Upstart is an online lending institution that offers loans to college students who have low or no credit history. If you are a fresh graduate and new to the banking world, approaching Upstart for personal loans would be a good choice. You can then use the money to pay off your debts such as medical bills, home-related expenses, vacation or even towards your education loan.
Upstart Personal Loans Interest Rates and Approval
The interest rates range between 7.39% and 29.99% for a period of 3 to 5 years respectively. You can borrow anywhere between $1000 and $50,000 without any pre-payment penalty. In order to apply for a personal loan, you can fill the application form. You will have to answer basic information such as your name, date of birth, address, education, source of income and past loans.
Once you complete all the required fields and submit all information, you will see your interest rate. However, this would further require approvals from the concerned authority. The bank officials would validate the information submitted by you and may ask to submit proof of the same. The bank charges an origination fee of 0% to 6% and a late fee of $15 or 5% of the amount due.
Upstart considers other factors such as college degrees, area of study, job history and your income before approving loan. This means that the lender looks at promising futures who may not have a good credit history now, but are sure to make a career and thus pay off their debts.
Credit Score Requirements and Dealing with Bad Credit
If you have had a bad credit in the past and don’t know how to deal with it, Upstart can help you not only pull up your credit score but also lend you money for any of your personal uses. The minimum FICO score is 620 but that does not mean it refuses applications who have lesser scores. The lender may charge you a higher interest rate, but would be happy to offer you a loan.
Borrowers can choose a loan term of three years or five years. The lender would also tell you the maximum amount for which you qualify. Once you meet all their credit requirements, funds are transferred in your account the next business day. Upstart goes beyond FICO scores by using non-conventional methods to improve consumer’s access to credit. This means, there is no harm in checking how much loan you qualify for.
The Final Word
Upstart has the most flexible options and a fast disbursement process. This means you are likely to get approved for a loan despite of no or low credit. It is an excellent choice for beginners who want money for their start-up or fresh graduates who want to establish a good credit history. The application process is tailored as per the needs of the borrower. It is a good choice for someone who needs immediate cash.
Upstart does not charge a processing fee or a prepayment penalty usually charged by other banks. This makes it easier for you to save money and consolidate high interest debts. Before you shop for a personal loan, make sure you read all the terms and conditions stated on the company’s website. It is also a good idea to compare rates and choose the one that suits your budget.
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