Best Egg and Upstart compete for the same broad customer — fair-to-good-credit borrowers who don't qualify for the lowest rates at SoFi, LightStream, or Marcus. They take fundamentally different approaches: Best Egg uses straightforward credit-based underwriting and gives borrowers the option to secure the loan against a vehicle for lower rates. Upstart uses an algorithm-driven model that considers education and employment alongside FICO, often producing surprisingly strong offers for borrowers with thin credit files but solid credentials.
Side-by-side comparison
Both lenders publish their product details openly; the data below reflects publicly available information at the time of research.
| Best Egg | Upstart | |
|---|---|---|
| APR range | 8.99% – 35.99% | 7.80% – 35.99% |
| Loan amount | $2,000 – $50,000 | $1,000 – $50,000 |
| Min. credit | 600 | 300 (effectively 580+) |
| Fees | 0.99% – 5.99% origination | 0% – 12% origination |
| Funding speed | 1–3 days | Next business day |
| Term length | 3–5 years | 3 or 5 years |
| Soft-pull pre-qualification | ✓ Yes | ✓ Yes |
Pros and cons of each
Best Egg
Pros
- Approves credit scores starting at 600
- Fast funding — usually next business day
- Secured option available for lower rates
- No prepayment penalty
Cons
- Origination fees up to 5.99%
- Maximum 5-year term limits payment flexibility
- Reduced rates require minimum income thresholds
Upstart
Pros
- Algorithm-driven underwriting considers education and employment
- Approves thin-file borrowers other lenders decline
- Soft-pull pre-qualification
- Competitive rates for borrowers with strong credentials
Cons
- Origination fees up to 12% can dramatically raise effective APR
- Only 3-year or 5-year terms — no flexibility
- Late fees of $15 or 5% of payment
Winner by category
For most borrowers, neither lender wins outright — they win different categories. Pick the one that wins the categories that matter most to you.
Which lender is right for you
Choose Upstart if: You have a thin credit file (under 5 years of credit history), you have strong educational or employment credentials, or you want to test whether algorithm-driven underwriting produces a better offer than your FICO score alone would suggest. Upstart frequently surprises borrowers with offers materially better than expected.
Choose Best Egg if: You're willing to consider a secured loan (against a vehicle) for a lower rate, you have traditional credit history (multiple cards over 5+ years), or you want a more predictable underwriting outcome based on your visible credit profile. Best Egg also wins for borrowers with FICO between 600–650 who don't have the educational credentials Upstart rewards.
The compromise pick: Pre-qualify with both. Both use soft pulls. The variance among fair-credit lenders is the largest in the personal-loan market — taking the better of two pre-qualifications often saves 200–500 basis points.
Frequently asked questions
Which is easier to qualify for, Best Egg or Upstart?
Upstart's technical minimum is 300 FICO (effectively 580+ in practice). Best Egg requires 600+. Upstart's broader underwriting approach also approves borrowers Best Egg declines, especially those with thin credit files but strong credentials.
Do both charge origination fees?
Yes. Best Egg charges 0.99–5.99% origination; Upstart charges 0–12%. Origination fees come off the top of the disbursement and dramatically affect the all-in APR.
Which lender has more flexible terms?
Best Egg offers 3- or 5-year terms; Upstart also offers 3 or 5 years. Neither offers the longer 6–7 year terms available at Upgrade or Avant.
Can I use these loans for debt consolidation?
Yes, both. Neither offers direct creditor payment for consolidation, so the loan funds your bank account and you pay creditors yourself. For direct creditor payment, look at Discover, Happy Money, or Upgrade.
Does Best Egg secured loan really save money?
Yes, materially. Best Egg's secured option (against a vehicle) typically prices 5–10 percentage points below the unsecured equivalent for the same borrower. The trade-off is that you can lose the vehicle if you default.
Do hard inquiries from these lenders affect my credit?
Hard inquiries (from formal applications, not soft-pull pre-qualifications) typically reduce your score by 5–10 points temporarily. Multiple hard inquiries within a 14-day window typically count as one for FICO scoring.