Summary
At a Glance
- Simple Procedure: Upgrade has a simple debt consolidation procedure which primarily consists of pre-qualification, choosing your loan, and approval. This simple procedure helps borrowers commence their debt consolidation process.
- Opportunities for Bad Credit : Borrowers who have bad credit also benefit from the opportunities offered by Upgrade. These opportunities allow borrowers to consolidate their multiple debts and pay them off at a very low rate of interest.
- High Loan Amounts: Upgrade offers high loan amounts to its clients that range from $1,000 to $50,000, which helps in consolidating several high debts.
- Low Rate of Interest: Upgrade provides its clients with loans at low rates of interest, which helps them reduce the total cost of the loan and save a hefty amount of money annually.
Fees and Charges
- Origination Fees : The origination fee is an amount of money that is charged by the lender to process a loan. Upgrade charges an origination fee of 1.85% to 9.99%. The origination fee is deducted from the final loan amount.
- Late Fees : Upgrade charges a late fee of $10 for each late payment or failed payment. This motivates the borrower to make the payments timely and avoid the penalties.
- Prepayment Fees : If the borrowers pay off their loans before the term is completed, they have to pay a prepayment fee to the lender. But if your loan companion is Upgrade, you don't have to worry as it doesn't charge any prepayment fees from its clients making it a safe and profitable platform.
- APR : As mentioned above, the APR charged by Upgrade is between 8.49% to 35.99%. Nonetheless, if you set up an automatic payment (autopay) for your loan, you can enjoy a discount of 0.5% on your interest rate. Similarly, if your loan payments are deposited directly, you can enjoy another 1% to 3% discount on your interest rate. If you use multiple Upgrade products, then you can also get a discount of up to 20% on your loans.
Eligibility Criteria for the Loan
1. The borrower can be a United States citizen, a permanent resident, or living in the USA on a valid visa
2. The age of the borrower should at least be 18 years. However, in some selected states like Alabama, the age criteria is 19 years
3. The borrower should be able to provide verifiable bank account details
4. The borrower must provide a valid email address
Documents Required
This borrower is required to submit some documents to Upgrade along with the loan application. The requirement of documents depend upon the type of loan the borrower wants but some common documents are needed to be submitted with every loan.
1. Proof of Identity
To get a loan from Upgrade, the borrower is required to submit a government-issued proof of identification.
2. Recent Pay Stubs
The borrowers are also needed to provide their recent pay stubs. Recent stubs are documents that contain information about the income, tax, and other financial details of an individual.
3. Bank Statements
Another document that needs to be submitted by the borrowers is bank statements. Bank statements contain information about the amount of money that has come in and gone out of an account in a particular period.
How to Apply?
Certain steps need to be followed to apply for a loan from Upgrade. To get a debt consolidation loan from Upgrade, follow these steps.
1. Pre-Qualification
The first step is to pre-qualify on the Upgrade's website. Enter the amount of loan that you want. The loan amount should be at least $1,000 and must not exceed $50,000. Next, enter the purpose of your loan. The purpose can be anything ranging from home improvement to paying medical bills or anything else. Enter whether you are a joint applicant or an individual. Then enter some primary details including name, birth date, address, and income. Then create an account by entering your email address and password. Lastly, enter your Social Security Number.
2. Choose a Loan Offer
The second step is to choose a loan offer that suits your requirements and your budget. To choose the perfect loan offer, have a look at the loan offers that would be presented according to the entries you had made in the previous step. Choose the offer that best fits your conditions and start an official personal loan application.
3. Complete the Application
The next step is to complete the application process by submitting the required documents such as W-2s, pay stubs, bank statements, and many other documents. You will also need to submit the fees according to the type of loan you select. Upgrade will conduct a heavy credit check to verify your score and complete the process. You might face a temporary descent in your credit score during this period.
4. Acquire Funds
After you complete the application process, it is up to Upgrade to approve the loan or not. The approval by Upgrade generally takes one to a few days. After the approval, the loan amount is transferred to the borrower's account the day after the approval is provided. If you have assigned Upgrade to directly pay off other debts, it might take longer than one day to get the funds into your account.
5. Plan for Loan Repayment
The final step towards loan application is planning for loan repayment. After you receive the amount, it is essential to plan the loan repayment process to avoid late fees or any other penalties. Upgrade will provide your payments to all three major bureaus which will build your credit score. Failing to make payments timely may harm the credit score. Therefore, to make loan repayments timely, keep track of your budget and set up automatic payments.
Comparison
Terms and Conditions to look for
- Verify all the documents before submitting them to Upgrade and ensure that the US citizenship eligibility criteria are met accurately.
- Look at all the fees and expenses charged for the loan. Upgrade charges for origination fees and late fees, but it doesn't charge any prepayment fees. You might have to pay more than you intend to pay monthly if you make late payments or if the payment fails.
- You must determine the Annual Percentage Rate(APR) while applying for the loan. Upgrade provides interest rates based on your credit, loan term, loan amount, and other factors.
- Although it is not necessary to start automatic payments to get a loan, Upgrade proposes it to make loan payments timely. Remember that if you stop automatic payments, you will stop getting a 0.5% discount on your APR.
Other Products
Upgrade offers its customers a multitude of products other than debt consolidation loans. The list of these products is as follows.
1. Personal Loans
Upgrade offers personal loans at very reasonable rates. These loans are remarkably effective in providing flexibility to an individual's finances. They can be useful for a wide range of purposes, including home improvement, medical bills, and unexpected expenses.
2. Upgrade Cards
Upgrade gives its customers Upgrade cards that aim to make payments more responsible and practically manage money. Upgrade cards offer the convenience of a credit card merged with the framework of per loans. It allows you to spend money and convert them into fixed-rate installments.
3. Home Improvement
Another product provided by Upgrade is home improvement. Upgrade offers home improvement at a rate that is affordable for most customers. A home improvement provided by Upgrade enhances the beauty of the homes and brings positive modifications to the houses.
4. Credit Health
Credit health is an extended product offered by Upgrade that focuses on maintaining healthy credit. It offers services like personalized recommendations and credit monitoring that help individuals make informed financial decisions and improve their credit health.
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FAQ's
Upgrade has had an A+ rating with the Better Business Bureau since 2017. It is reliable.
Upgrade is a financial technology company that operates entirely online. They have partnered with Cross River Bank, which is FDIC-insured, to offer a rewards checking account that can be accessed through a mobile app or online. This account is designed to be simple and convenient for customers who prefer digital banking.
When borrowing personal loans from Upgrade, they charge a fee called an origination fee. This fee ranges from 1.85 percent to 9.99 percent, and it can make your debt more expensive. If you have a low credit score, you might have trouble with Upgrade's personal loans because the maximum interest rate is 35.99 percent. This high-interest rate could be problematic for you.
The Upgrade Card can be used to buy things in stores or online. You can also move money from your account to your bank account online. But, you can't get money from an ATM or get cash back when you buy things in stores using the Upgrade Card.
Further Readings
