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Upstart vs Upgrade: Which Personal Loan Lender Is Better?
A detailed comparison of Upstart and Upgrade personal loans covering rates, fees, eligibility, and the best use case for each lender.
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Reviewed by Ricardo Laizo10 Min read | Loans
Quick Answer: Upstart vs Upgrade
There is no single correct answer. Each person has their own needs and may benefit more from either Upstart or Upgrade depending on their profile.
Here are the main differences:
Upstart: Uses AI-powered underwriting and accepts credit scores as low as 300. Loans from $1,000 to $75,000 with APRs of 6.40% to 35.99%.
Upgrade: Better for debt consolidation with direct creditor payments. Loans from $1,000 to $50,000 with APRs of 7.74% to 35.99% and terms up to 84 months.
Choose Upstart if you have limited credit history or want a more comprehensive evaluation of your financial situation.
Choose Upgrade if you’re consolidating debt, need a co-applicant, or prefer longer repayment terms.
If you're still not sure, keep reading for a more detailed breakdown of Upstart vs Upgrade to help you make an informed decision about your personal loan.
Overview of Upstart and Upgrade
Both Upstart and Upgrade provide personal loans for various purposes, including debt consolidation, home improvements, and major purchases. Here's a quick comparison:
| Feature | Upstart | Upgrade |
|---|---|---|
| Loan amounts | $1,000 - $75,000 | $1,000 - $50,000 |
| APR range | 6.40% - 35.99% | 7.74% - 35.99% |
| Loan terms | 36 or 60 months | 24 - 84 months |
| Minimum credit score | 300 | 580 - 660 |
| Origination fee | 0% - 12% | 1.85% - 9.99% |
| Funding time | 1 business day | 1 business day |
| Late fee | $15 | $10 |
| Prepayment penalty | None | None |
Upstart: Ideal for Thin Credit Files
Upstart, founded in 2012, is known for its AI-driven approach to lending that goes beyond traditional credit scoring. The platform offers personal loans from $1,000 to $75,000 with APRs ranging from 6.40% to 35.99%.
Key Features
AI-Powered Underwriting: Upstart uses artificial intelligence and machine learning to assess borrower risk, considering factors like education, area of study, and job history.
Low Minimum Credit Score: Borrowers need a credit score of just 300 in most states, and annual income of at least $12,000.
Higher Loan Amounts: Loans up to $75,000 are available, more than many online competitors.
Fast Funding: Loans are typically funded within 1 business day after approval.
No Prepayment Penalty: Borrowers can pay off their loans early without additional fees.
Soft Credit Pull: Upstart performs a soft credit pull for initial rate checks, which doesn't affect your credit score.
Upstart's Unique Loan Approval Approach
Upstart takes a holistic view of applicants, moving beyond traditional credit scoring. Their evaluation process incorporates:
Academic achievements
Career progression
Overall financial picture
This comprehensive assessment allows Upstart to consider applicants as more than just a credit score number.
Ideal Borrowers for Upstart Loans
Upstart's innovative approach makes it particularly well-suited for:
Those new to credit or with minimal credit history
Individuals with average credit scores
Applicants with strong educational credentials or promising career trajectories
By looking at these broader factors, Upstart aims to provide loan opportunities to qualified borrowers who may be overlooked by more conventional lenders.
Pros of Upstart
Minimum credit score of just 300
Considers factors beyond credit score (education, career)
Loan amounts up to $75,000
Competitive starting APR of 6.40%
Cons of Upstart
Higher maximum origination fee (up to 12%)
Only two repayment term options (3 or 5 years)
Late fee of $15 per missed payment
Upgrade: Best for Debt Consolidation
Upgrade, launched in 2017, focuses on providing accessible credit and mobile banking services. Upgrade offers personal loans from $1,000 to $50,000 with APRs from 7.74% to 35.99% and repayment terms ranging from 24 to 84 months.
Key Features
Credit Health Tools: Offers free credit monitoring and educational resources to help borrowers improve their financial health.
Direct Payment to Creditors: For debt consolidation loans, Upgrade can pay creditors directly.
Joint Application Option: Allows co-applicants, which can help borrowers qualify for better rates.
Flexible Loan Use: Loans can be used for various purposes, including home improvements, major purchases, and business expenses.
Rewards Checking: Offers a checking account with cash back on debit card purchases and no account fees.
Ideal Borrowers for Upgrade
Upgrade's unique features make it an excellent choice for specific types of borrowers, particularly those looking to consolidate debt:
Long-Term Debt Planners: With repayment terms extending up to 84 months, Upgrade caters to borrowers who prefer smaller monthly payments spread over a longer period.
Debt Consolidation Seekers: Upgrade's direct payment to creditors simplifies the consolidation process, making it ideal for those juggling multiple debts.
Co-Borrowers: The option for joint applications allows couples or partners to combine their financial strengths, potentially qualifying for better rates or higher loan amounts.
Credit Improvers: For those aiming to streamline their finances and boost their credit score, Upgrade's debt consolidation features offer a structured path to financial health.
These tailored features empower borrowers to take control of their debt, potentially reducing interest costs and simplifying their financial lives in the process.
Pros of Upgrade
Longer repayment terms (up to 84 months)
Direct payment to creditors for debt consolidation
Allows co-applicants for better rates
Lower maximum origination fee (9.99% vs 12%)
Cons of Upgrade
Higher starting APR than Upstart (7.74% vs 6.40%)
Requires a minimum credit score of 580 to 660
Lower maximum loan amount ($50,000 vs $75,000)
How to Choose Between Upstart and Upgrade
When deciding between Upstart and Upgrade, consider the following factors:
Credit profile: If you have a thin credit file, Upstart might be more forgiving.
Loan purpose: For debt consolidation, Upgrade's direct payment feature is advantageous.
Repayment flexibility: Upgrade offers longer terms, which could mean lower monthly payments.
Co-applicant option: If you want to apply with a co-borrower, Upgrade is the way to go.
Remember to compare offers from multiple lenders to find the best personal loan for your needs. You can also check out our comparison of SoFi vs Upstart if you're considering other options.
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How to Improve Your Chances of Approval
Whether you choose Upstart or Upgrade, improving your loan application can increase your chances of approval and potentially secure better terms. Here are some steps you can take:
1. Check Your Credit Report
Before applying, obtain a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, TransUnion). Review them for errors and dispute any inaccuracies.
2. Improve Your Credit Score
Pay bills on time: Set up automatic payments to ensure you never miss a due date.
Reduce credit utilization: Try to use less than 30% of your available credit.
Keep old accounts open: Length of credit history positively impacts your score.
3. Increase Your Income
Consider taking on a part-time job or freelance work.
If you've recently received a raise, make sure your application reflects your new income.
4. Lower Your Debt-to-Income Ratio
Pay down existing debts where possible.
Avoid taking on new debt before applying for a loan.
5. Gather Necessary Documentation
Have these documents ready:
Proof of income: Recent pay stubs, tax returns, or bank statements
Identification: Government-issued ID
Proof of address: Utility bills or lease agreement
6. Consider a Co-applicant (for Upgrade)
If you're applying with Upgrade, a co-applicant with strong credit can improve your chances of approval and potentially lower your interest rate. Upstart does not currently offer a co-applicant option.
7. Be Honest on Your Application
Provide accurate information about your income, employment, and debts. Lenders verify this information, and discrepancies can lead to rejection.
8. Apply for the Right Loan Amount
Request only what you need and can afford to repay. This demonstrates financial responsibility to lenders.
By following these steps, you can present a stronger application to either Upstart or Upgrade, increasing your chances of approval and potentially securing more favorable loan terms.
Sources
Upstart Personal Loans - Official Upstart website
Upgrade Personal Loans - Official Upgrade website
Upstart 2026 Personal Loan Review - NerdWallet
Upgrade Personal Loans Review - Bankrate
Frequently Asked Questions
Can I get a personal loan with bad credit?
Both Upstart and Upgrade consider borrowers with fair or poor credit. Upstart is generally more flexible, accepting credit scores as low as 300 and using AI to evaluate factors beyond your credit score, such as education and employment. Upgrade typically requires a minimum score of 580 to 660. If you have bad credit, compare options on our bad credit loans page.
What is the downside to Upstart loans?
Upstart's main drawbacks include a high maximum origination fee of up to 12%, only two repayment term options (3 or 5 years), and a $15 late fee per missed payment. The origination fee is deducted from your loan proceeds before you receive funds, which means you'll need to borrow more to cover it.
Is Upgrade a good company to borrow from?
Upgrade is a legitimate lender with an A+ rating from the Better Business Bureau and has been BBB-accredited since 2017. The company offers loans from $1,000 to $50,000 with repayment terms up to 84 months. Upgrade stands out for debt consolidation because it can pay your creditors directly, simplifying the process.
Are Upstart and Upgrade the same company?
No, Upstart and Upgrade are completely separate companies. Upstart was founded in 2012 and is headquartered in San Mateo, California. Upgrade was founded in 2017 and is based in San Francisco. They both offer personal loans but use different approval methods and have different terms.
How fast can I get my loan funds?
Both Upstart and Upgrade offer funding as soon as 1 business day after approval. The exact timing depends on your bank and when you complete the verification process. Applying early in the day on a weekday typically leads to faster funding.
Is there a prepayment penalty?
Neither Upstart nor Upgrade charges prepayment penalties on their personal loans. You can pay off your loan early or make extra payments at any time without incurring additional fees.
What credit score is needed for an Upgrade loan?
Upgrade generally requires a minimum credit score between 580 and 660 for personal loan approval. You'll also need a debt-to-income ratio below 40% (excluding mortgages) and free cash flow of at least $1,000. Having a co-applicant with strong credit may help you qualify if your score is on the lower end.
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