Upstart Loans Reviews - What Is It?
WARNING: DO NOT BUY Upstart Loans Until You Read This Review!
Is it a Scam? Does It Really Work?
Modern science has developed significantly within the last several years bringing a number of beneficial computer algorithms to underwrite loans with bigger speed, greater accuracy, and for less money when compared to traditional methods. As a result, a lot of software-based lenders have entered the modern market, claiming to provide customers with all kinds of financial services from home loans to student loan refinancing. Probably, one of the most reputable ones is Upstart Loans, a marketplace lender that focuses on providing unsecured personal loans to people who start their businesses and careers, and who might lack good credit history. The company's staff pay attention to an applicant's area of study and education. I everything is fine, they promise to deliver fast and fair loans at lower rates.
According to the official lender's website, the average Upstart borrower saves 27% of his finances compared to other companies of the kind. To get a loan, you will need to follow three steps of the process. Check your rate by answering a few questions about your employment and education. This will take you two minutes or so. Upon approval and acceptance of, you will receive your money the next day already. Next, set up automated payments until your loan is completely repaid. Upstart Loans claims to have originated more than 32,000 loans. These are impressive numbers, that should be taken into consideration if you want to make a wise financial decision, but don't have the necessary credit score and work history. But is this lender right for you? To answer this question let's take a closer look at how the company works and what its clients are saying about their experience.
Customer Reviews - Does Upstart Loans Really Work?
According to statistics, young people are less likely to ask for loans than people twice their age. The main reason for this is lack of an applicant's employment history and creditworthiness on their FICO score. But the reality is that they still need money despite these facts. Upstart Loans intends to access this huge market of borrowers by using much broader underwriting criteria than other lending companies. This is handled through a proprietary algorithm that looks not for FICO score and employment history, but for other signals that can potentially mean that the applicant is worth a loan including area of study, schools attended, standardized test scores, academic performance/GPA, and available work history. This algorithm develops a statistical model of financial capacity of the applicant. Then, it models more than 50,000 scenarios in several seconds, including delinquencies, repayments, and prepayments of each loan to determine the individual's loan APR and likelihood of default. According to Upstart Loans, their model is constantly refined and compared to the real results in the world. About 98% of all the company's loans are paid in full or current.
There is a great number of positive reviews about Upstart Loans. The customers are satisfied with almost everything when it comes to the financial series offered by this lender. What is good about this lending company is that it gives an opportunity to invest in the company's loans, even through IRAs. P2P investors can assemble a portfolio of loans depending on an applicant's likelihood of default based on their risk and return criteria. Upstart Loans is associated with mostly positive feedback. About 1,700 customers gave an average 4.7-star rating on CreditKarma to this company. BestCompany with more than 300 reviews gave it an average rating of 9.2. Common compliments referenced competitive rates, a simple online application process, and helpful customer service. However, there were some complaints too. The most common of them cited high origination fees, as well as high income and credit score requirements. According to statistic data on the website of BestCompany, the average Upstart client has a debt-to-income ratio lower than 20%.
Upstart Loans was co-founded by ex-Googler Dave Girouard in 2014. The company originally offered loans that enabled borrowers to raise funds by agreeing to share a percent of their income in future. They offered loans for a period of five or ten years, but in May 2014, this option was stopped. At present, Upstart has originated more than $420 million in loans. All of the loans are made by an FDIC insured New Jersey state chartered commercial bank called Cross River Bank. The company is backed by Khosla Ventures, Google Ventures, and many others. Let's take a look at the testimonials left by real customers of the lender.
"I am pleased with my experience with Upstart Loans for many reasons. First, I like the fact that I can do a pre-approval without any impact on my credit score. I can easily verify my information and the whole process it fast and painless. It took me only ten minutes from pre-approval to approval, taking into account the fact that I did it on Saturday. I needed to upload just a few documents and make a phone call. It was really easy for me. The verification process is also simple."
"With UpStart Loans the loan process was quick and simple. I liked the customer service too. Everyone in the staff was extremely knowledgeable and responsive. The rates are reasonable; as the company tries to help each client to receive financial freedom. By the way, this new loan helps to save me $200 a month! Initially I had a very difficult situation with bills, but Upstart approved a loan really fast and straight forward. This lender was my savior who got my life back on track! I am very grateful to them!"
"I highly appreciate my experience with Upstart Loans. It was the only lending company who agreed to help me in such a hard period of my life. I had a serious debt and had to do something with it immediately. Other lenders refused to provide me with a loan because of no credit history. I was approved almost instantly and my rates have been stable all the time. Thank you very much!"
My Final Summary
Whether you are an individual with lower credit scores or a student who needs a loan to get rid of a debt, Upstart Loans will be helpful for both. Good credit history is not the main factor that this lender considers, but they pay attention to the education and employment of an applicant. They appear to have faster approval and easier funding process. In addition, the company focuses on people with small income and absence of credit history. It is associated with a positive overall reputation among its clients.
If you are looking for a reputable lending company, you can make a bit of research in order to find the best one depending on your specific criteria. If you want to find a lender with lower rates that won't affect your credit, you will likely appreciate Upstart Loans. Hurry up to apply for a loan. You are expected to be approved within several minutes and to be funded the next day. Taking into account all pros and cons of Upstart Loans, I do recommend this company.
Upstart Loans Pricing and Rates
Upstart Loans offers fixed loans ranging from $1K to $50K. There are two repayment terms - 3 and 5 years. APRs range between 4.66% and 29.99% APRs based on your underwriting criteria and the purpose of your loan. The average APR is 16%, while the average repayment term is 36 months.