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    Bad Credit Compared: Upgrade Vs. LendingPoint

    Bad Credit Compared: Upgrade Vs. LendingPoint

    Upgrade and LendingPoint were both launched in the past decade - but they’ve gained excellent reputations for fairness, affordability, and innovation in the lending industry.  

    If you’re a borrower with less than stellar credit seeking a cutting-edge lender, you’ll want to give both of these companies a closer look. Review their loan offerings in more detail to ensure you make the best possible decision. 

    Upgrade Vs. LendingPoint  

    LendingPoint was founded in 2014 in the aftermath of the last financial crisis during the US housing market rebound. The company’s main goal is to provide bad credit borrowers with the funds they need at competitive APRs. 

    • LendingPoint has issued more than 70,000 loans since its launch and is growing its customer base each year 
    • The loan amounts on offer range from $2000 to $25,000 with APRs starting at 9.99% and maxing out at 35.99%
    • You’ll need a minimum credit score of 600 to apply - making this lender ideal for bad credit borrowers 

    Upgrade is even younger than its counterpart - having been founded in 2017. The company was conceived by the same dynamic entrepreneurs who created LendingClub. The platform enjoys a very solid reputation in the industry and this is backed up by positive online reviews across the board.

    • The range of personal loans amount available stretches from $1000 to $50,000
    • The company offers a competitive APR range (6.98% - 35.89%), making its loans more affordable for borrowers with better credit scores 
    • The minimum FICO score required to apply for a loan is 600 - the same as LendingPoint

    Fees And Terms      

    As an affordable loan provider, LendingPoint aims to minimize fees - provided that you make your payments on time. 

    • The minimum monthly installment due is equal to the interest on your loan amount and a monthly repayment amount that lets you zero your loan over the period you select 
    • You’ll need to meet certain lending criteria and provide proof of income and employment along with undergoing a credit check
    • A minimum annual income of $20,000 and a debt-to-income ratio of 40% or less are required before your application can be approved. Unfortunately, if you’re a resident of Wisconsin, West Virginia, New York, Wyoming, Nevada, Colorado, or Connecticut, you won’t be able to apply at this time

    Unlike the competition, Upgrade attaches several unique lending conditions to its loans - and you’ll want to familiarize yourself with these before you apply.

    • An origination fee of between 1.5% and 6.0% will be charged on new loans 
    • The lender doesn’t stipulate a minimum income, but clients tend to earn upwards of $30 000 a year. You’ll need a debt-to-income ratio below 60% to be a good candidate for loan approval
    • It’s worth noting that loans aren’t currently available for residents of the following states: Iowa, Colorado, Vermont, Maryland, and West Virginia

    Customer Service   

    For those borrowers seeking a variety of customer service options for easy contact, LendingPoint makes customer support readily accessible.

    • You can contact this lender by phone or email. There are no specific customer service hours listed on the website itself, but standard business hours should apply
    • The company’s website also features a comprehensive FAQs page which they encourage prospective borrowers to consult in advance 

    Like its competition, Upgrade also offers email and phone support as well as a traditional mail option for check payments.

    • The company’s support team is available between 6:00 AM and 6:00 PM weekdays and 6:00 AM to 5:00 PM Saturdays and Sundays - Pacific Standard Time
    • Customers can make payments by check by mailing them to Upgrade’s physical location in California



    • Low starting loan amounts - you can borrow as little as $1000 depending on your needs 
    • APRs as low as 6.98% depending on your credit score and other factors 
    • Customers with high debt-to-income ratios may still qualify as long as the figure is lower than 60%


    • No origination fees and competitive APRs for bad credit borrowers 
    • A low minimum income requirement of $20,000 per year 
    • Loans can be used for almost any legal purpose - including debt consolidation 



    • Origination fees apply to Upgrade loans - but this is offset by the higher maximum loan amount
    • You may need a higher income ($30,000 or more per year) to apply successfully 


    • Higher starting APRs and lower maximum loan amounts 
    • A lower debt-to-income requirement (40% against Upgrade’s 60%)


    Newer entrants Upgrade and LendingPoint are both potent forces in the personal lending industry - and each of these innovative platforms have established excellent reputations. 

    While the minimum FICO score required for both lenders is the same you may need a higher income to qualify for an Upgrade loan. However you may also pay a lower APR if your credit score is good and the maximum loan amount is $50,000 versus $25,000 with LendingPoint. 

    Borrowers with weaker credit histories that require a smaller, low-cost loan with no origination fees may want to opt for LendingPoint. Still, it’s important to remember that this lender has a lower debt-to-income threshold at 40%.