Many people today are in need of a personal loan. You might need to consolidate credit card debt, or you might need of car repairs. A personal loan could be a good choice to improve your finances. Peer to peer lending is a popular source for a personal loan. Peer to peer lending. With peer to peer lending, you find people to back you, and they will lend you the money. There are no banks or credit unions involved. One company that offers these loans is Upstart.
If you are a college student, you probably have limited credit. Upstart is a lending company who focuses on colleges students who have not established credit. To be approved for a loan from Upstart, you will need to have a credit score of at least 620. However, most people who are approved for a loan has a score closer to 700.
Upstarts wants people who are making a good income. In fact, the average income for borrowers is around $97,000. This is quite a bit higher than the nation’s average. This could keep many people from being eligible with a loan from upstart. In addition, Upstart will look at your academic history when you apply for a loan. The company likes you to have a fairly low debt-to-income ratio. Your debt-to-income ratio needs to be lower than 20%.
Interest rates for an Upstart loan are pretty low for a personal loan. Upstart will charge an origination fee to link people to investors. When applying, you will receive a grade determined by your profile. This grade will influence the interest rate that you will receive.
It takes a little while to get approved for a loan with Upstart. You will submit documentation, including college transcripts, standardized test scores, and pay stubs. When you apply for a loan, you can complete an application online without hurting your credit. The application will ask you about your employment and your education. If the company approves you for a loan, you can see what rates and terms you qualify for. You will need to give information about your bank account, and you can upload documentation. The company will want to verify your income.
After you accept the loan, Upstart will conduct a hard credit check. After final approval, you will receive the money in your bank account. The minimum loan amount is $1000, and the maximum loan amount is $50,000. The loan term will be from three to five years.
The origination fee is normally 1 to 6% of the amount of the loan. You can repay the loan at any time without any penalty. If you do no pay the loan on time, you will be charged a late fee.
The bottom line is that there are other companies that might be better than Upstart. The problem with Upstart is the high income requirements. There are very few college students who are making close to $100,000. Before you waste time applying with Upstart, make sure you meet the requirements.