Can you refinance a personal loan through Upstart?

It takes as little as one business day to get money from a personal loan through Upstart, according to the company. Additionally, most applicants are instantly approved, but there will be a hard credit inquiry performed for final approval. Keep in mind that this is a typical applicant's experience and in some cases it could take longer.… read full answer

How to Get Money From Upstart as Fast as Possible

• Fill out the application carefully. You should make sure that all information you enter on the application is correct and complete. That will eliminate any potential delays from Upstart having to request additional information.
• Check your credit report for errors. Before you apply, you should verify that everything on your credit report is accurate, as any incorrect negatives on there could impact your chances of approval. If you find any errors, you should dispute them right away to get them removed.
• Raise your credit score. There is no minimum credit score requirement to get a personal loan through Upstart. Having a high credit score will make it easier for the company to decide if you qualify and what your rates may be, though.

Once you get approved for a personal loan through Upstart, the money will be delivered through an electronic funds transfer to your bank account.

If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.

The majority of borrowers on the Upstart platform are able to complete the application process automatically without providing additional supporting documents. Final approval is conditioned upon passing the hard credit inquiry.

It is good to refinance a personal loan if you can get a significantly lower APR because it will save you a lot of money on interest in the long run. Other things that determine whether it’s a good idea to refinance a personal loan include what fees you’ll have to pay and how good your credit score is. Both will affect your ability to save money, which is the point of refinancing.… read full answer

When you refinance a personal loan, you borrow money and use it to pay off the loan, moving what you owe to the new lender. And before you borrow, you should go through a quick checklist to make sure that refinancing is worth your while.

When It’s Good to Refinance a Personal Loan

• When you can get a significantly lower APR. The main purpose of refinancing a loan is to save money on interest. You’re in the best position to get a lower APR if your credit and/or income have improved significantly since you took out the first loan.
• When the fees don’t wipe out your savings. Getting a lower APR is great, but the benefits can be diminished if you have to pay a lot of expensive fees. For example, a big origination fee could defeat the purpose of saving money on your APR.
• When you’re not about to make a big purchase. You want the best credit score possible before buying a car, a house or anything else that requires a credit check. Refinancing a loan right before doing that will drop your score by a few points, which could hurt your approval chances and rates.

In conclusion, it’s good to refinance a personal loan as long as it will save you money and won’t negatively impact your other financial priorities.

Refinancing a personal loan does hurt your credit but only a small amount and only in the short term. Since refinancing a personal loan involves taking out a new debt to pay off the old one, the hard pull triggered by your application will cause a drop in your credit score.… read full answer

There are a few other ways refinancing a loan can temporarily impact your credit score, too. You can learn more below, and if you want to estimate how refinancing a personal loan might hurt or help your credit in particular, you can use WalletHub's free credit score simulator tool.

Ways Refinancing a Personal Loan Can Hurt Your Credit

Hard Inquiry

The hard credit inquiry that occurs when you apply for a new loan or balance transfer credit card will cause a small, temporary decrease in your credit score.

Increased Debt Level From Fees

If you refinance using a new loan with an origination fee or a credit card with a balance transfer fee, you will have a slightly increased debt level, which can have a small negative impact on your credit score.

Reduced Account Age

Refinancing a personal loan can decrease the average age of your accounts (older is better for your credit score).

You should be able to bounce back from the credit score drop associated with refinancing a personal loan after several months of on-time payments.

Other Key Things to Know About Refinancing & Credit

Since refinancing a personal loan will hurt your credit temporarily, it's best to avoid doing it right before you're going to make a big financial commitment that requires a credit pull, like buying a car or a house. But if you're not in that situation, refinancing can be a huge help not only to your credit, but also to your finances overall.

When you refinance a personal loan, you move the debt to another lender with a lower interest rate. That helps you pay off the loan sooner and thus get debt-free faster, which is fantastic for your credit. In addition, having a lower interest rate makes it easier to ensure that your payments are on time, which is vital for improving your credit score. Plus, if you use a single loan or credit card to refinance multiple personal loans, the fact that you'll have fewer open accounts with balances can give your score a boost.