Does Upstart Really Affect Your Credit Score?

Upstart runs a soft credit check when you enter basic details for prequalification, so your credit score stays untouched during that initial browse; however, once you click "Apply" and submit the full application-including personal information, income, and employment data-a hard credit pull is performed, which appears as a hard inquiry on your credit report and may lower your score by a few points for up to one year. The hard pull only occurs after you've decided to move forward with the loan request, not during the casual browsing phase, and its impact is typically temporary-most scoring models treat a single hard inquiry as a minor factor unless you accumulate multiple pulls in a short period.

If the lender denies your application, the hard pull remains on your record, but no further credit activity (such as a funded loan) will follow; conversely, if the loan is approved and funded, the initial hard pull effect stays the same, while subsequent behavior-on-time payments, missed payments, or adding a co-borrower-will influence your credit score over the longer term.

Upstart's first interaction with your credit is a soft pre-qualification check, which lets the platform estimate whether you might qualify without affecting your credit score. Only when you move past that stage and click "Apply" does Upstart perform a hard credit pull, the same type of inquiry that traditional lenders use and that can cause a temporary dip in your credit score.

1. Soft pre-qualification - You enter basic information (income, employment, loan purpose) on the website or app. Upstart uses the data to run a soft credit check, which is invisible to credit bureaus and leaves your credit score unchanged.
2. Hard pull at application - After you confirm you want to proceed, Upstart submits a full application that includes a hard credit pull. This inquiry is recorded on your credit report and may lower your score by a few points for up to 12 months.
3. No further pulls unless you reapply - If you are denied or decide not to continue, Upstart will not perform additional hard pulls unless you submit a new application at a later time.

When you click "Apply" with Upstart, the platform runs a hard credit pull-an official credit check that lands on your credit report. Most major bureaus treat this the same way they treat any other loan application, so you can expect a modest, temporary dip in your credit score, typically in the range of five to ten points. The exact impact depends on how many recent inquiries you already have, the overall depth of your credit file, and the scoring model used by the bureau. This drop shows up immediately on your score, but it usually fades within 12 months as the inquiry ages out of the "recent" category.

After the hard pull, the rest of the score's trajectory hinges on what follows the application. If your application is denied, the only lasting effect is the initial inquiry; no new account is opened, so there's no additional risk to your credit. If you receive a funded loan, the new account will appear on your report, and its influence will be felt over the next several years-positive payment history can boost your score, while missed payments will drag it down. Adding a co-borrower introduces their credit history into the mix, meaning both parties share any future score changes tied to the loan's performance.

Prequalification at Upstart is a quick, online check that uses the information you type in-such as income, employment status, and a partial Social Security number-to match you against their underwriting model. This step does not trigger a hard credit pull; instead, Upstart runs a soft inquiry that leaves your credit score exactly as it was. The purpose is simply to tell you whether you're likely to qualify for a loan and what range of rates you might see, without any impact on your credit report.

Because no hard credit pull occurs, you can explore eligibility without worrying about a score dip. For instance, if you enter a $15,000 loan request and your profile fits Upstart's criteria, you'll receive a prequalification estimate while your score stays untouched. Conversely, if the data you provide suggests higher risk-perhaps due to a high debt-to-income ratio-you'll see a denial message, again without a hard pull. Only when you click "Apply Now" and submit a full application does Upstart perform a hard credit check, which may cause a small, temporary dip in your credit score.

When you submit a full Upstart application, the lender performs a hard credit pull. Most credit-scoring models treat a single hard pull as a modest, temporary dip-typically 5 points or fewer-and it usually fades within 12 months. The impact is similar whether the loan is later funded, denied, or you walk away; the pull itself is what creates the short-term change.

If you apply multiple times in a short period, each hard pull adds its own small reduction, and the cumulative effect can become more noticeable. Credit scoring models also consider "shopping" behavior: several inquiries for the same type of loan within a 14-day window are often grouped together and counted as one, but spaced-out attempts will stack.

Typical range of score changes from one Upstart application

• 0-5 points decrease immediately after the hard credit pull
• Effect generally drops off after 6-12 months, assuming no other activity
• No additional impact if you later receive a prequalification (soft check only)

Remember, the hard pull is separate from any later score changes that arise from missed payments, funded loans, or adding a co-borrower.

If your application triggers a hard credit pull, the resulting credit check may lower your credit score by a few points for up to a year-just like any other lender's inquiry. The impact is usually modest and appears on your report as a single "inquiry," so it won't compound unless you submit multiple full applications in a short period. If you're only prequalified, Upstart uses a soft pull that leaves your credit score untouched; the hard pull only occurs once you move past prequalification and submit the full application.

A denial itself doesn't affect your credit score beyond the initial hard pull, but it does give you useful information about why you weren't approved-often related to debt-to-income ratios or missing a co-borrower requirement. Use that feedback to address any underlying issues before re-applying, because another hard pull will create an additional small dip. Remember, the real credit risk comes later: if you eventually secure a funded loan and miss a missed payment, that delinquency can cause a much larger and longer-lasting drop than the original inquiry.

A funded loan can become a credit-building tool if you treat it like any other installment account. Once the money is disbursed, the loan appears on your credit report as an active line of credit, and each on-time payment adds a positive mark to your payment history. Over time, the consistent record of timely repayments can offset older negative items, potentially nudging your credit score upward by a few points. Moreover, having a successfully completed loan demonstrates to future lenders that you can manage debt responsibly, which may smooth the prequalification process for mortgages, auto loans, or other larger credit needs.

Conversely, a funded loan can also become a liability that drags your credit score down. The moment the loan is funded, the total amount of debt you owe rises, which may increase your credit utilization ratio and lower your score, especially if you already carry high balances elsewhere. Any missed payment-or even a payment that arrives just a day late-registers as a delinquency and can cause a sharp drop in your credit score, sometimes erasing months of prior good behavior. If you add a co-borrower, their credit profile is linked to the same account; their missed payments or defaults will affect both of your scores. Finally, should you seek another loan while the first is still outstanding, the new hard credit pull combined with existing debt may lead to denial or higher interest rates.

Missing an Upstart payment triggers the same cascade of events you’d see with any other installment loan. The first missed payment (usually 30 days past due) will be reported to the major credit bureaus, and that “missed payment” notation can lower your credit score by several points, depending on your overall credit profile. Upstart will also assess a late fee, and the account may move into a collection status if the delinquency persists.

• Immediate consequences: Late fee added to the balance; notification via email or app; possible phone call from Upstart’s collections team.
• Credit reporting: After 30 days past due, the missed payment is recorded on your credit report; each additional 30-day increment (60, 90 days) compounds the negative impact.
• Future borrowing: A delinquent Upstart loan can make lenders view you as higher risk, potentially leading to higher interest rates or denial on new applications.
• Recovery options: Paying the overdue amount (including any fees) before the next reporting date can halt further damage; some lenders may remove the late mark after a full repayment, but this is not guaranteed.

If you’re already behind, act quickly. Contact Upnext’s support to discuss a payment plan or hardship assistance; many borrowers find that arranging a short-term repayment schedule stops the account from slipping into collection and limits additional credit-score harm. Timely remediation is the most effective way to protect your credit score after a missed Upstart payment.

When you adda co-borrower to an Upstart loan, the lender runs a separate hard credit pull on that person's credit file, just as it did for the primary applicant. This means the co-borrower will see the same temporary dip in their credit score that occurs after any hard pull, typically less than five points, and the inquiry will appear on both of their credit reports.

The impact of the co-borrower's involvement shows up in three practical ways:

• The co-borrower's credit check is logged as a hard pull, so their credit score may dip briefly;
• Both borrowers' credit scores are considered during underwriting, so a strong co-borrower can offset a weaker primary score and increase the chance of approval;
• If the loan is funded, any missed payment thereafter will affect both the primary borrower's and the co-borrower's credit scores, because payment history is shared across the joint account.

If the application is denied before a loan is funded, only the hard pull from the credit check affects the co-borrower's score-there is no ongoing impact. Once a loan is funded, however, responsible repayment can help both scores over time, while delinquency or default will drag them down equally. Keeping both parties aware of these dynamics helps avoid surprise drops in credit health later on.