Are you curious if Upgrade personal loans are a good fit for you? If your credit score isn’t optimal or you’ve struggled to get approval for a traditional bank loan, getting your loan with Upgrade may be exactly the solution you need.
In this Upgrade loan review, we’ll cover the key features and products offered by Upgrade, what you need to qualify for a loan or credit card from one of Upgrade’s bank partners, and how these products and requirements compare to traditional loans you might get from a bank or credit union.
What is Upgrade?
Upgrade is a fintech firm with an objective to extend the availability of personal loans, particularly for those with less-than-ideal credit scores from credit bureaus. They offer a suite of financial solutions that include personal loans, credit cards, and even a checking account, all of which are engineered to assist customers with debt consolidation and credit improvement.
Upgrade has partnered with various FDIC-insured banks to provide financial products to its users. These alliances have allowed Upgrade to quote and fund personal loans with fixed competitive interest rates and consistent monthly payments that are lower than most other personal loan lenders.
With full transparency around fees and interest rates, Upgrade makes it easy for borrowers to track their financial obligations, make on-time payments, and even take advantage of cash-back rewards on their credit cards.
The people who stand to benefit from Upgrade the most are:
- People who have been unable to qualify for traditional bank loans
- Those who have accrued debt and need an easy way to consolidate it and pay it down
- People who want a rewards credit card
- People who want to achieve good standing and improve their credit scores with on-time, consistent payments
We’ll reveal more about how using Upgrade to take out a loan can help you later in this review.
How Does Upgrade Work?
The application process for an Upgrade personal loan is intentionally designed to be seamless and user-oriented. It kicks off with a swift pre-qualification phase, which requires only minutes to complete, and includes a soft credit check that doesn’t negatively impact your credit score. If you’re pre-qualified, Upgrade then presents you with personalized loan offers based on your financial situation.
Choosing one of these tailored offers leads to submitting documentation, including proof of residence and proof of income. The time frame for approval ranges from a few minutes up to several hours after submission, varying according to the particular details involved in each case.
Upon approval for the personal loan, funds can usually be accessed as early as one business day later — a rapid solution that’s ideal if you have immediate financial needs.
Pro Tip:
Did you know that Upgrade offers fee-free rewards based checking accounts?
How Are Upgrade Loans Different from Bank Loans?
There are a few important ways in which Upgrade loans differ from a traditional personal loan you might get from a bank or credit union.
- Personal loans are available in amounts from $1,000 up to $50,000, making them ideal for debt consolidation, home improvements, and any unexpected financial obligation, such as a high medical bill. Banks may only approve you for smaller amounts, depending on your credit.
- Upgrade’s loans all come with a fixed interest rate, meaning that you’ll always know how much your loan payment will be. Most personal loans from banks and credit unions come with a variable rate that may change over time.
- Upgrade has a streamlined application process that can be completed in just a few minutes. You can get pre-qualified quickly, and there’s no impact on your credit score since this is a “soft” inquiry.
- There are no early repayment penalties with Upgrade. If you decide you want to pay your balance early, you can easily do so without paying any penalties. That’s something that’s not always possible with a bank loan.
You should keep in mind that there are some similarities with bank loans, too. Like banks and credit unions, Upgrade is completely transparent about fees. (That’s a legal requirement for all lenders.) Making on-time payments on an Upgrade loan will improve your credit score over time, while delinquent or missed payments may incur penalties and negatively impact your credit score.
Upgrade Personal Loan Requirements at a Glance
There are a few basic requirements to get a personal loan with Upgrade. These include the following.
- A minimum FICO score of 580 (Check out our TRANSUNION REVIEW if you’re unsure about monitoring your credit score)
- At least two years of credit history
- Maximum debt-to-income ratio of 75%, including your mortgage if you have one
- U.S. citizenship or permanent residency status
- At least 18 years of age
If you meet these requirements, then you may qualify for an Upgrade loan that will help you consolidate debt or meet other financial obligations.
Upgrade Features
Upgrade delivers an assortment of financial tools tailored to meet a variety of needs. These include loans and other products to help you manage your money, improve your financial situation, and pursue your financial goals.
Upgrade Credit Cards
Upgrade offers a diverse selection of credit cards tailored to meet various financial needs, each packed with unique benefits and features. Whether you’re looking for cash back on everyday purchases or rewards on spending in essential categories, Upgrade’s credit cards provide flexible options without hefty fees.
- Cash Rewards Card: Offers 1.5% cash back on all purchases, with credit limits ranging from $500 to $25,000. This card comes with the added benefit of no annual fee, making it an attractive choice for everyday spending.
- Life Rewards Card: Provides 3% cash back on essential categories such as gas, groceries, streaming services, health, and utilities. Like the Cash Rewards Card, it features no annual fee, enhancing its appeal for those who frequently spend in these areas.
- Upgrade Select Card: Comes with a credit limit between $500 and $2,000, and carries a $39 annual fee. This card is designed for those seeking a straightforward credit option with a modest spending limit.
Rewards Checking Plus
Upgrade’s suite of banking services is further augmented by the Rewards Checking Plus account, a feature-rich offering designed for those who seek to maximize their financial benefits. The features of this account include:
- A free debit card
- APY up to 4.14%
- Up to 2% cash back on everyday purchases, plus 1% cash back on all other purchases.
- No minimum balance requirement
You’ll need a direct deposit of $1,000 per month to qualify for that 4.14% APY.
Pro Tip:
Did you know that Upgrade offers fee-free rewards based checking accounts?
Who is an Upgrade Personal Loan Good For?
Upgrade personal loans are designed to offer financial solutions for individuals with less-than-perfect credit scores. These loans provide flexibility and accessibility, making them a viable option for managing debt and financing significant expenses.
- Minimum Credit Score: A minimum credit score of 580 is required, making Upgrade loans more accessible compared to many other lenders.
- Loan Amounts: Borrowers can choose from loan amounts ranging from $1,000 to $50,000, providing options to meet diverse financial needs.
- Potential Uses: Upgrade personal loans are ideal for consolidating existing debt, covering home renovation costs, or managing healthcare expenses.
Upgrade personal loans are particularly advantageous for those facing credit challenges who need a reliable means to achieve financial recovery and stability through manageable monthly payments and flexible loan terms.
How to Apply for an Upgrade Personal Loan
If you’re considering applying for a personal loan from Upgrade, follow these steps to ensure a smooth and efficient process:
- Check your credit score online and generate offers: Begin the application process with a quick two-minute pre-qualification step that does not affect your credit score, thanks to the use of a soft credit check.
- Provide requested documents to verify your identity, residence, and income: After pre-qualification, you’ll need to furnish documents such as proof of address and income verification to proceed with your application.
- Receive and review loan offers: You’ll be presented with various loan offers that align with your financial situation, allowing you to choose from a range of options tailored to meet your requirements.
- Accept the loan offer that fits your needs: Select the loan offer that best suits your financial needs and proceed with the acceptance of terms.
- Receive funds in your bank account within one day of clearing necessary verifications: Once approved, funds may become accessible within just one business day, providing a rapid solution for urgent financial needs.
By following these steps, you can efficiently navigate the Upgrade personal loan application process and secure the funds you need.
Pro Tip:
Did you know that Upgrade offers fee-free rewards based checking accounts?
User Interface and Mobile App
The Upgrade mobile application boasts a user-friendly and contemporary design that can be accessed on the web or through its app, compatible with both iOS and Android platforms.
Upgrade’s interface allows for quick and effortless navigation and features designed to provide a superior customer experience. These include loan management features, payment scheduling, credit score monitoring, and access to customized financial advice.
Loan Management Tools
Here’s a bit more information about Upgrade’s loan management tools.
Borrowers can use customizable payment options to make sure they never miss a payment. There’s an option to change your payment date within a 15-day window, something that’s super convenient for those who might find they have a lot of bills due at the same time each month.
We already mentioned that there’s a credit score monitoring tool, something that’s helpful if you’re taking out a debt consolidation loan and hoping to boost your FICO score.
These tools can help you manage your finances and meet your financial obligations with ease, making Upgrade a useful tool for anybody who wants to improve their financial circumstances and work toward achieving their financial dreams.
Cost Analysis
When considering an Upgrade personal loan, it’s important to understand the costs involved. Here’s a simple breakdown of what you can expect:
- APR: The interest rates range from 9.99% to 35.99%, depending on your credit history and other factors.
- Origination Fees: These fees vary from 1.85% to 9.99% of the loan amount, which reduces the amount you actually receive.
- Late Fees: If you miss a payment, there’s a $10 charge, and a $101 fee for a failed payment.
- No Early Repayment Penalties: You can pay off your loan early without any extra charges.
Overall, Upgrade offers a flexible loan option with clear costs, making it a viable choice for many borrowers.
What Should You Consider Before Getting an Upgrade Loan?
Upgrade personal loans present an attractive choice for individuals who might otherwise have difficulty getting approved for a traditional bank loan. With loan amounts up to $50,000, you can consolidate your debt and even pay your loan off early without penalties.
From a financial standpoint, Upgrade’s advantageous interest rates coupled with a broad spectrum of available loan amounts position it competitively in the personal loan arena. Customers can also take advantage of potential interest rate discounts by opting into automatic payments, although they should weigh this against factors like high APR ceilings and origination fees that could incur additional costs.
Summary
Upgrade’s personal loans and other financial products provide a practical option for individuals who do not have optimal credit scores, offering them an opportunity to secure funds and credit cards at competitive rates. These loans come without the burden of prepayment penalties and are available in various amounts, presenting a solid alternative to conventional bank lending options. The application process is designed with user convenience in mind, while efficient loan management tools significantly improve the customer experience.
If you’re in need of a personal loan that prioritizes clear communication regarding interest rates and fees as well as adaptability and positive client interactions, Upgrade merits consideration. It distinguishes itself within the personal loan arena by providing straightforward financial information alongside resources aimed at enhancing your monetary well-being.
FAQs
The minimum credit score for an Upgrade personal loan is 580, which is significantly lower than what might be required by a bank or credit union.
Yes, Upgrade is a legitimate lender that partners with real banks to provide loans to people who need them.
Depending on your circumstances, you may be able to verify income with a paystub or a copy of your tax filing.
You’ll need proof of your identity, residence, and income, as well as a minimum credit score of 580 and two years of credit history.
Once your loan has been approved, you can no longer change the amount of your loan. If you require additional funds, you’ll need to apply for a second loan.
Yes, the funds from your Upgrade personal loan can be used for any purpose you choose, including debt consolidation. You may even end up with a single monthly payment that’s lower than what you were paying previously, depending on what APR you qualify for.
