Upstart Auto Loan Review
Upstart auto loans at a glance
 | Refinance auto loans |
| Starting APR | Up to 29.99% |
| Loan terms | 24 to 84 months |
| Loan amounts | $3,000 to $60,000 |
| See Refinance Rates |
Upstart is an online platform that offers auto refinance loans starting at $3,000. Upstart doesn’t charge borrowers any upfront fees and partners with a network of auto refinance lenders. And since Upstart considers a wide variety of factors when evaluating loan applications, you may still qualify for auto loan refinancing even if you don’t have much experience with credit.
- Limited to refinancing: This lender only provides auto refinance loans, so if you’re looking to finance a new car, you’ll have to look elsewhere.
- No upfront fees: Upstart doesn’t charge its auto loan refinancing customers any fees unless your vehicle is repossessed, you make a late payment or your payment is returned.
- No option for co-borrowers: This lender doesn’t provide the option to apply for an auto loan with a co-borrower. If you don’t have great credit, this can make it difficult to qualify for low rates.
- Loans available in most states: Upstart offers auto refinance loans in every state except Maryland and Iowa.
- Best for borrowers with a thin credit history: While some lenders may require that you have a long credit history, Upstart considers factors other than your score and background, like your education and employment. This can make it easier for those looking to refinance with bad or little credit to qualify for a loan.
Upstart pros and cons
While an Upstart auto loan may be a good fit for some consumers, its downsides may be a deterrent for others.
| Pros | Cons |
|---|---|
Doesn’t charge any upfront fees Loans available in most states Flexible repayment terms that range from 24 to 84 months Borrowers with little or bad credit may qualify for a loan Offers prequalification | Can’t add a co-borrower to your loan application Only offers refinancing High minimum loan amount No APR discount available for autopay |
With Upstart, you won’t have to worry about paying prepayment penalties or an origination fee. This lender also lets you prequalify for a car loan without impacting your credit, which is not a feature all lenders offer. You also may have an easier time qualifying for an Upstart auto loan than you would with other lenders, as Upstart offers more flexibility when it comes to eligibility requirements.
However, one of Upstart’s drawbacks is that it doesn’t offer purchase loans for new or used cars — you can only refinance a current loan with this lender. You also can’t add a co-borrower to your loan application, so you’ll need to be able to qualify on your own.
A closer look at Upstart auto loans
Upstart is an online marketplace that connects consumers with lenders that may fit their financial needs. The application process is entirely online, which can make it much more convenient for borrowers who don’t want to visit a bank branch.
Unfortunately, Upstart lacks some features that other auto loan lenders offer. Aside from only providing refinance loans, Upstart doesn’t offer perks like annual percentage rate (APR) discounts. Further, unlike other lenders, Upstart also doesn’t offer special financing for cars like electric vehicles and Tesla financing.
Upstart only refinances vehicles that meet the following criteria:
- Car must be 13 years old or less
- Vehicle has a maximum of 140,000 miles
- Current loan has a balance of $3,000 to $60,000
How to get a loan with Upstart
Because Upstart is an online platform, the application process to get an auto refinance loan is straightforward. Here’s how to refinance your car loan with Upstart:
- Check your credit score: When you check your credit score, you can get an idea of the interest rates and loan terms you may qualify for. The lower your score, the higher your rates may be and you may have trouble qualifying for a larger loan amount.
- Set a budget: Before applying for a loan, it’s important to know how much you can afford to borrow. By using an auto loan calculator, you can estimate your APRs and monthly payments so you can stay within your budget.
- Check if you prequalify: Upstart offers car loan prequalification. This means that Upstart will run a soft credit inquiry to check your credit history without impacting your score.
- Provide required documents: If you decide to move forward with an Upstart loan after being prequalified, you’ll need to provide proof of your identity, income and education. You’ll also need to collect the following required documents to verify your information:
- Copy of your vehicle registration
- Proof of insurance
- Co-owner consent form (if necessary)
- Documentation of second claim or second lien resolution
- Close on your loan: Once you verify your information and sign your loan documents, Upstart will repay your original loan and manage the title transfer. This process can take 30 to 60 days.
How Upstart auto loans compare
Even if you believe that an Upstart car loan aligns with your borrowing needs, it’s always smart to shop around and compare lenders. Here’s how Upstart stacks up against a couple of competitors.
| Upstart | Bank of America | RateGenius | |
|---|---|---|---|
| APR | Up to 29.99% | Starting at 6.74% | Starting at 4.67% |
| Terms | 24 to 84 months | 48 to 72 months | 24 to 84 months |
| Amount | $3,000 to $60,000 | At least $7,500 | $10,250 to $100,000 |
| Minimum credit score | Not specified | Not specified | 500 |
Is an Upstart auto loan right for you?
If you don’t have much credit to your name or your credit score could use some work, an Upstart refinance auto loan may be a good fit for you. However, it may be worthwhile to improve your credit score before applying for a loan as you may qualify for lower rates. This lender may not be a good fit for you if you live in Maryland or Iowa, or plan to apply with a co-borrower.
Frequently asked questions
To refinance a car loan with Upstart, your current auto loan balance must be between $3,000 to $60,000. For anything larger or smaller, you’ll have to shop around for a different lender.
The APR on an Upstart auto refinance loan can be as high as 29.99%. Unfortunately, Upstart doesn’t publicize its starting rate, so it’s hard to know whether borrowers with excellent credit can receive competitive rates. If you have a bad credit score, you’ll likely receive an interest rate toward the top end of Upstart’s range.
Unlike many lenders, Upstart doesn’t charge any upfront fees on auto refinance loans. They do charge late and returned payment fees, and you’ll need to pay a fee if you’d like paper copies of your loan documents.