It is possible for the borrower to take more than one loan with Upstart. They can take a maximum of 2 months at a time. But to be eligible for the second loan, they must have made monthly on-time payments for the last six months. It means the payment should have been made on time within the 15-day grace period.
Also, they should not have any past-due payments. There should not be more than $50,000 as an outstanding principal at the time of the origination of the loan. The borrower can apply for the second loan only after the most recent payment is clear. They can apply only after 14 days from the payment date.
Also, if the borrower had completed paying off the existing Upstart loan and if any of the six recent monthly payments were not on time, or if the borrower had paid off the loan before reaching six monthly payments, they cannot apply immediately for the second loan. There would have to wait for 60 days cooling off period.
After that, only the borrower can apply for a second loan. If payment is still at the processing stage on the existing loan, then Upstart will not be able to approve a new loan application. This pending payment is counted as their sixth most recent payment, and it must be processed successfully for the new loan to be approved and provided the other conditions are met. To apply for the second loan, the borrower will need to use a different email address than what was used for the first loan application.
One has to be very careful while taking a second loan, as it can push you into negative cash flow if not managed properly and carefully. It will impact your credit scores if you miss out on monthly payments. One will eventually get into a debt-ridden cycle where the interest charged is more than one can pay. So it is always beneficial to check the finances before considering a second loan to avoid difficult situations. Borrowers need to be very wary of the same.
Featured Image Credit: Time
