Personify vs. Upstart Which offers better personal loans?

Personify and Upstart are online lenders that offer unsecured personal loans. Both work with borrowers who don’t have the best credit, but Upstart will be a better choice for most — it offers larger loans at significantly lower rates than Personify.

However, Personify offers a personalized experience for its borrowers. Loan applications are reviewed by actual people, and its customer service team is available six days a week. On the other hand, Upstart evaluates loan applications using its own artificial intelligence (AI) program. Its AI continues to learn and looks at loan applications based on nontraditional criteria.

Either option could be a good choice if you need a personal loan. Just be aware of the total cost, especially how much interest you will be charged when you borrow.

Personify vs. Upstart at a glance

Both Personify and Upstart offer unsecured personal loans. However, options for loan amounts, repayment terms and interest rates vary between the two.

Personify personal loans

Pros

• Quick funding.
• Personal support team.
• Free FICO credit score check.

Cons

• Not available in every state.
• Origination fees.
• Extremely high interest rates.

As a financial technology company, Personify Financial offers personal loans with a simple application process that are designed to be flexible. Unlike many lenders, Personify allows you to borrow a low minimum amount of $500. However, its maximum is lower than most other options — including Upstart — at just $15,000.

Personify emphasizes personalized customer service, aiming to provide support and guidance throughout the loan process. It claims to look at the overall picture of a person rather than just numbers to determine eligibility for a loan.

However, there are some drawbacks to getting a personal loan with Personify. The most major one is the interest rate. Because of its structure, Personify is able to charge an annual percentage rate (APR) of up to 179.50 percent in most states it services. This is significantly higher than almost every other lender out there, which all cap their APRs at 35.99 percent.

Personify also only provides loans in just 24 out of 50 states. And while its origination fee isn’t as high as Upstart’s, 5 percent could cut into the overall amount you receive.

Upstart personal loans

Pros

• Prequalification option.
• No prepayment fee.
• Quick funding.

Cons

• High origination fee.
• Limited loan terms.
• Loan minimums differ between states.

Upstart boasts an innovative approach to lending, utilizing advanced technology and artificial intelligence to assess borrowers’ creditworthiness. Upstart utilizes its AI-powered underwriting model to evaluate an applicant’s creditworthiness.

Its AI model takes into account not only your credit history, but your education, job history and other relevant factors. This approach enables Upstart to provide loans to borrowers who may have limited credit history but demonstrate potential for financial responsibility.

Upstart’s personal loans range from $1,000 to $50,000, with repayment terms typically ranging from three to five years. The application process is quick and straightforward, allowing borrowers to complete the entire process online. Once approved, borrowers can receive their funds as quickly as the next business day.

There are some disadvantages, though. The time you have to repay your loan is more limited than with other lenders, although it is similar to Personify’s term options. But most important is the origination fee. Upstart charges a high fee — potentially up to 12 percent of your loan amount.

How to choose between Personify and Upstart

Personify and Upstart have a lot of similarities, but there are few main differences between the two lenders that stand out at first glance. First, Personify has more flexibility in repayment terms. Second, Upstart offers much more competitive interest rates than Personify. When choosing between them, prioritize your lending experience and the cost to get the most value out of your personal loan.

Both Personify and Upstart offer online lending experiences that are different from what you will get with a traditional lender for personal loans. However, they have different approaches to personalizing the lending experience.

Personify offers a personalized experience

Personify stands out for personalized customer service. It positions itself as a personal team of people looking at loan eligibility, instead of bots evaluating the numbers. This is different from what you get from most online lenders — and most notably, Upstart, which has built its platform on AI.

When you call its customer service, Personify promises that you will talk to a real person. You can reach the customer service team by phone until 9 p.m. CT on weekdays and it has Saturday hours, too. If talking on the phone isn’t your thing, you can also reach out by mail or email.

Upstart has a unique model for loan eligibility

On the opposite side of the spectrum, Upstart is open about using AI to examine loan applications. However, it promises a unique model for doing so. Applications aren’t evaluated solely on the traditional criteria of FICO credit scoring models. Instead, Upstart’s AI uses nontraditional measures to determine loan eligibility, and it has a higher approval rate for loans because of this.

Compare lenders before applying

Before making a final decision, compare more lenders to see how Personify and Upstart stack up. Since most online lenders now offer pre-qualification to check your rate without impacting your score, you can submit an application and see what fits your needs best.

Ultimately, your choice will depend on both the total cost and the customer experience you prefer.