satisfaction, with some quite happy about their Upstart loan and terms and others complaining about high APRs even with strong credit profiles. All in all, we give Upstart a 3.6/5 star rating for this section.

Here are the specific stats posted on Upstart’s website:

Note that in certain states (Massachusetts, Ohio, New Mexico, and Georgia), the minimum borrowing amount will be higher than $1,000. In addition, Upstart may charge a fee for the following situations:

• Late Payment: The larger of 5% of unpaid amount or $15
• Insufficient Funds Fee: $15
• Paper Copies Request Fee: $10

Your interest rate is determined by a number of factors that Upstart considers to evaluate how risky a bet you are. The riskier you are perceived to be, the higher your interest rate.

One factor that will affect your interest rate is your term length. Three-year loans have smaller APRs because lending somebody money for three years is less risky than five. The downside is that three-year loan terms will have higher monthly repayments.

Keep in mind that Upstart usually requires an origination fee. This fee comes right out of the principal, so if you need a specific amount of money, make sure that you ask for enough to cover the cost of the origination fee. While some customers are annoyed by this fee, an origination fee is standard in the industry.

Upstart does not charge any other fees, such as prepayment penalties, aside from the origination fee and potential late fees.

Upstart Application Process

Upstart’s application process works much like that of any other online lender. You’ll begin by filling out an online form via Upstart’s website. The form will ask you:

• How much you’d like to borrow
• Approximate credit score
• Highest level of education
• Your primary source of income
• Personal information (name, date of birth, etc.)
• Residential information
• Financial information

After you’ve completed the form, you’ll get a preliminary approval or denial. If you are approved, you’ll get an estimated rate, which details your interest rate, origination fee, and other important details about your potential loan. Use this information to decide if you want to continue the process.

Before you get an official rate, you will have to provide more substantial information, and a real human (the underwriter) will have to look through your application. During this step, you’ll be asked to provide a bunch of documents to verify all the information you provided earlier. For example, Upstart might ask you to submit transcripts, test scores, pay stubs, tax forms, and other official documentation. At this step, you’ll have to talk to an Upstart representative to verify some information. Upstart will also do a soft credit inquiry.

When you’ve submitted all that, an underwriter will go over your application and (assuming you’re accepted) make you a real loan offer. If you accept that offer, your loan will be funded.

The time from application to funding is generally less than a week. You can get an estimated quote within minutes. The underwriter typically takes 24 to 48 hours to make a decision, and funds can be transferred in one business day.

Upstart Sales & Advertising Transparency

Upstart is fairly transparent about its borrowing amounts, fees, and rates, though we would like to see an APR range advertised. You shouldn’t come across many (or any) surprises during the application and funding process and the company has a strong sales ethics reputation amongst borrowers.

Upstart Customer Service & Technical Support

Upstart offers a fairly comprehensive resource center and FAQ section. If you can’t find an answer to your question in the FAQs, Upstart is available by email or phone. Although some customers have reported difficulty getting in touch with the staff, most customers express satisfaction with the customer service representative’s promptness and level of support.

There is no dedicated support representative available, so this, paired with the mixed levels of customer satisfaction mentioned above, gives Upstart a 3.9/5 star rating for this section.

Upstart User Reviews

This company has a largely positive online reputation. That’s not to say it’s completely devoid of negative reviews, but the company receives a large number of positive ratings across multiple review sites, including TrustPilot and Credit Karma. The company also is accredited by the BBB with an A+ rating. Altogether, Upstart gets a 4.1/5 star rating for this section.

Negative Upstart Reviews & Complaints

Here are the most common Upstart complaints I came across regarding its loans:

• Payoff Disputes: Some Upstart reviews on the company’s BBB profile state that the customer continued to be charged payments after their loan was repaid in full (or so the customer thought). The company’s responses to these sorts of complaints are generic so it’s not clear what really transpired in those cases.
• Erroneous Credit Report Marks: Other Upstart BBB complaints state that there were erroneous marks on their credit report due to taking out an Upstart loan. Again, the company’s responses to these complaints are generic.
• Rejections: The majority of negative reviews are from customers who were rejected for a loan for one reason or another. Unfortunately, Upstart may find reasons to reject you, even if you met the minimum qualifications or got a pre-approval letter in the mail.
• Origination Fee: A few reviewers claim they were not aware of the origination fee before accepting a loan. However, I saw the fee disclosed multiple times across the website. The origination fee is taken directly out of the principal, so if you need a certain amount, ask for a slightly higher amount when applying to cover the extra cost.
• Customer Service: Some customers have complained that they’ve had trouble getting in touch with customer service.
• Lengthy Approval Process: Several recent reviews posted by would-be borrowers on the BBB site mention a lengthy approval process riddled with hiccups. A recent response from the company regarding just such a complaint notes, “servicing volumes are currently higher than normal, causing a delay in timely responses.”

Positive Upstart Reviews & Testimonials

Customers have a lot of good things to say in their Upstart reviews. Most commonly, they praise:

• Customer service
• Smooth application process
• Lenient underwriting
• Quick time to funding

Upstart’s flexible repayment schedules also set it apart from its competitors. As with many P2P lenders, once your due date has been set, it’s not possible to change it. However, Upstart has a convenient solution to this problem: Customers can set up monthly recurring payments at any time before their actual due date. You can even set up bi-weekly repayments if that works better for your finances.

Final Verdict: Is Upstart Worth It?

Because this lender is willing to evaluate non-traditional sources of creditworthiness, Upstart is an excellent resource for many people who do not fit the traditional model of a loan borrower. If you don’t have an established credit history for whatever reason, you may still qualify for affordable rates from this lender.

Although there are a few complaints circulating about Upstart, it’s evident that most borrowers have an excellent experience. Furthermore, those complaints are common in the loan industry at large; you risk being turned down for a loan or paying extra fees from any of Upstart’s competitors as well.

Again, anyone considering getting a business loan from Upstart should make a few comparisons before settling on a lender. Most lenders will be able to give you an estimated rate without affecting your credit. If Upstart ends up not being a good fit for your business, be sure to check out our list of top-rated providers of startup loans for bad credit to find plenty of other options.

Business Loan & Funding Products Review Methodology

We spend hours researching and evaluating each business loan and funding product that we review at Merchant Maverick, placing special emphasis on key characteristics to generate our ratings.

When rating lenders and funding providers, we use a 31-point rubric that looks at rates and fees, services, eligibility requirements, application, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating. This rubric is applied to traditional term loans, as well as short-term loans, start-up loans, lines of credit, online lending products, merchant cash advances, and equipment financing products.

• Rates & Fees: 20% of the total star rating
• Services: 20% of the total star rating
• Eligibility Requirements: 20% of the total star rating
• Application: 15% of the total star rating
• Sales & Advertising Transparency: 10% of the total star rating
• Customer Support: 5% of the total star rating
• User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we examine specific attributes like terms lengths, conditions of repayment, credit score and revenue requirements, ease of application, length of time to funding, the ethics involved in promoting the lending product, customer support, and the overall reputation of the lender or funding provider.

Read more about how we rate small business lenders.

The Merchant Maverick Seal of Approval 🏆

Upstart	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Upstart for yourself.

The Merchant Maverick Seal of Approval 🏆

Upstart	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Upstart for yourself.