Upstart is a relatively new player in the marketplace lending industry and was founded in 2012. Since they began originating loans in May 2014, they have issued over $100 million across 7,000 loans, which makes them one of the up and comers in this industry. They focus on borrowers who are millennials that tend to have a thinner credit file, but might be otherwise a good candidate for a loan.
They look at other aspects beyond traditional credit data such as employability, earning potential and education. Nearly 97% of borrowers from Upstart are college graduates and 71% of them select refinancing credit cards as the purpose of the loan. The average income is near $100,000 and the average FICO is 692. In this post, we’ll focus on the investor side of the equation and take a look at the investor portal and metrics offered by Upstart.
To invest with Upstart, you must be an accredited investor. This means a net worth of $1 million, excluding your home or an income of $200,000 or more in the last two years. Since you must be an accredited investor, they are open for investing in all states as they only are subject to federal securities regulations. [Read more…]