Upstart online loans make getting a personal loan simple. In three easy steps, you can get a relatively low-interest low that you can use to pay off debts, move, put together your wedding or whatever else (within reason) that you might need to pay for.
But just because something’s easy doesn’t necessarily mean you should do it. So let’s talk about how Upstart works and whether getting a personal loan is something you want to consider.
About Upstart Online Loans
Upstart was founded by former Google staff and provides “fair and fast personal loans.” According to their website, they offer lower rates, a fast process, a secure process and no pre-payment penalty.
The Upstart loan process takes into consideration more than just your credit, looking at your education, job history and area of study. This means they take a more 360-degree look at you when deciding whether to permit you a loan.
This kind of application review process means that you at least have a chance to secure a loan if your credit isn’t as strong as you’d like. But that also means that you need to be careful about how much you accept because it all needs to be paid back, typically in a relatively quick time.
The Upstart Loan Process
You can get a loan in three easy steps to secure, pending you get approved. The borrowing process is relatively simple:
Step One: Answer Upstart’s questions about your education and employment. This process takes around five minutes according to their literature.
Step Two: Once your application has been reviewed and approved, it’s up to you to accept the terms (pending you agree) and you’ll receive your money the next day.
Step Three: Set up automated payments to repay the loan.
While Upstart loans have a lower interest rate, according to their website, the interest rates vary depending on the type of loan you are trying to secure (along with what I assume is your personal situation). You can likely expect an interest rate between 4.73% and 35.99%.
Should You Consider Upstart Loans?
Upstart loans are really set up to be personal loans. So, if you’re looking to fund a business venture then this is likely not the company for you.
They accommodate personal loans, credit and debt consolidation, home improvement, medical, wedding and moving loans. Nothing in the business area.
So, if you’re considering an Upstart online loan, then you need to make sure it’s for a personal reason.
Are Personal Loans the Answer?
I’ll be completely honest, I am not a fan of personal loans unless absolutely necessary, and if needed I favor banks over private companies.
I’m not sure if this is an incorrect personal assumption, but I find private loans to have high-interest rates comparable to those of credit cards and short pay-off terms that can sometimes be hard to meet.
That said, getting a loan is a personal decision. If you’re looking for an easy and online loan solution, then Upstart might be for you.
Would you use Upstart online loans? Share your thoughts in the comments below.
Looking for Other Funding Insights?
- How To Write a Business Plan That Gets You Funding
- 4 Alternatives for Small Business Funding
- You Don’t Need Venture Capitalists Anymore
Tae started out as a journalist before following the money into the corporate world. But it turns out that the grass isn’t always greener and now you can find her spending most of her time writing about all the things she loves. Namely, money, travel and business with a hefty dose of self-deprecating humor. She is a podcast fanatic, blogging aficionado and loves to find new ways to turn passions into cold hard cash!