Upgrade vs. Upstart
Upgrade has better repayment options, and Upstart works best for thin credit histories
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Upgrade and Upstart are two of the most well-known online lenders offering personal loans up to $50,000 with fast funding. Upgrade is known for flexible repayment terms, while Upstart uses AI-driven approval that can benefit borrowers with little or no credit history. Both charge fees that affect the total cost, making it important to compare terms before applying.
Upgrade offers personal loans with multiple repayment terms ranging from two to seven years.
Jump to insightUpstart uses AI to qualify borrowers, making it an option for those with limited or no credit history.
Jump to insightUpgrade charges lower maximum origination fees, but Upstart can offer a 0% fee to highly qualified borrowers.
Jump to insightBoth lenders provide next-day funding for approved loans, but Upgrade has lower fee caps.
Jump to insightHow Upgrade personal loans work
Upgrade offers personal loans ranging from $1,000 up to $50,000. Annual percentage rates (APRs) range from 7.99% to 35.99%, which is on the higher end compared with typical personal loan rates. Upgrade also offers a savings and checking account, rewards credit cards and a loan app called Flex Pay.
Origination fees from Upgrade run from 1.85% up to 9.99%, depending on your credit score and other factors. Repayment terms are flexible, ranging from 24 to 84 months in length. Those who qualify for the lowest APRs must enroll in automatic payments, and some loans may also require collateral.
You can get preapproved for a personal loan from Upgrade online in just a few minutes. You’ll fill out a quick application with personal and financial information, and then Upgrade will do a soft credit pull to determine your eligibility, which won’t affect your credit. If preapproved, Upgrade will show you loan options and rates.
Once you’re approved and complete your loan application, funds will arrive as quickly as the next business day. You can use the money for almost anything outside of illegal activities, gambling, paying off student loans or investing.
» READ MORE: What to know before borrowing money
Upgrade personal loans pros and cons
Upgrade makes it quick and easy to access funds for most any reason, but the fees and rates can be high for those with poor credit scores.
Here are a few pros and cons to consider:
Pros
- Funding in as little as one business day
- Flexible repayment terms
- No prepayment penalties
- Prequalification available
- Loans up to $50,000
- Mobile app available
Cons
- High maximum APR
- High maximum origination fee
- May require collateral for some loans
- No co-applicants on home improvement loans
How Upstart personal loans work
Upstart is an online lender that offers personal loans ranging from $1,000 up to $50,000 and APRs ranging from 6.7% to 35.99%. Upstart also offers car loan refinancing, home equity lines of credit (HELOCs) and short-term loans.
Upstart may offer loans to less qualified borrowers, as it uses AI to evaluate applicants based on more than just a credit score. Upstart considers factors outside of your finances when qualifying you for a loan, including your education and current employment status.
Because its AI model evaluates more than just a credit score, Upstart may approve less qualified borrowers. The AI model also considers education and current employment status. Borrowers can check eligibility and rates through an online prequalification process before completing a full application.
Upstart offers online preapproval to check your eligibility and rates. After preapproval, you can begin an application right away. If approved, you can receive funds as soon as the next business day. Funds can be used for anything other than illegal activities.
Upstart personal loans pros and cons
Upstart offers quick funding and the chance at no origination fee, but many borrowers will face high APRs or fees.
Here are a few pros and cons to consider before borrowing from Upstart:
Pros
- AI-driven evaluation
- Funding in as little as one business day
- No minimum credit score
- No origination fee on some loans
- Loans up to $50,000
Cons
- High maximum origination fee on some loans
- Limited loan repayment terms
- High maximum APR
- No joint applications
Upgrade vs. Upstart: Which should you choose?
Both Upgrade and Upstart allow you to quickly apply online for a personal loan and borrow up to $50,000. Both offer funding as soon as the next business day, and both let you use the money for nearly any reason.
Here are a few features to compare each lender to find which one fits best for you:
- Interest rates: The maximum APR for both Upgrade and Upstart is 35.99%. Upstart’s minimum APR starts lower at 6.7%, compared with Upgrade’s 7.99%. If you have excellent credit, it might be worth using Upstart to lock in the lowest rate.
- Fees: Both lenders charge origination fees, but while Upgrade fees range from 1.85% to 9.99%, Upstart fees vary from 0% up to 15% of the loan amount. Again, if you have excellent credit, you might lock in a 0% origination fee with Upstart, but Upgrade has a low overall fee maximum.
- Loan amounts: Both Upgrade and Upstart allow you to borrow up to $50,000, and both have a $1,000 loan minimum.
- Repayment terms: Upgrade has the advantage, offering several loan terms ranging from two to seven years in length, while Upstart only offers loan terms of three or five years. If you want more loan payment flexibility, Upgrade is a better choice.
» COMPARE: Top-ranked personal loans
FAQ
Are Upstart and Upgrade the same?
No, Upstart and Upgrade are different online lenders. The two are separate companies that offer different loans, maximum borrowing amounts, terms and rates.
How quickly can I get funds from Upgrade or Upstart?
Both Upgrade and Upstart offer next-day funding on approved loans. This means once your loan application is approved, the funds will arrive as soon as the next business day.
How does Upstart's AI-driven model work?
Upstart‘s application process is AI-driven, meaning it utilizes AI to review more than just your credit score when considering your application. The model takes into account employment and income stability, education and professional background. It even considers spending and saving habits.
Can I use a co-signer with Upgrade?
You can’t use a co-signer with Upgrade, but you can apply with a co-applicant. A co-applicant is different from a co-signer because both applicants share equal responsibility for the loan.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Upstart, “AI-powered lending: how it works and what to expect.” Accessed Sept. 1, 2025.
