Online loans are a widely used alternative for bank crediting. With a big choice of online lenders available, it’s important to pick out the one with the most favorable terms. In our comprehensive review, we’ll draw a comparison between Best Egg and Upstart, the two major players in the field of the online lending industry.
Check your personal loan rates
Check your personal loan rates
Best Egg vs Upstart: a Comparative Chart
| Best Egg | Upstart | |
|---|---|---|
| APR Range | 7.99 - 35.99% | 5.6 - 35.99% |
| Term | 36 - 60 months | 36 - 60 months |
| Loan amount | $2,000 - $50,000 | $1,000 - $50,000 |
| Min Score | Good (670-739) | Poor (300-579) |
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| Cons |
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How to Choose between Best Egg & Upstart
To make a conscious choice one needs to know the strong and weak points of every option. So, we are going to put to comparison personal loan offers from Upstart and Big Egg by several basic criteria – APR, hidden fees, eligibility criteria, loan term and size, application process, etc.
General Loan Terms and Conditions
The first thing you need to decide on is how much and for how long you want to borrow. In this respect both lenders offer almost identical terms. They both provide loans for a minimal term of 3 years (36 months), while the maximum term is 60 months (5 years).
The loan amount available at Best Egg varies from one state to another. Generally, Best Egg personal loan ranges from $2,000 - $50,000. However, in some states the upper limit can reach $50,000. Additionally, for residents of Massachusetts the lower limit is as big as $6,500; for New Mexico and Ohio it is $5,000; and for Georgia – at least $3,000. For a second loan, your overall current Best Egg loan balances must not be higher than $100,000.
Upstart offers a better flexibility by issuing its clients a personal loan ranging from $1,000 - $50,000. For a second Upstart loan, the applicant must have completed timely payments for six times in a row, with no failed payments. Also, he is allowed to have only one outstanding loan in the Upstart Loan Program, and must have no more than $50,000 of total principal outstanding at the moment of application.
APR
APR is the indicator that involves interest rates plus all the extra fees charged throughout the year. In other words, this is an annual cost of a personal loan, which is among the principal loan characteristics.
At both lending companies, the overall APR depends on a range of factors. Just some of them include the borrower’s credit history & FICO score, loan term and amount, and income.
At Best Egg, the APR varies from 7.99 - 35.99%. Each applicant gets a unique proposal after a preliminary check (the so-called soft pull). To qualify for the best APR of 8.99% a borrower must have a FICO score of as high as 700 and an income of over $100,000 annually. Worth noting that a part of the APR is the origination fee, which varies from 0.99 - 8.99%. Additionally, they charge a fee of $15 for returned checks or unsuccessful payments.
Upstart loans are issued with an APR ranging from 5.6 - 35.99%. Again, you’ll know your APR only after completing the credit rate check. Applicants with the biggest income and the best FICO score get loans with the most affordable APR. Upstart can also charge the origination fee of up to 8%. The fee for Check Refund and ACH Return is also $15.
Best Egg vs Upstart: the Process of Application
The majority of online lenders practice pretty similar approaches to the procedure of application. Still, there are subtle differences, which mainly relate to the amount of personal information required and the time of approval.
At both Upstart and Best Egg, the process consists of three basic steps:
- Checking the credit rate, which helps to understand what loan terms you can qualify for. This stage includes a soft credit inquiry, which lets a lender assess your credibility but doesn’t affect your credit score.
- Applying. Here (if you agree with the terms offered) you need to fill in the form and send it to the lender.
- Funding. Once the application is sent, you need to wait for the offer from lenders. As soon as the investors are found, the funds are sent to your account. Normally, it takes 1 to 3 working days.
When it comes to personal information collected, at Best Egg, one has to provide just basic data: an address, a verifiable name, a birth date, a SSN, income records, employment details, and valid contact details (e-mail, phone).
Upstart collects the same basic data plus some additional information, such as education, degree, and college achievements. This is because Upstart has a unique feature – it has a special loan offer for recent graduates, who may lack a credit history for obvious reasons. Collecting the data about the applicant’s education helps pre-estimate his credibility. A feather in Upstart’s cap is its AI-based algorithm that is used to analyze the data provided.
Upstart vs Best Egg: Eligibility Criteria
To qualify for an online personal loan one must comply with certain criteria. When it comes to the list of these criteria, most lenders have much in common. Let’s overview what Best Egg and Upstart have in common and how they differ.
Best Egg wants its applicant to:
- be of the full legal age, according to the legislation of the state of residence;
- be a citizen of the USA (or a permanent resident now residing in the country);
- have a valid physical address and a valid e-mail;
- have a banking account with a routing number;
- be employed or have another kind of sufficient regular income.
Upstart claims that each applicant must:
- be at least 18 years of age;
- be a citizen of the USA (or a permanent resident now residing in the country);
- have a valid physical address and a valid e-mail;
- have a banking account with a routing number;
- be employed or have another kind of sufficient regular income, or have a job offer starting in half a year.
As for the minimum credit score allowed, Best Egg doesn’t disclose the information of the lower possible limit. Meanwhile, they say that for getting a loan at a low APR one needs to have a FICO score of 700 or higher.
Upstart, in its turn, accepts applicants with the score of 300 and higher and even those with no credit history. However, these borrowers can hardly count for a loan provided at favorable terms; it’s highly likely that the interest rate will be pretty high.
Best Egg or Upstart: What is Better?
Both Best Egg and Upstart have some features to be loved for. Still, they are not completely identical.
Best Egg welcomes you if you have a good-to-excellent credit score. In this case, you have an opportunity of getting a loan under a minimal APR. On the minus side, Best Egg is unavailable in several states, while the lowest and highest loan amounts vary from state to state.
Check Best Egg personal loan rates
The strong point of Upstart is their attitude to bad credit clients. They do accept applications from those with a zero credit history and low FICO score. Another advantage is a hefty maximum loan size of up to $50,000.
Check Upstart personal loan rates
Overall, your choice is determined by your specific needs, a desired amount, and your FICO score.