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Upstart Review

Wednesday, June 23rd

2021 Bad Credit Loan Provider Reviews

Top Consumer Reviews Best-In-Class Blue Ribbon Award Upstart Review 5 Star Rating

Upstart

5 Star Rating
  • Loan: From $1,000 to $50,000
Top Consumer Reviews Best-In-Class Blue Ribbon Award

Founded by former-Google employees, Upstart wants to make credit affordable to borrowers while reducing risk for banks. Although Upstart targets a specific demographic - recent college grads and young professionals - they earn our top rating for bad credit loans. Why? It's the only lender in our review that looks far beyond your actual credit score when deciding if you're eligible to borrow money. Do you have a degree, in a solid field of study? Do you have a strong work history? How many years of credit are on your record? Upstart takes all of this into account, making it more likely that you'll qualify.

Minimum credit requirements

Your minimum credit requirements to be eligible for an Upstart bad credit loan depend on where you live. Generally speaking, you'll need a minimum Vantage or FICO score of 580. In some states, that minimum score is 620. However, if you don't have a sufficient credit history to produce a FICO score, you can still apply for funding through Upstart - which you probably won't find with many other lenders.

No bankruptcies

Upstart takes into consideration your debt-to-income (DTI) ratio You also can't have any bankruptcies or accounts in collections/delinquent currently on your credit report.

Best Bad Credit Loan Providers

Fast application process

The online application takes just 5 minutes, but expect to answer more in-depth questions about your employment and educational background. A "soft pull" of your credit history will be done, to verify your credit score and information. If your application is approved and you accept your loan terms, you could have your loan money deposited by the next business day. Note - if you live in Iowa or West Virginia, you aren't eligible for a bad credit loan through Upstart.

Loans up to $50,000

Loans are available in amounts ranging from $1,000 to $50,000. All of the loans offered have a fixed-rate APR, no matter the amount borrowed. According to Upstart, the average 3-year loan funded through them will have an APR of 21%. That's not a bargain, but we're pretty sure it's a lower interest rate than what you're currently paying on your credit card(s). Although we couldn't find this detailed on the Upstart site, our research indicates that you may expect origination fees when your bad credit loan is funded. Those fees could represent up to 8% of your total loan amount, so be sure to read the fine print before you accept your funding.

Extra payments are a good idea

On the other hand, there are no fees for paying off your loan early or for making extra payments. And that's usually a smart idea!

Phenomenal reputation

Upstart has a phenomenal reputation. The Better Business Bureau continues to give this lender an "A+" rating and accreditation. And, over nearly 6,000 independently-verified client reviews, Upstart earned a 4.9 out of 5 stars. We were especially encouraged to see reviews from repeat customers - it's always a plus to see that people like a business enough to come back for more, especially in an industry that can be as tricky as loans/finance.

Highest rating

If you have not-so-great credit (or no credit history at all) and want a lender that will look at the whole picture of your life, start with Upstart. There's no other institution that takes your education and earning potential into consideration when deciding if you qualify to borrow money. Upstart is trustworthy and efficient, and they easily earned our highest recommendation among providers of bad credit loans.

If You Have Poor Credit, Where's the Best Place to Get a Bad Credit Loan?

With so much economic turmoil, there's never been a time where bad credit loans have been more in demand. No matter what caused your credit score to be below 600 - the typical threshold for a "bad" credit rating - you're far from alone.

Out of approximately 230 million Americans who qualify for a credit score, almost 70 million have poor credit. Some of the most common reasons for low credit scores are expected financial hardships (like job loss or medical expenses), not using credit responsibly, or simply being unaware of the factors that contribute to having a healthy credit history.

The Best Bad Credit Loan Providers Compare Bad Credit Loan Providers Compare Bad Credit Loan Provider Reviews What are the best Bad Credit Loan Providers Best Bad Credit Loan Provider Reviews

Bad Credit Loan Provider FAQ

You'll find that most bad credit loans come from smaller credit unions, banks, and other financial institutions. But, don't be surprised if you see some more familiar names too - like One Main and Capital One.
You're going to pay more in interest and fees than a customer with a great credit history. But, if you have consistent income and collateral (like a vehicle), you can get a loan that probably has a lower interest rate than what you're currently paying on your credit cards.
Remember those higher interest rates and fees? Simply put, your lender makes more money when they give you a loan, compared with other borrowers.
Not when you're just asking for a quote: this is usually done with a "soft pull" that verifies your identity and credit score. Once you get to the part of the process where you're submitting the actual application for your loan, that's where your credit score will be affected temporarily.
Most loans are completed start-to-finish online, with funds going directly to the bank account of your choice. However, if your loan requires collateral, expect to have an in-person appointment to present your car title or other documentation.
Bad credit loans are available in amounts ranging from $500 to $50,000. The amount you can actually borrow will depend on your income/employment, outstanding debts, and credit history.
How quickly can you complete your application? Most lenders will tell you to expect your funding to be deposited within a few days of acceptance, but there are a few who can get the money to you within one business day.
The risks of a bad credit loan are mostly in your control: don't get in over your head with a loan you can't afford, and use the funds responsibly instead of making unnecessary purchases! Most lenders offering bad credit loans have a good reputation; checking their rating with the BBB is a smart way to verify their trustworthiness before you sign on any dotted lines.
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Continued from above...

Unfortunately, getting a loan when you have bad credit can be a paradox: in order to qualify for the best loans, you need a good credit history. But, to establish a good credit history, you often need to have demonstrated that you are responsible with credit - by making on-time payments, not overutilizing the credit you've been extended, and so on. On the other hand, without a loan to pay off debts and handle current financial demands, you could find yourself even deeper in the hole as calls from collection agencies start coming in and the pressure mounts.

Does this sound familiar? If so, take a deep breath and recognize that there's hope - because there are providers out there who offer loans to people with bad credit. And no, you won't have to sign away your life to qualify, though you should be aware that the terms will probably not be as favorable as those offered to people with high credit scores. That's only fair, as the lenders are taking on more risk when they give money to people with a less-than-sterling track record.

How can you tell which lender to use for your bad credit loan? That's an excellent question to ask. After all, you want to be sure that any loan you accept is going to help you get back on your feet financially, with terms you can actually meet. Here are several criteria that can help you choose the right lending partner for your situation:

  • Reputation. With something as major as a loan, you want a provider that has already established itself as being trustworthy, reliable, and fair. What do other people say about their experiences borrowing from this lender? Has the company been rated by the BBB?
  • Transparency. Shady lenders hide everything in the fine print, like high interest rates and penalties for early repayment. You want to choose a lender that makes their terms as clear as possible before you sign on the dotted line. While the terms of your particular bad credit loan will probably be determined during your application process, the most transparent lenders will provide estimates of their fees and average APR, to give you an idea before you start providing your personal details.
  • Usability. Applying for a bad credit loan could be a little nerve-wracking, and a hard-to-use website doesn't make things easier. Choose a lender that makes it as simple and fast as possible to complete your application and receive your funds.

TopConsumerReviews.com has reviewed and ranked the best bad credit loan providers available today. We hope this information helps you to quickly get the money you need, with terms that are fair and affordable, so that you can get back on your feet financially!

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