Truist vs. Upstart: Which Personal Loan Is Right for You?
Updated: July 25, 2023
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If you’re deciding between Truist and Upstart, MoneyGeek’s research can help. Truist is a good option for those looking to avoid additional charges, like prepayment penalties, origination charges and late fees. Meanwhile, those with bad credit may prefer Upstart, an artificial intelligence (AI) lending platform.
MoneyGeek regularly gathers crucial, up-to-date information about top-performing personal loan lenders in the U.S. so that you can choose a suitable lender for your situation. Review our personal loan guide to learn more about each lender’s pros and cons, features and requirements.
Truist or Upstart: Overview
MoneyGeek evaluated the APR ranges, required credit scores, repayment flexibility, loan amounts and disbursement times of both Truist and Upstart.
While both lenders have similar maximum loan amounts, Upstart offers a lower minimum limit, making it suitable for individuals who need to borrow a smaller amount of money. On the other hand, Truist has more flexible repayment terms in comparison to Upstart. Consider your financial needs and goals when making your decision.
Truist
Upstart
APR Range
At first glance, Upstart seems to be the best pick because of its wide range of APRs. However, Truist’s more restricted ranges have a lower maximum APR for borrowers, making it more appealing in terms of being able to save money throughout the life of your loan.
An annual percentage rate, also known as an APR, is the amount of interest you must pay for your personal loan each year. The APR of your loan is dependent on factors such as your creditworthiness, loan type, loan amount, lender’s underwriting model, terms and more. APR ranges look different for each borrower because they vary greatly among lenders. In addition, APRs fluctuate frequently.
MoneyGeek determined Truist as the winner in terms of APR range. While your rate depends on your creditworthiness, Truist has a smaller APR range. Thus, borrowers might pay less in interest and related fees over the repayment period. In turn, this benefits their finances by saving them money.
While having a lower APR lessens the loan’s cost, it isn’t the most important factor. Compare other features between lenders before deciding which one to move forward with.
Minimum Credit Score
One of the main factors that personal loan lenders consider when evaluating your application is your credit score. Your credit score is a reflection of your ability to fulfill financial obligations consistently. One example is paying your monthly credit card bills on time.
In most cases, a higher credit score means that you could be eligible to apply to more lenders. Individuals with good credit generally secure more favorable rates, loan amounts and terms.
Upstart has a minimum credit score of 300, which is significantly lower than its counterparts. Meanwhile, Truist has no minimum credit score since it considers your entire financial profile. Hence, both lenders might accept individuals with bad credit under certain circumstances.
Once again, Truist wins this category since it doesn’t have a minimum credit score requirement. This means that the lender considers factors outside of an applicant’s credit score to determine whether or not they are able to repay a personal loan. Additionally, potential borrowers have more flexibility in proving their ability to pay off a loan.
That said, we encourage you to choose a lender that meets your financial needs. Evaluate all aspects of a lender’s offerings before moving forward with an application.
Loan Amount Range
A loan amount is how much the lender is willing to give a borrower. Knowing a lender’s loan amount range can inform your decision since certain lenders may offer a range that is too high or too low for your needs. MoneyGeek’s research found that Truist has a loan amount range of $3,500 to $50,000, whereas Upstart has a range of $1,000 to $50,000.
Make sure you really evaluate how much money you need since you don’t want to choose a lender that cannot meet your funding requirements.
Upstart is MoneyGeek’s winner since it offers a wider loan amount range. As a result, borrowers have more flexibility when financing small or large expenses.
Before you apply for a personal loan, it’s important that you know exactly how much you need and that you fully understand your financial goals. This will help you choose a lender that can cater to those goals.
Again, be sure to check out other factors before deciding on a lender. Loan amounts are just one aspect of the overall picture when choosing which lender to apply with.
Repayment Terms
Also known as a repayment period, a repayment term tells you the amount of time you have to pay off your personal loan. Although shorter repayment terms usually entail lower interest rates, your repayment terms also depend on other factors like your credit score or loan amount.
Truist provides a more robust repayment term, ranging between half a year to five years. On the other hand, Upstart’s minimum repayment period is two and a half years more than that of Truist.
While this might seem appealing, having a longer repayment window has a few downsides. For instance, you end up paying more interest over time, which can cost you more in the long run.
Since Truist has a more flexible repayment period, it wins this category. Truist offers borrowers the option to pay in as little as six months or as long as 60 months.
If you choose shorter repayment terms, it is usually coupled with lower interest rates but higher monthly payments. Consider your financial obligations and monthly budget. Can you afford higher monthly payments? What are your financial priorities and capacity? This can help you determine an appropriate repayment term.
It’s best to assess other lender-related factors to ensure your lender fully meets all your needs.
Time to Receive Funds
Compared to traditional lenders, Truist and Upstart have the upper hand when disbursing funds to borrowers.
There isn’t a massive difference between the amount of time that Truist and Upstart release funds. They both release funds the next day.
One of the quickest ways to get a personal loan is to apply online instead of in person. This way, you can prequalify and apply without a hard credit check, which negatively impacts your credit score. You can also process your loan faster if you gather all pertinent documents ahead of time.
When it comes to this comparison, Truist and Upstart are on equal footing as they can both release funds as soon as the next day.
However, a short funding time shouldn’t be the only variable you consider. Look at the other factors, terms and requirements of each lender so you can get the best deal for your financial needs.
Final Thoughts
Truist and Upstart have similar disbursement times and maximum loan amounts, which might complicate your decision-making process. However, Truist is the clear winner in this MoneyGeek personal loan comparison. MoneyGeek selected Truist because of its lower APR range, lack of a credit score requirement, flexible repayment terms and quick disbursement times.
Upstart does offer one notable advantage when it comes to personal loans. Its loan amount range of $1,000 to $50,000 is ideal for individuals who are looking to fund minor expenses.
While MoneyGeek has laid out each company’s pros and cons, extra features and requirements, it doesn’t dictate which lender is best for you. At the end of the day, the best personal loan lender for you should be based on your financial background and goals. This can ultimately determine which provider can meet your personal loan needs.
Frequently Asked Questions About Personal Loan Lenders
Shopping around for personal loans can be overwhelming. To assist you in your decision-making process, MoneyGeek answered commonly asked questions about personal loans.
Lenders usually ask for proof of identity, address, income, employment and debt information before approving a personal loan.
You can check your credit score by accessing the Annual Credit Report website without charge. An alternative is to request your credit score via phone or by submitting a form to their office.
It depends. Some lenders perform a soft credit check during prequalification and then conduct a hard credit inquiry during the application process.
No, they are not. While they might be similar, personal loan interest rates vary between lenders and fluctuate often.
It depends on the lender. Some lenders impose origination fees or prepayment penalties, while others don’t.
MoneyGeek recommends you apply for a personal loan online. If you compile all the necessary documents, it makes the process and approval time much quicker.
Yes, you can pay off your loan early. However, you’ll want to keep in mind that some lenders charge a prepayment penalty.
sources
- Better Business Bureau. "Upstart." Accessed September 22, 2022.
- Truist. "Personal Loans and Lines of Credit." Accessed September 22, 2022.
- Upstart. "A Personal Loan for Your Personal Needs." Accessed September 22, 2022.
- USA.gov. "Credit Reports and Scores." Accessed September 22, 2022.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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