Upstart Personal Loans: Rates, Terms & What to Know

Key Features

At a Glance

Pros and Cons

How Upstart Evaluates Loan Requests

Upstart differentiates itself by incorporating non-traditional data into its underwriting model. In addition to standard credit factors like your credit score and debt-to-income ratio, Upstart considers your education background and employment history when evaluating your loan request. This approach may benefit borrowers who have a limited credit history but strong academic or professional credentials.

The platform uses artificial intelligence to assess risk, which Upstart states may result in more approvals at lower rates compared to traditional models. However, your actual APR will depend on your individual financial profile, and rates range from 7.80% to 35.99%.

Loan Terms and Repayment

Upstart offers personal loans with two repayment term options: 36 months and 60 months. Choosing a shorter term typically results in higher monthly payments but lower total interest paid over the life of the loan. The 60-month option spreads payments over five years, reducing monthly costs but increasing the total amount of interest you will pay.

There are no prepayment penalties, meaning you can pay off your loan ahead of schedule without additional charges. This can be a meaningful advantage if your financial situation improves and you want to reduce your total borrowing costs.

Fees and Costs to Consider

Upstart charges an origination fee that ranges from 0% to 12% of the loan amount. This fee is deducted from your loan proceeds before disbursement. For example, on a $10,000 loan with a 5% origination fee, you would receive $9,500 while still owing the full $10,000. The exact fee depends on your creditworthiness and other factors.

Late payments may incur a fee equal to the greater of 5% of the past-due amount or $15. Payments returned due to insufficient funds may also result in a fee. There are no prepayment penalties.

Eligibility Requirements