Upstart Bad Credit Loan Review

Upstart Financial Terms in a Glimpse

Upstart Highlights

Upstart has many unique qualities as a lender, and many of those could make them the right choice for your financial requirements. Check out the following details to understand whether Upstart can help you with your money issues.

Prequalify With Soft Credit Pull

Through Upstart's website, you can fill in an application to prequalify for a loan. This will trigger a soft credit inquiry that won't harm your credit score.

The information required to prequalify and check estimated loan terms is:

• Loan amount needed and intended use
• Full name, address, contact details, and date of birth
• Level of education
• Source(s) of income (that you can provide proof of)
• Savings, checking/investment account balances
• Loan activity in recent years

High Debt to Income Ratio Allowed

Upstart allows a max debt-to-income ratio of 45%, which is mostly sustained by the qualifications of its borrowers. According to their website, more than 77% of its clients are college-educated, with an average credit score of 688 and an average income of around $80,000 annually. This is quite high for those of us with poor credit and may make Upstart less of an option.

Line of Credit

Upstart's out of the curve system, based on a non-traditional evaluation of applicants, can give you access to credit lines that would be harder to obtain otherwise. Recently, they started working with individuals beyond specific education requirements, assessing their overall qualifications and their prospects.

In case you need a financial boost to pay for your wedding or refurbish your home, Upstart is an excellent opportunity to check for credit options if you are short on credit history but can prove a sustainable source of income.

Credit Health Tools

Considering that most health insurance doesn’t cover all health care costs, Upstart offers medical loans that can be used to cover the gaps. Such credits can be applied to unexpected hospital bills or specific medical treatments and elective procedures.

Another option that Upstart offers is to consolidate existing medical loans into one personal loan.

The following procedures are an example of what Upstart medical loans can be used for:

• Hearing Aid
• Fertility treatments (IVF/in vitro fertilization)
• Vision Care
• Cosmetic / Plastic surgery
• Dental Care
• Hair loss/hair replacement
• Bariatric Procedures, Weight loss

Hardship Programs

In case of economic hardship, such as losing your job, borrowers can suspend monthly payments until an agreed date, or a time when the situation has been resolved. This is one factor that makes Upstart stand out against most of the competition.

No Prepayment Penalty

As for prepayment fees, Upstart allows its borrowers to pay off a loan early without any penalties. This sort of flexibility can come in handy if you wish to clear your debt before the loan term is finished. It can also save you a lot of money in interest payments.

Unsecured Loans

Upstart does not require any collateral to be placed against the loan amount in the event of payment failure. That means that they will not take any of your possessions or valuables if you default on the loan agreement.

Upstart Fees

• Prepayment fee: None
• Origination fee: 0.0% - 8.0%.
• Late fee: 5% of the past due amount or $15, whichever is higher.

How to Qualify

The application process is tailor-made for each borrower, taking into consideration the factors mentioned earlier.

To apply for an Upstart loan, you can fill out the application on their website. Enter the amount you would like to borrow and provide your education level, credit score, job history, and source of income. Upon completion, you can see an estimated rate for the loan as initial guidance.

If you have a long enough credit history, Upstart requires a score of 620 minimum and a clean record with no bankruptcies or defaulted loans. You need to have less than six reference checks on your record, excluding student loans, mortgages, and car loans.

Be aware that permanent residency in specific states might affect your eligibility as Upstart’s minimum loan amounts vary in different states. This may have an impact on approval when applying for smaller loans.

For reference, here are some Upstart minimum loan amounts in various states:

• Massachusetts: $7,000
• Ohio: $6,000
• New Mexico $5,100
• Georgia $3,100

Upstart doesn't offer personal loans in West Virginia, or Iowa and co-signers aren't accepted. This can make it more of a challenge for those of us with poor credit ratings. You can find a full list of details on their website.

The Bottom Line

Upstart can be a reliable partner for young people with a promising financial future, even with little to no credit history. Upstart can also be useful for people who have a good source of income, yet a short credit history or a low score. If you consider yourself such an individual, you will get competitive terms through their unique lending platform.

Although origination fees and late payment fees are relatively standard within the lending industry, applicants should be fully aware of them. The fact that the loans are credited within a business day of approval makes Upstart unsecured personal loans a fantastic option if you need funding fast.

With a vast loan portfolio, positive customer reviews, and flexible eligibility based on non- traditional evaluation of applicants, Upstart is worth looking into. If you fit their minimum requirements, you could find what you need to help you plan for the future and meet your financial needs.