Upgrade Personal Loans Review: What You Need To Know

Upgrade is an online lender that often offers personal loans to borrowers with fair-to-good credit who want between $1,000 to 50,000 in the funds. Founded in San Francisco, Upgrade is not a bank, but a fintech company that partners with FDIC-insured financial institutions. Find out more about Upgrade’s rates and fee structure, costs and how the lender compares to other lenders offering personal loans.

Quick Take:

• Loan amounts: $1,000 to $50,000

• APR: 7.74% to 35.99%

• Terms: 24 to 84 months

• Fees: 1.85% to 9.99% deducted from loan proceeds

• Best for: You want a low APR and flexible repayment term

• Not best for: Small loan amounts

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.

Key Takeaways

• Upgrade offers flexible loans from $1,000 to $50,000 with repayment terms stretching 24 to 84 months, giving you more breathing room than many competitors. APRs run from 7.74% to 35.99%, and funding can hit your account in as little as one business day.

• Watch the fees before you sign. Upgrade charges an origination fee of 1.85% to 9.99% that gets deducted from your loan proceeds, plus a $10 late fee, though there are no prepayment penalties.

• Upgrade works best for borrowers with fair-to-good credit who want to consolidate debt with direct creditor payments. If you have excellent credit, shop no-fee lenders like SoFi or LightStream first.

Summary generated by AI, verified by MoneyLion editors

Upgrade Company Overview

Upgrade is a fintech company founded by Renaud Laplanche, who also is the previous founder and ex-CEO of LendingClub. Upgrade isn’t a bank, but it's a lending platform that partners with FDIC-insured banks like Cross River Bank, Blue Ridge Bank and others. Upgrade is responsible for the application, underwriting and the servicing of the loan.

Upgrade Personal Loans Pros and Cons

Here are the advantages and disadvantages of Upgrade personal loans.

Pros

• Flexible repayment terms up to 84 months

• Loan amounts up to $50,000

• Quick funding

• Joint applications are accepted

Cons

• Origination fees are as high as 9.99%

• APRs are high, up to 35.99%

• Not available in all states

• Not ideal for those with excellent credit who want low APRs

What Is Upgrade and How Does it Work?

Upgrade is a technology financial firm founded in 2016 in San Francisco, CA, that has helped over seven million customers access $40 billion in consumer credit. Upgrade partners with FDIC-insured banks for personal loans and typically lends to those borrowers with fair-to-good credit, between 580 to 600. Upgrade is unique in that they offer a longer repayment term, if you qualify, for up to 84 months. Also, they provide direct-to-creditor payments, and this could qualify you for a lower interest rate. A line of credit option is also available.

Why it matters: Upgrade is a tool that offers those who are stuck in a debt cycle an option to create a structured plan to pay off creditors at a lower APR.

Key Features of Upgrade Loans

Here are key features of Upgrade personal loans.

Interest Rates

The annual percentage rate (APR) is the true cost of your loan because it includes interest plus the fees you’ll pay on your loan. Upgrade offers personal loans with APRs ranging from 7.74% to 35.99%.

How To Get the Lowest Possible Rate

Upgrade provides several ways for qualified borrowers to reduce their rate, including setting up autopay during the application, using part of the loan to pay off existing debt directly or securing the loan with a vehicle or home fixtures.

Repayment Terms

Upgrade offers repayment terms ranging from 24 to 84 months, or two to seven years. This is notably more flexible than competitors like Upstart, which offers only 3-year and 5-year terms.

Costs and Fees

When it comes to fees, Upgrade charges a one-time origination fee of 1.85% to 9.99% on all personal loans. The origination fee is deducted from your loan amount before it’s funded. For example, if you're approved for a $10,000 loan with a 5% origination fee, you'll receive $9,500 but still pay interest on the full $10,000.

There's also a $10 late payment fee if you fail to pay within 15 calendar days of the payment due date. Upgrade also charges a $10 fee for returned ACH or check payments. On the positive side, there are no prepayment penalties. You can pay off your loan early without any additional charges.

Funding Speed

Upgrade can deliver your loan funds in as little as one business day after you're approved and all items have cleared verification.

Eligibility

While Upgrade does not publish an official minimum credit score, most sources indicate you’ll need a score of at least 580 to 600 to qualify. The average Upgrade borrower has a credit score of around 675. Better credit scores typically qualify for better terms, like lower APRs or longer repayment periods

How To Apply for an Upgrade Loan

To apply for an Upgrade loan, follow these steps:

1. Visit Upgrade's site: Go to Upgrade's website and click “Check your rate.” This will initiate a soft credit inquiry that won’t affect your credit score.

2. Enter basic information: This includes your name, address, date of birth, income, and the loan purpose and amount you’re seeking.

3. Review your loan offers: If approved, you'll see multiple loan options with different terms, rates, and monthly payments.

4. Accept and fund: Select your preferred offer and complete the full application. The lender will initiate a hard credit pull at this stage. You may be asked to provide documents such as a government-issued ID, pay stubs, W-2 forms, or tax returns to verify your identity and income.

Is Upgrade Trustworthy?

Upgrade is a legitimate lender that has been in business for the last 11 years and is accredited by the Better Business Bureau with an A+ rating. The latest reviews on BBB are positive. On TrustPilot Upgrade is rated 4.7 out of 5 stars with over 57,000 reviews.

Who Upgrade Is Best For

It may be easier to understand which borrower is ideal for Upgrade by taking a look at your credit tier.

Upgrade vs. Comparable Options

Before you get started with an Upgrade personal loan, you'll likely want to explore a few other lenders to see how they compare. Here are other comparable lenders to consider.

Upgrade vs. Upstart

Upstart offers personal loans in amounts from $1,000 to $75,000, slightly higher than Upgrade. It offers a 6.5% to 35.99% APR range. However, Upstart only offers terms of three and five years, compared to Upgrade’s 24 to 84 months. Upstart’s origination fee can be as high as 12%, whereas Upgrade's maximum is 9.99%. Upstart’s AI-driven model may be better for borrowers with thin credit files or non-traditional income, while Upgrade is often better for those who want more flexible repayment options.

Upgrade vs. LendingPoint

LendingPoint offers personal loans in amounts from $1,000 to $36,500, compared to Upgrade’s $1,000 to $50,000. It offers a 7.99% to 35.99% APR, with terms from 24 to 72 months. LendingPoint’s origination fee can be as high as 10%, similar to Upgrade. If you need to borrow less than $1,000 or more than $36,500, Upgrade offers more flexibility.

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Upgrade vs. SoFi

SoFI offers personal loans in amounts from $5,000 to $100,000, compared to Upgrade’s $1,000 to $50,000. Unlike Upgrade, SoFi doesn’t charge an origination fee. However, to qualify for SoFi personal loans you’ll need a credit score above 680. If your score falls below 680, you may want to consider Upgrade.

Final Take

When considering a personal loan, it usually pays to shop around. Take into consideration the fees, rates, and terms of each lender. Upgrade offers a compelling combination of flexible terms, competitive rates for well-qualified borrowers, and fast funding.

Choose Upgrade if you want flexible terms, looking to consolidate high-interest debt and can adequately absorb fees. Look at other lenders if you have excellent credit or need under $1,000.

Borrowers with excellent credit may find better rates with no-fee lenders like SoFi or LightStream.

FAQ

Does Upgrade allow co-signers?

No, Upgrade does not allow co-signers on personal loans. However, Upgrade does accept joint applications, where both applicants are equally responsible for repaying the loan and both credit profiles are considered during underwriting.

What credit score do I need for an Upgrade loan?

There is no published minimum credit score on the website. However, according to third party reports, a 580 score may allow you to qualify, though approval depends on other factors, such as your income, how much debt you currently have and overall credit profile.

Is Upgrade a bank?

Upgrade isn’t a bank, but it’s a fintech company that partners with FDIC-insured financial institutionsm but FDIC insurance protects deposit accounts, not personal loans.

Can I use an Upgrade loan for any purpose?

Upgrade personal loans can be used for most purposes, including debt consolidation, home improvement, major purchases and unexpected expenses. However, loans cannot be used for post-secondary education expenses, investments, illegal activities or gambling.

Is Upgrade legit?

Yes, Upgrade is a legitimate financial technology firm that’s been established in business since 2016. Upgrade partners with FDIC-insured banks, which ensures your funds are protected.

Does Upgrade charge fees?

Yes, Upgrade charges an origination fee between 1.85% to 9.99%, late fee of $10 and an NSF fee of $10.

Key Terms

• Annual percentage rate (APR): The yearly cost of borrowing, including interest and certain loan fees, shown as a percentage.

• Origination fee: A one-time fee a lender charges to make the loan. It may be deducted from your loan funds before you receive them.

• Loan term: The amount of time you have to repay a loan. Longer terms can lower monthly payments but raise total interest costs.

• Debt consolidation loan: A loan used to pay off multiple debts so you make one monthly payment instead of several.

• Prepayment penalty: A fee some lenders charge if you pay off part or all of your loan early. Upgrade does not charge this fee.

Sources:

• FDIC: Q: What is annual percentage rate (APR)?

• Consumer Financial Protection Bureau: What are mortgage origination services? What is an origination fee?

• Consumer Financial Protection Bureau: Understand the different kinds of loans available

• Consumer Financial Protection Bureau: What is the difference between credit counseling and debt settlement/debt consolidation or credit repair?

• Consumer Financial Protection Bureau: What is a prepayment penalty?

Summary generated by AI, verified by MoneyLion editors