2021 Personal Loan Review Upgrade
Personal Finance Insider writes about products, strategies, and tips to help you make informed decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective. The conditions apply to the offers listed on this page. Read our editorial standards.
Upgrading of loan amounts and interest rates
At Upgrade, personal loan amounts range from $ 1,000 to $ 50,000 and can be repaid over two to seven years, depending on what best meets your repayment needs. If you prepay your loan, you won’t pay a prepayment charge.
While you need good credit to get the lowest rate, Upgrade’s 5.94% minimum interest rate is competitive against similar lenders. For example, the minimum APR for winning and best egg is 5.99%. You can apply with a co-borrower with good credit to potentially get a better Upgrade rate.
On the other hand, if your credit is in worse shape, upgrading may not be as good an option for you. The maximum APR for the upgrade is 35.97%, which is significantly higher than the Best Egg rate of 29.99% or the earning rate of 24.99%.
Advantages and disadvantages
How the upgrade works
Upgrade offers unsecured personal loans through its lending partners, Cross River Bank (FDIC member) and Blue Ridge Bank (FDIC member). You don’t need to provide collateral, like a house or a car, to get an unsecured personal loan. You can take out a personal loan for several purposes.
You won’t be able to get a personal loan in all 50 states with Upgrade because the lender doesn’t serve borrowers in Iowa or West Virginia.
After you apply and get your loan approved, you should receive your money within one business day. You won’t pay a prepayment penalty with an Upgrade Loan, but you will pay an origination fee of between 2.90% and 8%. You will also be charged a late fee of up to $ 10 if the lender does not receive your payment in full within 15 days of your payment due date.
Depending on what you need help with, you can send an email to the company’s customer support account. You can also call Monday through Friday, 6:00 a.m. to 6:00 p.m. PT, or weekends from 6:00 a.m. to 5:00 p.m. PT.
The upgrade lists common reasons for taking out a personal loan on its home page, such as refinancing credit cards, home improvement, major purchases, or debt consolidation.
You will need to meet the following conditions to apply:
- Be a U.S. citizen or permanent resident, or live in the United States on a valid visa
- Be at least 18 years old (19 in Alabama)
- Have a verifiable bank account
- Display a valid email address
What credit score do you need?
With Upgrade, you must have a minimum credit score of 620 to be eligible for a loan. This minimum is similar to that of other personal lenders who have similar interest rates and loan terms. For comparison, the lowest credit score Best Egg and Payoff will accept is 640.
If you need to access your credit report, you can get it for free from any of the three major credit bureaus at annualcreditreport.com weekly until April 20, 2022. This report will give you information about your payment and credit history, although it will not provide you with your credit score. Examining your credit report can help you spot errors and find areas for improvement.
You can get your score for free on your credit card statement or online account. You can also buy it from a credit reporting agency.
The upgrade will perform two flexible credit checks – which do not affect your credit score – after you verify your rate and re-accept your offer and submit your bank account information.
Once your loan is funded, the lender will conduct a serious credit investigation, which will likely affect your credit score. Thorough investigation gives the lender a complete view of your credit history, but can negatively impact your credit score as a result.
Is the upgrade trustworthy?
Upgrade is accredited by the Better Business Bureau, and the BBB, a nonprofit focused on consumer protection and trust, gives Upgrade a Note A +. The BBB assesses businesses by examining business responses to consumer complaints, honesty in advertising, and clarity in business practices.
Remember, a good BBB rating doesn’t guarantee a great relationship with Upgrade, so be sure to read the reviews and ask your friends and family about their experiences with the company.
The upgrade has no recent controversies. Due to its clean history and excellent BBB rating, you may feel comfortable using Upgrade as your personal lender.
While the rates depend on your particular situation, Upgrade’s interest rates are comparable to those offered by similar lenders. Here’s how Upgrade stacks up against the competition:
The upgrade has a lower credit score requirement than Best Egg, but it comes at the cost of a higher maximum APR if your credit isn’t at its best.
However, you might be able to get a slightly lower APR with Upgrade than Best Egg. Since companies have similar APR ranges, it’s probably in your best interest to ask lenders for your rates to compare your options.
With Upgrade, you will pay a set-up fee of between 2.90% and 8% of the total amount of your loan, and these fees will be integrated into the overall APR of your loan. You can pay a slightly lower set-up fee with Best Egg, as its range is between 0.99% and 5.99%.
You will likely receive your funds around the same timeframe with both companies, within one business day of approval.
Upgrade has a maximum loan term of seven years, while Best Egg has a maximum loan term of five years. If you are looking to spread your payments over an extended period of time, Upgrade might be the best choice for you.
Upgrade and payout have relatively similar minimum credit score requirements, but a significant difference in maximum APRs. Payoff’s highest interest rate is 24.99%, which is more than 10% less than Upgrade’s maximum APR.
Payoff personal loans are designed to help borrowers pay off high interest credit card debt. This means that you are limited in the use you can make of your loan – you can opt to upgrade if you are not trying to consolidate your credit card debt.
The upgrade will likely send your money to you faster than Payoff. The upgrade typically sends the funds within a day of approval, whereas it will take at least three business days with Payoff.