Upstart Review

My friend needed money….fast!

You know how they say bad things happen in threes? Tanya, my friend, lived it firsthand. Her hours were reduced to nothing thanks to Covid-19, her car’s alternator decided it was time to die, and her dryer suddenly stopped working.

Yes, all three of these things happened to her at one time, earlier this year. Altogether to fix everything, she was going to need about $2500. This was money she did not have, and being unemployed due to the pandemic was only making things worse.

I knew I had to help her out. But, how was I going to do that? I had just the solution and it was called Upstart. It was the perfect way to help Tanya and her daughter, Lilly, get the relief they needed in trying times.

What Is Upstart?

At this point you are probably wondering what Upstart is and why I’d like you to know about it.

This product got started thanks to a group of one-time Google execs back in 2012. You don’t have to speak with anyone if you don’t want to- the entire process is automated. They also offer loans to people with less than perfect credit.

This is perfect for people like Tanya, who despite being responsible with their bills and money, simply don’t have a lot of credit to their name.

The end result is that you, the consumer, gets a loan at a reasonable rate that you can definitely pay back without being buried.

It takes a short period of time to get your money, in Tanya’s case she got hers the next business day (She applied on a Monday and by Tuesday she had the funds in her account.)

I decided to alert her about Upstart because of the positive reviews I’d seen Googling around for some responsible and safe ways to get some money together while she waited on those unemployment checks to come in.

My Friend Was Laid Off….

Okay, let’s tell a little more of Tanya’s story. Tanya works as a manager for a local carpet store, and their showroom was deemed inessential by our municipality. The owner is a nice enough guy but can’t afford to pay the employees unless they are actually working and selling floor coverings.

So, Tanya was sent home. The week after she was heading to the market when the old car decided to flip on its battery light. Her brother came over to have a look, and informed Tanya that the battery was fine, it was the alternator that needed to be fixed.

Two days later, the dryer refused to dry her and her daughter’s clothes. There they sat, molding in the dryer. She had to wait until I popped over to help her and her daughter Lilly get to the Laundromat. She let Lilly play on the tablet while the clothes dried, and I showed her Upstart in the meantime.

Upstart Was A Big Help…

Upstart was something I found organically, I was looking for ways to help Tanya get some money in a safe way that was low or no credit friendly.

Upstart came up as a Google ad, and on a whim I clicked it.  Here’s what you can look forward to with Upstart:

• Loans offered from $1K to $50K
• Origination fees of 8%
• No negative impact on your credit score when you apply for a loan
• You get up to 5 years to repay the loan
• Must have at least a 620 score to apply. Must also have a $12,000 income at minimum.

What the Upstart Program Is

I think the best way to describe Upstart would be “Lending for the new generation.”  You can literally apply in your pajamas, and they look at more than just your credit score as a way of getting you some money.

For example, they review the number of hard queries on your credit report and whether or not you have a college degree. They also consider earning potential as well.  In some instances, you may have to submit unconventional info such as your SAT scores or info on your employment. However, I appreciate the holistic approach.

You absolutely may not have any delinquent loans, nor can you have bankruptcies. Thankfully she has zero debt; Tanya’s 7-year-old car was a cash sale and her associate degree was paid for in full by a scholarship she earned.

You can borrow for just about any reason. I read reviews in which people got loans to have their dream wedding or just to consolidate their debt. You can fix up your home or do whatever you need to do with that money. They even list some borrowing ideas on their website.

I also liked that there were zero prepayment penalties plus no hidden costs.

What You Need to Know

OK, so Upstart was great for Tanya. I personally loved it and Tanya was able to get her money, use it wisely and she’s even paid back some already. That being said, you should know a few things before you get TOO excited.

• You have to have zero bankruptcies and delinquent loans.
• You have to be ready to pay origination fees of 8%. I understand this is quite steep compared to other personal loan places out there (I’m going to show you three others I researched also).
• The minimum interest rate begins at 5.99%, and this is certainly not unreasonable. But, other companies offer much lower rates.
• Loans are not available in West Virginia or Iowa.

At this point, you may be wondering who this program is best for. Based on my research and experience, I think Upstart will be a good fit for you if:

• You have OK to good credit
• You can qualify for loans most of the time
• You are capable of paying this off in at least 5 years
• You can’t qualify for loans with zero fees.

Now you might be wondering how you actually apply for this sort of thing. Here’s what you need:

• You can’t reside in Iowa or West Virginia
• You have to have a permanent US address unless you are active military
• You have to be 18 years old (19 in NE or AK)
• Be willing to provide your SSN, email, name, and DOB
• Have honest work that can be verified or a full-time job you will be starting in at least 6 months
• Have a bank account in the USA
• Have at least a 620 credit score

You then go to the online portal and start the loan process. The process was pretty quick, so she could get back to caring for Lilly and handling other tasks of the day.

You start with prequalification. This is standard, and you will be submitting info such as your name, address, employment info, and phone number.

Next you will agree to the loan terms, if you like them. You will then provide your SSN to complete the application.

Once you have been approved, you will get a notification right away saying so. The notification will give you a rundown of the loan details also. You can opt for an auto-deposit in your account on the next business day.

So, you may be asking at this point, “You said the fees were a bit high, why did you do it?” Well, the other companies I’d done research on required better credit than Tanya’s 650 score, and her credit profile is kind of slim.

She has only her cell phone bill and the gas bill in her name, she told me. She mentioned she was never late on those payments, but compared to other people her age, this is pretty slim.

If you have better credit, I would recommend checking out these other great places you can get loans if necessary. I really liked Upstart, but you can definitely get better rates and no fees elsewhere.

• Option 1: SoFi. I actually heard of SoFi on the radio, and their rates are great at 5.99% but never higher than 17.53%. You can borrow up to $100K. Aside from personal loans, you can get business loans here as well.
• Option 2: Check Into Cash.  These guys have been in the game since 1993, and they have physical stores, which is why I am including them. They are a payday loan company, so do be careful about the interest rates being charged. You can get loans ranging from $50 to $1000. Online applications are available.
• Option 3: LendYou. LendYou does not actually loan any money. Instead, they refer you to the network of lenders they deal with.  They are more like brokers than anything.

Credit score is NOT at all factor- you can get money in small amounts from $500 to $2500. You simply have to be 18 years old, earn at least $1k a month and have a valid US bank account.

The Results

Now I will tell you Tanya’s personal experience. Keep in mind this is just one of many experiences and yours will surely vary. I helped her out along the way.

We logged on and completed the qualifying questions.  Then, we reviewed the loan terms and decided that the $2500 loan was something she could pay back. The interest rate was high at 11% but she needed her dryer, car and expenses covered until the unemployment checks came in.

The interest rate and origination fee were a pain, but she had her money the next day and ordered parts for the car so repairs could take place.

She paid an appliance repair tech to fix up the dryer too, which ended the senseless spending at the Laundromat.

Unemployment was delayed as many people used the system in the COVID crisis. The loan helped Tanya stay afloat.

She used that money little by little until the unemployment finally arrived 2 weeks later.

Now she is paying it back piece by piece and should even have it paid off early.

Is Upstart Right for You and Where Can You Use It?

If you have good credit and you need a loan, I would encourage you to look elsewhere.

Upstart is great if you have “meh” credit like Tanya. Those of you with Good or Great scores can get much better interest rates and you won’t pay as many fees.

I also think if you need money, but you lack credit, you should consider Upstart. They look at so many factors about a person instead of the FICO score as so many other lenders are wont to do.

If you would like to learn more, simply click here to go to their website.

There you will see all the good things Upstart can offer:

• *27% more approval than traditional lenders
• * 1500 data points used in determining eligibility
• * 1 easy payment- so glad I’m not using two or three credit cards!

The site is easy to navigate and optimized for mobile, so feel free to click even on your tablet or phone.

Conclusion

In my opinion, I think Upstart is great for people who need it. If you don’t have stellar credit, need money quickly, and have a bank account that you’re comfortable getting the money deposited into, I encourage you to go for it.

I also like that they consider many different factors, not just your credit score. They might even review your SAT scores, as some users noted.  The fact that you could apply right from your home and get money the next day is a huge help for busy people.

Yes, the origination fees are painful, but for most of us not having your car, dryer or  unemployment money was scary as all get out.

It all worked out for Tanya. She’s even managed to pay back $500 so far of the loan through scrimping, saving and tightening her belt. Indeed, Upstart is a great way to get what you need, when you need it with a repayment plan that’s right for you.

On a separate note, if you are having difficulty building a solid credit score, go on and read my article about how you can boost your credit score.