Upstart Auto Loan Refinancing: 2024 Review

Full Review of Upstart

Among lenders that offer auto loan refinancing, Upstart is unique in its approach to loan underwriting and approval. While other lenders rely most heavily on an applicant’s credit scores, Upstart says they consider other factors like employment and education for a more comprehensive view of a borrower’s creditworthiness.

Upstart is an auto loan aggregator, which means it works with a network of lenders to match applicants to the best possible loan rate for which a borrower may qualify. To obtain these estimated rates, Upstart does a soft credit check which does not affect an applicant’s credit scores. When an applicant selects an offer and applies, a hard credit check is done.

Upstart stands out for simplifying the borrower’s end-to-end application process, which it says takes just minutes to complete from starting the application to seeing rates. Through integrations with the Department of Motor Vehicles registration records in all states where Upstart offers loans, it can automatically pull vehicle details, such as VIN or license plate number.

Later in the refinancing process, Upstart maintains the loan servicing, which means it handles the title transfer and disbursement of funds to the borrower, the dealership or the prior lender.

Table of contents

Upstart at a glance

Upstart Lending may be a good fit for those who ...

Do you qualify for an Upstart auto loan?

How to apply for an Upstart auto loan

How auto loan rates work and how we collect them

How do we review auto loan aggregators?

Upstart at a glance

Upstart works with many different lenders, so the information provided here is general and can reflect the high or low end available among its lending partners.

• Restrictions

  • Maximum vehicle age: 12 years.

  • Maximum vehicle mileage: 140,000.

  • Other vehicle restrictions: None.

  • Loan amount minimum: $9,000.

  • Loan amount maximum: $60,000.

  • Maximum loan-to-value ratio: 185%.

  • Refinance time restrictions: None.

  • Bankruptcy restrictions: Did not disclose.

• Other loan details

  • Approval speed: Immediate in most cases. Approved loan offer is good for 14 days.

  • Initial deferred payment: Does not offer.

  • Existing loan payoff: For refinancing, funds are mailed electronically if possible and by check, otherwise.

  • Selected payment due date: Borrowers can select their payment due date during the application process.

  • Maximum debt-to-income ratio: Did not disclose.

  • Late payment grace period and fee: Borrowers have a 15-day grace period from the payment due date, before they incur a late fee. Upstart charges a late fee of 5% of the past due amount or $15, whichever is greater.

  • Hardship plans: All of Upstart’s lending partners offer hardship options. Specific hardship options can vary and depend on the individual borrower’s situation and are subject to review by the Upstart Customer Support team.

• More lender details

  • Contact options: Email and phone.

  • Availability: Customer service is available seven days a week: Mon-Fri 6 a.m.-5 p.m. PT and Sat-Sun 9 a.m.- 5 p.m. PT.

  • Online resources: Provides educational articles about auto refinancing, as well as a payment calculator which helps borrowers estimate their monthly car payments.

Upstart may be a good fit for those who:

• Have a thin credit history: Upstart uses factors beyond credit history, like level of education and occupation, to make a decision.

• Want to compare rates and terms: Upstart requests offers from its lending partners and determines the best lender match. Within minutes of submitting their information, applicants see multiple offers with various terms or rates from a single lender.

Do you qualify for an Upstart auto loan?

Here are Upstart's basic eligibility requirements to apply for an auto loan:

• Must live in the U.S.

• Must be at least 18 years or older.

Here are Upstart’s minimum borrower requirements to qualify for an auto loan. Note that meeting these requirements doesn’t guarantee approval. However, since aggregators work with a network of various lenders, some may be more flexible with minimum requirements when considering an applicant's total financial picture.

• Minimum credit score: None.

• Minimum credit history: None.

• Maximum debt-to-income ratio: Did not disclose.

• Minimum annual income: $12,000.

Before you apply

Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.

Figure what monthly payment you can afford. Use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price.

Gather your documents. Upstart requires the following to submit an initial application: Address, phone, email, birthdate, employment status, employer name, income and other savings information, including checking and savings accounts and investment accounts.

» MORE: Compare auto loan refinancing lenders

How to apply for an Upstart auto loan

1. Pre-qualify online. Applicants can pre-qualify for a loan on Upstart’s website. During the pre-qualification process, potential borrowers are asked to provide personal information like their name, phone number, address, education and income. They’ll also be asked to create an account with Upstart with an email and password. Pre-qualified offers will include multiple loan terms and rate estimates from more than one of Upstart’s lending partners. Pre-qualifying does not affect an applicant’s credit scores.

2. Make a loan decision. If an applicant accepts a loan offer, the lender will perform a hard credit check. A hard credit inquiry slightly lowers your credit scores, but only temporarily. Applicants will also be asked to confirm their personal, vehicle and current loan details at this point in the application process. Note that Upstart will automatically pull applicants’ vehicle and loan details like VIN or license plate and existing loan information. After loan approval from a matched lender, Upstart handles the title transfer and disbursement of funds to the borrower, the dealership or the prior lender.

3. Stay on top of your loan payments. Upstart’s lending partners report car payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments, if available, is a good way to make sure your payments arrive by the due date.

How auto loan rates work and how we collect them

The auto loan APR range NerdWallet displays is provided by the aggregator. We make every attempt to keep rates updated, by sending out bimonthly rate surveys and encouraging aggregators to send us updates when rates change. We also compare these rates to APRs on the aggregator's website, if available. The accuracy of our rates depends on the information aggregators provide to us. It’s always a good idea to check average auto loan interest rates, and compare to similar aggregators or lenders, to determine if the provided rate seems realistic.

We ask aggregators to provide the lowest rate among their lending partners without including any potential rate discounts. We also ask that the provided rate be one that at least 10% of applicants applying for the lowest rate have qualified for in the previous three months. The lowest rates shown are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above).

We also ask aggregators for the highest rate among their lending partners, which typically reflects rates available to borrowers with fair or bad credit (a FICO score in the mid-600s or below). The highest interest rates result in higher monthly payments and more total interest paid.

Actual rates received by this aggregator’s auto loan borrowers may be different from the rates shown in this review.

How do we review auto loan aggregators?

NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

Because aggregators are not the actual lender and servicing of the loan passes to the lender in most cases, NerdWallet focuses most heavily on the front end of the loan process. This includes level of service/support and transparency, with less focus on the actual loan product. In all, our survey for aggregators includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.

To receive a star rating, an aggregator must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).