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

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.

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.

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.

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.

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.

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.

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.

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.

Shopping around for personal loans can be overwhelming. To assist you in your decision-making process, MoneyGeek answered commonly asked questions about personal loans.