Founded in 2016, Upgrade is an online lender that offers a variety of financial products and services in addition to personal loans, including credit cards, checking and savings accounts. TD Bank is one of the 10 largest banks in the US, with more than 1,100 branches, and offers personal loans for almost any purpose.
Both lenders are good contenders if you are looking for a personal loan. That said, they target different consumer profiles, so make sure you consider the differences before signing up.
Upgrade vs. TD Bank at a glance
Upgrade and TD Bank both offer personal loans up to $50,000 with similar starting APRs and financing times. Still, they differ in several ways, including their refund terms and eligibility requirements.
| Upgrade | TD bank | |
|---|---|---|
| Bank rate score | 4.7 | 4.7 |
| Better for | Flexible refund terms | Low interest rates and fewer costs |
| Loan amounts | $1,000 – $50,000 | $2,000 – $50,000 |
| APRs | 8.49%-35.99% | 8.99%-23.99% |
| Length of the loan | 24-84 months | 36-60 months |
| Cost |
|
|
| Minimum credit score | 600 | 700 |
| Time for financing | Next day after approval | Next day after approval |
Upgrade personal loans
Plus points
- Multiple refund options.
- Low minimum credit score.
- Joint applications allowed.
Cons
- High maximum APR.
- High origination costs.
- Longer terms can encourage over-borrowing.
Upgrade’s personal loans can be used for virtually any purpose, from consolidating debt to financing a major purchase. The loans also have one of the lowest credit score requirements among personal loans at just 600. That means you can still get a competitive rate even with less-than-perfect credit.
You can borrow for a maximum of 84 months, but a longer loan term means that you have to pay more interest. Choose the shortest loan term with a monthly payment that you can reasonably afford to avoid overpaying.
Upgrade also allows joint loan applications – something not offered by TD Bank. This alone can significantly increase your chances of approval by a good percentage if your score needs some improvement.
The downside is that Upgrade’s maximum APR is on the higher side. The origination fee can also increase the total borrowing cost. Still, the loans are very competitive, especially for honest borrowers.
Personal loans from TD Bank
Plus points
- Fast financing.
- No origination fees.
- Low interest rates.
Cons
- Limited to certain states.
- Fewer repayment options.
- High minimum loan amount.
TD Bank’s personal loans are aimed at borrowers with good to excellent credit; the credit score is at least 700. Because TD Bank has physical branches, borrowers have the option of applying for a loan online or in person.
The loans have flexible amounts ranging from €2,000 to €50,000, with low annual interest rates and few fees. This combination ensures that TD Bank’s personal loans are cheaper compared to the personal loans offered by Upgrade.
The one major drawback is that TD Bank doesn’t offer loans in every state, so you’ll need to check to see if your state is among those served to take advantage of its products.
How to Choose Between Upgrade and TD Bank
Upgrade and TD Bank are great options if you’re looking for a small to medium personal loan. That said, their loan products differ in key areas, including eligibility requirements, total costs, repayment options, minimum loan amounts, and availability.
Upgrading is a good choice if you want longer terms or want to borrow from someone else. TD Bank is better if you want to guarantee lower rates, provided you qualify.
Upgrade is better for flexible refund terms
If you’re on a tight budget and need a longer repayment period to make your payments more affordable, Upgrade may be a better option than TD Bank. Unlike TD Bank, which only offers repayment terms between 36 and 60 months, Upgrade’s loans can be repaid in as little as 24 months or as long as 84 months.
Additionally, Upgrade’s minimum credit score requirement is much lower than TD Bank’s, so the loans are a good option for those with fair credit or better. And since you can add a co-borrower to your application if you need extra help to qualify, you may be able to further reduce the cost of your loan.
TD Bank is better because of lower interest rates and fewer fees
If you have good or excellent credit and live in one of the states served by TD Bank, you may be better off applying for its loans.
Unlike many other lenders, TD Bank does not charge any application, processing or origination fees. It also offers a much lower interest rate cap than its competitors: 23.99 percent and a starting APR of 8.99 percent. Combined with the 0.25 percent autopay rate, it makes TD Banks loans more cost-effective than Upgrade’s.
Compare lenders before applying
When it comes to personal loans, both Upgrade and TD Bank are solid options to consider.
If your credit score needs some work, Upgrade may be a better choice because of its flexible eligibility requirements and the ability to apply with a co-borrower. Upgrading is also a better choice if you need a longer repayment period. But if you have excellent credit, TD Bank is definitely the right choice because you’ll save more money over the life of the loan thanks to its low annual interest rates and few fees.
But since you can check out offers from both lenders without hurting your credit, it’s a good idea to compare rates before applying to ensure you’re getting the best deal available for your situation.
