Interest Rate: The interest rate offered by Upstart is between 5.4% to 35.99%. Borrowers can avail of the lowest rate as long as their credit scores are upon Upstart’s requirements. Also, auto payment is not available on Upstart, unlike other lenders.
Origination fees: The origination fee charged by Upstart can go between 0% to 8% deducted from the loan proceeds before the money is even delivered to the borrower. This fee is also a one-time payment.
Late payment and prepayment fees: If the borrower failed to pay the monthly reimbursement amount within 10 days of its due date, Upstart will charge a late payment fee of 5% of the principal amount of $15, whichever is higher. Prepayment fees, on the other hand, are not charged to borrowers.
Unsuccessful payment fees: If a bank transfer or checks are returned and failed, an unsuccessful payment fee of $15 is charge for every occurrence.
Paper Copy fees: Once a borrower requests a physical copy of records and wish to withdraw eSign consent, a one-time fee of $10 is charged by Upstart.
Qualifying for Upstart Personal Loan
Upstart is an AI-based lending platform that helps to match borrowers with investors. They have a loan application process that is designed to be as quick and less hassle as possible. The company has also seen a lot of traction in recent years because of its convenience, transparency, and affordability.
To qualify for Upstart Personal Loans, applicants must have the following:
Credit Score Required: Upstart requires borrowers to at least have a minimum FICO score of 600. But the good news is Upstart considers non-conventional variables like education background, residence, and job histories. They even have applicants who don’t have enough credit scores. In addition to Upstart’s credit score requirements, the company also does a background check on bankrupts or delinquent accounts the borrower may have.
Income Required: Applicants of Upstart requires borrowers to have a full-time job or offer starting in six months – or just a regular income with a minimum annual amount of $12,000.
How to apply for Upstart Personal Loans?
Upstart Personal Loan is a lending platform that provides financing for people with limited credit history. It is considered to be a good option because it offers flexible repayment options, has low-interest rates, an easy application process, and good customer service. The people behind this personal loan clearly wanted to make it easier for people with bad credit and low income to get the loan they needed. So to apply for one, follow the preceding steps.
- First, fill out the prequalification form available on their website. This is to also know interest rates and loan terms available. Keep in mind that the form requests the borrower’s personal information such as basic info, education, income, savings, etc.
- The next thing to do is bank account verification and upload supporting documents. There is also a high chance that an Upstart customer service representative will contact the borrower for further verification.
- Once the hard credit checking is done, wait for the approval.
- Next is the signing of the agreement and receiving the funds. Usually, the loan proceeds are directed to the borrower’s bank account within one to two business days.
Frequently Asked Questions:
Can I receive the funds in just a day?
- Accepted loans before 5 p.m. EST are funded the next business day as long as it’s within the working week. But if the loans are accepted after 5 p.m., the loan proceeds won’t be transferred the following or the second day. Keep in mind that there are also possibilities that the proceeds are delayed if it’s for education-related expenses.
Which is better Upgrade or Upstart?
- Upstart’s maximum loan amount is $50,000 while Upgrade is only $35,000. However, Upgrade has a term loan of two to seven years while Upstart only has three to five years.
In the past, borrowing money was a tedious process that required a lot of paperwork and time. Online lending companies have made it easy for borrowers to borrow money by providing them with a quick loan process that is hassle-free.
But with artificial intelligence (AI)-based lending platforms like Upstart, play an important role in the economy today because they provide people with access to loans and credit at a cheaper rate than banks do. And with the rise of these platforms, the number of people who have access to credit has increased significantly.
No wonder why a lot of people are turning to online lenders like Upstart because they are convenient, affordable, and offer a variety of loans with competitive interest rates and flexible payment terms.