Upstart is an online lending platform that partners with banks to provide personal loans from $1,000-$50,000. Upstart goes beyond traditional lending metrics to help you find financing that considers your education and experience. Personal loans can be used for debt or credit card consolidation, auto purchases, medical debt payments, home improvements, business operations, and other large purchase needs. Most Upstart loans are funded in as fast as 1 business day after the loan is approved.
Your lender will be a bank that Upstart has partnered with to provide you with a loan offer.
How Upstart works
Upstart considers some of the usual criteria normally associated with lending, including the borrower’s income and credit scores. Upstart also looks closely at education, the area of study, and job history. More specifically, they consider academic variables, including the colleges and universities attended, grade point average and standardized test scores. These are typically the hallmarks of younger, recent college graduates.
They use this information to develop a statistical model of the borrower’s ability and personal likelihood to repay their loan. They believe that those variables are reliably predictive in regards to default rates. In addition, the statistical model carefully considers the applicant’s future income potential.
According to a company spokesperson, Upstart’s underwriting helps younger applicants or others who have thin or no credit history but high earning potential The company assesses factors like college degrees, area of study and job history.