Is Upgrade a Good Loan Company? What You Need to Know

Upgrade is a financial technology company that provides various lending products to consumers. Established in 2016, the company aims to offer accessible credit solutions and banking products.

Upgrade’s Loan Products

Upgrade offers a range of financial products designed to meet diverse borrowing needs. Personal loans are a primary offering, commonly used for debt consolidation, home improvements, or financing significant purchases. These loans provide a lump sum of money repaid over a set period.

The Upgrade Card combines features of a personal loan and a credit card. This hybrid allows users to make purchases with credit card acceptance while converting balances into fixed-rate installment loans. Upgrade also facilitates auto refinance loans, enabling vehicle owners to potentially lower their interest rates or monthly payments by replacing their existing car loan. The company provides tools for credit monitoring and education to support consumer financial health.

Eligibility and Application Requirements

To be considered for an Upgrade loan, applicants need to meet eligibility criteria. A minimum credit score of 580 is required, though higher scores can lead to more favorable loan terms. Upgrade assesses an applicant’s income and debt-to-income (DTI) ratio to determine their ability to repay the loan. Applicants must be at least 18 years old and possess a valid U.S. citizenship, permanent residency, or an eligible visa.

Gathering necessary documents can streamline the application process. Applicants need a government-issued photo identification, such as a driver’s license or passport. Proof of income is also required, which can include recent pay stubs, W-2 forms, or bank statements demonstrating consistent earnings. Proof of residency and bank account details for fund disbursement are also required.

A preliminary step involves pre-qualification, which allows individuals to check potential rates without affecting their credit score. This process involves a soft credit inquiry that is not visible to other lenders and does not impact creditworthiness. Providing basic information like the desired loan amount, purpose, annual income, and monthly debt obligations is part of this initial assessment.

The Loan Application Process

The formal loan application process with Upgrade is conducted online. Applicants can access the application portal through Upgrade’s website or mobile application. The process involves several stages, beginning with entering personal details and financial information.

Applicants link their bank accounts for verification. Following the initial submission, Upgrade may request additional documents for identity verification and to confirm information provided during pre-qualification. This might involve uploading digital copies of pay stubs or bank statements.

Upgrade provides a loan decision within one to a few business days after the application is submitted and verifications are cleared. If approved, borrowers are presented with loan offers outlining terms, rates, and repayment options. The final step involves accepting the chosen loan offer and electronically signing the necessary documents. Funds are disbursed within one business day of approval and clearing verifications, though availability can vary depending on the borrower’s bank’s processing times, potentially taking up to four business days.

Understanding Upgrade’s Loan Terms

Upgrade personal loans feature Annual Percentage Rates (APRs) that range from 7.99% to 35.99%. The specific APR offered depends on several factors, including creditworthiness, credit usage history, and the chosen loan amount and term. Lower rates are available to borrowers with higher credit scores and those who enroll in autopay.

Upgrade loans include an origination fee, which ranges from 1.85% to 9.99% of the loan amount. This fee is deducted from the loan proceeds before funds are disbursed, meaning the borrower receives a slightly smaller amount than the approved loan. Upgrade may charge a late payment fee of up to $10 if a payment is not received within 15 calendar days of the due date, and a $10 fee for failed electronic payment attempts.

Loan amounts for personal loans range from $1,000 to $50,000, with repayment terms varying from 24 to 84 months. Loans are structured with fixed monthly payments, providing predictability for budgeting. Upgrade does not impose prepayment penalties, allowing borrowers to pay off their loan early without incurring additional charges.

Managing an Upgrade Account

Once a loan is established and funds are disbursed, managing the Upgrade account is handled through their online platform or mobile application. Borrowers can make payments through these digital channels, including setting up automatic payments. This helps avoid late fees and supports a positive payment history.

The online portal allows access to account information, such as statements and payment history, enabling borrowers to track their loan progress. For any questions or assistance, customer support is available through various channels. Borrowers can reach Upgrade representatives via phone, email, or online chat, and the company provides FAQ sections for common inquiries. The mobile app offers features like credit score monitoring and the ability to adjust payment dates within a certain window.