The Upstart model approves 46% more Hispanic borrowers than a credit score only model.²
It also offers APR’s that are 25% lower than a credit score only model.²
The Upstart model approves 43% more Black borrowers than a credit score only model.²
It also offers APR’s that are 24% lower than a credit score only model.²
Compared to dv01’s Unsecured Industry Benchmark³, we offer:
more loans to borrowers with income <$50k
lower rates to borrowers with FICO scores <660
¹ Based on loans originated on the Upstart platform from January 2017 to March 2023. LMI categorization is based on comparing median income in customers’ ZIP code vs median income within the MSA of that ZIP code.
² As of December 31, 2021, and based on a comparison between the Upstart model and a credit-score only model. The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical traditional model used in Upstart’s analysis was developed in connection with the CFPB No Action Letter access-to-credit testing program and was built from a credit score only model trained on Upstart platform data. APR was averaged for each demographic given credit score grouping.
³ In an internal study, Upstart compared data on loans facilitated through the Upstart platform to data on loans originated by other consumer lenders in DV01’s Consumer Unsecured Benchmark group. The study considered loans originated during the period from Q1 2021 to Q4 2022.