What we like:
Availability of customer support
|Rates (APR)||8.69% – 29.99%|
|Loan Terms||3 or 5 years|
|Loan Amounts||$1,000 – $50,000|
|Fees||Origination fee: 0.0% – 8.0%|
Prepayment penalty: None
Late fee: 5% of past due amount or $15, whichever is greater.
Upstart is a private personal loan lender that found its origins during 2012 Its founds, recent Google employees, sought to create a peer to peer personal loan company that offered competitive and flexible loans to consumers for various different reasons and purposes.
After a number of prominent investors helped kick-start the venture, Upstart has reached prominence as one of the premier personal lenders for consumers today. It has grown considerably each year and has provided over 30,000 private personal loans to date.
Upstart Personal Loan Offerings
There are multiple offers provided by Upstart that cover a wide range of different expenses. Upstart’s coverage can be found directly on its homepage. Here is a list of what Upstart personal loans can be applied to:
- Credit Card Debt
- Debt Consolidation
- Taking an Educational Course
- College or Grad School Loan
- Making a Big Purchase
- Medical Bill Expenses
- Kickstarting a Business
- Buying a Car
- Paying Taxes
- Home Renovation
While the list is long, the possibilities are truly endless. Upstart literally provides loans for “something else” which can be widely interpreted. If a consumer cannot find what he or she needs in this list, there is still the possibility of qualifying for a loan regardless of its purpose. Other unique possibilities include funeral expenses and jet ski financing.
Consumers who borrow through Upstart can qualify for a personal loan of up to $50,000; in fact, Upstart provides a wide range of private loans from anywhere between $1,000 and $50,000.
This wide range of private loan offers comes with a wide range of potential interest rates, or annual percentage rates (APR). Upstart offers two different ranges of fixed interest rates for its 3 or 5 year loans. After an origination fee, this range boils down to a low end APR of 8.69% and a high end APR of 29.99% for both repayment options. Keep in mind that Upstart only offers private loans with fixed interest rates.
As mentioned earlier, there are two repayment terms available to consumers. Private loans from Upstart come with either a 3 or 5 year repayment term. Customers can choose between these two options based on their monthly payment capability and interest rate. Once this repayment period is set, Upstart provides simple ways to make payments such as automated monthly payments.
One beneficial condition for these loans is the lack of a prepayment penalty. This means that an Upstart customer can pay off his or her loan earlier without fear of a penalty. A prepayment penalty is a fee that is applied to a loan that is paid off before its repayment term is completed; some companies view this as a violation of contract which spurs a penalty fee. This penalty is a troublesome feature for some personal loans, but borrowers do not need to worry about this condition when applying for a loan with Upstart.
Aside from providing personal loans for a wide range of different expenses at competitive rates, there are various benefits that come with borrowing from Upstart.
The first benefit that needs to be mentioned is the underwriting process which has everything to do with interest rate qualification and loan eligibility. Upstart bases its underwriting system on much more than just credit score or years of credit. It takes into account education history, major of study, and job history. This sets the stage for a private loan that is tailored to each individual consumer. This leads to better interest rates and improves a consumer’s chances of qualifying.
The next highly beneficial aspect of borrowing through Upstart is how readily available its private loans are. The entire process only takes a few minutes. Borrowers can review these terms quickly. Once accepted, the loan is often delivered by the next business day.
Aside from convenience, there are a number of helpful resources available on the Upstart website.
Customer service representatives can be reached seven days out of the week. The hours do not even shorten over the weekend; for instance, calls are answered anytime between 6:00 a.m. and 5:00 p.m. (Pacific Standard Time) any day of the week.
Customers who hate making calls can find a number of resources online that are equally as helpful. There is a help center that provides answers to commonly asked questions pertaining to borrower eligibility, loan applications, application verifications, loan payments, and Upstart itself.
Upstart is a solid option for consumer looking for a personal loan. While the wide range of loan applications is a staple for all personal loan companies, the simplicity of Upstart’s online application process and interface sets it apart from other competitors. The website sets a precedent for effective communication in the private loan industry by making it easy for customers to get the big picture on potential personal loans.
One of the best parts about Upstart is its underwriting process. Like other lenders, Upstart devalues credit score and focuses on other important contributing factors. This is part of a trend that is growing in popularity. The credit score based underwriting system is often criticized as antiquated and obsolete, and it phases out a large portion of borrowers who can technically handle a personal loan. By analyzing earning potential, Upstart provides better options to its customers while expanding its customer base.
Its customer service and resources are another strong point in the personal loan industry. Loans are plagued by poor education and lack of knowledge. Upstart combats this by providing near 24/7 customer service and extensive online resources to help its customers and potential borrowers figure out personal loans.
Overall, Upstart is a growing company that aims to provide the best experience to its customers. It lays out simple repayment terms and conditions, and it provides specially tailored personal loans for many different purposes. At the end of the day, Upstart is a great source for a potential borrower to secure personal funding.3.43 Upstart Personal Loans
Author: Jeff Gitlen
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