Upgrade vs. Upstart: Which offers better personal loans?

Personal Loans

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3 min read Published July 18, 2024

Written by

Hanneh Bareham

Edited by

Rebecca Betterton

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Key takeaways

An Upgrade personal loan may be best for borrowers who need to consolidate debt or cover a smaller emergency expense.
An Upstart personal loan is suited for borrowers with bad credit or a thin credit history.
Both lenders have the same loan amount range, funding timelines and similar APR ranges.

Upgrade and Upstart cater to borrowers with fair to good credit and offer similar loan amounts up to $50,000. While both are reputable lenders that have gained a trusted reputation among consumers, they have different credit requirements, repayment terms, fees and perks.

Upgrade vs. Upstart at a glance

	Upgrade	Upstart
Bankrate Score	4.7	4.8
Better for	Covering emergency expenses and consolidating debt	Borrowers with bad credit
Loan amounts	$1,000–$50,000	$1,000–$50,000
APRs	8.49%-35.99%	7.80%-35.99%
Loan term lengths	2 - 7 years	3 - 5 years
Fees	Origination fee: 1.85% to 9.99% Failed payment fee: $10 Late fee: Up to $10	Origination fee: 0% to 12% Late fee: Greater of 5% or $15 ACH or returned check fee: $15 Paper copies fee: $10
Minimum credit score	600	No requirement
Time to funding	As soon as one business day	As soon as one business day

Upgrade personal loans

Best for covering expenses and consolidating debt

Upgrade personal loans

4.7

Learn more in our Bankrate review

Upgrade offers personal loans with competitive, fixed interest rates. The lender touts a quick funding timeline — as soon as one business day after approval — and flexible repayment options. What really sets this lender apart is that Upgrade will pay your creditors directly for you with a debt consolidation loan.
Pros

Flexible repayment terms.

Rate discounts.

Secured and joint loan options.
Cons

Origination fee.

Higher interest rates.

Low maximum amount.

Upstart personal loans

Best for borrowers with bad credit

Upstart personal loans

4.8

Learn more in our Bankrate review

Catering to borrowers with less-than-stellar credit or a thin credit file, Upstart takes a holistic approach to evaluating its applicants. Rather than looking strictly at credit, Upstart also considers education, work history and financial history for approval.
Pros

Fast funding timeline.

No credit score minimum.

Lower minimum APR.
Cons

Origination fee of up to 12%.

Borrowing minimums vary by state.

Few repayment options.

How to choose between Upgrade and Upstart

Although they have similar details, Upgrade and Upstart have distinct features that make them better suited for different types of borrowers.

APR range

Upstart’s loans offer a more competitive starting APR than Upgrade’s. If you have good or excellent credit and are able to secure a low origination fee, this could translate into a cheaper loan.

Minimum credit score

Both lenders cater to individuals with low credit, but Upstart doesn’t technically have a credit score requirement for approval. Most lenders base approval primarily on creditworthiness, but Upstart’s unique approval model considers multiple factors, like career and educational history.

Repayment terms

Upgrade’s loans have repayment terms of up to seven years, compared with Upstart’s five-year maximum. Although this can result in more interest paid over time, a longer term can result in a more comfortable monthly payment, giving you more breathing room.

Time to receive funds

With both lenders, you could have the cash in your account as soon as the next business day following approval.

Fees

Upgrade’s origination fee is capped at 9.99 percent, whereas Upstart’s is capped at a hefty 12 percent. While Upstart does offer a more competitive starting rate than Upgrade, it doesn’t allow co-applicants. This and its higher fees can make Upstart loans costlier if you have imperfect credit.

The bottom line: Which lender is best?

Upgrade’s available repayment term of 24 months and $1,000 minimum amount make it better for those who need quick cash. Upstart, on the other hand, is well suited for borrowers with no credit or a thin history since credit score only plays a part in gauging approval. However, Upgrade and Upstart are not your only options for fair credit loans.