Upstart Personal Loan Review
- APR
- 6.50% – 35.99%
- Eligibility and access: 5/5
- Cost to borrow: 3.6/5
- 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. It says that this helps it approve more borrowers and more accurately price loan offers.
- 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.
- Online loan platform, not a direct lender: Upstart is a lending platform that facilitates the application process, but loans are originated by one of its lending partners (typically banks and credit unions), not by Upstart itself.
- Fast funding: Most applicants get an instant approval decision. If approved, you could get your Upstart loan within one to three business days.
- Only offers two loan repayment terms: Many lenders offer multiple loan term options to choose from (24 to 84 months, for instance). Upstart only offers 36 to 60 months. Your loan term is the length of time you have to pay off your loan.
- May charge an origination fee: Whether you’re charged an origination fee depends on your credit and the partner lender Upstart connects you with. Origination fees are more likely the worse your credit is.
- Can check rates without hurting your credit: Upstart’s rate check uses a soft credit inquiry which won’t hurt your credit score. Submitting a formal application will typically trigger a hard inquiry.
- Best for borrowers with bad or thin credit: Some of Upstart’s partners don’t have a formal minimum credit score requirement, making it a great choice for less-than-perfect credit. Upstart’s AI algorithm also helps it consider more than 2,500 variables, not just credit score.
Upstart pros and cons
There’s a lot to like about personal loans from Upstart, but that doesn’t make it the optimal choice for everyone. Reviewing pros and cons can help you decide if this lending platform is right for you.
Pros
- Some Upstart partners don’t have a formal minimum credit score requirement
- AI underwriting model looks at more than just credit scores
- Also has competitive rates for excellent credit
- Consistently ranked top in customer service by LendingTree users
Cons
- Can’t add a second person to your loan
- Some partners charge an origination fee
- Only two loan terms to choose from: 36 to 60 months
- No mobile app for Android, just iPhone
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. Its algorithm evaluates thousands of variables, not just credit score and credit history. Your level of education and employment could help you qualify for a loan, for example.
Upstart isn’t just for bad credit, however. It also offers a competitive minimum annual percentage rate (APR) of 6.50% for those who qualify. Whether you have good credit or bad, always use a personal loan calculator to understand the full cost of borrowing.
Unfortunately, if you need a co-borrower or cosigner to qualify for a loan or receive lower rates, Upstart doesn’t offer this option. Some Upstart loans may also come with an origination fee, which is typically deducted from your loan so you won’t have to pay out of pocket.
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
- Cover medical expenses
- Make a large purchase
- Moving costs
- Travel
- Home improvement projects
- General living expenses
Upstart loans CANNOT be used for…
- Education expenses
- Illegal activity
- Gambling or investments
- Securities and financial instruments
- Funding another person’s loan
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.
Prequalify for a loan
Upstart lets you prequalify for a personal loan. Prequalification only requires a soft credit hit and doesn’t harm your credit score. This will let you 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 | 4.4/5 | 4.4/5 | 4.7/5 |
| Minimum credit score | None | 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 | Varies | 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 | Upstart’s AI algorithm can help make it easier for nontraditional borrowers to get a loan. But even those with excellent credit may want to consider Upstart for its low starting rate of 6.50% . | Best Egg is an online lender that offers both secured and unsecured loans. You can use your home’s permanent fixtures as collateral to get a lower rate (but it’s not required). | Upgrade has a lot of similarities to Upstart but you can add a second person to your loan and get an autopay discount. It also offers secured loans — you can use your home fixtures or your car as collateral. |
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
Upstart loans may be easier to qualify for. It partners with a network of lenders, some of which don’t have a specific minimum credit score. Upstart also uses an AI algorithm to evaluate thousands of different rating factors. This means that it uses more than just your credit to determine your eligibility.
Still, Upstart has personal loan requirements you must meet. You can’t have delinquent debt (typically bills that are 30 or more days late), for instance.
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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