Upstart vs. Best Egg: Which offers better personal loans?

Best Egg and Upstart are online lenders that offer personal loans for a variety of purposes. While both have similar terms, Best Egg stands out for debt consolidation. Upstart will be better for borrowers who don’t meet traditional credit score requirements.

And since they both offer prequalification, you can check your rates with Best Egg and Upstart to determine which is the better fit for you.

Best Egg vs. Upstart at a glance

Both Best Egg and Upstart offer similar personal loan products. However, their loans differ when it comes to APR ranges, eligibility requirements and more.

Best for debt consolidation

Best Egg personal loans

Rating: 4.6 stars out of 5

4.6

Learn more in our Bankrate review

• Bankrate’s view

  Best Egg offers very average loan amounts, terms and fees — and isn’t much different from what Upstart offers. Where it stands out is debt consolidation. Unlike many lenders, Best Egg offers Direct Pay. This option allows borrowers who are approved for a debt consolidation loan to choose if they want Best Egg to pay off their creditors directly, simplifying the process.

• Pros and cons

  

  Pros

  • Personal loans can be secured or unsecured
  • Option to change payment due date
  • Debt consolidation payments sent directly to creditors

  

  Cons

  • Minimum origination fee of 0.99 percent
  • No co-signers or joint applications
  • High income required to qualify for the lowest rates

Best for borrowers with limited credit history

Upstart personal loans

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Bankrate’s view

  Unlike many lenders, Upstart uses an alternative underwriting process that evaluates factors such as your education and job history to approve you for the loan. You can also qualify with poor credit — Upstart doesn’t set a minimum credit score for its borrowers. In addition, you may qualify for a loan without an origination fee, which could save you money over a loan from Best Egg.

• Pros and cons

  

  Pros

  • Low starting APR of 7.80 percent
  • Flexible eligibility requirements beyond credit score
  • Loans eligible for education-related expenses

  

  Cons

  • High maximum origination fee of 12 percent
  • No option to change your due date
  • Loan terms limited to 36 or 60 months

How to choose between Best Egg and Upstart

Both Best Egg and Upstart are good choices if you need a personal loan with less-than-perfect credit. Since both lenders allow you to prequalify, you can check your loan terms with both to determine which is the better choice for you.

APR range

Upstart has a slightly lower starting APR than Best Egg. If you have good to excellent credit, this could make Upstart a better choice — provided you qualify for a low interest rate and a small origination fee.

That said, most borrowers need to pay attention to the maximum APR. Best Egg and Upstart have the same maximum APR. In addition, according to Bankrate stats, Best Egg offers a lower average APR of 19.31 percent versus Upstart’s average APR of 25.60 percent.

Minimum credit score

Best Egg has a set minimum credit score of 700, so it’s a good option for fair credit borrowers. Upstart, on the other hand, doesn’t disclose its minimum. It considers your education, career and other factors in addition to your credit score. This can make it a good choice if you don’t have a strong credit history.

Repayment Terms

Best Egg is the better choice — barely. It offers loan terms between 36 to 60 months, while Upstart offers terms of either 36 months or 60 months. If you want a loan for 48 months, then Best Egg is the clear choice. This is especially true if you’ve already calculated potential monthly payments and know the exact loan term you want.

Time to Receive Funds

Upstart offers a quicker turnaround than Best Egg, with funds being sent in as little as one business day after approval. Best Egg’s turnaround is slightly slower, ranging from one to three business days.

For most borrowers, this won’t be a significant wait, and your bank will still take a day or two to make your loan funds available. However, Upstart will be the better option if you need an emergency personal loan.

Fees

Both lenders charge origination fees on top of late fees and returned payment fees. Like with APR, Upstart comes out ahead when you consider its minimum origination fee of 0 percent. If you are able to qualify for a personal loan without an origination fee, then it will be the better option.

Best Egg has a lower maximum origination fee. For most people, it makes sense to prequalify with both lenders and see which offers a more competitive origination fee.

The bottom line: Which lender is best?

Best Egg and Upstart are good options to consider if you need a personal loan with a fair credit score. Both offer competitive rates and the ability to prequalify. And since there aren’t any significant differences between their offers, it makes sense to see what you could qualify for and compare rates before committing.