When I was in college, credit card companies paid me in cash, $2 bills to be exact, to apply for their credit cards.
I had no income, except for my measly wages from my work-study job at the library, and was racking up an impressive student debt load.
Why would a credit card company risk giving a credit card to a broke kid like me? Here’s why. By my late 20s, those stupid credit cards were still in my wallet, carrying hefty balances. I was struggling to make ends meet, using credit cards to pay for things I couldn’t afford, like a transmission for my car.
But what I could afford was my payment. I was on time every month, yet making no progress paying down my balance. Shocker. Turns out, those credit card companies didn’t want me to pay off my debt. My interest payments were too valuable to them. So, it took me well into my 30s to pay them off. My story is no different than most.
The average American holds a credit card balance of $6,354. And considering the rising cost of living, high student loan balances, and other life obstacles, paying off credit card debt feels impossible. Upstart makes paying off your credit cards possible.
Upstart, started by former Google execs, is tipping the borrowing biz on its side. Using artificial intelligence and machine learning (because, ex-Googlers), they get folks qualified for loans quickly using unconventional methods that totally make sense.
So, they take things like your education and employment history into consideration. Just like credit card companies bank on college students to dig themselves into debt, Upstart is placing winning bets on your bright future.
Applying for a debt consolidation loan with Upstart to pay off your credit cards once and for all is really easy.
Here’s how Upstart works.
To get started with Upstart, just fill out a quick form. They’ll ask things like:
- How much you want to borrow
- Purpose of the loan
- Personal information
- Education
- Sources of income
- How much you have in savings
- And in just five minutes, you’ll be able to view your offers from lenders.
- Minimum requirements
To qualify for a loan, you will need to meet these minimum requirements:
- FICO or Vantage credit score of at least 620
- No credit history
- Annual income of $12,000
- No bankruptcies or delinquent loans, and less than 6 inquiries on your credit report Loan details
If approved, here’s what you can expect to receive:
- A loan, ranging from $1,000-$50,000
- Approval in as little as a day, up to 3 days for education loans
- APR of 7.46%-35.99% (Upstart claims an average APR of 14.86%, credit card APRs can range from 19-30%)
- 3- and 5-year terms
- No prepayment penalty
- 5% late fees, or $15, whichever is greater
- One-time origination fee of 0-8%
How much money can you save?
On a 3-year Upstart debt consolidation loan of $10,000 with 14.86% APR, vs. credit card APR of 22%, you can save over $2,100 over the life of the loan. See for yourself. Upstart has a cool loan calculator that lays it all out for you, based on your current situation.
Don’t make the same mistake I did.
Let my story be a cautionary tale. What not to do. I paid my credit card balances off slowly, painfully, and expensively—and at the mercy of the credit card companies.
But you’re smarter than that. And so is Upstart. Check out Upstart’s debt consolidation loans to see if you qualify to start paying off your credit card debt as early as tomorrow.
Related Story: What Happens To Your Mortgage After You Die?