What we love about Upgrade personal loan

Upgrade personal loans are designed to appeal to borrowers with a wide range of incomes and credit scores. Interest rates and fees are competitive when compared to similar lenders. What sets Upgrade apart from the competition is that it offers rate discounts to borrowers who agree to send funds directly to creditors when applying for a debt consolidation loan. It is also one of the few lenders that provide joint, co-signed, and secured loans. 

The loans have comparable rates and fees to other online lenders targeting similar audiences. Still, Upgrade differentiates itself with features like rate discounts for setting up autopayments or having payments sent directly to creditors on debt consolidation loans. Upgrade is also one of few lenders to offer joint, secured, and co-signed personal loans.

The lender emphasizes free cash flow when reviewing a loan application. While debt-to-income ratio and credit score are important, a spokesperson says, they don’t account for rent payments and other monthly expenses that can factor into your ability to repay a loan.

What could Upgrade do better?

For all its flexibility, Upgrade only offers limited repayment terms. This means you have fewer options if you would prefer a longer or shorter repayment plan. This shouldn't be a dealbreaker for borrowers since you can repay a loan early without worrying about a penalty fee.

The only other issue we have with Upgrade is the high origination fee. Charging an origination fee is common among personal loans, but Upgrade can be more expensive than most if your credit is not great.

Upgrade's backstory

Upgrade's founders are Renaud LaPlanche and Soul Htite. Sound familiar? If you've taken out a loan in the past several years, they should. That's because LaPlanche and Htite were both co-founders of LendingClub, America's largest loan marketplace.

LendingClub arranged over 28 billion dollars in loans to over 1.5 million customers. Htite also founded one of China's largest marketplace lending platforms, Dianrong.

In other words, both founders have a good track record in the online lending business.

But unlike their previous ventures, Upgrade loans is not a marketplace that connects borrowers to lenders. It's a direct lender, originating loans in a traditional style through a partnership with WebBank.

Upgrade loans application process

• Go to Upgrade's home page. Enter the desired loan amount and the reason you want to borrow. Then, click "Check your Rate."
• Provide some basic information about yourself.
• Create your account, review the documents, and provide your electronic signature to agree. Then, click "Check my rates."

After these steps, Upgrade will provide the rates for which you qualify, or you will receive a message notifying you that your application has been denied.

If you are denied, you will receive an adverse action notice explaining why. If you are approved and want to go ahead with the offer, you will select it.

You will then need to provide additional information, officially agree to the terms, allow a hard credit inquiry on your credit report, and provide your bank account information.

The Verdict

Upgrade's APRs are competitive and they have a fast and easy application process. Their credit monitoring features provide a convenient complement to their loan engine, and their commitment to educating and improving the credit scores of rejected applicants is admirable. The customizable loan features and discount opportunities make Upgrade a good option for borrowers with less than perfect credit who have a strong monthly cash flow.

The only concern is that the origination fee can be expensive in, if you can afford the origination fee and appreciate efficiency and convenience in your loans, Upgrade is definitely worth your consideration.