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Quick Comparison: Best Egg vs Upstart
Feature
Best EggPersonal Loans
Upstart distinguishes itself by utilizing an artificial intelligence (AI) lending platform that looks beyond traditional credit scores. This approach allows them to assess a broader range of applicants, including those with thin credit files or lower FICO scores, by considering factors like education, area of study, and employment history. This innovative underwriting model can lead to higher approval rates for a diverse group of borrowers. Upstart is rated 'Excellent' on Trustpilot.
Upstart offers personal loans ranging from $1,000 to $75,000, with fixed repayment terms of either three or five years. While their APRs can go up to 35.99%, their minimum APR of 6.2% is quite competitive. Borrowers should be aware of origination fees, which can range from 0% to 12% and are deducted from the loan proceeds. Upstart is a strong contender for those who may have been turned down by traditional lenders due to their credit history.
Who Should Choose Best Egg?
Best Egg is an excellent choice for borrowers who:
- Have a good to excellent credit score (640 or higher).
- Are looking for a personal loan with predictable terms and competitive rates.
- Prefer a lender with a strong track record in traditional credit assessment.
- Need funds quickly and can meet Best Egg's credit requirements.
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Who Should Choose Upstart?
Upstart is particularly well-suited for individuals who:
- Have a limited credit history or a lower credit score.
- Possess strong educational backgrounds or stable employment, which Upstart considers.
- Need a loan for debt consolidation, medical expenses, or other personal uses.
- Are seeking a lender that uses a more holistic approach to loan qualification.
Frequently Asked Questions
What is the main difference between Best Egg and Upstart?
The primary difference lies in their underwriting models. Best Egg relies more on traditional credit scores (FICO) and credit history, while Upstart uses an AI-driven approach that considers factors like education, employment, and income in addition to credit score, making it more accessible to those with limited credit history.
Which lender offers lower interest rates?
Both lenders offer competitive rates, but Upstart has a slightly lower minimum APR (6.2%) compared to Best Egg (6.99%). However, the actual rate you receive depends on your creditworthiness and other factors, and borrowers with excellent credit might find similar rates from both.
Can I get a loan from Best Egg or Upstart with bad credit?
Best Egg generally requires a minimum credit score of 640, so it's not ideal for those with bad credit. Upstart, on the other hand, is more accommodating to borrowers with limited or lower credit scores due to its AI-powered underwriting, which looks beyond just FICO scores.
Do Best Egg and Upstart charge origination fees?
Yes, both lenders charge origination fees. Best Egg's origination fees range from 0.99% to 9.99%, while Upstart's can range from 0% to 12%. These fees are typically deducted from the loan proceeds before you receive the funds.