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Upstart Bad Credit Loan Review

The online lending platform called Upstart uses thousands of variables to put potential borrowers and loan lenders in contact. It also works on AI-based technology and can represent a very good solution when it comes to personal loans even for people with fair credit scores. The highly-advanced technology also allows the platform to match users with lenders and approve loans almost instantly. It was founded back in 2012 in California and was created by the minds of former Google employees.

upstart review
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4 /5
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$ 1000 /mo
Starting Price
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Table of Contents

    If you have a credit score of at least 600, you should not worry about obtaining a loan from one of Upstart’s partners. The AI at work doesn’t use this as the sole determiner of loan approval. More unusual credit indicators are also taken into account within a system that provides a lot more loan opportunities than its competitors. The minimum loan amount that one can obtain from Upstart is $1,000 in all states apart from a few. In Massachusetts, the minimum loan is $7,000, in Ohio it is $6,000, in Georgia it is $3,100, and in New Mexico, it is $5,100. The maximum loan amount that one can borrow is $50,000.

    Upstart has an A+ rating from the Better Business Bureau and an excellent rating on TrustPilot with 4.9 out of 5 stars. The overall impression is that this online platform is trustworthy and professional. It also deeply cares for the safety and security of its clients. Most reviews also stand proof of this along with the highly-positive opinions of former customers. 

    Upstart at a Glimpse

    Services

    Personal loans, debt consolidation, and credit card consolidation, medical, wedding, and home loans

    Loan Amount  

    Between $1,000 and $50,000

    Average APR

    Between 6.95% and 35.99%

    Minimum Credit Score

    600 (it accepts completely new borrowers too)

    Remote

    Yes 

    Minimum required income

    $12,000

    Repayment Terms

    3 to 5 years 

    Highlights

    Upstart has a large number of benefits and features that potential future borrowers can enjoy. There is a wide range of loans that anyone can pick from depending on their needs. In short, Upstart makes its services easily accessible to most people, regardless of their experience or financial history. 

    However, this doesn’t mean that everything is perfect. In fact, the repayment terms for the partners of this platform vary from three to five years. These are much less flexible and shorter terms in comparison to some other competitors on the market. Moreover, the APR rates are quite high too.

    The prequalification stage

    Upstart has another highly interesting feature that could save potential borrowers a lot of time and effort. Their prequalification stage is completely free and doesn’t require a hard credit check that will affect your score. Instead, through a soft credit pull and some information from you, the platform can decide whether or not you qualify for a certain loan. 

    In order to benefit from this feature, you will have to provide your personal details, like name, date of birth, contact details, and address. You will also be required to provide details on your education, financial history, source of income, and account balances. Lastly, you will need to detail what kind of loan you need and what amount would be perfect for your needs. 

    Fees

    When it comes to fees, it’s worth noting that Upstart does not charge a prepayment penalty. However, the platform does charge an origination fee that can be as high as 8%, paper copy, and unsuccessful payment fees. Besides that, their late fee can be either $15 or 5% of the past due sum. 

    Qualification process 

    Applying for a loan on Upstart is not only super easy but it also works extremely fast. You simply need to fill out their application form online. You will be asked to provide the details that we have already mentioned for the prequalification stage. In the end, an estimated rate for your loan will also be displayed, to act as guidance. 

    In case you already have some loan history, your minimum credit score will need to be 620. Also, you will be required to have a good record without bankruptcies or any other loan-related issues. We have already mentioned the states where the minimum amount that you can borrow differs. It’s also worth noting that Upstart doesn’t offer its services to people in Iowa or West Virginia. It also doesn’t accept co-signers and doesn’t require collateral. 

    Bottom Line

    All in all, the online lending platform called Upstart can be a good source of inspiration especially if you don’t have the experience or time to look for loans. Because it’s a marketplace based on AI technology, it will instantly match you with the best loan option from its partners. While there are some fees that you will need to take care of and the APR rates are not that friendly, this shouldn’t scare you away from Upstart. This is a trustworthy and experienced platform that cares for its clients’ needs and does everything to fulfill them.