Upstart Review

Tuesday, August 16th

2022 Home Improvement Loan Reviews

Upstart

• High loan amounts from $1,000 to $50,000 ⁽¹⁾
• APR's from 3.5% to 35.99% ⁽³⁾
• Fixed 3 or 5 year terms ⁽³⁾
• "A" rated and accredited by the BBB
• Origination fees disclosed at the time of loan offer
• Borrowers can get funds as fast as one business day ⁽⁴⁾

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.

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.