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.
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.
Upstart has an A+ rating with the Better Business Bureau and 4.9 out of 5 stars on Trustpilot, which is considered excellent, based on 46,495 ratings. Upstart received 666 out of 1,000 points on the J.D. Power 2024 U.S. Consumer Lending Satisfaction StudySM, which measures personal loan lender customer satisfaction.
However, the business is unlikely to recover while interest rates remain high, and it's unclear how fast or how much interest rates will come down. Upstart came onto the scene when they were near zero, and that may not happen again any time soon.
In addition to the economic uncertainty risk, the company uses a new, unproven business model, which makes it a high-risk, volatile stock. Most investors are better off avoiding the stock. However, the potential upside may warrant existing investors holding onto their shares. I rate Upstart a Hold.
Unfortunately, you cannot negotiate the loan terms or the rate you are offered. Your rate is generated based on the details that you entered into your application along with your soft credit pull.
The process for these creditors is similar to that of regular creditors like American Express or Bank of America. They send their defaulted debt into collection and then ultimately sue businesses and consumers to try to recover the amount owed.
Debt consolidation can be a useful financial tool for anyone with multiple debts. It can help you simplify your finances and reduce your interest costs and monthly payments.
Upstart Holdings, Inc. San Mateo, California, U.S. The founding team includes Dave Girouard, former President of Enterprise Google; Paul Gu, a Thiel Fellow; and Anna Counselman, former Manager of Global Enterprise Customer Programs and Gmail Consumer Operations at Google.
With revenue growth expected to be 60% between 2023 and 2025, a rise in valuation multiple from current levels seems justified. At 15x revenues, the price estimate for UPST will be around $140 in early 2026, considering the 2025 revenue of over $800 million per the consensus estimate.
upstart is currently operational.
If any of the accounts on your credit report are currently in collections or 30 or more days delinquent; or. If there is any inquiry or new account on your credit report since the time of the credit report used to determine your rate (not including any inquiries related to a student loan, vehicle loan, or mortgage).
What Happened? Shares of aI-powered lending platform Upstart (NASDAQ:UPST) fell 13.7% in the afternoon session after J.P. Morgan analyst Reginald Smith downgraded some fintech stocks due to growth and valuation concerns.
Upstart is committed to safeguarding consumer data and sharing it only as necessary or as directed by the consumer.
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.
Yes, you can technically continue using your credit cards after debt consolidation as long as you keep the accounts open during the process. That said, whether you still have access to your credit card accounts post-consolidation may depend on a few different factors.
The first danger of debt consolidation is that these companies are in business to make money. Many individuals in debt will rush into debt consolidation without understanding the full terms of their repayment. Some companies will offer “teaser rates” or tack on additional fees for transferring funds.
If you default on an unsecured loan, the lender has a few options. They'll likely send your account to a collection agency, and may file a lawsuit against you. If they choose to pursue legal action, defaulting on a loan can result in wage garnishments as well as a legal judgment on your credit report.
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.
Failing to meet your monthly payment obligation may result in being charged a late fee or possible repossession of your vehicle. Upon an Event of Default, we may exercise all the remedies available to us under applicable law or the Promissory note.
The Bottom Line
However, Upstart's APRs can be high, and origination fees can be as high as 12%. For borrowers that have good credit, Upstart's loans may be too expensive, and they may be better off shopping around.
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.
With rates trending downward and expectations of further cuts in 2025, Upstart is poised for a resurgence. Rising loan demand, driven by decreasing borrowing costs, could significantly boost revenue growth in the coming quarters.