Yes, you can pay off an Upstart loan early. Upstart does not charge a prepayment penalty, so you can clear the balance at any point in the loan term without extra fees.1Upstart. How to Pay Off Loans Faster and Save Money Because Upstart loans use simple interest that accrues daily on the outstanding principal, every day you shave off the schedule is a day of interest you don’t pay.2Upstart. Understanding Loan Terms: APR, Principal, and Interest Explained The earlier in the term you pay off, the more you save.
Get Your Exact Payoff Amount First
Your payoff amount is not the same number as your most recent statement balance. The statement shows what you owed on the date it was generated; the payoff figure includes outstanding principal plus interest accrued since then, calculated to the day you plan to pay.
To pull the current figure, log into your Upstart dashboard, open the Payoff Progress section, and click “Payoff details.” The dashboard shows your total payoff as of today, including accrued interest and any unpaid fees.3Upstart. How to Calculate Your Loan Payoff Amount
Because interest accrues daily, that number ticks up a little every day. If you look up the payoff on Monday and send payment the following week, the amount will be slightly higher when it arrives. Using a stale figure can leave a few dollars behind, which keeps the account open and keeps interest running.
How to Submit the Payoff
Upstart accepts payoff payments through several channels:4Upstart. Loan Repayment Options
- Online: Log in, click “Make a Payment,” choose the full payoff amount instead of your regular installment, confirm your linked bank account, and submit.
- Phone: Call your loan servicer and pay through the phone menu or with a representative.
- Check: Mail a check to the address in your dashboard under “Pay by Check,” with your account number in the memo field.
- Bank bill pay: Use your bank’s bill pay feature, but send it to the check payment address from your dashboard, since many banks mail a physical check for bill pay.
Online and phone payments run through ACH and typically settle the next banking day, though your bank may take another day or two to reflect the transaction.5Federal Reserve Financial Services. FedACH Processing Schedule A mailed check needs seven to ten business days for transit and processing.3Upstart. How to Calculate Your Loan Payoff Amount Interest keeps accruing during that window, so if you’re mailing a check, pad your payoff amount slightly to cover the extra days.
What You Won’t Get Back
The origination fee is deducted from your loan proceeds upfront and baked into your APR. Paying early does not refund that fee. What you save by paying early is future interest.
Upstart notes that early payoff can result in a partial refund of your total finance charge.6Upstart. Short-term Loans Online — Fast Relief Funding The finance charge is the full cost of the loan, interest plus origination fee combined. Since you stop accruing interest once the principal is gone, the finance charge lands lower than the schedule originally projected.
Extra Payments Without Paying in Full
If a full payoff isn’t realistic right now, you can still send extra payments any time to reduce the principal faster.7Upstart. Making Additional or One-Time Loan Payments Three things to know about how those payments work:
- Extra payments shorten the loan term, so you finish sooner.
- They do not reduce your regular monthly payment amount.
- They do not let you skip or defer a future scheduled payment.8Upstart. How to Pay Off Your Loan
Even after a large lump-sum payment that covers several months of principal, your next monthly installment is still due on its normal date.
After the Loan Is Paid Off
If you use autopay, the next scheduled automatic payment is canceled once the payoff processes; you don’t need to turn autopay off yourself, and your dashboard updates to show the loan paid in full.8Upstart. How to Pay Off Your Loan
If you send more than the remaining balance, Upstart refunds the overpayment automatically. Refunds are initiated about 30 calendar days after the loan is fully paid off. Electronic refunds arrive in two to three business days, and paper checks take five to seven business days. The refund goes to the bank account on file; if there isn’t one, Upstart mails a check to your address. You can contact the servicing team to request a different method.9Upstart. Paying Off Your Loan: What if You Send Too Much
Credit Score Effects
Paying off a personal loan early is generally a positive move, but it can cause a small, temporary dip in your credit score. Closing the loan removes an active installment account from your profile, which reduces your credit mix. If the loan was fairly new, closing it also shortens the average age of your accounts.
These effects are usually minor and short-lived. Your on-time payment history on the loan stays on your credit report for years and keeps helping your score, and if you’ve been paying on time all along, your score has likely already benefited during the life of the loan.10Upstart. Frequently Asked Questions About Personal Loans For most borrowers, the interest saved by paying off early outweighs any small credit score effect.