Upstart is a lending platform that uses AI to determine whether you’re eligible for a loan. Upstart says its AI algorithm helps it approve borrowers that other lenders would deny.

You only need a credit score of at least 300 to qualify. And if you’re an eligible college student or grad, you don’t need a credit score at all.

• Considers more than credit score: Upstart uses a nontraditional approach to lending that allows consumers with less-than-perfect credit scores or thin credit histories to qualify. Upstart uses AI to evaluate loan applications and considers factors like education and employment.
• Next-day loans: You could get your Upstart loan within 24 hours after you’re approved.
• Only offers two repayment terms: Many lenders offer multiple repayment term options to choose from (24 to 84 months, for instance). Upstart only offers 36 or 60 months. Your repayment term is the length of time you have to pay off your loan.
• Charges an origination fee: At 0.00% – 12.00%, Upstart charges one of the highest potential origination fees in the personal loan market. Origination fees are one-time administrative fees that are taken out of your loan funds.
• Can check rates without hurting your credit: If you want to see your potential interest rates without impacting your credit score, Upstart allows you to prequalify for a loan.
• Best for borrowers with bad or no credit: Upstart could be a solid choice if you’re having a hard time getting approved for a personal loan. It doesn’t approve everyone, but it has easier-than-normal eligibility requirements. Upstart’s rates and fees aren’t the cheapest, but they are below what many financial professionals consider predatory.

Upstart pros and cons

Even though Upstart’s lending model may make it easier to qualify for a loan, this lender may not be the right fit for everyone.

Upstart’s use of AI and emphasis on factors like education and employment may make it easier to get a personal loan — particularly if you have bad or no credit. If you are enrolled in an accredited associate’s degree program or higher, Upstart doesn’t require you to have a credit score. The same applies if you have at least an associate’s from an accredited school.

Unfortunately, if you need a co-borrower or cosigner to qualify for a loan or receive lower rates, Upstart doesn’t offer this option. You may also be stuck with a high origination fee between 0.00% – 12.00%. Generally, the lower your credit score, the higher your origination fee will be. Thankfully, this isn’t an out-of-pocket expense. Instead, Upstart will deduct your origination fee from your loan funds before sending them to you.

If you meet the basic requirements listed above, you may need to disclose how you plan to use your personal loan. While Upstart does allow borrowers to use its funding for a variety of purposes, there are certain expenses you cannot put the money toward.

If Upstart’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts for your situation.

How Upstart compares to other personal loan companies

Even if you believe Upstart aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Upstart stacks up against similar personal loan lenders.

How we rated Upstart

To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:

• Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
• Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
• Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.

The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.

The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.

LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.