Overview of Upstart Auto Loans
Founded in 2012, Upstart is an online lending marketplace that uses artificial intelligence and machine learning to provide more affordable loan options to borrowers. Upstart offers personal loans as well as auto refinancing loans.
For auto loans specifically, Upstart aims to look beyond just credit scores to determine risk and provide consumers better rates.
What Upstart Offers for Auto Loans
Upstart offers auto loan refinancing, allowing borrowers to refinance existing car loans potentially for lower interest rates or monthly payments:
- Auto loan refinancing only (no purchase financing)
- Loans from $9K up to $60K
- Terms from 24-84 months
- Soft credit check pre-approvals
- Online applications and loan servicing
- Works with all credit score ranges
By analyzing additional factors beyond a credit score, Upstart seeks to provide lower rates to borrowers compared to traditional lending models.
Upstart Auto Loan Pros
Some advantages of refinancing your auto loan through Upstart include:
- May offer lower rates than your existing lender
- Soft check pre-approvalswon’t hurt your credit
- Online applications and management
- No application fees
- Eligible with low 600s credit scores
- Can refinance loans from any lender
Upstart also considers future earning potential and education when determining rates.
Upstart Auto Loan Cons
Some potential drawbacks to weigh:
- Must wait 1 month after getting current loan before eligible
- No auto purchase financing offered
- Max mileage limited to 140K
- Maximum loan amount of $60K
- Not available for co-borrowers
- Difficult to qualify without steady income
Upstart offers great interest savings potential, but doesn’t work for those wanting to finance a first-time auto purchase. Loan maximums also prohibit luxury car refinancing.
Upstart Auto Loan Requirements
To qualify for auto refinancing from Upstart, there are a few eligibility factors:
Vehicles eligible for refinancing must meet criteria around:
- Age: Car must be under 10 years old
- Mileage: Less than 140K miles
- Use: Primary personal vehicle
Additionally, you must currently carry auto insurance on the vehicle being refinanced.
In terms of the existing loan you wish to refinance:
- Loan Balance: Between $9,000 and $60,000
- Loan Age: Originated at least 1 month ago
- Remaining Term: Minimum 24 months left
Refinancing earlier loan balances or newer loans less than 1 month are restricted.
While Upstart considers more than just credit scores for decisions, you typically need:
- Minimum credit score: Around 600
- Income: Steady verifiable income
- Credit history: At least 3 years of credit history
Those with shorter credit history or lower scores may still qualify but likely at higher rates. Co-borrowers are not permitted.
Upstart Interest Rates and Fees
Upstart interest rates for refinancing will depend on your specific credit situation but also account for factors like your education and earning potential.
Upstart does not share specific minimum or maximum interest rates you may qualify for publicly. However based on customer reviews, expect APRs in the following general ranges:
|3% – 7%
|7% – 15%
|15% – 23%
Actual interest rates quoted will depend on your credit history, score, income levels, education background, and even geographic location.
By evaluating factors beyond just a FICO score, some borrowers may see dramatic rate savings compared to traditional lenders. Upstart provides pre-qualification rates so you can view personalized options.
Origination & Processing Fees
A huge perk of Upstart loans is they do not charge any origination, application, or processing fees. Prepayment penalties also don’t apply.
The only fees they charge are:
- Late Fees: Around 5% of unpaid monthly payment
- NSF Fees: Up to $15 for non-sufficient payment funds
- Collection Fees: Only if your loan becomes delinquent
So it’s free to apply and qualify for rates. Compare options before committing to a loan offer.
Can I Get Pre-Approved?
Yes, Upstart allows borrowers to check personalized pre-qualification rates through soft credit checks without impacting your score.
Pre-qualifying gives you an idea of what offers you may qualify for. However, final APRs and loan decisioning requires a full application.
You can refinance auto loans anywhere from $9,000 up to $60,000 through Upstart.
Minimum and maximum amounts must fall within:
|$9,000 – $24,999
|24 – 60 months
|$25,000 – $60,000
|61 – 84 months
So higher loan amounts require you opt for longer 5-7 year repayment terms.
Repayment Term Lengths
Upstart refinancing terms range from:
- Minimum term: 24 months
- Maximum term: 84 months
Actual terms offered will depend on the size of your loan balance. To qualify you need at least 24 months remaining on your current auto loan as well.
How To Apply for an Upstart Auto Refinance Loan
Here is an overview of the application and approval process to refinance your auto loan through Upstart:
Check Pre-Approval Rates
First you’ll enter details on your current vehicle loan, personal financial situation, and basic personal information.
Upstart provides instant decisioning with pre-qualified refinancing rates. Checking rates is a soft inquiry so it won’t impact your credit score.
Complete Full Application
If happy with pre-approval offers, continue to the full Upstart loan application.
Here they require documents like:
- Proof of income
- Driver’s license
- Vehicle registration
- Current auto loan statements
Submitting the full application triggers a hard credit check.
Review Loan Offers
Upstart presents tailored loan refinancing offers from lending partners with clear terms including:
- Interest rates
- Monthly payments
- Total interest savings
Carefully review then accept your chosen offer if it meets your savings goals.
Loan Servicing & Payoff
Finally, Upstart handles paying off your old auto loan and starts servicing the new loan. There’s no need to coordinate with your existing lender.
Expect new loan funds distributed within 14 days after signing your promissory note. Then just begin making monthly payments to Upstart.
It’s a seamless lending transition!
Upstart Auto Loan Customer Reviews
What actual customers say about financing experience with Upstart based on online reviews:
Positive Upstart Loan Reviews
- Super fastonline application and approval process
- Great interest rates with “excellent” tier credit scores
- Easy to signup for auto-pay and paperlessstatements
- Received better rates than local banks or dealers
- Fast funding in under 2 weeksafter acceptance
Negative Upstart Loan Reviews
- Didn’t disclose hard check would be required
- Provide limited rate details upfront
- Difficult verifying income if self-employed
- Maximum loan amounts prohibit luxury car refinancing
- Hard to contact support post-loan acceptance
In general, customers praise the convenience of completing the entire application digitally in under 30 minutes for quick approvals. Interest savings were significant for those with established traditional credit history.
Just note Upstart offersminimal support post-loan funding compared to traditional lenders. And promised rate savings heavily depend on your unique credit profile.
Upstart vs Other Auto Refinance Lenders
Upstart is one of a few specialized online marketplaces exclusively providing auto refinancing solutions. Top competitors include:
LendingTree works similarly using a lending marketplace offering multiple loan options. But they provide both refinancing and auto purchase loans with expanded loan amounts up to $125K. So better for luxury or new cars.
RateGenius offers guaranteed loan offers within minutes or borrowers get $100. More lenders than Upstart which allows expanded qualifying criteria. But minimum FICO requirements are higher, starting at 640.
While not a marketplace, AutoPay1 directly refinances loans for borrowers. Their max loan balance goes up to $100K allowing high-end car refinancing. However they charge origination fees Upstart does not.
When stacked up against alternatives, Upstart competes using their AI-driven rates and zero origination fees. Marketplaces do provide more lender options at the expense of longer decisioning. So Upstart better serves those wanting fast, guaranteed refinancing sans extra charges.
Should You Refinance with Upstart?
Below summarizes some of the key pros and cons of refinancing your auto loan using Upstart:
Pros of Upstart
- Quick pre-approval checks
- Refinancing offers in minutes
- Competitive interest rates
- Zero origination or application fees
- Easy online application and management
- Won’t hurt your credit to check rates
Cons of Upstart
- Max loan balance of $60K
- No auto purchase financing
- Requires steady income history
- Can’t add co-borrowers
- Must wait 30 days before eligible
- Limited support post-funding
Drivers that already have an existing auto loan from another lender but want to reduce their interest rates may find compelling offers from Upstart. The lending marketplace saves borrowers money without extra fees.
Just weigh eligibility limits around maximum balances, vehicle age, and the inability to add a co-signer before applying.
For those that qualify, Upstart delivers big interest savings quickly 100% online.
To Recap: Who Is Upstart Best For?
Upstart auto refinancing shines when it comes to fast online applications, competitive rates, and requiring little effort on the consumer’s end after accepting a loan. Approval turnarounds take as little as one business day.
Specifically an Upstart loan makes sense for borrowers who:
Have Established Credit Histories: Ideal borrowers should have at least 3 years of credit history with scores over 600. First time borrowers are unlikely to qualify.
Don’t Require Co-Signers: You must qualify for refinancing independently based on your own income and credit. Co-borrowers are restricted when refinancing through Upstart.
Looking to Reduce Auto Loan Interest: If your main goal is decreasing your interest rate payments to save money monthly, Upstart delivers some of the lowest rates.
Want Quick Online Applications: The 100% paperless process saves time by avoiding physical bank meetings and piles of paperwork.
In summary, Upstart auto refinancing most benefits those with solid incomes and credit as well as some college education. By passing savings onto quality borrowers, they drive competition forcing even traditional banks to reduce rates.
Just don’t expect white-glove treatment or support after loan funding. The small fees are well worth one of the simplest loan refinancing processes available.
READ ALSO: Overview of U.S. Bank Auto Loans
Frequently Asked Questions About Upstart
Below are answers to some of the most common questions asked around obtaining auto refinancing from Upstart:
Does Upstart finance used cars?
No – Upstart currently only offers auto loan refinancing, not initial purchase loans. So you cannot use Upstart to finance a used car purchase. They refinance existing auto loans to try and save borrowers money.
For used car financing, check providers like Capital One, Bank of America, or your local credit union.
Can I get pre-approved for an Upstart loan?
Yes, Upstart allows borrowers to check for pre-qualified refinancing rates by initially performing a soft credit check. Pre-approvals won’t impact your credit score.
However, final loan approval requires a full application and hard credit inquiry. But pre-qualification shows if you may be eligible for savings before committing.
How long does it take to get approved by Upstart?
Upstart touts very fast approvals, often in less than 1 business day if you have a complete application. Here are the general timelines:
- Instant pre-qualification rate checks
- 24 hours for loan decisioning
- 1 – 2 weeks for loan funding
So you can potentially refinance your auto loan fully in under 2 weeks total.
Can I get a loan with a 600 credit score from Upstart?
Minimum credit scores around 600 FICO may qualify for Upstart refinancing. Each applicant is assessed individually based on credit history.
Those with scores in the mid 500s may still potentially get approved but likely at higher interest rates due to the increased risk. Additional factors like income levels also factor in.
How do I pay my Upstart auto loan?
Upstart offers online portal access for payments after funding your loan. You can setup one-time or recurring automatic payments.
Options include paying by:
- Bank account withdrawals
- Debit card
- Wire transfer
- Paper check
Just login online or use the Upstart mobile app to manage payments.
In another related article, Overview of LendingClub Auto Refinancing