Rocket Loans vs. Upstart: Which Personal Loan Is Right for You?

Rocket Loans offers personal loans in all 50 states for qualified individuals. Qualified individuals with fair credit scores or higher can take out loans of up to $45,000 to make home improvements, consolidate debt, pay medical expenses or fund a business venture.

Upstart uses artificial intelligence to bring lenders and borrowers together. Borrowers with poor credit scores can apply for personal loans of up to $50,000 through this lender.

In this Rocket Loans vs. Upstart comparison, we provide all the information borrowers need to make the right choice. As a trusted source for comparing the largest personal loan lenders in the U.S., MoneyGeek uses the most recent data to evaluate each lender's rates, terms, loan amounts and more.

When comparing these two personal loan providers, we examined their relative APRs, disbursement period, loan amounts, repayment terms and minimum credit score requirements.

Although both lenders provide quick financing, Upstart is a better option for borrowers with poor credit scores. Upstart also offers a better deal for people with excellent credit ratings since it has a slightly lower starting APR of 3.22% compared to Rocket Loans' starting APR of 5.97%. Upstart provides funding up to $50,000, higher than Rocket’s maximum loan amount of $45,000.

Personal loans have an annual percentage rate, or APR, which is the interest rate a borrower must repay. Important factors affecting your loan's APR include your credit score, risk level, loan amount, repayment terms and loan type. APR ranges vary widely among lenders.

Rocket Loans offers APRs ranging from 5.97% to 29.69%, while Upstart’s APRs range from 3.22% to 35.99%. While both offer low minimum APRs, these rates are only accessible to borrowers with excellent credit. Moreover, while Rocket Loans provides a lower maximum rate, its loans are more difficult to obtain because the lender requires a fair-to-good credit rating.

APR is only one factor among many when choosing a lender for a personal loan, although a low APR is ideal for getting the lowest rate possible.

Credit bureaus issue credit scores as a numerical representation of your creditworthiness based on information from your credit report. Credit scores range from 300 to 850. Lenders often consider applicants with credit scores of 670 or above as acceptable or low-risk borrowers.

In many cases, your credit score determines whether you qualify for a loan and under what conditions. Higher scores generally mean lower interest rates. Managing your finances wisely and paying off your credit card bills on time gradually builds your credit score.

To determine whether borrowers will be able to meet their financial obligations, Upstart uses an AI algorithm. Along with credit scores, the lender considers income and employment history, giving borrowers with bad credit a chance to get approved. On the other hand, Rocket Loans requires a credit score of at least 640.

Lenders have a loan amount range, which consists of the lowest and highest amount they are willing to lend. Rocket Loans personal loan applicants can borrow up to $45,000 compared to $50,000 with Upstart. Both lenders are great options for major expenditures. Ultimately, the amount you need depends on what you plan to do with the funds and what the lender will offer.

Instead of getting multiple small loans from different lenders, look for a lender that offers a range of loans that meet your needs. By doing this, you can easily keep your total debt.

The length of time a lender gives you to repay the loan is called the repayment term or repayment period. Shorter repayment terms usually result in lower interest rates. However, lenders consider other factors, such as credit score, when setting loan repayment terms.

Rocket Loans and Upstart offer the same repayment terms. Repaying a loan over a longer period usually means you make smaller monthly payments but pay more interest in the long run. Be sure to consider the total loan cost when comparing lender payback periods.

Conventional lenders can take weeks to process loans and provide funds. In contrast, Rocket Loans and Upstart provide funds the following business day.

Rocket Loans can be a good option if you need a loan urgently and have good credit. With next-day disbursement, Upstart is also a good choice. To choose the right lender between the two, also consider the loan terms and amount, repayment period, credit score requirement and rates.

Rocket Loans and Upstart offer personal loans with the same payment terms and fast funding times, but Upstart comes out on top for several reasons. It has lower minimum and higher maximum loan amounts, and though Upstart has a higher maximum APR, its credit score requirement allows people with bad credit to apply.

On the other hand, Rocket Loans can process and release funds quickly and has a lower maximum APR than Upstart. Additionally, small expense loans start at $2,000 and go up to $45,000.

Choosing a provider for your personal loan comes down to your needs and situation. Knowing when to get a personal loan can help you avoid financial ruin. A personal loan can be helpful if taken out wisely, but reckless borrowing can have negative consequences.

If neither Rocket Loans nor Upstart meets your requirements, consider shopping around and comparing rates and terms from several lenders.

MoneyGeek answers frequently asked questions about personal loans to help through the selection process.