Upstart
Upstart is a lending platform that aims to enhance the availability of affordable credit while mitigating risks and reducing costs for their banking associates. Utilizing artificial intelligence, Upstart offers a digital-first lending experience to their clients, with the goal of enabling seamless credit based on genuine risk assessment.
Different Programs
Upstart provides its customers with an extensive range of financial products, such as personal loans, medical loans, home improvement loans, and consolidation services. Furthermore, the company offers loans for student tuition to 17 coding bootcamps.
Although the financial products themselves are relatively uncomplicated, Upstart’s underwriting model employs non-traditional data, such as employment history and education level, to assess borrower eligibility. This approach enables individuals with lower credit scores and limited credit histories to obtain access to more financial services.
Services Offered
The lending services offered by this company encompass a wide range of financial needs, including auto refinance, personal loans, debt consolidation, credit card consolidation, medical loans, home improvement loans, wedding loans, and moving loans. With such an extensive array of lending options, customers can find financial solutions that meet their individual needs, making it easier to achieve their financial goals.
Program Costs
As a loan marketplace, Upstart’s interest rates and fees are subject to variation based on the chosen financial product and the client’s specific financial profile. In addition to the loan’s interest rates, Upstart may charge an origination fee ranging from 0% to 8% of the loan amount to its users.
Upstart's Reputation
Upstart, founded by former Google employees, leverages AI and nontraditional data to facilitate over $20.8 billion in loans for more than 1.8 million clients. Its underwriting model has been highly praised for approving more applicants at lower rates than traditional models. A recent Consumer Financial Protection Bureau (CFPB) test found that Upstart approved consumers with FICO scores between 620 and 660 approximately twice as often compared to traditional credit models.
Upstart is committed to operating within regulatory boundaries and works closely with regulators to ensure compliance. In 2017, it became the first company to receive a No Action Letter from the CFPB, reflecting a higher level of regulatory confidence in its product.
Customer Complaints
Although Upstart is accredited by the Better Business Bureau, their profile has an average rating of 1.5 out of 5 stars based on 199 customer complaints closed in the past three years. However, Upstart has received a much higher average rating of 4.9 stars on Trustpilot.
Upstart’s Trustpilot score is much higher, showing an average rating of 4.9 stars.
State Coverage
Upstart offers loans to residents of 48 states, with the exception of West Virginia and Iowa. Applicants from qualifying states, except for Alabama and Nebraska, can apply for a loan at the age of 18. However, applicants from Alabama and Nebraska must be at least 19 years old to apply.
Benefits
Upstart provides several appealing features for borrowers, such as quick funding and payment flexibility. Their unique underwriting model utilizes nontraditional data, enabling individuals with lower credit scores and limited credit histories to access loans more easily. The application process is transparent and user-friendly, and borrowers won’t be penalized for prepaying their loans. To learn more visit them here.
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