Overview
To be eligible for a loan, applicants must meet certain minimum credit requirements. While specific criteria may vary based on the loan product, lenders evaluate several factors, including credit score, credit history, and debt-to-income ratio to determine eligibility.
Credit Score Considerations
Applicants must have a minimum credit score as determined by underwriting guidelines.
Some applicants with limited credit history may still qualify based on other financial factors.
The credit score retrieved by the lender may differ from what is reported by personal credit monitoring services, as different bureaus and scoring models may be used.
Education as a Factor in Loan Eligibility
Unlike traditional lenders, Upstart incorporates educational background as part of its loan evaluation process. This unique approach helps expand access to credit by considering factors such as:
✔ Highest level of education completed
✔ Field of study
✔ School attended
✔ Employment history and earning potential
By factoring in education, Upstart is able to assess creditworthiness beyond just a traditional credit score, helping borrowers with strong academic backgrounds but limited credit history gain access to financing.
📌Important: Neither Upstart nor its lending partners have a minimum educational attainment requirement in order to be eligible for a loan.
Credit History Factors
Lenders may review the following credit history elements when evaluating loan applications:
✔ No recent bankruptcies or unpaid public records within the last 3 years
✔ No delinquent accounts or loans currently in default
✔ A reasonable number of recent credit inquiries (excessive inquiries may impact eligibility)
✔ A balanced debt-to-income ratio (DTI), ensuring that existing debt obligations are manageable relative to income
Material Adverse Changes & Loan Approval
Between the time a loan offer is received and the loan is funded, lenders may verify the applicant’s credit history to ensure there are no material adverse changes, such as:
A significant drop in credit score
An increase in outstanding debt
New delinquencies or collections appearing on the credit report
If an adverse change is identified, loan approval may be reconsidered.
What If You Believe There’s an Error on Your Credit Report?
If you suspect inaccurate or outdated information is affecting your loan eligibility, you can dispute errors directly with the credit bureaus.
To contact TransUnion for credit report corrections:
Mailing Address: P.O. Box 2000, Chester, PA 19022
Phone Number: 1-800-916-8800
Next Steps
If you do not meet the minimum credit requirements at this time, you may consider taking steps to improve your credit score before reapplying. This can include making on-time payments, reducing existing debt, and checking your credit report for errors.
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