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Upstart Review

Monday, October 25th

2021 Home Improvement Loan Reviews

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

Upstart

5 Star Rating
  • High loan amounts
  • Very competitive APR's
  • Terms range from 3 to 5 years
  • "A" rated and accredited by the BBB
  • Origination fees disclosed at the time of loan offer
  • Over 95% of borrowers receive their funds very quickly once approved
Top Consumer Reviews Best-In-Class Blue Ribbon Award

Upstart was founded by former Google employees, who use artificial intelligence (AI) to help people unlock borrowing opportunities through affordable credit. Through this platform they can offer high loan approval rates, which means you have a greater chance of being accepted for a home improvement loan.

Unique application process

Upstart starts out with a fairly standard application process. You first 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 home improvement 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?

New methodology

Upstart asks these types of questions because they calculate risk differently from most lenders. They take 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 states, "With a smarter credit model, lenders could approve almost twice as many borrowers, with fewer defaults." In other words, Upstart makes home improvement loans accessible to more people - and at a lower risk to the financial institutions that provide them.

Home improvement loan qualifications

You should have a minimum credit score of 580 in order to qualify for a home improvement loan from Upstart (although, if you don't have sufficient credit history to produce a score, Upstart will still let you qualify for a home improvement loan). You 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 also 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 home improvement loans available to more people.

Loans from $1,000 - $50,000

You could receive a loan offer 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.

Best Home Improvement Loans

Competitive loan rates and terms

What rates and terms can you expect with a home improvement loan from Upstart? All loans funded through this service have repayment terms of either 3 or 5 years. They advertise a range of interest rates, and we found them to be very competitive with other lenders in the industry. Upstart's origination fee varies 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 home improvement loan and you're charged an origination fee of 3%, you'll get $9,700 deposited to your bank account.

Get your money in 1 day

If your application is approved and you accept your loan terms, you could have your 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.

Fantastic customer satisfaction

Upstart sets the standard when it comes to 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. Customers said that their experience was simple, easy, and straightforward, and many people expressed their delight at having loan funds deposited within a day.

Highest rating

There's a lot that we like about Upstart. It's refreshing to see a lender use new methodology 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 home improvement loan. Plus, there's no arguing with Upstart's loyal base of happy clients. Combined with their innovative approach to broaden lending availability, and competitive loan terms, Upstart earns our highest rating.

Where Can You Find the Best Home Improvement Loans?

If you're looking to finally renovate that kitchen straight out of the 70's, or build on the extra bedroom you need, chances are good that you don't just have the cash sitting around to get it done. Most homeowners use a home improvement loan to access the funds required to turn their house into a "home sweet home" .

There are several types of financing that can be used to make improvements or repairs. These depend on a variety of factors: the amount of equity you have already built up in your property, your credit history, and the amount of money you need.

The Best Home Improvement Loans Compare Home Improvement Loans Compare Home Improvement Loan Reviews What are the best Home Improvement Loans Best Home Improvement Loan Reviews

Home Improvement Loan FAQ

In general, there are four types of financing for home improvement: home improvement loans, which don't depend on having any equity in your home, cash-out refinancing, home equity loans (HEL), and home equity lines of credit (HELOC). The loan that's right for you will be affected by several factors, such as current interest rates, the amount that you want to borrow, and your credit history.
Great question! Both types of loan assume that you've got some equity built up in your property, and you use that property to "secure" your loan. Home equity loans are more like a traditional loan: you get an upfront lump sum and make fixed payments over your repayment term. On the other hand, a home equity line of credit lets you borrow as needed, up to a predetermined limit: your interest rate may be variable, so your payments can increase or decrease over time.
Basically, yes. Your loan is rarely tied to any particular use. Maybe you thought you wanted a new kitchen, but now an in-ground pool sounds more fun. Or, perhaps you planned to upgrade your bathroom, and then all of your appliances died after a lightning strike. No problem! The money is yours to use as you see fit.
That depends. With a traditional home improvement loan, the amount you can borrow will largely be determined by your credit history, current amount of debt, and your income. If you're borrowing against the equity in your home, you may be able to get a loan for up to 85% of your equity. For example, if your home is worth $300,000 and you've got $200,000 left to pay, then your equity is $100,000: you may be able to borrow up to $85,000.
If you need money fast, your best bet is a home improvement loan rather than a home equity loan. With a home improvmeent loan, you could get funds deposited within a day or two of being approved. Any lending tied to the equity in your home takes much longer, often including a (new) house inspection and underwriting. But, keep in mind that home improvement loans often have higher interest rates than home equity loans.
The home improvement loan process is much easier than an equity-based loan, and you'll receive your money much faster - but you're likely to get the best rates and terms with a cash-out refinance (if interest rates now are lower than when you obtained your current mortgage) or a home equity loan. Keep in mind, though, you can get your money with a home improvement loan in just a day or two, while an equity-based loan can take weeks.
It's not impossible. You're more likely to qualify for a home equity loan or line of credit, because your home's value can secure the loan. But, there are also some home improvement loan providers that work with individuals that have less-than-perfect credit.
You can... but unless you've got a 0% APR card with a high credit limit and you can pay it all off within the introductory no-interest period (usually 12-21 months), you're going to wind up paying a lot more in interest. A LOT more. Check out your other options, which are tailored for this type of project, before using a credit card to fund home improvements or repairs!
Compare the Best Reviews

Continued from above...

If you have little equity in your home - in other words, you haven't made many payments on your mortgage yet, and you didn't put down much money at closing - you'll most likely use a home improvement loan to fund your projects. These loans are based on your overall credit history; the higher your credit score and the lower your debts, the better rates and terms you'll get.

On the other hand, if you've built up equity in your home, you'll be able to access three other types of home improvement loans: cash-out refinancing, a home equity loan (HEL), and a home equity line of credit (HELOC). Each type has its ins and outs, and not every loan type is appropriate for a particular borrowing need. For example, a cash-out refinance is great if you can reset your mortgage at a much lower interest rate - but it also comes with closing costs (which can sometimes be rolled back into the loan amount). HELOCs let you take money out as-needed, but interest rates can be higher than some home equity loans and are often adjustable: your payments may increase in the future.

As you can see, choosing a home improvement loan leaves you with some research to do. While considering your options, here are some guidelines to help clarify which service you should use:

  • Loan Amount. How much money can you borrow? Some lenders offer loans up to $100,000, while others cap their limit at $35,000 - or lower. Can you get all the money you need from the lender you choose?
  • Loan Terms. How much will you pay in interest for your home improvement loan? How long will you have to repay the total amount borrowed? Are there any origination fees, prepayment penalties, or other costs?
  • Transparency. How much does the company tell you upfront about their loans? Is it easy to get a quote without a credit check? Does the provider tell you how much you should expect to pay in fees, their average interest rates, and their minimum eligibility requirements?
  • Direct lender or referral service. Some home improvement loan companies offer you funding directly, while others have partnerships with lenders and let you compare offers. A referral service is an easy way to compare loans and terms, but you may be spammed for weeks with annoying emails and calls from lenders.
  • Reputation. What do other homeowners have to say about the experience of getting a home improvement loan through the service? Is help readily available from knowledgeable company reps? Has the Better Business Bureau given the provider a strong rating?

TopConsumerReviews.com has evaluated and ranked the best options for home improvement loans available today. We're confident that this information will help you get the money you need for your next big project!

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