Item: Upstart
Rating: 4.5
Author: Jackie Veling

4.5

NerdWallet Rating

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4.5

NerdWallet Rating

Est. APR

6.70 - 35.99%

Min. credit score

None

Time to fund

1 day

Loan amount

$1K - $75K

Loan term

3 to 5 years

Origination fee

0% to 12%

Disclosures from Upstart

Overview

Upstart is an online lending platform that connects borrowers with banks and credit unions to fund personal loans. It differentiates itself from other online lenders with its underwriting model that uses artificial intelligence and nontraditional data — like college education and work experience — to qualify borrowers.

» MORE: Compare the best personal loans

What is the
Best-of award?

🏆 2024 Best Personal Loan for Fair Credit

🏆 2022 Best Personal Loan for Fair Credit

What the nerds think

Upstart’s underwriting model is certainly unique, and you’ll be hard-pressed to find another reputable lender that accepts borrowers without a credit score. But the potential origination fee and having no available rate discounts may translate to higher rates overall, so I recommend pre-qualifying first to see if you get a competitive offer.

Jackie VelingLead Writer & Content Strategist

What Upstart is best for

Bad Credit Loans

Best for thin credit

Debt Consolidation

Best for thin credit

Secured Loans

Best for online lender loans

How we rate Upstart

NerdWallet writers and editors rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s how we scored Upstart this year.

Affordability

(25%)

3.5/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer Experience

(20%)

4.5/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and Eligibility

(20%)

5/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan Flexibility

(20%)

4/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application Process

(15%)

5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall Rating

4.5/5

Where Upstart personal loans stand out

Alternative data use: Many personal loan lenders primarily rely on credit and income to make an approval decision, but Upstart includes details like college education and work history in its borrower evaluations. The lending platform says its nontraditional underwriting model helps approve more applicants at lower rates.
Accepts borrowers from across the credit spectrum: Upstart considers applicants with thin credit histories or no credit score. If an applicant has a credit score, Upstart accepts scores as low as 300, meaning the lender effectively doesn't have a minimum credit score requirement.
Fast approval and funding: Upstart says most borrowers receive an instant approval decision after applying. Once a borrower is approved, it funds loans as fast as one business day. That means borrowers could go from application to funding in one day, which is hard to beat.
Secured loan option: Bad-credit borrowers may increase their chances of qualifying for a personal loan or getting a lower rate by securing the loan with collateral. Upstart allows borrowers to use a vehicle they own as collateral for a secured loan.
Wide range of loan amounts: Upstart’s loans are very flexible, ranging from $1,000 to $75,000. Though some other lenders may offer loans up to $100,000, they tend to have higher starting amounts, so they’re not a good fit for smaller expenses. Upstart’s wide range means you can use its loans to cover small, medium or large expenses.

Where Upstart personal loans falls short

Origination fee: Some lenders that use Upstart’s online lending platform charge an origination fee, which is common with personal loans. However, Upstart’s maximum origination fee of 12% is higher than most lenders, which tend to fall under 10%. This origination fee will be deducted from the loan amount before the funds are disbursed. » MORE: Personal loans with no origination fee
Only two repayment terms: Upstart borrowers can only choose from two repayment options — three years or five years — to repay their loan. Most lenders offer three or more terms to choose from, which lets you better customize the monthly payment. This flexibility may be especially important for larger loans.
No joint or co-signed loans: Upstart offers unsecured and secured loans only. Adding a co-signer or co-borrower to an application can help borrowers who may not otherwise qualify get a personal loan or a lower rate.
No direct payment to creditors: When you consolidate debt with an Upstart loan, there’s no option to have the funds sent directly to creditors. This is a common perk among lenders, since having your lender pay off your credit cards for you helps simplify the process. » COMPARE: Best debt consolidation loans

Do you qualify for an Upstart personal loan?

Upstart’s nontraditional approach to underwriting means there are few credit-related requirements to get a personal loan. Upstart says those with all types of credit profiles and income levels may qualify. Upstart loans are available in all 50 states and Washington, D.C.

Upstart’s borrowing requirements

Minimum credit score: None.
Minimum annual income: None.
Must have a valid U.S. bank account, U.S. residential address and email address.
Must provide a valid Social Security number.
Must have no bankruptcies in past three years.
Must provide a verifiable source of income.
Maximum debt-to-income ratio: 50%, not including rent or mortgage, in most states.

Interested in this lender? See what rate you can get by prequalifying

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How does Upstart compare to the best lenders?

Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.

4.5	4.5	5.0	5.0
EST. APR 6.7% - 35.99%	EST. APR 8.99% - 35.49%	EST. APR 7.9% - 35.99%	EST. APR 7.74% - 35.99%
LOAN AMOUNT $1K - $75K	LOAN AMOUNT $5K - $100K	LOAN AMOUNT $1K - $60K	LOAN AMOUNT $1K - $50K
MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE 600 Check Rates