No, you cannot negotiate the loan terms or rate.
Cons Explained
Potentially high origination fee: Upstart charges origination fees. Depending on the lender and the borrower's profile, the fee can be as high as 12% of the loan amount.
There are no penalties or fees associated with paying off your loan early. You are only responsible for the amount of interest accrued until the date of payoff. If your account has AutoPay turned on, any payoff amount on or after that date assumes the automatic payment scheduled will be successful.
Personal loan debt settlement is a process where you negotiate with your lender to accept less than the full amount you owe to settle your debt. This process can be a lifesaver for those struggling with financial hardship.
A good interest rate on a personal loan is anything lower than the market's average rate. But a good rate for you depends on your credit score. For example, if you have excellent credit, a rate below 11 percent would be considered good, while 12.5 percent would be less competitive.
If you are experiencing hardship and cannot pay please contact us immediately by emailing us at fw.servicing@upstart.com or calling our servicing line directly at 833-212-6245. If you are unable to pay, we may be able to work on an alternative payment plan that will avoid additional fees or penalties.
If you have finished paying off an existing Upstart loan and made on-time monthly payments for the 6 previous consecutive months, you are able to apply for a second loan after your most recent payment is cleared (14 days from the payment date).
There's no official limit to the number of personal loan accounts you can have, as long as you have the income to justify all of them.
Its platform seeks to increase approvals for borrowers while simultaneously lowering risk to lenders. But its revenue has been cut in half in recent years because lenders weren't as willing to fund Upstart's loans -- there were high-rate opportunities elsewhere. However, Upstart is now back to growth.
Does Upstart hurt your credit score? Upstart allows you to prequalify for a personal loan at no cost to your credit; however, like most lenders, you'll need to submit to a hard credit pull before your application can be approved, which can cause your credit score to drop by a few points.
If you accept your rate, you will be prompted to complete an application by verifying your bank account and possibly uploading some supporting documents. If your application is approved, you will be asked to review final disclosures and sign a promissory note.
As of July 2024, Upstart has 4.9 stars on Trustpilot, a website that collects consumer reviews. Customers mention the company's quick and easy application process. The lender received 666 out of 1,000 points on J.D. Power's 2024 U.S. Consumer Lending Satisfaction Study, slightly below the average score of 702.
Upstart debt consolidation loans have 4.64%-35.99% APRs There is also an origination fee as high as 12%. Origination fees are “service fees” charged by lenders. The worse your credit risk, the higher it will be. As with most online lenders, the same goes for your APR.
If you have already received a loan on Upstart, in order to be eligible for another loan, you must: Have made on-time monthly payments for the six previous consecutive months. On-time payments means that a payment was received during the 15 day grace period. Have no currently past due payment.
Paying off a loan can positively or negatively impact your credit scores in the short term, depending on your mix of account types, account balances and other factors.
If you wish to withdraw from the application process, please email us at support@upstart.com to confirm your request. We can also opt you out of receiving promotional emails and SMS. However, please note that Upstart is not able to delete your account/application at this time.
Unfortunately, you cannot negotiate the loan terms or the rate you are offered.
If you owe a relatively small balance, the lender might decide taking you to court isn't worthwhile, but they will almost certainly send your account to a collection agency, which will continue to try to collect the debt.
A class action complaint has been filed against Upstart. The complaint alleges that defendants repeatedly stated that Upstart's AI-based models could underwrite loans in a way that was far superior to traditional underwriting processes and lead to the origination of less risky credit.
An excellent credit score, consistent income and low debt-to-income ratio are key to securing a low interest personal loan. But if your finances aren't in the best shape, consider taking a step back to improve your credit score and lower your utilization rate before applying.
Avoid loans with APRs higher than 10% (if possible)
"That is, effectively, borrowing money at a lower rate than you're able to make on that money."