Upgrade Personal Loans Review: What You Need To Know

Quick Take: Upgrade personal loans stand out for borrowers with fair to good credit who want flexible repayment terms (24 to 84 months) and fast funding on loans from $1,000 to $50,000. Qualified borrowers can potentially reduce their rate by setting up autopay, paying off existing debt directly through the loan or securing the loan with a vehicle or home fixtures.

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.

Pros & Cons 

Here are the most important pros and cons that you need to know about Upgrade personal loans.

Pros

• Flexible loan terms (24 to 84 months)

• Loan amounts from $1,000 to $50,000

• You can check your rate without affecting your credit score

• Funding as fast as one business day

• Joint applications accepted

• No prepayment penalties

• Free credit monitoring tools

Cons 

• Origination fee on all loans (1.85% to 9.99%)

• Maximum APR can reach 35.99%

• No cosigner option available

• You cannot choose the initial payment date

• Not available in all states 

Company Overview 

Upgrade was founded in 2016 in San Francisco, California, by Renaud Laplanche, the former CEO of LendingClub, along with a team of fintech veterans. The company launched its personal loan product in April 2017 and has since helped over 7 million customers access more than $40 billion in consumer credit. Upgrade operates as a financial technology company that partners with FDIC-insured banks, including Cross River Bank and Blue Ridge Bank, to originate and fund loans.

Unlike AI-driven lenders, Upgrade uses a more traditional underwriting approach while still leveraging technology to streamline the application process. The company offers a suite of financial products beyond personal loans, including the Upgrade Card (a credit card with installment payment features), rewards checking accounts, high-yield savings accounts and free credit monitoring tools. Upgrade has been recognized as one of the fastest-growing fintech companies and holds an A+ rating from the Better Business Bureau.

Key Features 

Interest Rates 

Upgrade offers personal loans with APRs ranging from 7.74% to 35.99%. Although the starting rate is competitive compared to many other personal loan lenders, the 35.99% maximum APR is on the higher end. However, 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. 

If you have fair credit and need a personal loan, Upgrade might offer you a reasonable rate when traditional banks won’t. Just keep in mind that your actual rate will depend on your credit score, credit usage history, loan amount and other factors.

Loan Amounts 

Upgrade issues personal loans in amounts from $1,000 to $50,000. This range is on par with loan amounts offered by other personal loan lenders, although some lenders offer up to $100,000. 

The $1,000 minimum is lower than many competitors', making Upgrade a good option if you need to borrow a smaller amount of money. Note that the amount you qualify for depends on your creditworthiness and other factors evaluated during underwriting.

Repayment Terms 

Upgrade offers repayment terms ranging from 24 to 84 months (2 to 7 years). This is notably more flexible than competitors like Upstart, which only offers 3-year and 5-year terms. 

The extended term options allow borrowers to choose lower monthly payments, though longer terms mean paying more interest over the life of the loan. Once you’re approved, you can select the term that best fits your budget and financial goals.

Funding Speed 

In most cases, Upgrade provides fast funding. After you accept your loan offer and clear necessary verifications, you can expect to receive funds within one business day. If you’re using the loan for debt consolidation, Upgrade can also pay your creditors directly, which may qualify you for a lower APR. Be sure to check your email and Upgrade dashboard for any document requests, as verification requirements can extend the timeline.

Costs & 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.

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. 

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.

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.

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.

Who It’s Best For 

Upgrade is best for consumers with fair to good credit (typically 580 to 720) who want flexible repayment options and fast funding. The lender is particularly well-suited for debt consolidation, as it offers direct payment to creditors and potential APR discounts for this use case. Borrowers who want longer terms to reduce monthly payments will appreciate Upgrade’s 84-month maximum term. The company is also a solid choice for those who value additional financial tools, since Upgrade offers free credit monitoring and budgeting resources alongside its lending products.

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. If you have fair credit or are looking to consolidate high-interest debt, Upgrade is worth considering. Keep in mind, however, that Upgrade’s origination fees can be up to 9.99% and are deducted from your loan amount before you receive it. Borrowers with excellent credit may find better rates with no-fee lenders like SoFi or LightStream.

FAQs 

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?

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 long does it take to get funds from Upgrade?

After accepting your loan offer, you can typically expect to receive funds within one business day of clearing necessary verifications. However, if additional documentation is required, the process may take several additional days.

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.

Sources

• Upgrade.com - Personal Loans Official Website

• Upgrade/help/personal-loans - Personal Loans Official Website

• BBB.org - Better Business Bureau Upgrade Page

• CNBC.com - Upgrade Personal Loan Review