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.

Is Utilizing Your Credit Card To Pay Off Your Car Loan A Good Idea

Many lenders allow you to use a credit card to make payment for a car loan. However, you may be charged with a convenience fee for doing so. The reason why they charge convenience fee is that they want to offset the expenses for processing credit card payments. If there is a processing fee, you will have to calculate whether it is worth while for you to use your credit card to make payment.

You must remember that you will pay more interest fees when you use a credit card to pay your car loan. Now, you are not just paying interest for the car loan but also the interest of the credit card. The only turnaround to this problem is to settle your credit card debt in full every month.

Using a regular credit card to pay for the car loan allows you to earn cash back, miles or reward points. Credit card is unsecured while car loan is secured which means your car can risk getting repossessed if you default on payment. On the other hand, if you default on payment on the credit card, you will suffer from the consequence of a big drop in your credit score. Before resolving to use a card to pay your car loan, you should discuss with the lender about your financial situation. You can persuade the lender to waive payment for 1 month or more.

You may want to consider transferring the balance of your car loan to a balance transfer interest-free zero percent balance transfer card often feature 6 – 21 months of interest free intro period. Credit cards’ interest fee is usually higher than the car loan interest rate. This is why you should strive to pay off the entire debt before the expiry of the intro promo to avoid interest charges.

You should check with the credit card company about the balance transfer fee which is in the range of 3% – 5%. Ideally, you should only transfer up to 30% of the credit limit. Low credit utilization allows you to maintain a healthy credit score. Once you finish paying off the balance, you will be the owner of the car.

If you are lack of money to pay your car loan, you can withdraw cash advances from a credit card. You can then deposit the money into your bank account and make car payment in the usual manner, for example, direct transfer or check. The downside is that this method is costly as cash advance is known for their high interest fee charges.

It is important to always have an emergency savings set aside. In case you lose your job or a financial circumstance occur, you can use your savings to continue making payment so that your debt can be erased within a short time.

Can You Use a Personal Loan for Home Improvement

A personal loan is suitable for covering home improvement expenses because home improvement is counted as a personal expense. You can borrow as much as $40,000 from a personal loan to fund your home improvement project. Unlike HELOC, personal loan is an unsecured loan that is not tied to a property. The lender will not cease your property in case you face a financial circumstance and cannot pay back.

Personal loan is the best choice for homeowners who don’t have enough equity. It is also suitable for those who plan to use their home equities for other expenses. For example, some homeowners plan on using their home equities to pay for their children’s education. It is time to take out a personal loan and carry out some makeover on your house if you owe more on the mortgage than its market value.

Personal loan is a fixed rate loan with a repayment period that last from 3 – 5 years. One benefit is that it enables you to pay off the entire loan by simply submitting the fixed monthly amount (principle + interest) until the end of the repayment period. This makes it a better choice than credit cards as credit cards allow the balance to roll over to the next month provided that you pay the interest.

The best place to find cheap personal loan is your local credit union. If you feel it is troublesome to visit your local credit union, you can sign up for online personal loan. If you apply for the loan online, you will be able to receive the funds faster. Just like bank, you also have to submit some paperwork which include documents of the financial activities in the past 2 years. If your financial documents are approved, they will send you an email that inform you about the interest rate and repayment term.

You will have to put down a digital signature on the online agreement in order for the loan to receive final approval. Once the loan is approved, you can expect to receive funding in 1 – 2 business day. With online personal loan, you can avoid paying the prepayment penalty when paying off the entire loan early. Some online personal loans like Marcus loans also waive the late and origination fee

The approval terms of the online personal loan depend on a few factors including credit score, annual income and debt to income ratio. If you have bad credit, you must rethink carefully whether to take out that loan because the interest rate you pay may be expensive, its also a good idea to review your credit profile in advance from credit agencies such as experian or transunion. If you couldn’t get an unsecured personal loan, you can turn to secured personal loan which requires you to pledge your property as a security.

How Personal Loans are Approved With Some Mainstream Lenders

Every online loan company has its own criteria for approving the applicants. Prior to signing up, people usually will fill in an online form to request for loan pre-approval. The loan pre-approval process is fast and you can usually get a response with the estimated interest charges in the same day. This estimated interest charge is for comparison purposes when you are shopping around.

If after researching the details of the loan, you feel you want to go ahead and apply it, you can fill in the actual loan request form at the lender site. The form will ask you to provide your personal, financial and employer information. It is important to provide truthful information when filling out the loan request form.

If you deliberately include false information, they can find out and black list you from applying a loan in the future. In the form, there is an attachment feature that lets you attach the necessary documents such as pay slip, address proof, and identity proof. If you aren’t sure what documents to submit, you should not hesitate to give the customer support a call.

The entire process of the online personal loan approval can take 1 day – 2 weeks. During the loan approval process, they will carry out a thorough check on your finance background including what job you do, how long you have been doing the job, and etc. They will review your bank savings account to find out how much money you usually keep in the bank.

Having an established credit history can give you an advantage on receiving a low interest rate. When you have an established credit history, the creditor will see you as a low risk borrower. They trust that you will have no problem in paying back. If you have any outstanding debt, make sure to pay it off first prior to applying. Paying your bill on time consistently can help you to attain a good credit score. Those who have a credit score of 680 and above can expect their loans to get approved fast.

You can request for a credit report from the credit bureau to check whether you have a good credit history and credit score. The first report that you request from the credit bureau is free so make use of it when applying for a loan. If there are errors on your credit report, you must immediately inform the credit bureau so that an investigation can be carried out to confirm it. Fixing a few errors on the credit report can increase your credit scores.

Once you get approved, you must commit yourself into repaying the due amount by the due date every month. Borrowers who have low credit score will see their credit scores rise when they steadily make repayment every month.

If You File Bankruptcy, What Happens to Your Personal Loans

According to the Bankruptcy Code lists 19, personal loans are typically dischargeable when you file for bankruptcy (chapter 7). You can file for bankruptcy with a court yourself or with the attorney. You will have to pay for a few fees including attorney and filing fees. You will still have to pay for the filling fee even if you file for the bankruptcy yourself. Several documents must be prepared when you are filing for bankruptcy including financial record for your asset, debt and expenses.

Prior to filing, you should receive credit counseling with an approved provider. The credit counseling should take place within 180 days. Upon completing the course, you will receive a certificate. The certificate must be attached along with the application form otherwise they will reject your filing.

If you keep on receiving calls from your creditor, you should provide them with your case number and filing date. Doing so can stop them from bugging you with phone calls. The filing date can be found on top of the bankruptcy document that the court send to you. It is next to the page where your case number is.

You should receive the bankruptcy document along with all copies of the notices even if you have a lawyer to represent you in the court. By providing your filing date, the creditor will be able to verify your bankruptcy and stop making cold calls. Sanctions can be taken against the creditor if they did not stop making phone calls.

The majority of the people who are forced to file for file for bankruptcy are not considered to be wealthy or rich. The median income is only about $35,000. Filing for bankruptcy allows you to be discharged from your debt and also slow down the repossession of your house and car. It will also affect your credit rating as the record will stay on your credit report for up to 7 years. It also help to put an end to the collection actions that your creditor has taken against you like eviction, wage garnishment or entering into liens.

Filing for bankruptcy gives you a second chance to start all over again but it have a long term punishment. During this time, it will be hard for you to get a loan because of the record in your credit report. It is a strenuous process that can take at least 6 months or more to solve the situation.

However, it is a good time for you to think things over and plan. You can how to you can become financially disciplined and have a fresh start again. It is best for people who believe that they will take over 5 years to repay the debt. There are other alternatives like debt settlement or debt management that can take up to 5 years to solve the problem.

What is the Most You Can Borrow on Peer to Peer Lending Platforms

The amount you can borrow from the p2p lending platform usually ranges from $1,000 – $40,000. You have to post a thread on the p2p platform stating how much you would like to borrow. Investors will visit your thread and place a bid on how much they would like to fund a loan. The loan can get approved as long as you have 70% funded. As soon as it is approved, you will be able to receive the fund in your bank account within a period of 2 weeks.

As you know, p2p lending platform is different from traditional banks and lenders. They do not fund the loans based on their own capital. Rather, the loans are funded by individuals who have jointed the platform to lend money to people. These individual lenders make money from the interest rate and other fees charged on the borrower. They decide how much interest fee you have to pay.

Usually, when you apply for a loan on the p2p platform, the company will first perform a background check on you and then assign a grade. They will not reveal the grade to you. Only the investors will be able to see the grade. The grade shows whether you are someone who is responsible in financial management.

The interest rate that you pay will be based on the grade that you receive. The investor will take a look at your grade and decide whether they want to extend the loan to you. The advantage of taking out this type of loan is that it has a low interest rate starting from around 6% – 10%. Having an excellent credit score can help you to obtain the lowest interest rate for the personal loan.

Besides the interest rate, you also have to pay an origination fee. The origination fee may range from 1% – 6% of the loan amount and it will be deducted directly from the loan amount. Most p2p lending platforms have a minimum credit score requirement of 600 – 650. You can apply the loan as a joint application. In joint application, one applicant must meet the credit score requirement and the other applicants can have a lower credit score. The credit score of the other applicant must be not lower than 540.

P2P loans can be used for debt consolidation purpose. Some lenders can pay off your creditors directly so that you don’t have to submit the payment manually. Only a certain percentage of the loan can be used for debt consolidation. Prior to applying, you can fill in the loan request form at the official site to get pre-qualified first. Pre-qualifying for the loan will not cause your credit score to drop in anyway.