Upstart and Upgrade are two online lenders with very similar names and features. They both offer personal loans up to $75,000 with next-day funding and cater to similar credit profiles — borrowers with fair and better credit. And neither lender runs a hard credit check until you’ve accepted a loan offer, which can be an advantage relative to other lenders.
But there are also distinct differences. While Upstart has a lower starting APR, Upgrade delivers lower interest rates, on average, according to Credible closed loans data. Plus, Upgrade offers joint personal loans.
Before applying, compare the important features of Upstart vs. Upgrade to find the lender that best matches your borrowing goals.
The rates that appear are from companies from which Credible receives compensation. This compensation does not impact how or where products appear within the table. The rates and information shown do not include all financial service providers or all of the displayed lenders' available services and product offerings.
What to watch out for
Upstart's minimum APR is lower than Upgrade's, but that doesn't necessarily mean an Upstart loan will cost less. If you don't have good or better credit, you could be charged an origination fee with either lender. But Upstart may charge a much higher fee than Upgrade, which could lead to a higher APR and a more expensive loan. Prequalify to see APRs you might qualify for with both lenders — the APR factors in any origination fee, along with the interest rate, and is a good measure of overall loan cost.
Overview of Upstart
- Average FICO credit score: 692
- Average funding time: 2 days
- JD Power consumer lending satisfaction score: 665 (study average 706)
Upstart is a lending platform that connects borrowers to banks and credit unions that originate both long- and short-term loans. Upstart considers borrowers with fair credit (a minimum 620 credit score when applying through Credible). Upstart's evaluation process not only considers the level of education you’ve achieved (some college, bachelor’s degree, advanced degree), but also your field of study and earning potential.
Upstart's expanded eligibility criteria could make it a more accessible source of credit than some competitors. Upstart also offers loans secured by your vehicle, which could improve your chances of qualifying, and short-term "relief loans" starting at $200.
Pros and cons of Upstart vs. Upgrade
Pros
- Lower minimum APR
- Next-day funding available
- Offers auto-secured loans
- Low minimum income requirement
- Borrow for almost any purpose, including business and bills or rent
Cons
- Origination fees up to 15%
- Higher average APRs
- Limited repayment terms (3 years or 5 years)
- No rate discounts
Overview of Upgrade
- Average FICO credit score: 699
- Average funding time: 2 days
- JD Power consumer lending satisfaction score: 679 (study average 706)
Upgrade is a fintech company that partners with Cross River Bank and Blue Ridge Bank to furnish personal loans from $1,000 to $75,000. The company also offers checking and savings accounts, rewards-focused credit cards, Flex Pay (a loan app), and credit health monitoring tools.
You can use an Upgrade personal loan for debt consolidation, home improvement, and other major expenses. It also offers joint personal loans with a co-applicant and loans secured by your vehicle or the fixtures in your home.
Pros and cons of Upgrade vs. Upstart
Pros
- Allows co-applicants
- Offers loans secured by your car or home fixtures
- Repayment terms of 2 to 7 years
- Next-day funding available
- Discounts for autopay and direct-to-creditor payments
Cons
- Doesn't allow loans for business or paying bills or rent
- Charges an origination fee on all loans
Compare general lender criteria
- APR range: Both lenders have the same maximum APR of 35.99%, which is common among many personal loan lenders, while Upstart's minimum APR is lower. However, 12 months of Credible personal loans data show Upgrade had lower average APRs across credit scores — APRs for good and very good credit (FICO scores from 670 to 799) were substantially lower.
- Fees: Upstart has a higher maximum origination fee than Upgrade (15% vs. 9.99%). Upstart's 15% maximum is among the highest we've seen for personal loans. Upgrade charges late payment fees and failed payment fees, while Upstart fees may include late fees and ACH or check return fees depending on the lending partner that issues the loan. Neither Upstart nor Upgrade charges prepayment penalties.
- Minimum credit score: Upgrade requires a credit score of 580 or higher, meaning that borrowers with fair credit and borderline-bad credit are eligible. Upstart's minimum credit score when applying through Credible is 620.
- Minimum income: Upgrade's minimum income requirement is more than twice as high as Upstart's ($25,000 vs. $12,000).
- Loan purpose: Both lenders offer loans for many common purposes such as debt consolidation, home improvement, credit card refinancing, and major purchases. Unlike Upstart, however, Upgrade doesn't offer loans for business expenses or paying bills or rent.
- Repayment terms: Upstart's repayment options are limited to 3 years or 5 years, while Upgrade offers repayment terms ranging from 2 years to 7 years.
- Loan amount: Each lender offers personal loans from $1,000 to $75,000, although minimum and maximum loan amounts may vary by state.
- Time to fund: Both Upstart and Upgrade offer funding as soon as the next business day. Each lender had an average funding time of 2 days, based on Credible personal loans data.
- Customer satisfaction: Upgrade scored higher in JD Power's annual consumer lending satisfaction survey (679 vs. 665), although both lenders scored below the study average of 706.
Upstart vs. Upgrade: Rates by credit score
Disclosure: Average APRs based on 12 months of closed loans data for Upstart and Upgrade from the Credible personal loan marketplace. No loans were approved for poor credit (FICO scores below 580).
Upstart vs. Upgrade: Loan amounts by credit score
Disclosure: Average loan amounts based on 12 months of closed loans data for Upstart and Upgrade from the Credible personal loan marketplace. No loans were approved for poor credit (FICO scores below 580).
Which lender is best for you?
Upstart and Upgrade have similar requirements and benefits for borrowers, but there are some cases where one lender might work better for you than the other.
Lowest APRs: Upgrade
Although Upstart has a lower minimum APR, its APRs on closed loans were higher than Upgrade’s. In fact, Upgrade's average APRs were lower in all applicable credit score tiers, according to 12 months of Credible personal loans data. Average APRs for fair and excellent credit were similar, but borrowers with good and very good credit received significantly lower rates from Upgrade (18.00% vs. 23.84% and 12.15% vs. 15.06%, respectively).
Minimum credit score: Upgrade
If applying for an Upstart loan through Credible, you'll need at least a 620 credit score. Upgrade requires a minimum 580 credit score.
Loan purpose: Upstart
Both online lenders allow you to borrow personal loans for various reasons, including:
- Debt consolidation
- Credit card refinancing
- Home improvement
- Major purchases
Unlike Upstart, however, Upgrade doesn't allow loans for business or paying bills or rent.
Repayment terms: Upgrade
An Upstart personal loan has a repayment term of three or five years. Upgrade offers more flexible schedules, with repayment terms between two and seven years, giving you more time to pay off your loan if needed, and potentially lower monthly payments.
Loan amounts: Upgrade
Both lenders offer the same range of available loan amounts, $1,000 to $75,000. However, Credible personal loans data show that Upgrade's average approved loan amounts were higher for borrowers with fair, good, very good, and excellent credit — around $2,000 to $4,000 higher..
Secured loan options: Upgrade
Securing your loan with collateral can make it easier to qualify or reduce your rate. While both lenders offer vehicle-secured loans, Upgrade also offers loans secured by your home fixtures (available to homeowners).
Discounts: Upgrade
Unlike Upgrade, Upstart doesn't offer rate discounts for autopay or direct pay to creditors (on debt consolidation loans). In fact, there is no creditor-direct payment option with Upstart.
Time to fund: Tie
Both Upgrade and Upstart can send your loan funds within one business day of approval, but your bank may take a couple of business days to clear the transaction. Both lenders had average funding times of two days, according to 12 months of Credible personal loans data.
How to get a personal loan from Upstart or Upgrade
The process to apply for a personal loan through Upstart, Upgrade, and other online lenders is relatively similar. Here's what to do:
- Use a free credit monitoring tool to check your credit score and make sure it meets each lender's minimum requirement (620 for Upstart when applying through Credible and 580 for Upgrade).
- Prequalify for a loan on the lender's website or through Credible's personal loans marketplace to compare rates and terms you may be eligible for. This only involves a soft credit check.
- Compare prequalified loans and choose the one with the monthly payment and total repayment amount you feel comfortable with.
- Apply with the lender offering your preferred loan. Unlike many lenders, neither Upstart nor Upgrade will run a hard check when you submit your application. They will, however, if you accept the terms and move forward with funding the loan. A hard credit check can temporarily lower your score by a few points.
- Carefully review the loan agreement the lender sends you upon approval, and sign it if you agree to all terms.
- Get your loan funds according to your lender's timeline, which is usually within two business days for Upgrade and Upstart.
Tip
Prequalification is not an offer of credit or a guarantee of approval. But it can indicate that you’re likely to be approved for a loan.
When you should choose a different lender
- If you have bad credit: Upstart and Upgrade are likely beyond your reach if your FICO score is below 580, even though Upgrade's minimum requirement of 580 is on the borderline. Consider a lender that offers personal loans for bad credit or try to improve your credit over time and give Upstart and Upgrade another look.
- If you need to borrow more than $75,000: A few lenders offer very large personal loans, including SoFi and LightStream (up to $100,000 each) and BHG Financial (up to $250,000). Keep in mind that you'll need good or better credit to qualify with SoFi or LightStream. BHG requires a minimum credit score of 640, but its minimum income requirement is $100,000.
- If you don't want to pay any fees: LightStream, Citi, and Discover are among the lenders that don't charge fees of any kind. SoFi's origination fees are optional — you can choose to pay an origination fee for a lower interest rate.
Methodology
Credible evaluated 32 lenders across 1,184 data points to choose the best lender overall plus top picks for different borrowers and use cases. Across lenders, we collected data on customer experience and service options, minimum and maximum fixed interest rates, minimum and maximum loan amounts, funding times, loan terms, fees, discounts, third-party reviews, and more.
We assigned a score to each attribute based on how that feature compared with the same feature for every other lender in the set. Scores were weighted according to their relative importance — for instance, maximum origination fee scores received a high weight since loan cost is among the most important factors in determining loan value. Individual attribute scores were then added to determine each lender's overall star rating.
Attributes were grouped into categories; each category contributed to lender scores as follows:
- Borrower cost (22.5%): Origination fee ranges and minimum and maximum APRs measure upfront and overall costs and lender accessibility across credit score groups.
- Flexibility (22.5%): Maximum loan terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint and secured loans measure the range of options for loan size, repayment terms, and loan types.
- Eligibility and availability (22.5%): Minimum income requirements, funding speed, minimum credit score requirements, and state availability measure how easily and how quickly borrowers can access personal loans.
- Reputation (15%): Trustpilot, Better Business Bureau, and J.D. Power ratings measure customer satisfaction.
- Discounts, customer service, and account management (12.5%): Discounts for autopay and direct pay, plus availability of mobile apps and live customer support chat, measure borrower perks and ease of loan management.
- Partner lender data (5%): Data from loans closed by our partners, including average rates, loan amounts, funding time, and eligibility criteria, measure real-world performance and borrower outcomes.
Non-partner lenders were evaluated based on the same criteria but not assigned star ratings. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.
Where we get our data
Credible is a personal loans marketplace that partners directly with lenders to offer loans for a wide range of credit profiles and loan purposes. Because of these relationships, we have access to the most current interest rates that real borrowers are being approved for, along with average rates by credit score and loan purpose, approval rates overall and by lender, and more. Lender-specific data is based on 12 months of loans closed by that lender on the Credible marketplace. Lenders may also provide product and eligibility insights that we share in reviews. The data we use is primary source data and does not include any personally identifiable information about borrowers.
Why trust Credible
FAQ
Is it hard to get a loan through Upstart?
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What credit score do you need for an Upgrade loan?
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