Upstart Personal Loan
If you are a working professional or just out of college and are looking for a personal loan, but at the same time you have no credit history, then Upstart is the perfect option for you. The company has come up with a fantastic system that leverages on the artificial intelligence and calculates your creditworthiness by your education, prospects, career history and score of a standardized test.
Their online system based on the machine learning is so efficient that you can get an instant quote on the rate at which you can avail the loan within two minutes of answering a few questions regarding your education and career.
Fees & Terms
- Min Loan Amount: $1,000 with few exceptions
- Loan Amount: $50,000
- APR: Variable 8.89%–35.99%
- Interest Rate Type: Fixed
- Minimum Loan Term: 3 years
- Maximum Loan Term: 5 years
- Origination fee: 0.00% – 8.00% of the target amount
- Prepayment fee: $0
- Late payment fee: 5% monthly past due amount or $15 per occurrence (whichever amount is greater)
Requirements for Eligibility
Upstart certainly does not get much into your debt-to-income ratio, but the company does check how much debt you already have in your name, concerning the total income that you are earning. Here is a checklist of eligibility criteria that is followed by Upstart before they consider your application for a loan:
- There must not be any public records or bankruptcies on your report
- None of your accounts should be in delinquent or collections at the time you apply for a loan
- There should not be more than six inquiries (excluding inquiries related to mortgages, student loan, and vehicle loan) on your credit report in the past six months from the date of your application for a loan
- You should have a minimum FICO or Vantage credit score of 640
- You should not be residing in Virginia
- You should be above the age of 18 years
- You should be a permanent resident or citizen of U.S.
- You should have verification documents for your name, social security number, and date of birth
- You should have a bank account in one of the U.S banks
- You should have a valid email id
- You should be working full time, a steady part-time job, a full-time job offer starting within the next six months of any other source of regular income
Pros and Cons of Upstart Personal Loan
Though Upstart personal loan seems perfect if you do not have a credit score history yet, here is a list of pros and cons for you to get a better perspective of whether this loan is for you or not.
- Lower Fixed Interest Rates – You will get loans at the interest rates as low as 8.89%. This will allow you to consolidate your loan with the credit card debt with ease if you get approved for a lower loan rate.
- Quick Access to Funds – You will be getting the loan within one to three business days once it is approved, depending on its time of approval.
- Unique Selection Process – Upstart does not look at your credit score, but rather consider your credit history, education history, and current employment status.
- Origination Fee – The origination fees for the loan that varies between 0.00% – 8.00% is deducted from your loan before the amount is transferred to your account.
- Two Terms of Repayment – Though you have the option to repay your loan early without having to incur any extra charges, there are only two terms of loans available at your disposal – 36 months and 60 months.