Define Upstart Loans –
Upstart is an online lending platform providing different kinds of loans to customers. They approve the majority of the loans instantly. They provide personal loans between $1000 to $50,000. The loan duration is for 3 to 5 years. They provided a minimum of $1000 in almost all states. There are certain states where the minimum is high-Massachusetts with $7000, Ohio with $6000, New Mexico with $5100, and Georgia with $3100. Interest rates vary from $5.6 to $35.99. They do not provide any type of auto pay discount like the other lending organization.
They also charge origination fees. This varies from 0% to 8%. It is one-time, which gets deducted from the amount given to the borrower. They also charge late fees if the customer fails to pay the full monthly payment within ten days of its due date. The late fee is equal to 5% of the past due amount or $15, whichever is greater.
Fortunately, there is no prepayment penalty. So if a customer wishes to pay off the entire loan, then there are no prepayment charges.
If the bank ACH fails or the checks are returned due to insufficient funds, they charge $15 per occurrence. They also charge borrowers a one-time fee of $10 if they require physical copies of records. Applicants must have a credit score of at least 600 to qualify for the loan. This is not a hard and fast rule, as applicants who don’t have enough credit history to have a FICO can also be accepted. They also take into account the applicant’s debt-to-income ratio. They also thoroughly check if the applicant has any bankruptcies or delinquent accounts.
They would also check the credit report. Applicants should have a full-time job or offer to start in 6 months or a regular part-time with an annual income of a minimum of $12,000. They don’t allow the option of co-signer or co-applicant. They offer pre-qualification with a soft credit check to the customers. It is a good option for customers who don’t have a credit history.