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Pros and cons of Upstart auto loan refinancing
Upstart auto refinancing
Pros & Cons
How Upstart auto refinancing works
Upstart offers auto loan refinancing to qualified borrowers, but doesn’t originate new loans. Loan terms range from 24 to 84 months. You aren’t able to refinance your car loan in Iowa, Maryland, Nevada, or West Virginia. The car you’re looking to refinance will need to meet several requirements. It must:
- Be fewer than 10 years old
- Have fewer than 140,000 miles
- Not be registered as commercial or be used for commercial purposes
- Not have second liens or open insurance claims
- Not have a salvage title or be stolen
- Have a current loan balance of $9,000 to $60,000
- Have initiated your current loan at least 1 month ago
You’ll need a minimum credit score of 510 to qualify for an Upstart refinanced loan. Keep in mind that the best rates are likely to go to borrowers who have great credit scores.
If you don’t have enough information to produce a credit score, Upstart will still consider you. It will base its lending decision on other factors like your education and employment.
The company will base your loan amount on your credit, income, the balance of your current auto loan, and other relevant information in your loan application. The minimum loan amount is $9,000, while the maximum is $60,000 ($50,000 for New Jersey residents). Not all borrowers will qualify for the maximum loan amount.
You don’t have to make a down payment and there’s no prepayment penalty. The approval process will likely take one to two weeks.
Customers who qualify for a lower rate with Upstart save $249 on average, according to Upstart data from April 1 through June 30. The average five-year loan offered on Upstart has an APR of 13.25%.
Is Upstart trustworthy?
Upstart is a Better Business Bureau-accredited company, and the BBB, non-profit organization focused on consumer protection and trust, gives the company a A+ rating. The BBB rates companies by looking at a business’ responses to customer complaints, truthfulness in advertising, and openness about business practices.
Upstart does not have any recent controversies. Due to its top-notch history and great BBB rating, you may want to use Upstart to refinance your auto loan.
However, BBB scores don’t ensure you’ll have a positive relationship with the company and are simply a starting point for your search for a place to refinance your auto loans.
How Upstart auto refinancing compares
Upstart auto loan comparison
2.25% — 29.99%
New: Starts at 3.79%, Used: Starts at 3.99%, Refinance/Lease Buyout: Starts at 4.89%
New: Starting at 2.99%, Used/Refinance/Lease Buyout: Unspecified
Bank of America and Capital One’s auto loan options don’t beat the starting interest rates available through Upstart for most buyers with good or better credit scores. Upstart may also be a good option for anyone with bad credit, as it makes loans to people with FICO credit scores as low as 510. Capital One also considers borrowers with poor credit scores. Bank of America doesn’t have a minimum credit score it considers, so it may still be worth applying even if yours is low.
Upstart only offers refinancing loans, while Bank of America and Capital One also offer new loans, lease buyouts, and used car loans. If you’re looking to do something other than refinance, you’ll need to choose a different lender than Upstart.