Upstart Financial Terms in a Glimpse
|Loan Amounts||$1,000 - $50,000|
|Term Length||3-5 years|
|Loan Rates||Est. APR 5.69-35.99%|
|Min Credit Score||620|
|Better Business Bureau Rating||A+|
|Time to Funding||1-3 business days|
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
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.
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.