Online lending platforms make it easy to access money from the comfort of your home. If you prefer this option to a loan from a brick-and-mortar bank or credit union, Avant and Upgrade are worth considering.
Founded in 2012, Avant is a direct lender that specializes in making loan products accessible to middle-income consumers, while Upgrade offers affordable personal loans through lenders, credit cards and other banking solutions.
You don’t need perfect credit to apply with either lender, and online prequalification is available to check your rates without negatively impacting your credit score.
Avant versus Upgrade at a glance
Both offer fixed-rate unsecured personal loans, similar annual interest rates, and fast financing times.
| Avant | Upgrade | |
|---|---|---|
| Bank rate score | 4.7 | 4.7 |
| Better for | Borrowers with bad credit | Debt consolidation |
| Loan amounts | $2,000 – $35,000 | $1,000 – $50,000 |
| APRs | 9.95%-35.99% | 8.49%-35.99% |
| Length of the loan | 12-60 months | 24-84 months |
| Cost | Administration costs up to 9.99% | Origination fees up to 9.99% |
| Minimum credit score | 550 | 600 |
| Time for financing | As soon as the next working day | One to three working days |
Avant personal loans
Learn more
in our bank interest overview
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Positives
- Accessible to borrowers with credit problems.
- Easy to use mobile app.
- Fast financing times.
Cons
- Limited availability.
- Loan administration costs.
- Co-borrowers not allowed.
Upgrade personal loans
Learn more
in our bank interest overview
-
Plus points
- Low minimum loan amount.
- Allow co-borrowers.
- Provides direct payment to other creditors.
Cons
- High maximum APR.
- Costs for originating a loan.
- Slower funding times.
How to choose between Avant and Upgrade
Both options include unsecured personal loans with origination fees. They also target borrowers from different credit backgrounds, and the APR ranges are relatively similar. So it can be a bit challenging to determine which one is best for your financial situation.
Evaluate the eligibility guidelines of each and consider how you will use the loan proceeds to make an informed decision.
Avant offers financing to borrowers with low credit scores
Avant’s minimum credit score requirement is slightly lower than what Upgrade requires. If you get approved for financing and have bad credit, you can save on loan costs. Avant’s maximum administration fee is 9.99 percent, the same as the initial Upgrade fee.
It’s also worth noting that the maximum loan term is not as long as Upgrade. The advantage is that you can choose a repayment period of only 12 months and thus save on interest. Or you can choose the maximum term of 60 months to lower your payments and pay off the loan early without incurring a prepayment penalty.
Upgrading is better for debt consolidation
Upgrade makes it easy to consolidate your debt and receive a single, affordable monthly payment. If the Debt Payment option appears when applying for a loan, you can add your creditors and how much you want to pay, and Upgrade will take care of the rest. Additionally, Upgrade gives you access to an additional $15,000, which could be ideal if you plan to consolidate a significant amount of debt.
Unlike Avant, Upgrade’s partner lenders also allow co-borrowers. You can apply with someone else to increase your chances of approval and potentially qualify for more competitive rates. Loans are also available in all 50 states and Washington, DC, making Upgrade a better choice if you live in a state not served by Avant.
Compare lenders before applying
Because both lenders offer prequalification, it is in your best interest to apply with Avant and Upgrade. This way you can see which conditions you qualify for, so you can make an informed decision.
Even if you lean toward one over the other, explore other options before signing up. Consider adding at least two more lenders to your list of options and comparing quotes to ensure you get the best deal on a personal loan.
