Best Egg and Upstart are two popular online lenders that offer personal loans with streamlined application processes, and once approved, loans can be funded within a few days.
If you’re looking for an installment loan to consolidate debt, make a large purchase or cover an emergency expense, both Best Egg and Upstart offer loans for these purposes. Nonetheless, loans from these lenders can differ in other ways, which may make one or the other better for you.
Featured Partner Offers
1
Best Egg Personal Loans
640
8.99% to 35.99%
$2,000 to $50,000
2
Upstart
600
6.40% to 35.99%
$1,000 to $50,000
How Best Egg Personal Loans Work
Best Egg offers personal loans of $2,000 to $35,000, but in some cases, you may be able to borrow as much as $50,000. Loan terms range from 36 to 60 months, giving you several years to pay your loan. You can use Best Egg personal loans for many different reasons, including:
- Debt consolidation
- Credit card refinancing
- Home improvements
- Major expenses
Interest rates on Best Egg loans range from 8.99% to 35.99% APR, and loans have an upfront origination fee that ranges from 0.99% to 8.99%. The origination fee comes out of your loan funds before you get the cash, so if you borrow $10,000 with a 5% fee, $500 would immediately go to the fee, and you would receive $9,500.
Best Egg requires borrowers to have a credit score of at least 640, but to qualify for the lowest rates you must earn at least $100,000 annually and have a credit score of 700 or higher.
Best Egg, unlike Upstart, offers homeowners a secured personal loan option. Unlike a typical home equity loan where your home acts as collateral, Best Egg secured loans are backed by fixtures in your home, like cabinets or light fixtures. Securing your loan with collateral may help you qualify for a lower interest rate.
Pros and Cons of Best Egg Loans
If you’re thinking about borrowing from Best Egg, consider the pros and cons of the lender.
Pros
- Quick funding. You may receive funds within one to three business days after you’re approved for a loan and sign off on loan documents.
- Direct payments for debt consolidations. Best Egg loans for debt consolidations are paid directly to creditors.
- Prequalify without a hard inquiry. You can prequalify on the Best Egg website to see which loan rates and terms you may be eligible for without impacting your credit score.
- Secured loans with rate discounts. Choosing a secured personal loan from Best Egg could score you a better interest rate.
Cons
- Fair credit is necessary. You need at least fair credit to get approved for a Best Egg loan, and having good or excellent credit is necessary to get the lowest rates.
- Loans have upfront fees. The upfront origination fee ranges from 0.99% to 8.99% and comes directly from your loan funds.
- Uncompetitive rates for strong credit. Best Egg doesn’t offer the lowest personal loan rates around for borrowers with excellent credit.
When You Should Consider Best Egg Loans
Best Egg could be right for you if you have a credit score of at least 640 and want a small- to medium-sized loan. Additionally, consolidating debt with Best Egg can be convenient since the lender can pay off creditors directly.
Homeowners who can use part of their home as collateral may find good rates at Best Egg. The lender says secured loans could come with rate discounts of up to 20%. Before choosing one of these loans, be aware of all the conditions and stipulations; still owing on the loan can make selling your home difficult.
How Upstart Personal Loans Work
Upstart offers installment loans like Best Egg, but loan amounts start at $1,000 and go to $50,000. Upstart offers two terms: 36 months or 60 months. Upstart personal loans can be used for many purposes, including:
- Debt consolidation
- Major expenses
- Home improvement projects
- Student debt
Interest rates for Upstart personal loans range from 4.60% to 35.99% APR and origination fees range from 0% to 12% of the loan amount. Like Best Egg, Upstart origination fees are taken from your loan funds before you receive the loan.
Upstart relies on more than just your credit to make loan decisions, which differs from many other lenders. Borrowers with limited or less-than-perfect credit may still get approved for Upstart loans based on other factors like their education and employment history.
However, having an adverse credit history—like a recent bankruptcy or current delinquency on your record—could lower your approval odds. Also, your debt-to-income ratio (DTI) must be 50% or lower to qualify for an Upstart loan.
Upstart offers a quick funding turnaround. If you go through the loan application and approval process and then accept your Upstart loan by 5 p.m. EST on a business day, funds could transfer to you the next day. However, loans being used for school might take several days longer to fund.
Upstart offers some of the best personal loans, making them a good option if you qualify for a low interest rate and origination fee.
Pros and Cons of Upstart Loans
Consider the pros and cons of Upstart before accepting one of their loans.
Pros
- Flexible eligibility criteria. The minimum credit score requirement is just 300 and Upstart may look at other factors besides credit to qualify you for a loan.
- Next-day funding. You could get your personal loan funded within 24 hours of approval.
- Online prequalification forms. You can prequalify to check rates for Upstart loans without impacting your credit score.
- Low-interest rates. For borrowers with high credit scores, interest rates at Upstart are lower than what Best Egg has to offer.
Cons
- High origination fees. Origination fees could cost up to 12%. For instance, if you borrow $20,000 with a 12% fee, you’d pay $2,400 in loan fees.
- Limited loan terms. You must choose between a loan term of three years or five years.
When Should You Consider Upstart Loans
Upstart loans are worth considering for people with both high and low credit scores. Upstart offers some of the lowest personal loan rates on the market for borrowers with strong credit. Additionally, borrowers with less-than-perfect credit may still qualify for Upstart loans thanks to flexible eligibility criteria, but these loans will likely have higher rates.
Consider any origination fees before accepting a loan from Upstart. The origination fee included with your loan could vary based on your credit and loan term length. If you are considering Upstart, get offers from multiple lenders to compare rates and fees to Upstart so you can choose the most affordable option.
Best Egg vs. Upstart: Which One To Choose?
Best Egg and Upstart offer similar products, but many of the details differ.
| Best Egg | Upstart | |
|---|---|---|
|
Loan amounts
|
$2,000 to $35,000 (or up to $50,000 in some cases)
|
$1,000 to $50,000
|
|
APR
|
8.99% to 35.99%
|
7.80% to 35.99%
|
|
Terms
|
36 to 60 months
|
36 or 60 months
|
|
Origination fee
|
0.99% to 8.99%
|
0% to 12%
|
|
Funding speed
|
Within one to three business days
|
Within one business day
|
|
Prequalification
|
Yes, with no hard inquiry
|
Yes, with no hard inquiry
|
|
Minimum credit score
|
640
|
300
|
|
Eligibility requirements
|
You must:
|
You must:
|
|
Availability
|
Loans are not available in Iowa, Vermont, West Virginia, Washington, D.C. and U.S. territories.
|
Loans are not available in Iowa or West Virginia
|
