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Upgrade is a financial technology firm that provides various financial services including personal loans, credit monitoring, and banking. The company says it has delivered more than $24 billion in credit to consumers through cards and loans since its inception in 2017.
Upgrade Personal Loan Overview
An Upgrade personal loan is an online loan that is good for borrowers with lower credit scores. It's on of Business Insider's picks for the best personal loans for bad credit.
Upgrade is a great choice for borrowers looking for small loan amounts. You can borrow as little as $1,000. It's also one of our top picks for the best debt consolidation loans.
Key Features of Upgrade Personal Loans
Regular annual percentage rate (APR): 8.49% to 35.99%
Minimum credit score: 580
Fees: Origination fees between 1.85% and 9.99%
Loan amount range: $1,000 to $50,000
Repayment terms: Two to seven years
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Upgrade Personal Loan Eligibility and Application Process
Eligibility Requirements for an Upgrade Personal Loan
Eligibility for an Upgrade personal loan is based on factors including your credit score, credit usage, and payment history. There are also basic requirements needed to qualify for an Upgrade loan. You must be a US citizen, permanent resident, or living in the US on a valid visa; be at least 18 years old or 19 in Alabama and other select states; and be able to provide verifiable bank account information and a valid email address.
Steps to Apply for an Upgrade Personal Loan
1. Fill out Upgrade's application to prequalify. You'll fill out your loan amount and purpose, and then enter your email and basic personal information. To get you a rate quote, Upgrade will run a soft credit check, which won't affect your credit score.
2. Review various loan offers and pick one. Upgrade will offer you different rates and term lengths. Find a combination you can fit into your monthly budget.
3. Submit an application and await approval. When submitting a formal application, you'll need to submit proof of income, like a W-2, tax returns, or other financial documents. At this point there will be a hard pull of your credit, which is likely to result in a small drop in your credit score temporarily.
4. Receive your funds after signing your agreement. Most customers will get their money within one day after getting a loan.
5. Fit loan payments into your budget. Take stock of your financial obligations and make sure you have enough money to cover all of them.
Upgrade Personal Loans Pros and Cons
Upgrade Pros
- Small minimum loan amounts. You can get a loan as small as $1,000, which is lower than many competitors. For instance, Best Egg's minimum is $2,000 and Payoff's is $5,000.
- Quick access to funds. You can get your money within one business day after your loan is reviewed and approved.
- Easier to qualify with poor credit. You'll need a minimum credit score of 580 to be eligible for an Upgrade personal loan, which is toward the lower end of the fair range of credit scores.
Upgrade Cons
- Origination and late fees. Your origination fee will be between 1.85% and 9.99%, and you'll pay a late fee of up to $10 if you don't make a full payment within 15 days of your due date.
Upgrade Personal Loans Customer Experiences
Most customers appear to be satisfied with their experiences with Upgrade lending.
About 81% of more than 40,000 of the people who reviewed Upgrade at TrustPilot.com rated it a 5 out of 5, with many citing an easy application process and fast funding times. Customer reviews on the Better Business Bureau's website are also generally positive, with an average rating of 4.5 out of 5. The BBB, which does not take customer reviews into account when assessing companies, rates Upgrade A+, which is the top of its scale.
Complaints among those leaving negative reviews focused on issues including customer service, slow approval times, and high origination fees.
Negative Upgrade loan reviews tend to focus on issues related to long customer service wait times and lengthy loan approval periods. Customers also complain about high APRs and origination fees.
Upgrade Personal Loan Alternatives
Upgrade Personal Loan vs. Best Egg Personal Loan
With Upgrade, you'll pay an origination fee between 1.85% and 9.99% of your total loan amount, and this fee will be baked into your overall loan APR. You may pay a slightly lower origination fee with Best Egg Personal Loan, as its range is between 0.99% and 9.99%.
You're likely to get your money within one business day of approval for a loan from both Upgrade and Best Egg. Upgrade has a maximum loan term of seven years, while Best Egg has a maximum loan term of five years. If you're looking to spread out your payments over an extended period, Upgrade might be the better choice for you.
Upgrade Personal Loan vs. Payoff Loan™
Upgrade and Payoff Loan™ have relatively similar minimum credit score requirements, but a significant difference in maximum APRs. Upgrade's highest interest rate is 35.99%, compared to 24.67% for Happy Money.
Payoff Loans are aimed to help borrowers pay down high-interest credit card debt. This means you are limited in what you can use your loan for. You may want to go with Upgrade if you aren't trying to consolidate credit card debt.
Upgrade will likely send you your money faster than Payoff. Upgrade generally sends out funds within a day after approval, while it will take at least three business days with Payoff.
Why You Should Trust Us: How We Rated Upgrade Personal Loans
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate personal loans >>
Upgrade Personal Loan Frequently Asked Questions
Upgrade will often give you a preliminary decision after you apply for a loan, and final approval usually comes within a few business days. You could receive money in as little as a week, but this depends on the complexity of your loan application.
While Upgrade caters to a range of credit scores, typically, a fair to good score (approximately 620 or higher) improves your chances of approval and better rates.
Yes, you can use Upgrade personal loans for consolidating debt.
Upgrade does not charge prepayment penalties, allowing borrowers to pay off their loans early without extra fees.
Borrowers can receive funds as soon as one business day after being approved for a loan, depending on the speed of verification and banking processes.
Upgrade's interest rates are competitive within the industry, especially for borrowers with good credit scores, but rates can vary widely based on credit history and loan terms.
