Upstart Review: Is It Legit Or A Scam?

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There is no doubt that artificial intelligence is revolutionizing the lending market and making it more accessible to everyone. Upstart is at the forefront of this movement, working with banks to reduce the costs of lending and improve access to credit. It advertises its services at upstart.com.

Upstart Review: Is It Legit Or A Scam? 1

Summary Of Upstart

In this article, we give you a closer look at Upstart, a personal loan marketplace that offers a variety of loan types. Read on to learn more about Upstart in order to be able to make an informed decision about whether it is the right lending platform for you.

The website and terms and conditions of Upstart have been reviewed. The following are just a few of the things that caught our attention while browsing

  • It is possible to choose between different interest rates, starting at 5.6% and going up to 35.99%.
  • It is possible for you to get a personal loan ranging from $1,000 to $50,000.
  • A personal loan can be taken out for a period of three or five years.
  • As a result of the need for additional documentation, the processing of your loan may take longer than expected.
  • It is important to note that the minimum loan amount varies from state to state.
  • There is a wide range of rates available based on the state in which you live.

Upstart: What is it?

Artificial intelligence (AI) is used to connect borrowers with lenders on Upstart’s online marketplace. Using Upstart, banks can get their customers the digital-first lending experience they’re looking for, while also getting higher approval rates and lower loss rates.

Located at 2950 S Delaware St in San Mateo, CA, Upstart has been around for a decade. You can reach them at (855) 438-8778.

The Upstart company is highly rated with an A+ rating from the Better Business Bureau. It’s been accredited since 11/30/2015 and has an average of 182 customer reviews.

How does the company work?

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With its artificial intelligence (AI), Upstart is able to offer superior loan performance and improve access to credit for consumers because it takes into account non-conventional variables. Upstart is one of the first companies to use artificial intelligence in the credit industry.

The majority of people who apply for credit from Upstart are able to complete their application process without having to provide additional documentation. However, final approval is given only after a hard credit inquiry has been done. Loan processing times may increase if additional documentation is needed for review.

As long as you accept your loan before 5 pm EST (not counting weekends or holidays), you will receive your loan funds within one business day after accepting it. For loans to finance education-related expenses, there is a three-day waiting period imposed by the federal government, which means that these types of loans can take a little longer to process.

How to qualify for Upstart

You will have your credit, income, and other information provided in your loan application still considered, however not as heavily as with other lenders due to the fact that the Upstart model considers non-traditional factors, such as your education and employment, to give you a more holistic APR.

Upstart BBB Reviews

There have been a lot of mixed reviews about Upstart lately. They have an A+ rating from the Better Business Bureau and have been accredited since 2015. On average, they have 182 customer reviews for their services. However, 239 complaints have been resolved by the company in the last 12 months and they have also been rated 1 out of 5 stars.

Here are some reviews:

Al M 10/20/2022

High-interest rates.Inflexible hardship repayment options if you run into trouble. If you make less than the minimum payment they treat it as though you haven’t paid at all. Payments are not credited properly to the ************ and get sent to collections. This is a predatory lender. Seek other options for borrowing money.

Victor A 10/20/2022

Upstart leaves you vulnerable and in the lurch! Bad company! They claim that they look beyond your credit score, which is pure B.S.! I had a stroke, so I used a lot of my credit cards during that difficult period, causing damage to my credit score. They do not consider anything but their ability to turn a profit. They masquerade as a compassionate, ethical company, which they are not! This company is just another profiteering organization, making money off the backs of the poor with abandon. I would avoid it.

Logan L 10/16/2022

I am unable to get a loan because I was shopping around for loans to get the best APR. I found this company offered the best rate but because there was a prior credit check on me from another company they turned me down. The other company is withholding the rejection letter so I can’t go through with the loan from this company.

Tamika H 09/29/2022

Horrible company when you denied my application because I didn’t show proof I was a college graduate. I have brought three houses and multiple cars over the years and NEVER did I have to show proof of my college degree.

Frequently asked questions

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How much does Upstart charge?

Upstart offers a wide variety of loan products with an average APR of 25.05% and 60 monthly payments of $25.80 per $1,000 borrowed, so, for example, a $10,000 loan would have total costs of $15,478 including an origination fee of $804.

 It is expected that the interest rate on your loan will be determined by a number of factors, including your credit score, income, and other information provided in your loan application. Not all applicants will be approved for a loan.

Is there any pre-payment penalty?

No down payment is required and there is no penalty for prepayments.

Upstart: How does it affect your credit?

You can check your credit report with Upstart whenever you check your rate with them. There is no effect on your credit rating from this initial (soft) inquiry. If you decide to proceed with your application after accepting your rate, you will have to pay a second (hard) credit inquiry that will negatively affect your credit score. Taking out a loan also means that repayment information will be reported to the credit bureaus as well.

How to cancel Upstart

You should be aware that if you are considering taking out a loan with Upstart, you need to thoroughly research all aspects of the loan and understand the terms and conditions of the loan before you sign any agreements. Once you have received the funds, you cannot cancel or reverse the loan. In light of this, it is crucial that you are sure that a loan is the right choice for you before you sign any contracts.

Having trouble making ends meet? Here are some tips that may be able to assist you in getting back on track.

In order to make sure you stay within your budget, there are a few things you can do.

  • Firstly, you need to develop a budget and stick to it as closely as possible.
  • As a second step, you should consult with a financial advisor who can help you understand all of your options and come up with a plan that can be tailored to your specific needs.
  • Finally, you shouldn’t be too concerned if you’re already in debt. Many companies are willing and able to work with their customers to come up with more manageable payment plans. Get in touch with the company’s customer service team to get more information about what they can do for you.

Is Upstart legit?

In addition to its excellent rating from the Better Business Bureau, Upstart has been accredited since 2015 and has received an average of 182 customer reviews. However, in the last three years, the company has also resolved 343 complaints, earning a rating of one-out-of-five stars from consumers. The majority of Upstart’s reviews on the Better Business Bureau are negative, including complaints.

Whatever financial institution you choose to work with, it is always important to do your research and read customer reviews before making a decision.

Have you ever used upstart.com? Share your experience with us below by leaving a review!

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