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Sunday, September 19th
Upstart is a company founded by former Google employees that utilizes artificial intelligence (AI) to help everyday people unlock mobility and opportunity through affordable credit. They can offer higher approval rates from their bank partners, which translates into a greater chance you'll be accepted for a loan.
More than just your credit history
The application process with Upstart starts out fairly standard: you select the purpose of your loan, the amount you'd like to borrow, your contact information, and your birthdate. From there, the questions get a little more unique compared with other personal loan providers. What's your highest level of education? Where did you go to school, what did you study and when did (or will) you graduate? How much money do you currently have in bank accounts and investments?
Upstart asks these types of questions because they calculate risk differently from most lenders, taking your educational background and earning potential into account when determining your eligibility for a loan. 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. As their About Us page says, "four in five Americans have never defaulted on a credit product, yet less than half have access to prime credit. With a smarter credit model, lenders could approve almost twice as many borrowers, with fewer defaults." In other words, Upstart is trying to make consolidation loans - and credit in general - accessible to more people and at a lower risk to the financial institutions that provide it.
There are some eligibility requirements here than you might not find elsewhere. For example, you should have a minimum credit score of 580 - however, if you don't have sufficient credit history to produce a score, you can still qualify for a personal loan through Upstart. You also can't have any bankruptcies or accounts currently in collections, past due or delinquent, or that have been wholly charged-off in the last three years. You'll be found ineligible for a loan if you have more than 6 inquiries on your credit report in the last 6 months - but that doesn't count any that are related to mortgages, vehicle loans, or student loans. Again, this is part of how Upstart measures risk, so that they can make consolidation loans available to more people.
Loans up to $50,000
Depending on your state of residence, you could receive a loan anywhere from $1,000 to $50,000. 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. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
Loan terms and fees
All loans funded through this service have a repayment term of either 3 or 5 years. While they advertise a range of interest rates, we found them to be very competitive with other lenders in the industry. Upstart's origination fee ranges from 0-8% of the loan amount, and is deducted from the proceeds of your loan. In other words, if you request a $10,000 personal loan and you're charged an origination fee of 3%, you'll get $9,700 deposited to your bank account.
Get your money fast
If your application is approved and you accept your loan terms, you could have your loan money deposited by the next 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.
Very high customer satisfaction
Upstart seems to be doing quite well with customer satisfaction. The company has an "A" rating and accreditation from the Better Business Bureau, but even more impressive is the fact that with over 8,500 client reviews, 99% of them gave Upstart a rating of 4 or 5 stars. Consumers said that their experience was simple, easy, and straightforward, and many people expressed their delight at having loan funds deposited within a day.
There's a lot to like about Upstart. It's refreshing to see a lender that looks at your big picture as a borrower, including your education and employment potential when determining if you're a good candidate for a personal loan. And, there's no arguing with Upstart's loyal fanbase of happy clients. We're very impressed with what we see here, and we're sure you will be too.
Maybe you've gotten overwhelmed by credit card payments and overdue bills, and now you're wondering if there's any light at the end of the tunnel. Or, perhaps you're a financially-savvy consumer who wants to take advantage of lower interest rates, in order to pay off your mounting credit cards bills. Debt consolidation can be a smart strategy either way.
What, exactly, is debt consolidation? It's important to understand that companies offering it may mean different things. For some, debt consolidation is offered as a personal loan: you borrow funds that you use to pay off all of your outstanding debts. Your interest rate should be much lower than your credit cards, and now you've got a simplified, single payment to make each month. This can be a great way to boost your credit score by reducing the likelihood of making late payments (or none at all) and get on your feet again financially. On the other hand, you're in charge of using your loan money responsibly - and not to buy things you don't need!
Other providers of debt consolidation take a more hands-on approach, giving you credit counseling and even going to bat for you with your creditors. The services they provide may include negotiating a lower debt amount or getting your debt forgiven altogether! You might pay a monthly fee for this kind of debt consolidation, or it might be a flat fee based on how much money they saved you overall.
Either route you choose, there are a lot of options out there. How can you decide which one is right for you? Keep these points in mind as you weigh out the possibilities:
TopConsumerReviews.com has evaluated and ranked the best debt consolidation options available today. We're confident that this information will help you choose a strategy to pay down your debts and get your finances in order!
Select any 2 Debt Consolidation Companies to compare them head to head
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