Upstart Lending Platform
Brainy Loans
Upstart Lending Platform Overview
Loan Information | Details |
Loan Types Offered | Unsecured Personal Loans |
Potential use of the fund’s | Credit car refinance, debt consolidation, medical expense, etc. |
Credit Score Requirements | At least 300 in most states |
Income Require | Verifiable source of income of $12,000 or more annually. |
Annual Percentage Rates (APR) | Typical APR is 5.6% – 35.99% (Subject to change, check Upstarts loan pages for the latest rates) |
Repayment Terms | 36 months, 60 months |
Origination Fee | 0-10% |
Loan Amounts | $1,000 – $50,000 |
Underwriting Process | Upstart’s model uses machine learning and artificial intelligence techniques to underwrite borrowers based on many variables, including but not limited to credit score, income, education, and employment |
Funding Time | Can have funds as fast as one business day |
Please note that the following disclosure is provided for informational purposes only and is not intended as legal or financial advice. It is important to carefully review all terms and conditions before applying for a loan.
Claim Disclosure:
Loan amounts from $1K-$50K: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).
Claim that discusses how Upstart incorporates education: Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.
APRs from 5.6% – 35.99% – subject to change, see Upstart’s personal loans page for latest rates, subject to state restrictions. Loan term (3 or 5 year loan terms). Amount of monthly payment. The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 25.05% and 60 monthly payments of $25.80 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,478 including a $804 origination fee. APR is calculated based on 5-year rates offered in June 2022. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
You can have funds in as fast as 1 business day: If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
Unsecured Personal Loan: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. It is important to review your promissory note for these details before accepting your loan.
Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model offers 43.4% more approvals as compared to a credit score-only model: Upstart technology helps banks and credit union reach more customers & make better decisions: 43.4% more approvals than a traditional credit score only scorecard model at 43.2% lower APR’s. As of December 31, 2021, and based on a comparison between the Upstart model and a traditional credit-score only model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical credit-score only model used in Upstart’s analysis was developed in connection with the CFPB No Action Letter access-to-credit testing program and was built from a traditional credit score only model trained on Upstart platform data. APR for the scorecard was averaged for each given traditional credit score grouping.
Set up automated payments and you’re good to go: While automated recurring payments are easy to set up, payments by check or one-time
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Upstart Lending Platform History
Upstart Lending Platform was founded in 2012 by former google employees. The company was created to simplify lending platforms making them more efficient by using machine learning to assess borrowers’ credit accounts.
Upstart became a quick success and attracted many investors raising over $400 million within a few years. The Upstart algorithm uses a variety of sources that helps them evaluate the borrower’s credit report, education, employment history, and even research the social media accounts.
The main advantage of Upstart is that it can evaluate borrowers who might not have a traditional credit history and even borrowers that didn’t have the best luck with other lenders. In 2019 Upstart has announced that it will be expanding beyond personal loans and other types of lending such as car loans.
Soon after Upstart started offering their technology to other financial intuition and was evaluated at $1.5 billion. Upstart is one of the main leading online lending platforms in the US, they focus on using artificial intelligence to make lending faster, easier, and more accessible for a larger pool of borrowers.
David Joseph Girouard, Anna Mongayt Counselman, and Paul Gu were the founders of Upstart creating a great solution to ease the lending process.
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Assessing Upstart Personal Loans: Differentiators and Areas for Improvement
What Makes Upstart Personal Loans Unique? | Upstart’s shortcoming in Personal Loan Options |
Alternative data use: Upstart includes details like college major and work history in borrower evaluations, which it claims helps approve more borrowers and provide lower-rate loans. | Limited repayment terms: Borrowers can choose only a three- or five-year repayment term. |
Fast funding: Borrowers can receive an instant approval decision and have their loans funded as fast as one business day. | Origination fee: Some lenders using Upstart charge an origination fee, which reduces the total loan amount. |
Soft credit check to pre-qualify: Borrowers can check their rate without undergoing a hard credit pull. | No mobile app to manage a loan: Borrowers can’t make loan payments, view their payment history, or see their latest credit score on a mobile app. |
Change your payment date: Borrowers can change their payment date within 15 days before or after the due date, allowing for more flexibility in managing their payments. | No co-signer, joint, or secured loan options: Upstart only offers unsecured loans, which may not be an option for borrowers who need a co-signer or secured loan. |
Please note that the following disclosure is provided for informational purposes only and is not intended as legal or financial advice. It is important to carefully review all terms and conditions before applying for a loan.
Claim Disclosure:
Loan amounts from $1K-$50K: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000), NM ($5,100), OH ($6,000).
Claim that discusses how Upstart incorporates education: Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.
APRs from 5.6% – 35.99% – subject to change, see Upstart’s personal loans page for latest rates, subject to state restrictions. Loan term (3 or 5 year loan terms). Amount of monthly payment. The full range of available rates varies by state. The average 5-year loan offered across all lenders using the Upstart platform will have an APR of 25.05% and 60 monthly payments of $25.80 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $15,478 including a $804 origination fee. APR is calculated based on 5-year rates offered in June 2022. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
You can have funds in as fast as 1 business day: If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
Unsecured Personal Loan: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. It is important to review your promissory note for these details before accepting your loan.
Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model offers 43.4% more approvals as compared to a credit score-only model: Upstart technology helps banks and credit union reach more customers & make better decisions: 43.4% more approvals than a traditional credit score only scorecard model at 43.2% lower APR’s. As of December 31, 2021, and based on a comparison between the Upstart model and a traditional credit-score only model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical credit-score only model used in Upstart’s analysis was developed in connection with the CFPB No Action Letter access-to-credit testing program and was built from a traditional credit score only model trained on Upstart platform data. APR for the scorecard was averaged for each given traditional credit score grouping.
Set up automated payments and you’re good to go: While automated recurring payments are easy to set up, payments by check or one-time
Brainy Loans
Upstart Frequently Asked Questions (FAQ)
What is Upstart and how does it work?
Upstart is a lending platform that uses machine learning algorithms to evaluate borrowers credit worthiness. It will use information such as credit score, education, employment, history, and other factors to determine approvals.
How much can I borrow with Upstart Lending Platform?
The loan amount will vary depending on the borrows credentials but typically you can get anywhere from $1,000 - $50,000.
What are the interest rates from Upstart Lending Platform?
APR is subject to change and you should refer directly to the Upstarts website to get the current rates. But typically the APR is 5.6% - 35.99%.
Are there any origination Fees with upstart?
Upstart lending platform might charge origination fees that can be 0-10%.
What are the terms with Upstart Loans?
Borrowers are able to choose 3 years and 5 years terms.
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