If you have fair credit or a limited credit history, both Upgrade and Upstart are worth considering for a personal loan. They use different approval models — Upgrade uses traditional credit scoring while Upstart uses AI and considers non-traditional factors like education and employment. Here is a detailed comparison to help you choose.
Key Differences
| Feature | Upgrade | Upstart |
|---|---|---|
| Minimum Credit Score | ~580 FICO | ~300 FICO (AI model) |
| Approval Model | Traditional credit + income | AI: credit + education + employment |
| Loan Amount | $1,000–$50,000 | $1,000–$50,000 |
| APR Range | 9.99%–35.99% | 7.80%–35.99% |
| Origination Fee | 1.85%–9.99% | 0%–12% |
| Loan Terms | 2–7 years | 3 or 5 years only |
| Co-signer Allowed | Yes | No |
| Secured Option | Yes (vehicle) | No |
| Prepayment Penalty | None | None |
| Late Fee | $10 | $15 or 5% |
| Funding Speed | 1 business day | 1 business day |
Pros & Cons
✅ Choose Upgrade If...
- You want to apply with a co-signer or co-borrower
- You need a secured loan option using your car as collateral
- You want longer repayment terms (up to 7 years)
- You value the included credit monitoring tools
✅ Choose Upstart If...
- You have a thin credit file or no established FICO score
- You are a recent graduate or young professional
- Your education and employment history compensate for lower credit
- You want potentially lower starting APRs
Who Should Apply for Each
Upgrade is better for borrowers who have some credit history (even if imperfect) and want flexibility like co-signers, vehicle collateral, or longer terms. Upstart is better for younger borrowers with thin credit files, especially college graduates with strong degrees and stable income but limited credit history.
How to Choose: A Simple Framework
- Check your rate at both lenders simultaneously — both use soft pulls so your score is safe.
- Compare the total cost: APR + origination fee × loan amount + total interest over term.
- Check which lender approves the better amount.
- Consider term flexibility — Upstart only offers 3 or 5 years; Upgrade offers 2–7.
- Choose the offer with the lowest total cost of borrowing, not just the lowest monthly payment.
Frequently Asked Questions
Can I apply to both Upgrade and Upstart at the same time?
Yes — rate checks at both are soft pulls with no credit score impact. Apply to both and compare final offers before accepting any.
Which has better customer reviews?
Both have strong Trustpilot ratings (4.4+). Upstart is praised for its fast AI-powered decisions; Upgrade is praised for its educational tools and customer support.