Since its inception in 2017, Upgrade Inc. has been functioning as a highly advanced and highly innovative fintech company in the US. So far, the company has launched various financial products including personal loans, credit lines, and a wide variety of cards that have unique features of being a credit card as well as personal loans, rewards checking accounts, etc. So far, the company has spent over 15 billion dollars on issuing credit to its customers.
Over all these years, getting Upgrade personal loan funding has proved to be a quick and easy process in comparison to its competitors.
Unsecured personal loans and secured personal loans.
Upgrade Inc. mainly focuses on Unsecured personal loans. But the type of loan that would suit a person’s requirement is based on the judgment of the lender itself, after a credit inquiry about the borrower is made.
This is to ensure that the borrower receives the offer that caters to their needs and suits their requirements to the max.
Difference between Secured Loans and Unsecured loans:
|Unsecured Loans||Secured Loans|
|1||They are not asset protected||They are protected by an asset as collateral, like personal property, vehicles, stock bonds, etc.|
|2||They have higher interest rates||They have lower interest rates|
|3||They have a lower borrowing limit||They have a higher borrowing limit|
|4||They have shorter repayment terms||They have longer repayment terms|
|5||Riskier for the lender||Riskier for the borrower|
Secured personal loans cannot be used for new purchases. They are usually high amounts that the borrower needs either for an investment or some kind of expansion. They also can be in the form of home equity or home equity credit lines. For that, they need to put something valuable as collateral, as per the lending company’s requirement.
The lenders need this because when the borrower keeps something of great value as collateral, they would do everything in their power to pay off their loans within their repayment term.
So, it is like a guarantee to ensure repayment from the borrower. This type of loan has lower risks for the lender because if the borrower fails to repay their loan, then the lending company does not face any financial loss. They gain complete possession of the asset that the borrower kept with them as collateral.
Since the risks are low for them, the lenders offer these loans at lower interest rates and without any origination fee too in most cases. And this is the reason why they also offer a higher borrowing power and longer repayment terms.
On the other hand, unsecured personal loans are completely different. They are riskier for the lender because they are not asset protected. The lending company does not keep anything as collateral. Except for an origination fee, they do not keep anything in the form of a solid guarantee.
Unsecured loans include student loans, credit cards, personal credit lines, signature loans, home improvement loans, etc.
Their borrowing limit is for several thousand dollars only. And their repayment terms are also limited and shorter in comparison to secured loans.
Types of personal loans that Upgrade offers:
Upgrade mainly focuses on unsecured personal loans ranging from $1,000 to $50,000. The repayment terms can be anywhere between 24 to 84 months.
However, they also offer secured loans too in several cases. In those cases, once the applicant applies for a loan, the company carries out a background check and they may offer the applicant to go for a secured personal loan. As collateral, Upgrade Inc. mostly keeps the borrower’s vehicle and dubs it a secured auto loan.
Upgrade’s personal loans are mostly offered to people who have fair to excellent credit scores. So, in this regard, the company stands out amongst its competitors. Other lenders mostly offer loans to people with good to excellent scores.
Upgrade’s unsecured personal loans can be used for a wide array of uses, but some of the most common types of personal loans that people get from Upgrade include the following:
- Business loans
- Home renovation/improvement loans
- Debt consolidation loan
- Medical loans
- Relocation loans
- Loans for some major and new purchases
Limitations of Upgrade Personal Loans:
Upgrade does not allow the borrowers to use their loans on the following things:
- Post-secondary college fee
- Tuition/ education cost
- Hostel/ room for lodging costs
- Upgrade functions all over the US except for Washington D.C.
- Upgrade does not offer personal loan refinancing
Frequently Asked Questions:
1- How to apply for the Upgrade loans?
To apply for a loan, the applicant has to:
- Visit https://www.upgrade.com/personal-loans/ and enter the desired loan amount along with some basic information and click on “Check your rate”
- Upgrade will carry out a soft credit inquiry that will not affect your credit scores
- Once you qualify, Upgrade will send you an offer and you will be required to put on a formal application
- You can now review various loan options and choose the best offer that can fulfill your financial needs
- Once you accept an offer, Upgrade will carry out some more verifications, including a hard pull, and will eventually issue your loan. You will be able to receive your funding within a day or within a maximum of four days
2- What is Upgrade’s origination fee for its unsecured personal loans?
Upgrade Inc. charges an origination fee of2.9% to 8% for issuing unsecured personal loans.
3- How quickly does it take to pre-approve a loan application?
It is generally a quick service. Upgrade Inc. takes a couple of days for pre-approval, and the loan funding is even quicker. The usual funding time is within one to a maximum of four working days.
4- What are the qualification requirements for a personal loan from Upgrade?
- The minimum credit score required is 560 and above. So, this makes Upgrade loans ideal for people with fair credit scores even
- There is no minimum annual income requirement
- The borrower needs to have at least two accounts with credit history to qualify for a personal loan from Upgrade
5- Does Upgrade provide the borrowers to add other people while applying for a personal loan?
Yes. The company lets the applicants add a co-borrower while applying for a personal loan. This improves their chances to qualify for the loan. The co-borrowers are allowed to access the proceeds from the loan too, unlike most other companies that let the borrowers add a co-signer with them.
Jamie Johnson is a sought-after personal finance writer with bylines on prestigious personal finance sites such as Quicken Loans, Credit Karma, the U.S. Chamber of Commerce, Bankrate, and The Balance. Over the past five years, she’s devoted more than 10,000 hours of research and writing to topics like mortgages, loans, and small business lending.