Upstart
AI-powered personal loans for borrowers with thin or poor credit
How it works
Upstart is an AI-powered lending marketplace founded by former Google employees that connects borrowers with a network of nearly 100 partner banks and credit unions. Instead of relying solely on FICO scores, Upstart's model evaluates over 1,500 variables including education level, field of study, employment history, and income to assess creditworthiness. Loans range from $1,000 to $75,000 with APRs from 6.2% to 35.99% and fixed terms of 36 or 60 months. Upstart claims its AI model approves 43% more borrowers and offers 33% lower rates than traditional underwriting.
Is it right for you?
Consider if you
- You have a low credit score (300-620) or a thin credit file and have been rejected elsewhere
- You have strong education and employment history that traditional lenders ignore
- You need fast funding — most loans are fully automated and funded within 24 hours
Skip if you
- Borrowers with credit scores above 670 — you will likely find better rates with fee-free lenders
- Residents of CT, DC, GA, HI, IA, ME, MD, MA, NV, NY, VT, WV, or WI — Upstart is not available in these states
- Anyone wanting a cosigner or needing terms beyond 36 or 60 months — neither is supported
Your money and data
Upstart is not a bank and is not FDIC-insured. All loans are originated by partner banks including Cross River Bank (FDIC-insured) and FinWise Bank. The company uses bank-grade encryption and a soft-pull prequalification process. However, Cross River Bank received an FDIC consent order in 2023 for unsafe lending practices related to fintech partnerships, and a class action lawsuit filed in April 2026 alleges Upstart failed to disclose issues with its AI underwriting model. Upstart has applied for its own national bank charter as of March 2026.
Pros & Cons
Pros
- AI model evaluates over 1,500 variables including education and employment, not just credit score
- Accepts credit scores as low as 300 and applicants with no credit score at all
- 84% of loans are fully automated with no human review and funding as fast as 1 business day
Cons
- Origination fee up to 12% — on a $10,000 loan with a 7.82% fee, you receive only $9,218
- High maximum APR of 35.99% makes it one of the most expensive options for lower-credit borrowers
- Class action lawsuit filed April 2026 alleging the AI model overreacted to economic signals and management failed to disclose it
Pricing details
APR 6.2%-35.99% · Loans $1K-$75K · Terms 36 or 60 months only · Origination fee 0%-12% · Late fee 5% or $15 · No prepayment penalty
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