Upstart is a peer-to-peer lending marketplace that connects prospective borrowers and investors to originate personal loans

Upstart is a peer-to-peer lending marketplace that connects prospective borrowers and investors to originate personal loans

The industry of peer-to-peer investing and borrowing is highly competitive and ever-evolving. Even the players that have been a part of it since the very beginning have to step up to stay among the market’s favorites. Prosper may have started as a simple lending marketplace, but the platform has evolved to offer an excellent service both to borrowers and investors. If you’re shopping for a term loan to consolidate an existing debt, renovate your home, or buy a new car, you should give Prosper a second look.

Reasons to Apply:

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  • Flexible payment dates
  • No prepayment fees
  • No collateral

Upstart Review

Fortunly’s Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.

The company provides fixed-rate loans of up to $50,000 to applicants with fair to excellent credit scores. Since its starting date in 2012, Upstart has already managed to help more than 500,000 customers get the funding they need. Thanks to its AI-powered platform, more than two-thirds of all decisions are automated, which allows the company to process and fund loan applications in less than 24 hours.

Reasons to Choose Upstart

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One of the best things about Upstart’s P2P loans is that you can use them for almost anythingmon loan purposes include home improvements, click moving, travel, higher education, medical bills, large purchases, debt consolidation, and business startup or expansion.

This loan marketplace takes great pride in its underwriting model, which uses non-traditional data (such as residence, job history, and level of education) and artificial intelligence to evaluate prospective borrowers. Unlike traditional lenders that focus almost exclusively on an applicant’s credit report, income, assets, and debts, this peer-to-peer financing provider helps younger borrowers and those with thin credit histories qualify for the funding they need.

With a minimum loan of $1,000, Upstart offers one of the ounts. However, note that applicants from the following states can only qualify for higher minimums: Massachusetts ($7,000), Ohio ($6,000), New Mexico ($5,100), and Georgia ($3,100).

Another great thing about this provider is that it offers an easy-to-use credit dashboard, which allows borrowers to modify payment dates and monitor the impact of loan repayments.

Reasons to Look Elsewhere

Upstart’s person-to-person lending also comes with a few potential drawbacks. First of all, if you’re a resident of Iowa or West Virginia, you won’t be able to apply for funding through this lending marketplace. Also, if you don’t have proof of regular income, a Social Security number, and a US bank account, you won’t be eligible for a loan through Upstart.

Also note that Upstart loans come with origination fees of up to 8%, co-signers are not accepted, and there is no in-person support as the provider doesn’t have any branches.

The Bottom Line

If you have a short credit history and a low FICO score but a strong earning potential, we suggest you consider applying for funding through Upstart. As one of the best peer-to-peer lending sites for bad credit, this provider considers much more than just credit scores when assessing loan applications. Thanks to this approach, you can get the funding you need without having to fix your credit. However, keep in mind that Upstart’s offer may not come with the most affordable rates or the most competitive terms.

Reasons to Apply:

  • Options for borrowers with fair credit
  • Loan amounts as low as $1,000
  • Convenient user dashboard

MyConstant

Fortunly’s Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.