Debt consolidation loans for people with bad credit.
Upgrade Personal Loan review
Upgrade is an online lender based in Silicon Valley that that offers unsecured personal loans, lines of credit and credit monitoring. They are licensed to operate in all states except West Virginia and Iowa.
Their loans can be used for anything but are popular for credit consolidation, debt consolidation, credit card refinancing and major purchases like home renovations.
They doesn’t disclose their minimum credit score but based on our research we recommend applying if your credit score is above 600, which can be lower than other lenders and interest rates range from 6.18% to 35.99%.
Upgrade has won multiple awards from NerdWallet including Best Loans for Fair Credit and Best Loans for Bad Credit for 2022.
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Upgrade is best for people who:
- Have less than excellent credit looking for a loan from $1,000-$50,000.
- May have a thin or spotty credit history.
- Are looking to consolidate credit card or payday loan debt.
- Looking for longer repayment terms.
- High approval rate even for those with less than excellent credit
- Quick funding – next business day possible
- Low credit scores accepted
- 1 day approval.
- Fast online application
- Interest rates can be up to 35.99%
- Charge multiple fees up to 8%
- Not available in all states
- No co-signer or secured loan options
Upstart has a streamlined online application process and claims to have a high approval rate. Borrowers can receive funds as soon as the next business day and applicants with bad credit or thin credit scores are encouraged to apply.
In terms of repayment, Upstart offers automatic payments through ACH transfer or debit card. Borrowers can also make manual payments online or by mail. Upstart does not charge a prepayment penalty, so borrowers have the flexibility to pay off their loans early without additional fees.
Overall, Upstart is a convenient and potentially affordable option for borrowing personal loans, especially for those with less than excellent credit. It is important for borrowers to carefully review the interest rates and fees before accepting the loan.
Upstart personal loan features
What makes SoFi stands out:
- High approval rate: Upstart claims to have a high approval rate, even for borrowers with less-than-perfect credit.
- Quick funding: If approved, borrowers can receive loan proceeds as soon as the next business day.
- Flexible repayment terms: Upstart offers 3 or 5 year loan terms and does not charge a prepayment penalty, so borrowers have the flexibility to pay off their loans early without additional fees.
- Convenient application process: Upstart has a streamlined online application process that can be completed from the comfort of your home.
Why you’ll want apply elsewhere:
- Interest rates may be high: Depending on the borrower’s creditworthiness and other factors, the interest rates on Upstart loans can range from 6.18% to 35.99% APR, which may be higher than some other lending options.
- Origination fee: Upstart charges an origination fee of 0% to 8% of the loan amount, which is deducted from the loan proceeds.
- Limited loan amounts: Upstart only offers personal loans ranging from $1,000 to $50,000, which may not be sufficient for some borrowers.
- No option for a co-signer or secured loan.
- Limited availability: Upstart is not available in all states, so it may not be an option for some borrowers.
Is Upstart legit?
Upstart is a legitimate company that offers personal loans to borrowers. It was founded in 2012 and is headquartered in San Carlos, California. They follow all lending laws and regulations in all states where they operate.
- A+ Better Business Bureau (BBB) rating: Upstart has been accredited by the (BBB) since 2015 and currently has an A+ rating.
- 4.9 Trustpilot score: They are verified on Trustpilot and have a 4.9 star, rating or excellent, with over 40,000 customer reviews.
How to qualify for a loan from Upstart
To qualify for a loan from Upstart, borrowers must meet the following requirements:
- Be at least 18 years old
- Have a valid Social Security number
- Have a valid checking account
- Be a resident of a state where Upstart is licensed to lend (Upstart currently operates in all but two states)
- Have a verifiable source of income
In addition to these basic requirements, Upstart considers a variety of other factors when evaluating loan applications, including credit scores, education and employment history, and debt-to-income ratio. Upstart uses a proprietary algorithm to determine loan eligibility and rates, which means that the specific requirements for approval may vary from borrower to borrower.
It’s always important for borrowers to carefully review the terms and conditions of a loan before accepting the loan offer.
How Upstart compares to other lenders
- LendingClub: LendingClub is a peer-to-peer lending platform that connects borrowers with investors who fund their loans. Like Upstart, LendingClub uses a variety of factors in addition to credit scores to determine loan eligibility and rates. LendingClub offers personal loans ranging from $1,000 to $40,000, with terms of 3 or 5 years.
- Prosper: Prosper is another peer-to-peer lending platform that offers personal loans to borrowers. Like Upstart, Prosper uses a proprietary algorithm to determine loan eligibility and rates, and considers a variety of factors in addition to credit scores. Prosper offers personal loans ranging from $2,000 to $40,000, with terms of 3 or 5 years.
- Avant: Avant is an online lender that offers personal loans to borrowers. Like Upstart, Avant uses a proprietary algorithm to determine loan eligibility and rates, and considers a variety of factors in addition to credit scores. Avant offers personal loans ranging from $2,000 to $35,000, with terms of 2 to 5 years.
How to apply for loan with Upstart
To apply for a loan with Upstart, follow these steps:
- Go to the Upstart website (www.upstart.com) and click on the “Get started” button.
- Enter the loan amount and purpose, as well as the loan term (3 or 5 years). Click “See your rate” to continue.
- Fill out the form with your personal and financial information, including your name, address, employment status, and income. You will also need to provide your Social Security number and a valid checking account.
- Review the loan offer and terms, including the interest rate and fees. If you agree to the terms, click “Accept loan offer.”
- Upload any required documents, such as proof of income or identification.
- Review and sign the loan agreement electronically.
- Wait for Upstart to review your application and notify you of the decision. If approved, you will receive the loan proceeds as soon as the next business day.
