Avant vs. Upgrade: Which offers better personal loans?

Personal Loans

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3 min read Published February 08, 2024

Written by

Allison Martin

Edited by

Hannah Smith

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Online lending platforms make accessing funds from the comfort of your home easy. If you’d prefer this option over 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 specializing in making loan products accessible to middle-income consumers, while Upgrade offers affordable personal loans through lending partners, 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 vs. Upgrade at a glance

Both feature unsecured, fixed-rate personal loans with comparable APRs and fast funding times.

	Avant	Upgrade
Bankrate 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%
Loan term lengths	12-60 months	24-84 months
Fees	Administration fee up to 9.99%	Origination fee up to 9.99%
Minimum credit score	550	600
Time to funding	As soon as the next business day	One to three business days

Avant personal loans

4.7

Learn more in our Bankrate review

Pros

Accessible to credit-challenged borrowers.

User-friendly mobile app.

Quick funding times.
Cons

Limited availability.

Loan administration fee.

Co-borrowers not allowed.
Avant offers unsecured personal loans to borrowers with varying credit backgrounds. With such a wide range of loan amounts to choose from, you can get the funds you need to cover a small expense, major project or big-ticket purchase. Borrowers also enjoy the streamlined application process and fast funding times. Even better, managing the loan directly from the mobile app is easy.

It does charge an administration fee of up to 9.99 percent, which makes it an unattractive option for some borrowers. However, it’s about the same as Upgrade, which charges similar origination fees. The biggest difference? Avant doesn’t allow you to apply with a co-borrower, which could make it more difficult to qualify.

Upgrade personal loans

4.7

Learn more in our Bankrate review

Pros

Low minimum loan amount.

Allow co-borrowers.

Offers direct payment to other creditors.
Cons

High maximum APR.

Loan origination fee.

Slower funding times.
Upgrade also features flexible unsecured personal loans from its lending partners. You can borrow up to $50,000 and get a loan term up to 84 months to make your monthly payments more affordable. The lenders in its network may charge an origination fee between 1.85 and 9.99 percent, but a strong credit score could mean a fee on the lower end.

Unlike Avant, Upgrade allows you to submit a joint application. It’s also a good choice if you want to consolidate your debt — you may have the option to make direct payments to creditors on your behalf.

How to choose between Avant and Upgrade

Both options feature unsecured personal loans with origination fees. They also cater to borrowers with varying credit backgrounds, and the APR ranges are relatively similar. So it can be a bit challenging to determine which is best for your financial situation.

Evaluate the eligibility guidelines of each and consider how you’ll use the loan proceeds to make an informed decision.

Avant offers funding to borrowers with low credit scores

Avant’s minimum credit score requirement is slightly lower than what Upgrade requires. If you’re approved for funding and have bad credit, you could save on borrowing costs. Avant’s maximum administration fee is 9.99 percent, the same as Upgrade’s origination fee.

It’s also worth noting the maximum loan term isn’t as lengthy as Upgrade. The upside is you could opt for a repayment period as short as 12 months and save on interest. Or you could choose the maximum term of 60 months to lower your payments and pay the loan off early without incurring a prepayment penalty.

Upgrade is better for debt consolidation

Upgrade makes it simple to consolidate your debt and get a single, affordable monthly payment. If the Debt Payoff option appears when applying for a loan, you can add your creditors and how much you want to pay, and Upgrade will handle the rest. Plus, you can access $15,000 more with Upgrade, which could be ideal if you plan to consolidate a sizable amount of debt.

Unlike Avant, Upgrade’s partner lenders also allow co-borrowers. You can apply with another person to help strengthen your approval odds and possibly qualify for more competitive rates. Loans are also available in all 50 states and Washington, D.C., making Upgrade a better choice if you live in a state not served by Avant.

Compare lenders before applying

Since both lenders offer prequalification, it’s in your best interest to submit an application to Avant and Upgrade. This way, you can see what terms you qualify for to make an informed decision.

Even if you’re leaning towards one over the other, explore other options before applying. 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.