Upgrade is a lender that offers loans with financing within one working day and is an indispensable option for receiving money urgently. Upstart is a leading lending market that is based on artificial intelligence technologies and is a link between borrowers and lenders. Choosing Upgrade or Upstart can become difficult, and therefore it is important to compare them.
Check your personal loan rates
Check your personal loan rates
Upgrade vs Upstart: a Comparative Chart
| Upgrade | Upstart | |
|---|---|---|
| APR Range | 8.49 - 35.99% | 5.6 - 35.99% |
| Term | 36 - 60 months | 36 - 60 months |
| Loan amount | $1,000 - $50,000 | $1,000 - $50,000 |
| Min Score | Poor (300-579) | Poor (300-579) |
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How to choose between Upgrade & Upstart
Terms
Upgrade
The lender offers a personal loan for potential borrowers with the following conditions:
- the loan repayment period is from 36 - 60 months;
- with the help of a personal loan, it is possible to receive from $1,000 - $50,000. However, the loan program includes restrictions that relate to the minimum or maximum loan amount and apply to residents of certain states;
- rates (APR) range from 8.49 - 35.99% and are fixed, not changing during the total term of the loan. The APR depends on the credit score, credit history and other parameters. The company is ready to offer the borrower the most favorable and lowest rate, for which he should use the option of automatic payments and direct repayment of part of the existing debt;
- despite the absence of a prepayment fee, a personal loan is subject to an origination fee of 1.85 - 9.99% of the total loan amount and a late payment fee;
- the minimum credit score is 560, which makes this lender a suitable option for borrowers with low creditworthiness, but with the need to get a small loan amount.
A client who has reached the age of 18 and has a valid bank account can apply for a personal loan. In addition, he must have US citizenship, be a permanent resident or reside in the country with a valid visa.
In addition to the credit score, the lender takes into account such indicators as the debt-to-income ratio and the features of the borrower's credit history.
Upstart
The innovative credit platform has the following set of conditions for a personal loan:
- the loan repayment period ranges from 36 - 60 months;
- the amount of available personal loans coincides with the competitor and amounts to $1,000 - $50,000. At the same time, in some states there are also restrictions related to a certain minimum loan amount;
- rates (APR) range from 5.6 - 35.99%. Unlike its competitor, Upstart does not assume the possibility of receiving a discount by setting up automatic payments;
- there are no fees for prepayment, which allows you to repay the loan ahead of time without fees and penalties. At the same time, there is a one-time origination fee, which is in the range from 10% and is deducted from the loan funds even before they are received by the borrower;
- according to the consumer reporting Agency, the minimum credit rating should be at least 300.
Upstart reviews applications from customers with insufficient credit history to obtain a credit score. The ratio of the borrower's debt to the income received is also checked.
There are a number of other requirements for applying for a loan, according to which a person must:
- have US citizenship or be a permanent resident while on its territory at the time of application;
- reach the age of majority (18 years and older);
- be ready to provide documents confirming personal data, date of birth and social security number to verify the information provided;
- have your own bank account with a US financial institution;
- have the status of an employee or a full-time job offer coming into force in six months, regular part-time work, any other stable source of earnings;
- have a valid email.
In addition to these points, certain requirements are imposed on the borrower related to his participation in the Upstart loan program and affecting the issues of making payments, the debt limit, and others.
The loan application process comparison
Upgrade
Applying for a personal loan includes the following steps:
- checking your online rate by the borrower and viewing suitable offers;
- selection of the amount for which the client is entitled to claim;
- passing the necessary checks and accepting a loan offer and obtaining quick financing, in which funds are sent to a bank or any other specified account within one business day.
During the audit, it may be necessary to provide documents confirming the personal data of a potential borrower and information about his income.
Viewing offers has no effect on the customer's credit score.
Upstart
The application process for a loan consists of three planned steps:
- implementation of rate checks;
- choice of preferred loan amount and repayment period;
- waiting for a decision and receiving funding if the application is approved. The vast majority of the loan proceeds are sent to the borrower's account already one business day after the terms are accepted.
The only exception is loans intended to finance expenses for educational purposes. Their waiting period is usually 3 days in accordance with the requirements of the legislation.
As in the case of a competitor, checking the rate at the initial stage does not affect the borrower's credit score, since the company makes a soft loan request. However, if a person agrees with the tariff and continues to consider the application, Upstart conducts a thorough credit request to verify the specified information. This measure can subsequently have a significant impact on the credit score.
Which has a better reputation?
Upgrade
Upgrade has the predominant part of positive reviews. Many of them are related to the simplicity and convenience of applying for a loan. Accessibility plays an important role, especially for customers with low creditworthiness. The reviews often note the effectiveness of the support service, which is ready to provide the necessary assistance in the process of applying for a personal loan, as well as to help you quickly get your funds. Negative reviews are most often based on aspects such as a long loan approval period and high issuance fees.
Upstart
The lending market is not inferior to its competitor and also receives positive feedback on various client platforms. They are usually related to the ease of applying and the convenience of consolidated credit card loans. Negative reviews are reduced to difficulties in paying bills and customer support responses.
When is Upgrade Better? / When to choose Upstart?
Comparing Upstart vs Upgrade allows you to make sure that each lender has strengths.
Upgrade will be the best option when the client:
- feels the need to consolidate debt in one payment, repay credit cards with high interest rates, make a major purchase, implement a plan to improve his home, create a business, etc.;
- wants to get a loan with low fixed rates that will not increase during the entire loan period, and a discount on autopayments;
- pays attention to the flexibility of payment and variability, since the company allows the borrower to change the payment date depending on his budget, as well as to receive more than one loan;
- seeks to acquire additional educational tools in the form of the Credit Health program, which allows not only to track your own credit score, but also to receive recommendations on its improvement;
- needs fast financing, because it takes only one day to get access to funds.
Check Upgrade personal loan rates
Upstart should be selected if a potential borrower:
- has a bad credit history or no credit at all, since the platform takes into account other factors, including financial situation, employment, education;
- seeks to protect itself with the help of a hardship program that allows you to temporarily suspend loan payments due to significant economic problems;
- prefers repayment flexibility, since the lending market gives customers the opportunity to choose the repayment date and plan payments at their discretion.
Check Upstart personal loan rates