Upgrade and Upstart target borrowers with fair to good credit and offer comparable loan amounts up to $50,000. While both are reputable lenders that have built a trusted reputation among consumers, they have different credit requirements, repayment terms, fees and perks, which should be weighed before making a choice.
Upgrade vs. Upstart at a glance
| Upgrade | Upstart | |
|---|---|---|
| Bank rate 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% |
| Length of the loan | 24-84 months | 36-60 months |
| Cost |
|
|
| Minimum credit score | 600 | No |
| Time for financing | As soon as one working day | As soon as one working day |
Upgrade personal loans
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in our bank interest overview
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Upgrade offers personal loans with competitive, fixed interest rates, financing in just one business day and flexible borrowing options. What sets this lender apart from its competitors is that Upgrade pays your creditors directly for you with an instant consolidation loan.
Start personal loans
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in our bank interest overview
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Upstart focuses on borrowers with less-than-stellar credit or a thin credit file and takes a holistic approach to evaluating its applicants. Instead of looking strictly at credit, Upstart also considers education, work history and financial history for approval.
How to choose between Upgrade and Upstart
Although similar 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 to Upstart’s five-year maximum. While this may result in more interest being 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, while Upstart’s origination fee is capped at 12 percent, which is quite high. Although Upstart offers a more competitive starting rate than Upgrade, co-applicants are not allowed. This and the higher costs can make the loans more expensive if you have imperfect credit.
Additionally, Upgrade offers direct payment to creditors – something Upstart lacks. This alone makes it a better choice for people looking to consolidate their debts as it streamlines the entire process.
Choose Upstart if you have a thin credit file
Upstart stands out from its competitors because of its unconventional underwriting methods and requirement criteria. Because your financial health, education and work history are considered in addition to your credit score, borrowers with poor credit are more likely to be approved for an Upstart loan.
Aside from the high initial 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 can get a low origination fee, this could translate into a cheaper loan.
Compare more lenders before signing up
Both Upstart and Upgrade offer competitive minimum rates and eligibility requirements; However, that doesn’t mean either is the best option for you. Be sure to pre-qualify with as many lenders as possible to compare realistic offers. This will help you walk away with the personal loan that best suits your current and future needs.
