Personal loans are commonly used by individuals for a wide range of reasons. For example, some may apply for a personal loan to consolidate high interest rate credit card debt and to establish the debt on a preferred repayment schedule. Others may need a personal loan to pay for medical expenses, to renovate or remodel their home and to accomplish many other goals. While many applicants will qualify for the personal loan they need through traditional banks and lenders, the reality is that others may not have the established credit history necessary to qualify for a traditional personal loan. You can review your credit history and scores by obtaining a free copy of your credit report once every 12 months. If you fall into this category and have been turned down for financing, Upstart may have the personal loan solution that you need.
The Ideal Upstart Loan Applicant
Upstart is a lender that specializes in providing unsecured personal loans to college graduates. In most cases, these are recent college graduates who have not had adequate time to develop a great credit history. The minimum credit score permitted is 620, but most will have a score of 650 or higher. In addition, many have exceptional income levels and a relatively low debt-to-income ratio. The average applicant earns more than $97,000 and has an 18 percent debt ratio. While these are averages, keep in mind that the only applicant requirement the lender has for applicants is the minimum credit score requirement. It should be noted that Upstart is not a direct lender. Instead, it connects qualified applicants with investors who make the loans.
Estimated Loan Terms
You may be interested to learn what the available loan terms are through Upstart. The loan terms vary substantially based on your needs as well as your unique credit profile. Interest rates, for example, vary from less than seven percent to almost 30 percent. In addition, loan amounts vary from $1,000 to $50,000. Typically, the loan is structured with a fully-amortized fixed term of three to five years. Adjusting the term gives you the ability to create a payment that is comfortable for your budget. In addition, the loan process can take considerably longer for an Upstart loan than for other traditional personal loans. However, loan funding is usually swift after approval. Most loans fund within one to three days after approval. There are some fees associated with Upstart loans. Most notably, you may be charged an origination fee of one to six percent of the loan amount along with other less significant fees.
How You Can Use the Money
In most cases, there are no limits regarding how Upstart loan funds can be used. Many will use the funds to further their education, and some may attend specialized training courses to take their career to the next level. Others may use the funds to consolidate high interest rate credit card debt or for many other purposes. The U.S. Census Bureau indicates that the average citizen has approximately $7,000 in unsecured debt, and this is a great way to get control of your debt situation. Because there are no limitations regarding the use of funds, you can typically use the funds at your discretion to accomplish personal goals.
Before You Apply
Potential applicants should be aware that there are alternative financing solutions available. For example, homeowners may apply for a home equity loan, and this may yield more attractive loan terms in many cases. Some may benefit from a low interest rate credit card, and some of these may have a zero percent introductory rate. In addition to exploring the different financing options available, you also need to ensure that you can repay the loan as agreed before applying. Determine what the monthly loan payment will be. Then, review your budget carefully with this monthly payment in place to determine how comfortably you can live while making this payment. Most loans have a term length of several years, so you need to ensure the ability to make regular payments throughout the life of the loan.
While many college graduates have high income and nominal debt, they may not have the credit rating necessary to qualify for a personal loan. If you need to apply for a personal loan for any reasons, you may consider learning more about what Upstart offers. For some who have a better credit rating, there may be more attractive financing solutions available. However, if your credit scores are an issue, rest assured that Upstart has the financing options you are looking for.