Can You Refinance a Credit Card Debt with an Upstart Personal Loan?

Upstart is a p2p platform that provides unsecured personal loans for funding various purposes including consolidating your credit card debts. The loans are funded by private investors but you won’t be dealing with the investor directly. There are staff at Upstart that oversee the entire process including evaluation of your eligibility and determining your monthly payment.

With Upstart, you can request for a personal loan with loan amount from as little as $1,000 to $50,000. It offers term lengths from 3 – 5 years for the personal loan. The cheapest interest rate they can approve is 8.92%. The interest rate can get as expensive as 29.99% depending on your creditworthiness. You can be charged with an origination fee of up to 8%. Therefore, when you apply for the loan, you must request for enough amount to cover the existing debt and the origination fee.

Besides origination fee, Upstart also charges other fees including late payment (5% or $15 whichever is greater), insufficient funds ($15), and paper copies request fees ($10). There is no prepayment fee so you don’t have to worry about extra charges when you want to pay off the loan once and for all.

Applying for a loan at Upstart is easy. First, you must fill in the online application at the Upstart site. There are a few questions you need to answer in the form including academic background, employment experience, and how you intend to use the loan. The form has an attachment button which you can use to attach documents of your income such as paystub, and income tax.

A staff will then review your application. Unlike other P2P platforms, Upstart does not pass your application to the investor for approving the loan. Upstart customer support is fast in replying to customer queries through phone and email. You should be able to receive the funding fast if the staff approve your application.

Because it is a p2p lender, it will consider other factors that are not taken into account by the bank, for example, education. The interest fee you are charged depends on how risky you are as a borrower. One way that they determine your risky level is the loan term. For example, choosing a 3 year loan term makes you a less risky borrower compared to if you choose a 5 year loan term. Choosing a 3 year loan term requires you to make a higher monthly payment but you receive lesser interest charges.

Upstart offers customers with the option of soft credit pull for checking the interest rate. Before signing up, you should make a list of all the debts you owe and calculate the total so that you know how much you need to borrow. In this way, you can avoid borrowing more than you need.

Author: Don

Covering the financial markets since 2005. Love to learn and share ideas and tips. The best articles come from ideas presented by users of this website. Topics that we find interesting include personal finance, credit cards (especially awesome balance transfer and rewards cards), small business financing and loans for debt consolidation.

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