Is Upgrade Legit for Personal Loans and Credit Health?

Upgrade offers personal loans bundled with credit monitoring tools—but is Upgrade legit? The company advertises loans from $1,000 to $50,000 with credit health features included. Upgrade markets itself as more than just a lender. They say they help you monitor your credit and improve your financial health while you borrow money.

Then you see the costs. APRs go up to 35.99%. Origination fees can reach 12% of your loan amount, which is higher than most competitors. If you borrow $8,000 with a 10% origination fee, you receive only $7,200, but you still owe $8,000 plus interest. The credit monitoring features are basic compared to standalone services you can get for free elsewhere.

This review explains what Upgrade is, whether it’s legitimate, what their loans really cost, and whether the credit monitoring features add real value. Then it covers when Beem offers a better path without the high fees.

What Is An Upgrade, And How Does It Work

Upgrade was founded in 2017 and offers personal loans combined with credit monitoring tools. The company doesn’t directly lend money. Upgrade partners with banks that provide the actual loans. Your deposits would be safe with those FDIC-insured partner banks, but that doesn’t lower borrowing costs.

Upgrade offers personal loans from $1,000 to $50,000. The APR range is 8.49% to 35.99%, depending on your credit score and financial profile. Loan terms range from 2 to 7 years, which is longer than many competitors, who cap terms at 5 years. Origination fees range from 0% to 1% of the loan amount. The interest rate ranges from 1.85% to 12% of the loan amount. That 12% maximum is higher than competitors like Best Egg (9.99%) and Upstart (12%).

The credit health features include free credit monitoring, credit score tracking, and recommendations for improving your credit. These tools are included when you have an active loan. Upgrade advertises a minimum credit score of 560, but the practical minimum for approval is closer to 600. Below that, you’re unlikely to get approved even if you apply.

Is Upgrade Legit?

Upgrade is a legitimate company that’s been operating since 2017. The Better Business Bureau has accredited the company, despite mixed user reviews. Upgrade hasn’t been involved in major scandals or regulatory penalties. The company partners with real banks for loan funding, which adds a layer of legitimacy.

User reviews on sites like Trustpilot and the BBB show complaints similar to those of other online lenders. Many borrowers say the APR they received was much higher than expected. Others complain that the origination fees weren’t clearly explained up front. Some users appreciate the credit monitoring features, while others say those tools aren’t worth the high loan costs.

Upgrade is a legitimate company that provides real loans. But “legit” doesn’t mean affordable. The origination fees of up to 12% are among the highest in the personal loan industry. The credit monitoring features are basic and don’t add enough value to justify taking on an expensive loan.

Upgrade Loan Costs and Fees

Upgrade’s APR range is 8.49% to 35.99%. Borrowers with excellent credit and high income get rates at the low end. Borrowers with fair credit typically get rates between 18% and 35.99%. Most people who need an upgrade because they can’t get approved by banks end up paying higher rates.

The origination fees are a major cost. Upgrade charges range from 1.85% to 12% of the loan amount. Most fair credit borrowers pay between 8% and 12%. That’s significantly higher than many competitors. The fee gets deducted from your loan proceeds. If you borrow $8,000 with a 10% origination fee, you receive only $7,200, but you still owe $8,000 plus interest.

Here’s what the real cost looks like. If you borrow $8,000 at 20% APR over three years with a 10% origination fee, you’ll pay about $2,600 in interest. Add the $800 origination fee, and the total cost is $3,400 on top of the $8,000 principal. You receive $7,200 after the fee is deducted, but you pay back $11,400 total. That’s nearly 60% more than what you actually received.

Upgrading doesn’t charge prepayment penalties, so you can pay off the loan early without extra fees. But most borrowers at these rate levels struggle to make regular payments, let alone pay early.

Credit Health Features

The upgrade includes credit monitoring and credit health tools with your loan account. You get access to your credit score, updated monthly. The platform shows factors affecting your credit and provides recommendations for improvement. You can see your credit report information and track changes over time.

Credit monitoring alerts you to major changes, such as new accounts, credit inquiries, or potential fraud. These features help you monitor your credit, but they are not exclusive to Upgrade. You can get similar or better credit monitoring for free from services like Credit Karma, Credit Sesame, or directly from your credit card issuer.

The credit health recommendations are generic advice, such as “pay bills on time” and “reduce credit card balances.” That guidance is helpful for beginners but doesn’t provide personalized strategies or in-depth analysis. Standalone credit monitoring services often provide more detailed insights and better fraud protection tools.

The bundled approach sounds convenient, but you’re not getting premium credit monitoring. You’re getting basic features that you can access for free elsewhere. Those features don’t justify the high origination fees and interest rates you’re paying for the loan.

Also Read: How to Use Beem Card to Build Credit Without Carrying Credit Card Debt

Approval Requirements

Upgrade advertises a minimum credit score of 560, but getting approved at that level is difficult. The practical minimum is closer to 600-620. Below that, you’re likely to be rejected. Minimum income requirements aren’t clearly stated but vary by state and loan amount. Upgrade prefers borrowers with steady income and employment history.

The debt-to-income ratio is relevant for approval. Upgrade prefers debt-to-income ratios below 50%, meaning your total monthly debt payments shouldn’t exceed half your monthly income. That’s a higher threshold than some lenders, who cap it at 40%. Upgrade also looks at your credit history and whether you have recent bankruptcies or delinquencies.

Better rates go to borrowers with credit scores above 680, low debt-to-income ratios, and higher income. Fair credit borrowers with scores between 600 and 660 typically get rates between 25% and 35.99% with origination fees between 8% and 12%.

Pros of Upgrade

Upgrade has some advantages. The $1,000 minimum loan amount is lower than competitors like SoFi, which require a $5,000 minimum. That helps borrowers who need smaller amounts. Upgrade accepts fair credit borrowers starting around 600, which is lower than many traditional lenders. The credit monitoring tools are included at no extra charge beyond the loan costs. Joint applications are accepted, which can help you qualify with a co-borrower. There are no prepayment penalties if you pay off the loan early.

Cons and Limitations

The disadvantages of Upgrade are significant. Origination fees up to 12% are among the highest in the industry. That 12% maximum means you could pay $1,200 in fees on a $10,000 loan before you even receive the payment. APRs up to 35.99% make these loans expensive for fair-credit borrowers. The credit monitoring features are basic and available for free elsewhere. Customer service complaints are common, with users reporting slow response times. Using Upgrade for debt consolidation often doesn’t save money when your rate is 20% or higher, and you’re paying a 10% origination fee upfront.

Who Should Use Upgrade?

Upgrade makes the most sense for borrowers with fair credit between 600 and 680 who need small loans between $1,000 and $3,000. If you can get a rate below 18% and the origination fee is under 5%, Upgrade could work for debt consolidation. People who value having credit monitoring bundled with their loan might appreciate the convenience, though the monitoring features don’t justify the high fees.

Upgrade is not ideal for borrowers with excellent credit above 720. Those borrowers can get much better rates from credit unions, such as SoFi or Marcus by Goldman Sachs, rapidly, with lower or no origination fees. It’s also not the best choice for borrowers with bad credit below 600. You’re unlikely to get approved, and if you do, the rate and fees will be extremely high.

Real User Experience

Reviews on consumer sites show mixed experiences. Some borrowers appreciate the fast funding and easy application process. Others like the credit monitoring features even though similar tools are available for free elsewhere.

Negative reviews focus on origination fees being much higher than expected. Many borrowers report that the fees weren’t clearly disclosed during the application process. They thought they were borrowing $8,000 and were surprised to receive only $7,200 after the 10% fee was deducted. Complaints about APRs being at the high end of the range are common. Fair credit borrowers often receive rates between 28% and 35.99%, which makes the loans costly. Customer service issues frequently appear in reviews, with users reporting difficulty reaching support or resolving issues.

Upgrade vs Competitors

Best Egg charges origination fees up to 9.99%, which is lower than Upgrade’s 12% maximum. Upstart charges up to 12%, like Upgrade, but uses AI to approve more borderline applicants. LendingClub and Prosper offer peer-to-peer loans with origination fees of around 5% to 6%, which are significantly lower than Upgrade’s 8% origination fee. Credit unions typically charge no origination fees and offer APRs of 8% to 15% for fair-credit borrowers.

Marcus by Goldman Sachs charges no origination fees, which saves hundreds or thousands of dollars compared to Upgrade. SoFi offers rates as low as 8.99% to good-credit borrowers with no origination fees. Credit cards for balance transfers offer 0% APR for 12 to 21 months, with balance transfer fees of 3% to 5%, which is much cheaper than Upgrade’s structure.

An upgrade makes sense only if you can’t qualify for better options and you’re willing to pay the high origination fees for convenience.

What Beem Is and Where It Fits

Beem is a money app for people in the United States who need cash help without taking on expensive personal loans with high origination fees. You can learn more at https://trybeem.com. Beem is a beneficial option for people who need short-term help rather than multi-year debt with fees that eat into what you actually receive.

Upgrade offers loans with APRs ranging from 8.49% to 35.99%, plus origination fees of up to 12%. Those costs add up fast. A fair credit borrower might pay 25% APR plus a 10% origination fee, which means $3,500 or more in total costs on an $8,000 loan. Beem offers Everdraft™ cash advances up to $1,000 with no interest or origination fees, taking a chunk of what you receive.

Beem also includes a subscription monitor that finds zombie charges draining your account. Those forgotten memberships can cost $30 or more per month. Canceling them frees up money without borrowing. Upgrade gives you credit monitoring, but those tools are basic and available for free elsewhere. Beem focuses on finding real money leaks that immediately improve your cash flow.

Why Choose Beem Over Upgrade

The first big difference is origination fees. Upgrade charges are up to 12% of the loan amount, which gets deducted before you receive your money. Beem doesn’t charge origination fees. You get the full amount you need without paying hundreds of dollars in upfront fees.

The second difference is interest charges. Upgrade charges: APRs range from 8.49% to 35.99%. Fair credit borrowers typically pay an APR of 20% to 30%. Beem charges no interest on Everdraft™ advances. That difference saves thousands of dollars.

The third difference is what you’re paying for. Upgrade bundles basic credit monitoring with expensive loans. You can get the same credit monitoring for free from Credit Karma or your credit card issuer. Beem includes a subscription monitor that finds hidden charges costing you real money. That’s a feature you can’t easily replicate for free.

The fourth difference is debt burden. Upgrade loans lock you into monthly payments for two to seven years. Beem advances don’t require a long-term commitment; they’re repaid from your next paycheck. That flexibility matters when your financial situation changes.

Also Read: Upgrade Debt Consolidation Loan: A Smarter Way to Pay Off Debt

When Upgrade Might Work

Upgrade makes sense in very limited situations. If you need a small loan between $1,000 and $2,000, and Upgrade offers you a rate below 15% with an origination fee under 3%, the loan could work. If you’re consolidating credit card debt at 30% interest and Upgrade offers you 18% APR, you might save money despite the origination fee.

You also need to be comfortable with the origination fee structure. If borrowing $5,000 and only receiving $4,500 after fees doesn’t bother you, Upgrade could be an option. But most borrowers can find better deals with lower fees through credit unions or competitors like Marcus and Goldman Sachs.

Final Verdict

Upgrade is a legitimate company that provides real personal loans. The credit monitoring features are real but basic. The problem is the cost. Origination fees up to 12% are among the highest in the industry. APRs up to 35.99% make these loans expensive for fair-credit borrowers. The credit monitoring doesn’t add enough value to justify those costs when you can get similar features for free elsewhere.

Better alternatives exist for most borrowers. Credit unions, Marcus by Goldman Sachs, and other lenders offer lower rates with smaller or no origination fees. For people who need short-term cash help without high fees and interest charges, Beem provides advances without the costs that eat into what you actually receive.

FAQs About Is Upgrade Legit