Upstart is an American lending platform founded in April 2012 by Dave Girouard, Anna Counselman and Paul Gu. It is not a bank: it connects consumers to more than 100 banks and credit unions that use its AI models to assess applications and make loans.
How the model differs from a bank
A lender using Upstart receives an application scored by Upstart’s software, which draws on a large number of data points, including education and employment as well as conventional credit information. Profiles of the company say it considers about 1,600 variables. The pitch is that approving more applicants who would be refused on credit score alone can still be profitable.
Founders
Girouard previously served as president of Google’s enterprise business, Counselman worked on Google’s enterprise customer programmes and Gmail operations, and Gu was a Thiel Fellow.
Public company
Upstart listed on the stock market on 16 December 2020, raising US$240 million in its initial public offering. As a listed company it publishes quarterly reports with its loan volumes and risks, which are better sources than marketing pages.
If you apply
- Checking your rate normally uses a soft credit inquiry; accepting an offer triggers a hard one. Confirm this in the application disclosures.
- The lender named in the offer, not Upstart, holds the loan terms.
- Look at the annual percentage rate and any origination fee, not just the monthly payment.
What we could not verify
We did not apply for a loan. Model details are from company interviews and press coverage, and the lender terms differ per offer.
