How Upstart Loan Payments Work and What Happens If You Miss One
What Upstart payments are and how they're set up
Upstart is an online lender that offers personal loans and lines of credit. When you receive an Upstart loan, your monthly payment amount is set at the time you accept the loan terms — it does not change unless you refinance or modify the loan. The payment covers both principal (the money you borrowed) and interest (what Upstart charges for lending it).
Upstart payments are typically withdrawn from your bank account on the same day each month, usually through ACH transfer (an electronic bank-to-bank pull). You choose the withdrawal date when you set up your loan, and you can change it later through your Upstart account dashboard. If you want to pay early or pay a lump sum, you can log in and make an extra payment at any time without penalty.
Your first payment may be due 30 days after you receive the loan funds, though this timing depends on your specific loan agreement. Check your loan documents or your account dashboard to see your exact payment schedule and due date.
Key Takeaways
- Upstart withdraws your monthly payment by ACH on a date you choose, and you can change that date anytime through your account.
- If you miss a payment, Upstart typically reports it to credit bureaus after 30 days, which will lower your credit score.
- Late fees vary by state and loan agreement, so check your loan documents to see what Upstart charges if you pay late.
- If you cannot make a payment, contact Upstart before the due date to discuss options like a payment plan or temporary pause.
- Paying early or making extra payments reduces the total interest you pay and shortens your loan term, with no prepayment penalty.
How to set up and manage your payment method
When you first receive your Upstart loan, you will link a bank account for automatic withdrawals. Upstart accepts checking and savings accounts and uses ACH, which means the money is pulled directly from your bank on your chosen date each month. You do not need to do anything after setup — the payment happens automatically.
To change your payment date, log into your Upstart account, go to the loan details section, and select a new withdrawal date. You can move your due date to any day of the month, which is useful if your paycheck arrives on a different schedule. If you want to make a one-time extra payment or pay off the loan early, you can do that through the same dashboard without affecting your regular monthly payment.
If your bank account changes or you want to use a different account, update it in your account settings before your next payment is due. If Upstart tries to withdraw from a closed or invalid account, the payment will fail and you will be treated as late, so update your information as soon as your banking situation changes.
What happens if you miss or are late on a payment
If your payment does not go through on the due date, Upstart considers it late immediately. The consequences depend on how long the payment stays unpaid. After 30 days late, Upstart reports the missed payment to the three major credit bureaus (Equifax, Experian, and TransUnion), which will lower your credit score. The damage to your score is usually largest in the first 30 days and continues to affect your score for up to seven years.
Upstart also charges a late fee if you do not pay by the due date. The amount varies by state and by your loan agreement — some states cap late fees at a percentage of your payment (often 5 percent), while others allow a flat fee. Check your loan documents or call Upstart to find out what late fee applies to you. If you are more than 60 days late, Upstart may attempt to collect the debt through phone calls, emails, or letters.
If you are 120 days (about four months) late, Upstart may send your account to a debt collection agency or pursue legal action, depending on your state and the loan amount. At that point, a collector may contact you, and Upstart may file a lawsuit to recover the debt. A judgment against you can lead to wage garnishment or bank account levies in some states.
Options if you cannot make a payment
If you know you will miss a payment, contact Upstart before the due date. Upstart does not publicly advertise a formal hardship program the way some banks do, but the company may work with you on a case-by-case basis. Call the customer service number on your loan statement or log into your account to see if there is a payment assistance option available.
Some borrowers have reported that Upstart will pause a payment for one month or allow you to skip a payment if you explain your situation. However, this is not may provide, and skipped payments typically extend your loan term (meaning you pay interest for longer). Ask Upstart specifically what will happen to your interest and loan end date if you skip or defer a payment.
If Upstart cannot help, look into whether you may have access to for a personal loan hardship program through a nonprofit credit counselor. The National Foundation for Credit Counseling (NFCC) offers free or low-cost counseling and may be able to negotiate with Upstart on your behalf. You can find a counselor at nfcc.org or by calling 1-800-388-2227.
How interest and principal are split in your payment
Each monthly payment you make goes toward both interest and principal, but the split changes over time. Early in your loan, most of your payment covers interest; as you pay down the loan, more of each payment goes toward principal. This is called amortization, and it is how most installment loans work.
For example, if you borrowed $5,000 at a high interest rate, your first payment might be $150, with $120 going to interest and only $30 to principal. By payment 50, that same $150 might split as $50 interest and $100 principal. You can see the exact breakdown for each payment in your Upstart account or by requesting an amortization schedule.
If you make an extra payment or pay off the loan early, you skip months of interest charges and reduce the total amount you pay. Upstart does not charge a prepayment penalty, so there is no downside to paying faster if you have the money.
Upstart payment and your credit score
On-time Upstart payments help your credit score because payment history makes up about 35 percent of most credit scores. Each month you pay on time, Upstart reports that to the credit bureaus, and it counts as a positive mark. Over time, a record of on-time payments raises your score.
A missed payment, by contrast, damages your score as soon as it is reported (usually after 30 days late). The impact is largest immediately after the miss and gradually fades over time, but it stays on your credit report for seven years. This means a single missed payment can affect your ability to get a mortgage, car loan, or credit card for years.
If you have already missed a payment and it was reported, paying it off now will stop further damage, but it will not erase the missed payment from your report. The best strategy is to avoid missing payments in the first place by setting up automatic withdrawal and keeping your bank account funded.
Paying off your Upstart loan early
You can pay off your Upstart loan at any time without a prepayment penalty. To do so, log into your account and look for a "pay off" or "payoff quote" option, which will show you the exact amount needed to close the loan as of a specific date. The payoff amount includes any interest accrued up to that date but no future interest.
Once you know the payoff amount, you can make a one-time payment through your account dashboard or by phone. After the payment clears, your loan is closed and you stop making monthly payments. You will receive a confirmation from Upstart, and the closed account will remain on your credit report as a positive mark (a paid-off loan in good standing).
Paying off early saves you money on interest and frees up your monthly budget. However, if you are struggling financially, paying a large lump sum might not be realistic. In that case, focus on making your regular monthly payments on time and paying extra when you can afford it.
Frequently Asked Questions
Can I change my payment due date?
Yes. Log into your Upstart account, find your loan details, and select a new payment date. You can choose any day of the month. The change usually takes effect on your next payment cycle, so make the change at least a few days before your current due date to avoid a missed payment.
What if my bank account is closed or invalid when Upstart tries to withdraw?
The payment will fail and you will be marked late, even though it was not your fault. Update your bank account information in your Upstart account as soon as possible, then contact Upstart customer service to explain what happened. They may reverse the late fee or late report if you update your account quickly and make the payment right away.
Does Upstart charge interest if I pay early?
No. Upstart does not charge a prepayment penalty, and paying early actually saves you money because you avoid future interest charges. Your payoff amount is calculated based on the date you pay, so the sooner you pay, the less total interest you owe.
How long does it take for a missed payment to show up on my credit report?
Upstart typically reports missed payments to credit bureaus after 30 days late. However, the damage to your score can begin as soon as the payment is late, depending on how your credit monitoring works. The best approach is to pay on time every month and contact Upstart immediately if you think a payment will be late.
Can Upstart garnish my wages if I do not pay?
Upstart can pursue wage garnishment only after obtaining a court judgment against you, which requires a lawsuit. This typically happens after you are several months behind. If you receive a lawsuit notice, respond to it and contact a legal aid organization or attorney in your state, as garnishment laws vary by location.