Does Upgrade Verify Income? Here’s How It Works
Navigate Upgrade's income verification. Gain clarity on their assessment criteria and how it impacts your financial product eligibility.
Upgrade is a financial technology company offering various financial products, including personal loans. For individuals seeking a loan, a significant step in the application process involves income verification.
Upgrade’s Income Verification Process
Upgrade verifies an applicant’s income to assess their ability to make consistent loan payments and to mitigate lending risks. The process often begins with applicants providing their income details during the online pre-qualification stage. Upgrade then utilizes various methods to substantiate this self-reported income, which may include electronic verification and requests for specific documentation.
Upgrade may also employ electronic verification tools, which can involve securely linking an applicant’s bank account to analyze transaction history for recurring income deposits. Such digital verification streamlines the process by quickly accessing financial data.
For some applications, Upgrade might cross-reference provided information with data from credit bureaus or third-party verification services, such as The Work Number. These services can provide instant employment and income information from a vast database of employer records. Additionally, Upgrade may contact an applicant’s employer to verify employment details, including the employer’s name, telephone number, and the applicant’s date of hire.
Documents Required for Income Verification
To verify income, Upgrade typically requests specific financial documents from loan applicants. One common document type is recent pay stubs, which should clearly display gross pay, any deductions, and the number of hours worked per pay period. Bank statements are also frequently requested, especially to highlight consistent income deposits over a specified period.
Applicants may also need to provide tax returns, such as W-2 forms for wage earners or 1099 forms for independent contractors. For self-employed individuals, Upgrade generally requires the two most recent federal income tax returns, including all schedules and attachments. It is important that these tax returns are already filed with the Internal Revenue Service (IRS), as Upgrade typically does not accept tax return extensions for verification purposes.
In some cases, Upgrade may utilize IRS Form 4506-C, “IVES Request for Transcript of Tax Return,” to directly obtain tax transcripts from the IRS. This process allows Upgrade to verify the income reported on tax returns, but it can extend the verification timeline by approximately three to five business days.
What Happens After Income Verification
Once an applicant submits the required income verification documents, Upgrade begins a review process. Preliminary decisions regarding loan eligibility are often made quickly, sometimes immediately after the initial pre-qualification steps. However, final approval is contingent upon the successful verification of all submitted information, including income.
Upgrade may communicate through the applicant’s online dashboard or via email, requesting any additional documents needed to complete the verification. The speed at which an applicant receives a final credit decision often depends on how quickly all requested verifications are cleared.
Upon successful income verification and final approval, applicants can typically expect funds to be sent within one business day after accepting the loan offer. The actual availability of funds in the applicant’s bank account may vary based on the bank’s processing times. The verified income, alongside other factors like credit score and credit usage history, ultimately influences the final loan terms, including the approved loan amount and the assigned interest rate.