Loan

How many loans can you have with upstart?

How many loans can you have with upstart?

A borrower who already has a loan with Upstart can take another loan with the lending agency. But they can avail a maximum of 2 months at a time. In order to be eligible for the second loan, the borrower must have made on-time payments monthly for the last six consecutive months. It means the payment should have been made within the 15-day grace period. The borrower should not have any past-due payments. The borrower should not have more than one outstanding loan through Upstart when applying for the second loan.

Also, 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 after the most recent payment is clear. They can apply post 14 days from the payment date.

If the borrower had finished paying off the existing Upstart loan and if any of the six latest 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 be a 60-day cooling-off period, post that, only borrowers can apply for a second loan. If payment is still at the processing stage on the existing loan, then Upstart will not approve a new loan application. This pending payment is counted as their sixth most recent payment and must process successfully for the new loan to be approved, 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. It will impact your credit scores if you miss out on monthly payments. One will eventually get into a debt cycle where the interest charge 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 wary of the same.

Featured Image Credit: Invest Karo India

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Harish

Harish is the editor at howto Finance. Here we publish high quality trending news topics on Business, Finance, Loans and Credit-Cards etc. Our editorial includes worldwide topics.

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