Upgrade vs. Upstart: Which offers better personal loans?
Key takeaways
- An Upgrade personal loan may be best for borrowers who need to consolidate debt or cover a smaller emergency expense.
- Upstart loans are better suited for borrowers with little to no credit history.
- Both lenders have the same loan amount range and funding timelines and similar annual percentage rate (APR) ranges.
Upgrade and Upstart personal loans cater to borrowers with fair to good credit with amounts up to $50,000. While both are reputable lenders that have gained a trusted reputation among consumers, they have different credit requirements, repayment terms and fees.
Upgrade vs. Upstart at a glance
| Upgrade | Upstart | |
|---|---|---|
| Bankrate Score | 4.7/5 | 4.7/5 |
| Better for | Covering emergency expenses and consolidating debt | Borrowers with bad credit |
| Loan amounts | $1,000–$50,000 | $1,000–$50,000 |
| APRs | 9.99%-35.99% | 7.40%-35.99% |
| Loan term lengths | 2 - 7 years | 3 or 5 years |
| Fees |
|
|
| Minimum credit score | 580 | No Requirement |
| Time to funding | As soon as one business day | As soon as one business day |
| Cosigner | Yes | No |
Upgrade personal loans
Upgrade personal loans
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Upgrade offers personal loans with competitive interest rates, plus the option to add a co-borrower. The lender touts a quick funding timeline — as soon as one business day after approval — and flexible repayment options of up to seven years. What really sets this lender apart is that Upgrade will pay your creditors directly if you take out a debt consolidation loan.
Upstart personal loans
Upstart personal loans
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Rather than looking strictly at credit, Upstart also considers education, work history and financial history for approval. This approach caters to borrowers with bad credit or little credit history. However, borrowers with these characteristics are likely to see the upper end of Upstart’s rates and origination fees.
How to choose between Upgrade and Upstart
Although they have similar details, Upgrade and Upstart have distinct features that make them better suited for different types of borrowers.
APR range
Upstart’s loans offer a more competitive starting APR than Upgrade’s. If you have good or excellent credit and are able to secure a low origination fee, this could translate into a cheaper loan.
Minimum credit score
Both lenders cater to borrowers with low credit, but Upstart doesn’t technically have a credit score requirement for approval. Most lenders base approval primarily on creditworthiness, but Upstart’s unique approval model considers multiple factors, like career and educational history.
Repayment terms
Upgrade’s loans have repayment terms of up to seven years, compared with Upstart’s five-year maximum. Although this can result in more interest paid over time, a longer term can result in a more comfortable monthly payment, giving you more breathing room. Upstart also offers fewer options, restricting its loans to just three or five years, while Upgrade gives a range so you have more flexibility in your monthly payment.
Loan amount
Upgrade and Upstart have identical loan amount ranges: $1,000 to $50,000. Many of their competitors offer similar amounts — though a few online lenders offer $100,000 personal loans. Note that both lenders have higher starting amounts in Hawaii, Georgia and Massachusetts due to state legislation.
Fees
Upgrade’s origination fee is capped at 9.99 percent, whereas Upstart’s is capped at a hefty 12 percent. While Upstart offers a more competitive starting rate than Upgrade, it doesn’t allow co-applicants. This and its higher fees can make Upstart loans costlier if you have imperfect credit.
Bottom line: Which lender is best?
Upgrade’s seven-year maximum repayment term means it could be a better fit for borrowers seeking a higher loan amount. Upstart, on the other hand, is well suited for borrowers with no credit or a thin history since credit score only plays a part in gauging approval. However, Upgrade and Upstart are not your only options for fair credit loans, so review your options carefully to find the best lender with the right terms for you.
Compare more lenders before applying
Take some time to compare other personal loan rates to find the option best suited for your needs.
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