Upstart

The Good

• Loans available to those with little to no credit history
• Loans available for education expenses, including things like athletic training
• No approval from investors required – Upstart handles entire process
• Soft credit check to find your rate (won’t affect your score)

Upstart stands out from traditional loan companies due to their innovative automated approach – according to the company itself, more than a third of their loans are approved via a fully automated process. Perhaps most interesting, the business got its start when co-founder Paul Gu set about creating a statistics model that could project future income.

In addition to using this unique loan process, Upstart also takes into account your work experience and field of study coupled with typical factors like FICO score. This allows the company to take the big picture into consideration which results in loans being available to those with no – or a short – credit history.  While little to no credit history is needed, keep in mind that this does not mean you can have a negative credit history.  If your credit score is low because of a “thin file” where you have little history – that’s ok – but a low credit score due to missed payments or negative actions will be rejected.

The Bad

• Fairly strict educational and earnings (or earnings potential) requirements
• Better options for those with an extensive credit history
• Some reports of minor telephone customer service issues

Payoff is good for web savvy consumers with decent income, but perhaps because of their focus on an easy-to-use website, some consumers had negative experiences when trying to pick up the phone and call them.  This may or may not be an issue for you, but Upstart is probably best for borrowers who like to do everything online.

Also, note that in Ohio, Upstart has a minimum loan amount of $6,000 and in Massachusetts the minimum loan amount is $7,000.

The Summary

Whether you’re seeking a loan for a purchase, tuition, student loans, or even to consolidate credit card debt, you’ll find a wide range of customized options with this trailblazing company. Rates are tailored to your specific set of circumstances, without the hassle of an inquiry affecting your credit report.

As far as the typical factors affecting your loan decision, you’ll find Upstart is in line with the rest of the industry.

They charge a 0-8% loan origination fee, the higher of $15 or 5% for past-due payments, and a $15 returned payment fee. While you will need to enter more information than for other lenders due to bypassing investor approval, the application process is still only minutes long.

All of this amounts to Upstart being a viable, creative solution for young professionals who may have trouble obtaining the loan they need due to insufficient credit history.