Upstart vs Upgrade Personal Loans (2026): Which Is Better for Your Needs?

Upstart and Upgrade are two leading personal loan providers that both serve borrowers with fair or limited credit, but they take different approaches. Upstart uses AI-driven underwriting that factors in education, employment history and income alongside your credit score, which can make it a better fit if you have limited credit history. Upgrade relies on more traditional credit evaluation but offers longer repayment terms (up to 84 months) and allows applications with a co-borrower.

This guide breaks down how Upstart and Upgrade compare on rates, fees, loan amounts and approval criteria so you can decide which is the better fit for your situation.

Key Takeaways

• Upstart vs. Upgrade personal loans serve different borrowers: Upstart uses alternative data, including education and employment history, to evaluate applicants with limited or thin credit, while Upgrade applies more traditional credit-based underwriting with greater flexibility in repayment terms.

• Upstart's starting APR of 6.3% is lower than Upgrade's 7.74%, though only the most qualified borrowers with strong credit will have access to the best rates.

• Upgrade allows repayment terms of 24 to 84 months, while Upstart has less flexibility and only allows fixed terms of 3 or 5 years. Fortunately, neither marketplace charges prepayment penalties so you won't be penalized for paying off your loan early.

Summary generated by AI, verified by MoneyLion editors

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.

Upstart vs. Upgrade: How Do They Compare?

Choosing between Upstart and Upgrade for personal loans often comes down to how each platform evaluates your application and the best offer you can receive. The table below breaks down the key differences side by side:

Upstart vs. Upgrade: Who Each Lender Is Best For

Choose Upstart if...you have limited credit history but stable income.

Choose Upgrade if...you want longer repayment terms or the ability to apply with a co-borrower.

When Upstart May Be a Better Fit

• Limited credit history

• Lender considers income and job history

• If you need a higher borrowing limit

• If you have strong credit and can qualify for the lowest rates

When Upgrade May Be a Better Fit

• Applying with a co-borrower

• Longer repayment terms, up to 84 months

• Prefer predictable, credit-based approval

Detailed Comparison: Upstart vs. Upgrade 

Interest Rates and APR 

What APR means: Annual percentage rate (APR) reflects the annual cost of borrowing and includes interest and applicable fees.

Upstart APRs: Upstart personal loans have APRs ranging from 6.30% to 35.99%. Rates are determined using traditional credit factors as well as additional data points such as education, employment history and income.

Upgrade APRs: Upgrade personal loans carry APRs from 7.74% to 35.99%. Pricing is primarily based on credit score, income and debt-to-income ratio.

Actual rates depend on individual application details and are not guaranteed.

Loan Amounts

Upstart offers unsecured personal loans from $1,000 to $75,000, while Upgrade offers unsecured personal loans from $1,000 to $50,000.

Common loan uses include:

• Debt consolidation

• Major purchases

• Home improvement expenses

• Refinancing higher-interest debt

Neither lender specializes in short-term or payday-style loans.

Repayment Terms 

Upstart:

• Fixed repayment terms of 36 or 60 months 

• No prepayment penalties

Upgrade:

• Repayment terms ranging from 24 to 84 months

• No prepayment penalties

Note that longer repayment terms typically reduce monthly payment amounts but increase the total interest paid over the life of the loan.

Fees and Costs 

Upstart fees:

• Upstart charges origination fees but doesn't disclose the range. Your exact rate may depend on your loan terms and borrower profile

• Late payment fees may apply depending on your state and loan agreement

• No prepayment penalties

Upgrade fees:

• Origination fees typically range from 1.85% to 9.99% depending on your loan terms and borrower profile

• Late and returned payment fees may apply

• No prepayment penalties

Note that origination fees are deducted from loan proceeds before disbursement.

Eligibility and Approval 

Upstart considerations:

• No stated minimum credit score requirement

• Uses additional underwriting factors beyond credit score

• Available in most states

Upgrade considerations:

• Generally requires established credit history 

• Allows joint applications and co-borrowers 

• Available nationwide

Approval isn't guaranteed, and ultimately depends on factors like your credit, income and overall financials.

Application and Funding Experience 

When it comes to getting a personal loan, both Upstart and Upgrade offer fully online application processes and allow borrowers to check rates before committing to a loan.

• Prequalification: Both lenders offer a soft credit check to preview potential rates without impacting your credit score. A hard credit inquiry may occur if you proceed with a full application and accept a loan offer.

• Application process: Applications are completed online and typically require basic personal information, income details and employment history.

• Funding timeline: Approved loans from either lender may be funded as soon as the next business day, though timing can vary based on verification and bank processing.

Pros and Cons 

Who Should Choose Upstart vs. Upgrade?

Upstart may be appropriate if:

• You have limited or nontraditional credit history.

• Your income or education strengthens your application.

• You're looking to borrow more than $50,000.

Upgrade may be appropriate if:

• You want longer repayment options.

• You plan to apply with a co-borrower.

• You prefer more traditional credit evaluation.

The above examples are illustrative and not a guarantee of approval or rates.  

Final Take

Upstart and Upgrade serve different kinds of borrowers, depending on how you intend to borrow and repay. Borrowers who need more flexibility to pay back their loan over a longer period or might need a joint application may prefer Upgrade. While borrowers looking to borrow above $50,000 may have better luck with Upstart. Prequalifying with both lenders allows you to compare personalized offers without impacting your credit score.

FAQs

Which lender offers lower interest rates?

Upstart advertises lower starting APRs compared to Upgrade, but the specific rates you receive will depend on your profile.

Can I qualify with bad credit?

Upstart may be more accessible for borrowers with limited credit history than Upgrade, though getting approved isn't a guarantee.

How quickly are funds disbursed?

Both lenders may fund loans as soon as the next business day after getting approved.

Does either lender allow co-borrowers?

Upgrade allows joint applications. Upstart doesn't.

Key Terms

• APR (Annual Percentage Rate): The yearly cost of borrowing expressed as a percentage, incorporating the interest rate and certain fees.

• Alternative underwriting: A credit evaluation method that incorporates data beyond a traditional credit score, such as education level, employment history and income trends to assess a borrower's ability to repay.

• Origination fee: A one-time upfront charge deducted from loan proceeds before disbursement.

• Repayment term: The length of time you have to repay a loan. Keep in mind that longer terms may lower monthly payments but increase total interest paid over time.

• Pre-qualification: A preliminary review of your credit profile using a soft credit check that generates estimated rates and loan amounts without affecting your score.

• Co-borrower: A person who applies for a loan jointly with the primary applicant and shares equal legal responsibility for repayment.

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

Summary generated by AI, verified by MoneyLion editors

Sources

• CFPB: What is a debt-to-income ratio?

• CFPB: What is a credit inquiry?

• CFPB: What is the difference between a loan interest rate and the APR?

• Upstart official website and personal loan disclosures (upstart.com); Upstart FAQ

• Upgrade official website and personal loan disclosures (upgrade.com); Upgrade Help Center

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