You have financial woes and heard that Upgrade offers personal loans.
But with so many financial companies offering loans, it’s a bit challenging to decide which one to choose. Is Upgrade the best option for you?
If you have a 620 and above credit score looking to consolidate your debts and build your credit score, an Upgrade personal loan is a good option. However, If you want a free-fee loan for bad credit, there are better options for you.
Upgrade Overview
Upgrade is an online fintech company launched in 2017 to offer financial products, including personal loans, credit cards, reward checking accounts, and free credit monitoring services.
The company gives mobile banking experience to its clients and has served over 500000 people with over $7 million since its inception.
People are attracted to Upgrade because it allows them to access smaller loan amounts. Borrowers can use personal loans for debt consolidation, refinancing of debit cards, home improvement, major purchases, etc.
Upgrade Personal Loan Highlights
- APR： 7.96% - 35.97%
- Loan amounts： $1000 - 50000 (but most loan amounts are limited to $25000 or less)
- Loan term： 2 to 5 years ( up to 7 years for home improvement loans )
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Fees：
- Late fees: Charges $10 after a 15-day grace period
- Origination fee: 1.85% - 8.99%
- Prepayment fee: 0
- Title Transfer fee: 0
- Insufficient Fund Fees: $10
- Minimum Credit Score: 620
- Minimum Income: Upgrade doesn’t disclose its debt-to-income (DTI) ratio requirements.
- Approval time: Upgrade may approve your loan within one to four business days. But if they need extra documentation to verify your information, it may take longer.
- Funding time: Once the loan offer is accepted, the fund will be sent to your bank within a business day. But the funding depends on how quickly your bank processes it.
- Joint application: Allowed
- BBB rating: A+
- Pre-qualifications: Allowed
- How to Apply: Apply online or call (844) 311-008
Loan Amount
The personal loan amount you can access from Upgrade depends on your credit profile; it ranges from $1000 to $50,000. But most borrowers can't get more than $25000.
The minimum loan amount for borrowers in Massachusetts is $6400, while those living in Georgia must borrow a minimum loan amount of $3,005.
Overall APR Range
Compared to other online lenders, Upgrade's loan rates are moderate. The company offers borrowers fixed-rate personal loans with a minimum APR of 7.96% and a maximum of 35.97%.
Upgrade personal loans may not be the cheapest in the market, but they are relatively affordable.
Availability
Upgrade operates online; it doesn't have physical offices. It offers loans across the United States except for Iowa and West Virginia. Furthermore, Upgrade’s checking accounts and lines of credit are accessible to everyone in the US except for Iowa, West Virginia, and Wisconsin.
Pre-qualification
Before you apply for personal loans, Upgrade allows you to conduct a Pre-qualification. You can see the potential rates you will get based on the desired loan amount, the purpose of the loan, your personal information, and the Debt-to-Income (DTI) ratio.
Here's one thing you should know - pre-qualification doesn't affect your credit score, and it doesn't guarantee your loan approval.
- You Can Enjoy 3 Rate Discounts
- You Are Offered Longer Repayment Terms for Home Improvement Loans
- Mobile App and Credit Assistance are Available
- Secured and Joint Loans Are Available
- Upgrade Enjoys a Good Reputation and Customer Reviews
- Upgrade Charges an Origination Fee Ranging From 1.85% to 8%
- You Have no Options to Choose a Payment Date
- You Can't use the Loan for Post-Secondary Education Purposes
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5 star
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4 star
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3 star
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2 star
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1 star
People are attracted to Upgrade because it allows them to access smaller loan amounts. Borrowers can use personal loans for debt consolidation, refinancing of debit cards, home improvement, major purchases, etc.
Where Upgrade Personal Loans Stand Out
You Can Enjoy 3 Rate Discounts
Autopay Discount
Autopay discount is the discount borrowers receive for setting up automatic loan payments. So, if you automate your loan repayments, Upgrade offers you a 0.5 percent point discount. And this will lower your APR.
Direct Pay Discount
Borrowers using Upgrade personal loans for debt consolidation can get a discount of up to 5 percentage points on their rate if they have Upgrade pay off their debt directly.
But you can only qualify for this discount if you have the lender send more than 50% of the funds directly to a third-party creditor.
Reward Checking Discount
If you have a reward checking account with Upgrade, you may get up to 20% off your rate. And this will lower your APR drastically.
You Are Offered Longer Repayment Terms for Home Improvement Loans
Generally, Upgrade offers two to five years repayment terms on personal loans. But if the loan is for home improvements or larger than $30,000, borrowers get a seven years repayment term. This is an exceptional benefit that most lenders don't offer.
Mobile App and Credit Assistance are Available
Upgrade has a user-friendly and smart interface mobile app that allows borrowers to manage their loan repayments.
The mobile app also has unique features like credit score monitoring, the latest credit report summary, a credit score simulator, and additional resources on credit and finances.
Secured and Joint Loans Are Available
Upgrade offers borrowers secured or joint loans. These loans are less risky and come with lower APR. For instance, if you use your vehicle as collateral to secure a loan from Upgrade, you could get a rate of 1 to 10 percent lower than an unsecured loan.
Upgrade also offers joint loans. This means, the company allows two people to apply for a loan together and share the responsibility of repayment.
Upgrade Enjoys a Good Reputation and Customer Reviews
Upgrade has a good reputation in the US lending industry. Borrowers who have used their services confirmed that they don't have stringent requirements and are transparent about their APRs and credit score requirements.
They also offer pre-qualifications to borrowers, so they know what to get before applying for a loan.
Where Upgrade Personal Loans Fall Short
Upgrade Charges an Origination Fee Ranging From 1.85% to 8%
Upgrade charges an origination fee - the amount borrowers pay to the company to process a loan. Upgrade deducts this money from the loan amount before borrowers receive the funds; this reduces the total loan amount.
For instance, if you are approved for $15000 with a 6% origination fee, you would get $14100 deposited directly into your account, while Upgrade keeps $900 as an origination fee.
Sometimes, origination fees are negotiable. But you tend to pay a higher interest rate if you reduce or avoid them. What borrowers pay as origination fees depend on their credit score, assets, liabilities, and total income.
You Have no Options to Choose a Payment Date
Upgrade doesn't allow borrowers to choose a payment date for their loans, unlike other lenders. The company decides when you repay your loan.
They only allow you to move your payment date 15 days before or after your repayment due date. And borrowers who cannot repay their loans 15 days after the due date will pay a late fee of $10.
You Can't use the Loan for Post-Secondary Education Purposes
You can't use personal loans or personal credit lines obtained through Upgrade for post-secondary education expenses. These expenses include but are not limited to transportation, supplies, tuition, room, board, etc.
Compare Upgrade With Other Lenders
Upgrade’s low credit score requirement and small loan flexibility make it appealing to borrowers. However, their origination fees and high maximum APR place their loans fairly average overall.
So, if your credit score is above 650, you should consider the following fee-free and low-interest rates lenders.
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7.96%-35.97%
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EST. APR
7.99%-23.43%
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6.99%-23.99%
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$1000-$50000
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Loan Amounts
$5000-$100000
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$5000-$100000
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2 to 5 years (7 years for certain loans involving
high amounts)
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Loan Term
2 to 7 years
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2 to 7 years, up to 12 years for home improvement
loans
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Origination fee: 1.85% - 8.99%
Late fee: $10 (after a 15-day grace period)
Prepayment fee: $0
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Fees
Origination fee: $0
Late fee: $0
Prepayment fee: $0
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Origination fee: $0
Late fee: $0
Prepayment fee: $0
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Within four business days (from the time of
approval)
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Time to fund
Within 2 to 4 days
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Within a day
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620
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Min. credit score
680
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660
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Loans are available in every state except Iowa, West
Virginia, and Washington DC
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Loan Availability
Loans are available in every state except
Mississippi
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Loans are available in every state plus Washington
DC and Puerto Rico
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Borrowers with poor credit scores and need access to
smaller loan amounts
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Best for
Borrowers with high credit scores and need access to
large loan amounts
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Borrowers who need loans with long repayment terms
for the home improvement project.
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Upgrade Vs. SoFi
Generally, SoFi offers higher loan amounts than Upgrade. SoFi loan amounts range from $5,000 to $100,000, while Upgrade offers $1,000 to $50,000, and in most cases, borrowers won’t get more than $25,000.
Furthermore, both SoFi and Upgrade offer discounts to borrowers who set up autopay. But unlike Upgrade, SoFi doesn’t charge origination or any other fee, which makes their loans more appealing.
Upgrade Vs. LightStream
LightStream personal loans are more flexible and affordable than Upgrade. The APRs can start as low as 3% for certain loans for autopay. It’s an amazing loan option for borrowers who seek to take out large loans at affordable rates.
Depending on your loan size, creditworthiness, and the purpose of the loan, you can get up to a 12 years repayment period from LightStream. But regardless of your credit score and the purpose of the loan, you can’t get more than 7 years repayment term from Upgrade.
Lastly, LightStream doesn’t charge origination costs on loans, which makes it less expensive to get a loan.
Upgrade is not as flexible and affordable as LightStream; that explains why it’s not a good option for people with high credit scores.
Requirements for Upgrade Personal Loans
To access personal loans from Upgrade, you need to meet the following requirements;
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A minimum credit score of 620
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Borrowers with a minimum credit history of two years.
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A maximum debt-to-income ratio of 75%, including mortgage and the current loan you are applying for.
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Borrowers don’t need a minimum annual income to apply for a loan. Upgrade accepts income from partners, alimony, child support, retirement, social security, and other sources linked to the borrower.
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Borrowers must be up to 18 years and 19 years if they are living in Alabama and some other states.
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You must be a Citizen of the United States, a permanent resident, or an immigration visa holder.
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Borrowers must present a means of identification like a social security number or passport.
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A verifiable US bank account to receive the fund.
Apply For Upgrade Personal Loans Within 4 Steps
4 Things to Do Before You Apply for
Your Credit
Before you apply for Upgrade personal loans, ensure that your credit score meets the minimum requirements (620). You can check AnnualCreditReport.com for a free credit report. With this, it’s easy to identify and possibly fix any errors before applying for a loan. It increases your chances of approval.
Your Monthly Payments
Taking out personal loans without calculating the APR and repayment terms ahead of time is not a good idea. Knowing the APR and repayment terms allows you to get a loan with affordable monthly payments easily.
Decide How to Repay the Loan
Taking loans without making plans to repay them will only plunge into endless debt. So, before you apply for a loan, review your finances to see how monthly payments may affect your cash flow. This information will help you restructure your income and cut unnecessary expenses before you borrow.
Gather Your Document
As part of the application process, Upgrade will request your proof of income; It could be a W-2 or pay stub. You must also submit proof of address and social security numbers. When you have these documents arranged, it fast-tracks the loan approval process.
4 Steps to Apply for an Upgrade Personal Loans
Visit Upgrade’s Website to Prequalify
Prequalification is the first step on the lender’s website. All you have to do is visit Upgrade’s website and enter the loan amount and its purpose. You have the option to decide on the type of application ( whether joint or individual application).
The next prompt will be to enter your personal information and create an account with your email. After which, you will provide your social security number.
Preview the Different Loan Offers
After the pre-qualifying stage, borrowers will get several offers with different rates and terms. Study the offers carefully and choose the repayment terms that won’t impact your cash flow.
Submit your Application
Once you decide on an offer, complete a formal application online. Upgrade may require you to submit additional documents like W-2, pay stubs, and bank statements to confirm the information you provided during pre-qualification.
Upon submitting the document, you can check your loan status by logging into the Upgrade account. You will get a notification about your loan status via email.
Loan Request Approved
After verifying the information you submit, Upgrade will approve your loan request and send the fund to your account. Depending on your bank, you may receive funds within one to four business days.
How CreditYelp Rates Upgrade
| Overall Score | 4.5 | Explanation |
|---|---|---|
| Requirements & Application | 4.6 | Upgrade’s application requirement is easy and flexible. |
| Loan flexibility | 4.4 | Borrowers don’t have the option to choose a repayment date. |
| Rates, Fees & Other Terms | 3 | Upgrade has a high maximum APR and charges an origination fee which increases the cost of the loan. |
| Customer experience | 4.5 | Upgrade has good customer reviews across different platforms. |
| Transparency | 4.3 | Upgrade is transparent about its rates and allows users to prequalify online to preview potential loan offers. |
Upgrade FAQs
Is Upgrade legit?
Yes! Upgrade is a legit loan company launched in 2017. It’s a good borrowing option for borrowers who prefer simplicity and flexibility.
Although Upgrade’s APRs and origination fees are a bit high, it’s still appealing to some borrowers; because it doesn't charge prepayment penalties and loan approval for people with bad credit scores.
Can I Pay Off an Upgrade Personal Loan Early?
Yes! You can pay off Upgrade personal loans early. The lender doesn’t charge a prepayment penalty. So, paying off your loan early will help you save on interest.
Here’s how it works.
Let’s assume you take out a personal loan of $10,000 with an origination fee of 3%, 4 years repayment period, and 18% APR.
If you adhere to the regular payment period of 4 years, you will spend about $4100 on interest.
But if you pay off the loan early, say in 3 years, you can save about $1086 on interest.
So, it’s wise to pay off your Upgrade personal loan early.
Does an Upgrade Personal Loan Help Build Credit?
Yes! Upgrade personal loans help build credit if you are prompt with your monthly payments. The lender must report your loan repayment performance monthly to the three major credit bureaus. And if such a report is positive, it will improve your credit score.
What Can Upgrade Personal Loans Be Used For?
Permitted Uses
- Debt Consolidation
- Refinance Credit Cards
- Major Purchases
- Home Improvements
Prohibited Uses
- Post-secondary education expenses like tuition, room and board, supplies, and other related expenses.
- Illegal activities
- Gambling
- Investment
Upgrade Reviews
The review data come from Trustpilot, ConsumerAffairs, and WalletHub.
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Trustpilot4.5(4000) -
WalletHub3.4(370)
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ConsumerAffairs4.8(556)
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CreditYelp0(0)
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4.5 stars based on 200 reviews
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JJEAN5.0Quick and straightforward
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WW.Faught5.0Easy , fast application process.
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CChristopher England5.0Easy to deal with . Fast response to get an answer for the loan . They really help people consolidate their debt making life better . Friendly , easy to apply . Great overall experience would recommend to anyone to use them for all your financial needs.
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AArthur James5.0The experience worked well for me I was able to get a longer term loan to lower my monthly payment in order to pay for a previous person alone and to take on a veterinarian bill so I am very happy with the result
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JJane Hodge5.0You get alerts, offers, and easy access to your credit line (card or lone). Love the options and mostly love the financial freedom, and second chances.
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BBrandon Guerin5.0Life saver ????
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PPamela5.0The experience was very easy.
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Ssarah gilmore5.0did not have a lot of red tape so to speak.
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MMarisbel R5.0EXCELLENT COMPANY HIGHLY RECOMMEND
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JJohn Payne5.0Very professional and efficient service. Process only required a few days.
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