Best Egg vs. Upstart Personal Loans: Which Lender Is Best?

Best Egg and Upstart both offer personal loans to borrowers across a range of credit profiles, but they take different approaches.

Best Egg stands out for its home-secured loan options, which can unlock lower APRs and higher borrowing limits, while Upstart is generally the better fit for unsecured loans and borrowers with thin or fair credit, since it uses alternative data to evaluate applicants who might not qualify with a traditional lender.

Key Takeaways

• Best Egg leans into secured lending. Its home-secured loans can reach $50,000 with APRs as low as 6.99%, though qualifying for that rate typically requires strong income and credit.

• Upstart leans into flexible underwriting. It considers factors like education and employment history alongside credit, which may help thin-file or fair-credit borrowers get approved.

• Loan amounts differ meaningfully. Upstart's range runs from $1,000 to $75,000, while Best Egg's secured loans top out at $50,000.

• Both charge origination fees, but Upstart's fee range (0% to 12%) is wider than Best Egg's (0.99% to 9.99%), so the exact fee you're offered matters more than the lender's name.

• Neither charges prepayment penalties, so paying off either loan early won't cost extra, though Upstart does charge a late fee that Best Egg does not.

Summary generated by AI, verified by MoneyLion editors

Best Egg vs. Upstart: How Do These Lenders Compare?

How Do Interest Rates and APR Compare?

Best Egg's lowest APRs are reserved for loans secured by a lien on an owned home's permanent fixtures, while Upstart's lowest rates apply to its unsecured loans.

On a 5-year, $20,000 loan, a 6.99% Best Egg secured rate and a 6.2% Upstart unsecured rate produce estimated monthly payments of $396 and $389, respectively, illustrating how even a small APR gap adds up over time.

Borrowers should treat advertised minimum APRs as a starting point, not a guarantee, since your actual rate depends on your credit profile, income and loan term.

How Do Loan Amounts and Terms Compare?

Best Egg's home-secured loans range from $5,000 to $50,000 with terms of three to seven years, giving borrowers more flexibility on repayment length. Upstart offers $1,000 to $75,000 with only two term options, three or five years, making it the better choice for both very small loans and very large unsecured loans.

Some states set different minimums: Best Egg requires loans to exceed $3,000 in Georgia, $5,000 in Ohio and $6,500 in Massachusetts, while Upstart's minimums are $3,100 in Georgia, $1,500 in Hawaii and $7,000 in Massachusetts.

What Fees Should You Expect?

Best Egg charges an origination fee of 0.99% to 9.99%, with loans of four years or longer carrying a minimum fee of 4.99%. Upstart's origination fee spans a wider range, 0% to 12%, meaning some borrowers pay nothing while others face a steeper charge. On a 5-year, $10,000 unsecured loan, a low-end Best Egg fee (0.99%) deposits $9,900, while a high-end Upstart fee (12%) deposits just $8,800, a difference of $1,100 in net proceeds on the same loan amount.

Neither lender charges a prepayment penalty, and Best Egg doesn't charge a late fee, while Upstart charges $15 or 5% of the past-due amount, whichever is greater, after a 10-day grace period.

Who Qualifies for Each Lender?

Best Egg uses a traditional underwriting model built on credit, debt-to-income ratio and income, with a stated minimum credit score of 640 and its best rates reserved for applicants with a 700-plus score and $100,000-plus income.

Upstart doesn't publish a minimum credit score, instead advertising an underwriting model that considers roughly 1,500 data points, including education, rental history and digital spending signals, which may help applicants with a limited credit history who might otherwise be turned down.

If your credit falls below either lender's comfort zone, it may be worth checking lenders built specifically for lower-credit borrowers. MoneyLion's Avant vs. Best Egg comparison looks at a lender with a 550 minimum score, well below Best Egg's 640 floor.

How Fast Can You Get Funded?

Both lenders advertise funding as soon as one business day after approval, though most borrowers with either lender should expect funds within one to three business days once loan verification is complete.

Both let you check your rate with a soft credit pull before applying, so prequalifying doesn't affect your credit score.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.

Best Egg vs. Upstart: Pros and Cons

Who Should Choose Best Egg vs. Upstart?

Choose Best Egg if:

• You're looking for a secured personal loan and are willing to use your home or vehicle as collateral for better terms.

• You want more flexibility in repayment length, including terms beyond five years.

• You have so-so credit and want to avoid Upstart's potentially higher origination fee.

Choose Upstart if:

• You need an unsecured loan under $5,000 or over $50,000.

• You have thin or fair credit and may benefit from non-traditional underwriting.

• You have excellent credit and want a shot at a $0 origination fee.

If neither lender is the right fit, it's worth widening the search. Strong-credit borrowers who want a lower, fee-free rate may prefer MoneyLion's Best Egg vs. LightStream comparison, since LightStream charges no origination fee at all. Borrowers who need in-person service or a lender built for lower credit scores may want MoneyLion's Avant vs. OneMain Financial comparison, which covers a lender with 1,300-plus branch locations and secured-loan options. And borrowers with credit below 580 who may need a co-signer, an option neither Best Egg nor Upstart offers, should check MoneyLion's Avant vs. Mariner Finance comparison.

Bottom Line

Best Egg and Upstart serve overlapping but distinct borrower needs: Best Egg is the stronger pick for secured loans and longer repayment flexibility, while Upstart's alternative-data underwriting and wider loan range make it a better fit for unsecured borrowing and thinner credit files.

Both let you prequalify without a hard credit check, so comparing your actual offers, along with a few other lenders, is the surest way to find the most affordable loan for your situation.

Key Terms

• Annual percentage rate (APR): The yearly cost of borrowing, expressed as a percentage, that includes both the interest rate and lender fees like origination charges.

• Origination fee: A one-time upfront charge deducted from your loan proceeds before disbursement, which affects how much money you actually receive.

• Secured loan: A loan backed by collateral, such as home fixtures or a vehicle, that a lender can claim if you default.

• Unsecured loan: A loan that doesn't require collateral, with approval based on creditworthiness alone.

• Debt-to-income ratio (DTI): The share of your gross monthly income that goes toward existing debt payments.

• Soft credit check: A credit inquiry that doesn't affect your credit score, commonly used during prequalification.

• Alternative underwriting: A lending model that evaluates non-traditional data, such as education and rental history, to assess borrowers without a long credit history.

Summary generated by AI, verified by MoneyLion editors

Sources

• Consumer Financial Protection Bureau: What Is a Debt-to-Income Ratio?

• Consumer Financial Protection Bureau: What Is the Difference Between a Loan's Interest Rate and Its APR?

• Best Egg and Upstart official lender disclosures

Summary generated by AI, verified by MoneyLion editors

FAQ

Here's what people are asking about Best Egg vs. Upstart personal loans:

Which is better, Upstart or Best Egg?

Best Egg tends to be better if you're looking for a secured personal loan, since Upstart's secured options are limited. Upstart may be better for applicants with thin or fair credit, since it uses alternative data to evaluate borrowers who might struggle with a traditional lender. The better lender ultimately depends on which one approves you at the most affordable terms.

How hard is it to get approved by Upstart?

Upstart's underwriting considers alternative data like education and rental history alongside credit, which can make approval more accessible for thin-file borrowers, though it doesn't approve every applicant. You can prequalify with a soft credit check to gauge your odds before applying.

Does Best Egg approve everyone?

No. Best Egg generally requires a minimum credit score of 640 and evaluates traditional factors like income, employment and debt-to-income ratio.

Can you pay off either loan early without a penalty?

Yes. Neither Best Egg nor Upstart charges a prepayment penalty, so you can pay off your loan ahead of schedule without an added fee.

What's the biggest cost difference between the two lenders?

The size of the origination fee. Best Egg's fee ranges from 0.99% to 9.99%, while Upstart's spans 0% to 12%, so the specific fee in your offer, not the lender's advertised range, determines your actual net proceeds.