Upgrade vs. Upstart: Which offers better personal loans?
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Upgrade and Upstart cater to borrowers with fair to good credit and offer similar loan 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, fees and perks, which must be weighed before making a choice.
Upgrade vs. Upstart at a glance
Upgrade | Upstart | |
---|---|---|
Bankrate Score | 4.7 | 4.8 |
Better for |
|
Borrowers with bad credit |
Loan amounts | $1,000-$50,000 | $1,000-$50,000 |
APRs | 8.49%-35.99% | 6.4%-35.99% |
Loan term lengths | 24-84 months | 36-60 months |
Fees |
|
|
Minimum credit score | 600 | None |
Time to funding | As soon as one business day | As soon as one business day |
Upgrade personal loans
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Upgrade offers personal loans that come with competitive, fixed interest rates, funding in as little as one business day and offer flexible borrowing options. What sets this lender apart from its competitors is that Upgrade will pay your creditors directly for you with a direct consolidation loan.
Upstart personal loans
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Catering to borrowers with less-than-stellar credit or a thin credit file, Upstart takes a holistic approach to evaluating its applicants. Rather than looking strictly at credit, Upstart also considers education, work history and financial history for approval.
How to choose between Upgrade and Upstart
Although they share similarities in details, Upgrade and Upstart best serve different types of borrowers.
Choose Upgrade for debt consolidation
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.
Upgrade’s origination fee is capped at 9.95 percent, whereas Upstart’s origination fee is capped at 12 percent, which is quite hefty. While Upstart does offer a more competitive starting rate than Upgrade, it doesn’t allow co-applicants. This and its higher fees can make its loans costlier if you have imperfect credit.
Additionally, Upgrade offers direct payment to creditors — something Upstart lacks. This alone makes it a better choice for those looking to consolidate debt, as it streamlines the entire process.
Choose Upstart if you have a thin credit file
Upstart stands out among its competitors due to its unconventional underwriting methods and requirement criteria. Because it looks at your financial health, education and work history alongside creditworthiness, low credit borrowers are more likely to get approved for an Upstart loan.
Aside from its hefty origination fees and higher maximum APR, 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.
Compare more lenders before applying
Both Upstart and Upgrade offer competitive minimum rates and eligibility requirements; however, that doesn’t mean that either are the best option for you. Ensure you prequalify with as many lenders as possible to compare realistic offers. This will help you walk away with the personal loan that will best suit your current and future needs.