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Upgrade – About The Lender
Upgrade is an online lending platform company based out of San Francisco, created by peer-to-peer lending veterans Renaud Laplanche and Soul Htite. They are also the founders of Lending Club. Soul Htite is the founder of China’s largest online lender, Dianrong. Upgrade was established in 2016 with the goal of helping borrowers with personal loans and a new product, personal lines of credit. Upgrade also combines their products with free credit monitoring, including alerts and even providing education about credit on their platform.
Upgrade has a deep executive bench with the goal of providing an online lending platform at a lower cost and with a better customer experience than traditional banks. Upgrade seeks to help borrowers understand their credit potential and secure cheaper credit in the long run using credit monitoring.
Upgrade – Loan Specification
Here are the basic specifications & requirements of Upgrade Personal Loan :
|Feature||Upgrade Personal Loan|
|Loan Amount Range||$1,000 – $50,000|
|Interest Rate Range||6.99% – 35.97%|
|Late Payment Fee||$10|
|Returned payment fee||None|
|Check Processing fee||None|
|Minimum Credit Score||620|
|1st payment||30 days from issued funds|
|Debt To Income Ratio||less than 40%|
|Documents To Provide|
Upgrade Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
What Can an Upgrade Personal Loan Be Used For?
Upgrade can be used to consolidate debt, build or improve businesses, pay for home improvements or for large purchases. It cannot be used for any post-secondary education expenses, investments, illegal activities, or gambling of any kind.
Upgrade debt consolidation takes one or more loans and pays them with the new Upgrade loan. Instead of multiple payments to multiple lenders you can create one payment to one lender. The advantage of a debt consolidation loan with Upgrade is that the payment and term are fixed so you know exactly when you’ll be out of debt.
Upgrade home improvement is for home repairs or projects. The advantage of using an Upgrade home improvement loan is the promptness of receiving the funds. Typically, it takes a month or more to get an equity line of credit on your home.
You can use an Upgrade loan to start your home improvement project immediately. Another advantage over a home equity line of credit is that it’s based on the credit worthiness of the borrower, not the equity of a home.
Upgrade allows personal loans to be used for business use. Many other lenders only allow this type of loan to be for personal use. The loan can be used to purchase inventory, payroll, or any other general business needs.
You can use an Upgrade personal loan for large purchases such as appliances, automobiles, recreational vehicles, and medical bills.
Upgrade personal loans cannot be used for any post-secondary education expenses. This includes consolidating student debt, tuition, books, room and board, etc. Upgrade also restricts personal loans from being used to invest in securities, illegal activities, or gambling of any kind.
The Upgrade application process only takes a few minutes. You will fill out a short form with some basic questions about yourself, including your full name, contact information, date of birth, and income. Create an Upgrade account. You will need to consent to Credit Profile Authorization, allowing Upgrade to check your credit.
Then Upgrade does a soft pull to see what loan options they have for you. You can get an idea of how much you’ll be paying for before they do a hard pull inquiry on your credit. You may get a notification that the application has been declined. If you decide to move forward you will need to answer more verification questions, and allow a hard credit pull.
If Upgrade approves your credit application you will need to submit supporting documentation verifying your identity and your income. You will also need to provide verifiable banking information in a valid email address. The process is relatively quick in that the average turnaround time for Upgrade is 4 days. Once the information has been verified you will need to sign loan documents.
If you are self-employed, Upgrade has a more rigorous verification process than some other lenders may have. They require 2 years of taxes including K -1’s and bank statements. If you are self-employed please review Upgrade’s requirements and how they calculate income.
Upgrade Loan is Best for..
The Upgrade platform is a great place for borrowers with good or excellent credit and strong cash flow. Upgrade looks to enhance the borrowers’ lending experience by providing credit tools and education along with competitive loans. Take advantage of the soft pull inquiry and see what type of terms you could get through an Upgrade loan.
The major drawback to upgrade is their origination fee. There are other lenders who do not charge this fee, which can be pretty high and will add to the overall cost of your loan.