Upstart Raises An Additional $32 Million in Funding

Upstart Raises An Additional $32 Million in Funding

March 8, 2017         Written By Lynn Oldshue

Upstart, a lending company that focuses on Millennials, has raised another $32 million in funding, which brings their total funding to $85 million. The company focuses on providing loans to those who may not have a traditional credit history and corresponding score.

The company plans to use this latest investment to expand their marketing to banks, credit unions and retailers so these organizations can extend credit to a larger body of individuals as well. Upstart uses a “machine-learning-based system” so banks can approve more people and offer consumers lower default rates.

Upstart is one of a few companies trying to find new ways to determine whether a loan applicant is a good risk for a bank. Recently, the CFPB has recognized how difficult it is for those with limited or no credit history to get a loan. Millennials are particularly at risk, as they may not have an extensive credit history.

Dave Girouard, CEO of Upstart, told TechCrunch that the company primarily markets to Millennials. “Our average borrower is 28. The most common use of [our loans] is to pay credit card debt, though it’s really a personal loan that you can use for anything.”

While the company charges between 4.96% and 29.99% APR, Girouard said the average borrower pays 12% on a fixed-term loan. The company has loaned more than $650 million in its first three years of business, and hopes to lend $1 billion this year.

The information contained within this article was accurate as of March 8, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back