You can pay off an Upstart loan early at any time, and Upstart does not charge a prepayment penalty for doing so.1Upstart. How to Pay Off Loans Faster and Save Money Because the loan uses simple interest that accrues daily, ending the loan sooner cuts off future interest and lowers what you pay overall.2Upstart. Understanding Loan Terms: APR, Principal, and Interest Explained The steps below walk through getting your payoff figure, sending the money, and what happens next.
Get Your Payoff Amount First
Your payoff amount is not the same as your most recent statement balance. The statement shows what you owed on the day it was generated. The payoff figure includes the outstanding principal plus interest accrued since then, calculated through the date you plan to pay.
To find it, log into your Upstart dashboard, open the Payoff Progress section, and click “Payoff details.” The screen shows your total payoff amount as of that day, including accrued interest and any unpaid fees.3Upstart. How to Calculate Your Loan Payoff Amount
Interest accrues daily, so the number changes slightly each day. If you pull a payoff quote today and send payment a week later, the amount will be a little higher. Using a stale figure can leave a small balance 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, by logging in and clicking “Make a Payment.” Choose the full payoff amount instead of your regular installment, confirm your linked bank, and submit.
- By phone with your loan servicer, either through the phone menu or with a representative.
- By check mailed to the address listed in your dashboard under “Pay by Check.” Put your account number in the memo field.
- Through your bank’s bill pay. Many banks send a physical check for bill pay, so use the check payment address from your dashboard rather than any electronic routing details.
Online and phone payments process electronically. Standard ACH transfers settle on the next banking day, though your bank may take another day or two to reflect the transaction.5Federal Reserve Financial Services. FedACH Processing Schedule Mailed checks need seven to ten business days for transit and processing.3Upstart. How to Calculate Your Loan Payoff Amount Because interest keeps accruing during that window, estimate a slightly higher payoff amount to cover the extra days if you’re mailing payment.
What You Save, and What You Don’t
What early payoff saves is future interest. On a simple-interest loan, interest is calculated only on the outstanding principal, so every day you carry a smaller balance is a day of lower interest. Kill the balance early and every day of interest that would have followed goes away.2Upstart. Understanding Loan Terms: APR, Principal, and Interest Explained The earlier in the term you pay off, the bigger the savings.
What doesn’t come back is the origination fee. That fee was deducted from your loan proceeds when the loan funded, and it stays deducted. Upstart notes that early payoff may result in a partial refund of your total finance charge, which is the combined cost of interest and fees, because the interest portion drops when the principal is gone.6Upstart. Short-term Loans Online — Fast Relief Funding
If You Can’t Pay It Off in Full
You can make extra payments toward the principal at any time without paying off the whole loan. A few things to know about how those work:7Upstart. Making Additional or One-Time Loan Payments
- Extra payments shorten your term. You finish sooner.
- Extra payments do not lower your regular monthly payment amount.
- Extra payments do not let you skip or defer the next scheduled payment.8Upstart. How to Pay Off Your Loan
So if you send a lump sum covering several months of principal, the next monthly installment is still due on its normal date.
After the Loan Is Paid Off
If you had autopay set up, the next scheduled automatic payment is canceled once the payoff processes. You don’t need to turn it off manually, and your dashboard updates to show the loan as paid in full.8Upstart. How to Pay Off Your Loan
Sent more than you owed? Upstart refunds the difference automatically without a request from you. Refunds are initiated about 30 calendar days after payoff. Electronic refunds arrive within two to three business days once processed; paper checks take five to seven business days. The money goes to the bank account on file, or by mailed check if no account is on file. You can contact the servicing team if you want a different method.9Upstart. Paying Off Your Loan: What if You Send Too Much
Effect on Your Credit Score
Paying a loan off early can cause a small, temporary dip in your credit score. Closing an installment account removes it from your active credit mix, and if the loan was fairly new, closing it shortens the average age of your accounts. Both effects are usually minor and short-lived. Your on-time payment history on the loan stays on your credit report for years and continues to help your score.10Upstart. Frequently Asked Questions About Personal Loans For most borrowers, the interest saved by paying off early is worth more than any brief credit-score movement.