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6 Loans like Upstart: Top Alternatives for Good and Bad Credit

  • July 14, 2024
  • 12 min read
  • Read Icon 76 reads
Author  Joe Chappius
Editor  Samuele Onelia

Loans like Upstart can be tempting when unexpected financial needs arise, but it’s crucial to explore alternatives to avoid potential long-term financial challenges. While Upstart offers a popular online lending platform, high-interest personal loans may not always be the best solution.

This guide examines competitive lenders, peer-to-peer platforms, and resources to help you secure the funds you need without excessive risk. By considering these options, you can make an informed decision when searching for loans like Upstart.

Quick Answer: Loans like Upstart

  • SoFi: Best for borrowers with good credit seeking no-fee loans and extra perks.
  • PersonalLoans.com: Ideal for borrowers seeking a variety of loan options from multiple lenders.
  • Prosper: Ideal for peer-to-peer lending, potentially offering lower rates to well-qualified borrowers.
  • LendingClub: Good for those wanting flexible terms and direct payments to creditors for debt consolidation.
  • Low Credit Finance: Best for those with challenged credit looking to compare multiple lender offers.
  • 5kfunds: Ideal for borrowers wanting to explore a wide range of loan options through a single application.

SoFi

Chosen 17,001 times
  • See Rates in 60 seconds
  • High Trustpilot Score
  • NO fees required and same-day funding
  • Unemployment Protection
Min Loan Amount5000
Max Loan Amount100000
Lowest APR8.99
Highest APR25.81
Min Loan Term2 Years
Max Loan Term7 Years
Accepts bad credit:No.
Minimum Age18

SoFi (Social Finance) is a comprehensive online personal finance company offering various financial products, including personal loans.

Key Advantages over Upstart:

  • No fees: SoFi doesn’t charge origination fees or prepayment penalties
  • Unemployment protection: Loan forbearance if you lose your job
  • Member benefits: Career coaching and financial planning services

Important Considerations:

  • Stricter eligibility requirements: May be harder to qualify with lower credit scores
  • Longer funding time: Can take up to a week for funds to be disbursed

PersonalLoans.com

Chosen 32,476 times
  • Loans from $250 – $35,000
  • Repayment terms from 6 – 72 months
  • Access to hundreds of lenders
  • APRs from 5.99%
Min Loan Amount250
Max Loan Amount35000
Lowest APR5.99
Highest APR35.99
Min Loan Term3 Months
Max Loan Term6 Years
Accepts bad credit:Yes.
Minimum Age18

PersonalLoans.com stands out for its flexibility and accessibility, potentially offering options for borrowers who might not qualify with Upstart or other traditional lenders.

The platform’s diverse lender network means you could find a suitable loan regardless of your credit situation, though it’s crucial to carefully review any offers you receive.

Key Advantages over Upstart:

  • Wide range of loan amounts: Offers loans from $1,000 to $35,000, catering to different financial needs.
  • Considers various credit profiles: Works with lenders who may approve borrowers with poor, fair, and good credit scores.
  • Multiple loan types: Provides access to peer-to-peer loans, personal installment loans, and bank personal loans all in one place.

Important Considerations:

  • Not a direct lender: Rates, terms, and fees vary depending on the lender you’re matched with.
  • Potential for high APRs: Borrowers with lower credit scores may face significantly higher interest rates.
  • Loan connection service: The application process may result in multiple lenders reviewing your information.

Compare loans from 79 lenders

Find the cheapest rate with one click

Prosper

Chosen 2,029 times
  • Personal Loans up to $40,000
  • HELOCs
  • Rates from 7.95% – 35.99%
  • Investments
Min Loan Amount2000
Max Loan Amount35000
Lowest APR7.95
Highest APR35.99
Min Loan Term3 Years
Max Loan Term3 Years
Accepts bad credit:No.
Minimum Age18

Prosper is a peer-to-peer lending platform connecting borrowers with individual investors.

Key Advantages over Upstart:

  • Potentially lower interest rates for well-qualified borrowers
  • Fixed-rate loans with predictable monthly payments
  • Joint application option to potentially qualify for better rates

Important Considerations:

  • Origination fees apply (2.41% – 5%)
  • Funding can take 3-5 business days

LendingClub

Chosen 2,784 times
  • Largest online personal loan lender in the U.S
  • Rates start as low as 6.95%
  • Loans from $1,000 – $40,000
Min Loan Amount1000
Max Loan Amount40000
Lowest APR5.99
Highest APR35.89
Min Loan Term3 Years
Max Loan Term10 Years
Accepts bad credit:Yes.
Minimum Age18

LendingClub is another peer-to-peer lending platform offering personal loans and other financial products.

Key Advantages over Upstart:

  • Joint applications accepted
  • Direct payment to creditors for debt consolidation loans
  • Flexible loan terms (36 or 60 months)

Important Considerations:

  • Origination fees range from 3% to 6%
  • Stricter credit score requirements than Upstart

Low Credit Finance

Chosen 2,290 times
  • All Credit Types Accepted
  • Easy Online Application
  • Approval decision in minutes
  • Flexible Repayment Terms
Min Loan Amount100
Max Loan Amount50000
Lowest APR5.99
Highest APR35.99
Min Loan Term2 Months
Max Loan Term7 Years
Accepts bad credit:Yes.
Minimum Age18

Low Credit Finance is a loan connection platform specializing in helping individuals with poor credit scores find potential lenders.

Key Advantages over Upstart:

  • Focuses on borrowers with challenging credit histories
  • Single application connects you to multiple lenders
  • Entirely online application process for convenience

Important Considerations:

  • Not a direct lender; rates and terms vary by matched lender
  • Potential for multiple credit inquiries
  • Carefully research any matched lenders before accepting offers

How to save $619.00 on your loan

The price difference for a $500.00 loan in 90 days is $619.00.

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5kfunds

Chosen 80,214 times
  • Check Rates without Credit Impact
  • No Minimum Credit Score
  • Large Network of Lenders
Min Loan Amount500
Max Loan Amount35000
Lowest APR5.99
Highest APR35.99
Min Loan Term6 Months
Max Loan Term5 Years
Accepts bad credit:Yes.
Minimum Age18

5kfunds is another loan connection service that helps borrowers find personal loan options from various lenders.

Key Advantages over Upstart:

  • Considers applicants with a wide range of credit scores
  • Quick online application process
  • Offers loans for various purposes (debt consolidation, home improvement, etc.)

Important Considerations:

  • Not a direct lender; final rates depend on matched lenders
  • Loan amounts typically range from $1,000 to $35,000
  • Compare offers carefully as terms can vary significantly between lenders

Comparing Loans Like Upstart

LenderLoan AmountsAPR RangeMin. Credit ScoreOrigination Fee
Upstart$1,000 – $50,0006.5% – 35.99%5800% – 10%
SoFi$5,000 – $100,0007.99% – 23.43%680None
Prosper$2,000 – $40,0007.95% – 35.99%6402.41% – 5%
LendingClub$1,000 – $40,0008.05% – 36%6003% – 6%
Low Credit FinanceVaries by lenderVaries by lenderNo minimumVaries by lender
5kfunds$1,000 – $35,000Varies by lenderNo minimumVaries by lender

Understanding Personal Loan Terms

Before applying for any personal loan, it’s crucial to understand key terms:

  • Annual Percentage Rate (APR): The yearly cost of borrowing, including interest and fees
  • Origination Fee: A one-time charge for processing the loan, often deducted from the loan amount
  • Prepayment Penalty: A fee charged for paying off the loan early (not common with most online lenders)
  • Fixed vs. Variable Rates: Fixed rates remain constant, while variable rates can fluctuate over time

Learn More: Loan Terms Glossary

Factors to Consider When Choosing a Personal Loan

  1. Interest Rates and APR: Compare the total cost of borrowing across lenders
  2. Loan Terms: Evaluate repayment periods and how they affect monthly payments
  3. Fees: Consider origination fees, late payment fees, and other potential charges
  4. Funding Speed: Determine how quickly you need the funds
  5. Eligibility Requirements: Check credit score and income requirements
  6. Soft Credit Check Pre-qualification: Look for lenders offering this feature to avoid hard inquiries on your credit report

Alternatives to Traditional Personal Loans

  1. Credit Union Personal Loans: Often offer lower rates and more flexible terms for members
  2. Secured Personal Loans: Using collateral can lead to lower interest rates
  3. Home Equity Loans or HELOCs: For homeowners, these can provide lower rates but put your home at risk
  4. Balance Transfer Credit Cards: Can offer 0% APR for a limited time on debt transfers
  5. Borrowing from Family or Friends: Potentially interest-free but can strain relationships

Improving Your Chances of Loan Approval

  1. Check and improve your credit score: Pay down existing debts and dispute any errors on your credit report
  2. Increase your income: Consider a side job or asking for a raise at work
  3. Reduce your debt-to-income ratio: Pay off existing debts or increase your income
  4. Consider a co-signer: A creditworthy co-signer can improve your chances of approval and potentially secure better rates
  5. Provide complete and accurate information: Ensure all application details are correct and up-to-date

Risks of High-Interest Personal Loans

While personal loans can provide needed funds, be aware of potential risks:

  • Debt Cycle: High-interest loans can lead to a cycle of borrowing
  • Impact on Credit Score: Late payments or defaults can severely damage your credit
  • Financial Stress: High monthly payments can strain your budget
  • Collateral Loss: For secured loans, you risk losing the asset used as collateral

Choosing the Right Loan for Your Needs

When exploring loans like Upstart, carefully consider your financial situation, the total cost of borrowing, and alternative options.

Always read the fine print, understand all terms and conditions, and borrow responsibly. By making an informed decision, you can secure the funding you need while protecting your long-term financial health.

Remember

The best loan is one that fits your specific circumstances and helps you achieve your financial goals without creating undue hardship.

Take the time to research, compare options, and choose a loan that aligns with your needs and ability to repay.

Frequently Asked Questions

What credit score do I need to qualify for a loan like Upstart?

Credit score requirements vary by lender. Upstart considers applicants with scores as low as 580, while some alternatives like SoFi may require higher scores (around 680). However, lenders like Low Credit Finance and 5kfunds work with a range of credit profiles.

How long does it take to receive funds after loan approval?

Funding times vary. Some lenders offer same-day or next-day funding, while others may take 3-7 business days. Upstart typically funds loans within 1-3 business days after approval.

Can I use these loans for any purpose?

Most personal loans, including those from Upstart and its alternatives, can be used for various purposes such as debt consolidation, home improvements, or major purchases. However, some lenders may have restrictions, so it’s best to check with the specific lender.

What’s the difference between a secured and unsecured personal loan?

Secured loans require collateral (like a car or savings account), while unsecured loans don’t. Most loans like Upstart are unsecured, meaning they’re based on your creditworthiness rather than collateral.

Will applying for multiple loans hurt my credit score?

Multiple hard inquiries can temporarily lower your credit score. However, many lenders offer pre-qualification with a soft credit check, which doesn’t affect your score. It’s best to use these pre-qualification tools when comparing options.

Can I refinance a loan like Upstart later if I improve my credit?

Yes, many borrowers refinance their loans after improving their credit to secure better rates. However, consider any fees associated with the new loan and how they compare to the potential savings.

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Author Joe Chappius

Joe is a seasoned financial adviser with over a decade in the industry, and Head of the US Market at financer.com. Throughout his career, he's directly assisted families, high-income individuals, and business owners with their financial needs. Joe draws on his wealth of client-facing experience to author insightful and high-quality financial content.

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