Upstart Personal Loan Review
- APR
- 6.50% – 35.99%
- Eligibility and access: 5/5
- Cost to borrow: 4.1/5
- Loan terms and options: 4.2/5
- Repayment support and tools: 4/5
Upstart is a lending platform that uses AI to determine whether you’re eligible for a loan. Upstart says its AI algorithm helps it approve borrowers that other lenders would deny.
You only need a credit score of at least to qualify. And if you’re an eligible college student or grad, you don’t need a credit score at all.
- Considers more than credit score: Upstart uses a nontraditional approach to lending that allows consumers with less-than-perfect credit scores or thin credit histories to qualify. Upstart uses AI to evaluate loan applications and considers factors like education and employment.
- Next-day loans: You could get your Upstart loan within 24 hours after you’re approved.
- Only offers two repayment terms: Many lenders offer multiple repayment term options to choose from (24 to 84 months, for instance). Upstart only offers 36 to 60 months. Your repayment term is the length of time you have to pay off your loan.
- Charges an origination fee: At Varies, Upstart charges one of the highest potential origination fees in the personal loan market. Origination fees are one-time administrative fees that are taken out of your loan funds.
- Can check rates without hurting your credit: If you want to see your potential interest rates without impacting your credit score, Upstart allows you to prequalify for a loan.
- Best for borrowers with bad or no credit: Upstart could be a solid choice if you’re having a hard time getting approved for a personal loan. It doesn’t approve everyone, but it has easier-than-normal eligibility requirements. Upstart’s rates and fees aren’t the cheapest, but they are below what many financial professionals consider predatory.
Upstart pros and cons
Even though Upstart’s lending model may make it easier to qualify for a loan, this lender may not be the right fit for everyone.
Pros
- Only requires a credit score
- Waives credit score requirement for eligible college students and grads
- Also has competitive rates for excellent credit
- Could get your loan in one business day
Cons
- Can’t add a second person to your loan
- Charges an origination fee
- Only two loan terms to choose from: 36 to 60 months
Upstart’s use of AI and emphasis on factors like education and employment may make it easier to get a personal loan — particularly if you have bad or no credit. If you are enrolled in an accredited associate’s degree program or higher, Upstart doesn’t require you to have a credit score. The same applies if you have at least an associate’s from an accredited school.
Unfortunately, if you need a co-borrower or cosigner to qualify for a loan or receive lower rates, Upstart doesn’t offer this option. You may also be stuck with a high origination fee between Varies. Generally, the lower your credit score, the higher your origination fee will be. Thankfully, this isn’t an out-of-pocket expense. Instead, Upstart will deduct your origination fee from your loan funds before sending them to you.
Upstart requirements
Other than being at least 18 years old, you’ll also need to meet the following requirements:
| Minimum credit score |
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| Other credit-related requirements |
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| Residency requirements |
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| Employment requirements |
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| Administrative |
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If you meet the basic requirements listed above, you may need to disclose how you plan to use your personal loan. While Upstart does allow borrowers to use its funding for a variety of purposes, there are certain expenses you cannot put the money toward.
Upstart loans CAN be used for…
- Refinance credit cards
- Start or expand a business
- Cover medical expenses
- Make a large purchase
- Moving costs
- Travel
- Athletic training
- Home improvement projects
Upstart loans CANNOT be used for…
- Education expenses (if you live in California, Connecticut, Illinois, Washington or Washington, D.C.)
- Illegal activity
- Firearms or other weapons
If Upstart’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts for your situation.
How to get a loan with Upstart
Upstart offers a quick and easy online loan experience. Here’s what you need to know about applying for an Upstart personal loan.
Check your credit
Before you fill out an Upstart loan application, be sure to check your credit score and budget for how much you’ll need to borrow. You can use a personal loan calculator to estimate your monthly payments.
Prequalify for a loan
Upstart lets you prequalify for a personal loan. After answering a few questions, Upstart will run a soft credit inquiry to take a preliminary look at your credit history. This won’t impact your credit score and will allow you to see your potential rates, terms and loan amounts.
Formally apply
If you pass prequalification and are happy with your loan offer, you’ll then have to fill out a formal application. This requires a hard credit pull and can cause your credit score to drop by a few points. Upstart makes most approval decisions instantly, and paperwork isn’t typically required.
Close on your loan
If Upstart approves your loan request, you’ll need to officially accept your offer by signing your loan agreement. Once you’ve signed and closed on your loan, it can take Upstart as little as one business day to fund your personal loan.
How Upstart compares to other personal loan companies
Even if you believe Upstart aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Upstart stacks up against similar personal loan lenders.
| Upstart | Best Egg | Upgrade | |
|---|---|---|---|
| LendingTree’s rating | 4.6/5 | 4.4/5 | 4.7/5 |
| Minimum credit score | 300 | 580 | 580 |
| APRs | 6.50% – 35.99% | 6.99% – 35.99% | 7.74% – 35.99% (with discounts) |
| Loan amount | $1,000 – $75,000 | $2,000 – $50,000 | $1,000 – $50,000 |
| Repayment term | 36 to 60 months | 36 to 60 months | 24 to 84 months |
| Origination fee | 0.00% – 12.00% | 0.99% – 9.99% | 1.85% – 9.99% |
| Funding timeline | May receive funds as soon as one business day | May receive funds as soon as one business day | May receive funds as soon as one business day |
| Bottom line | Of the three, Upstart offers the most competitive rates and lowest credit requirements. However, it charges a higher origination fee and has less flexible terms. | Best Egg has similar features to Upstart, like a high origination fee, quick funding and flexible loan amounts. However, it does offer access to more repayment term options. | Upgrade has a lot of similarities to Upstart but it does allow for joint applications and offers an autopay discount to customers. It also offers more options for loan terms. |
How we rated Upstart
We evaluate personal loan lenders on more than just interest rates. Our goal is to show how accessible, affordable, transparent and supportive each lender really is.
Our categories
Every lender is scored out of 5 stars, with 5 stars being the highest rating. LendingTree loan experts determine this score using dozens of underlying data points across four weighted categories covering the full borrowing journey.
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
In some cases, our editors may apply a small adjustment (no more than 4% of the overall score) to account for factors not captured by the methodology. This could include J.D. Power customer satisfaction surveys, recent regulatory actions or features that stand out in ways our rubric doesn’t measure directly.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Frequently asked questions
Compared to many other lenders, it’s easier to get an Upstart personal loan. It only requires a credit score, and eligible college students and grads don’t need a score at all. However, you’ll still need to meet its other personal loan requirements, such as having no bankruptcies in the last year.
Upstart allows you to prequalify for a personal loan at no cost to your credit; however, like most lenders, you’ll need to submit to a hard credit pull before your application can be approved, which can cause your credit score to drop by a few points. Making your loan payments on time should help to improve your credit score.
You can pay off an Upstart personal loan early without incurring a prepayment penalty. Most personal loan companies do not charge this type of fee.
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