Upstart vs. Caribou: Which Offers Better Auto Loans?

When it comes to refinancing your auto loan, two popular options stand out: Upstart and Caribou. Both platforms offer competitive rates and unique features, but which one is the better choice for you? Let's dive into the details and help you make an informed decision.



Upstart: The Nontraditional Lender

Upstart is a unique auto loan aggregator that partners with over 90 banks and credit unions to offer refinancing options. What sets Upstart apart is its innovative underwriting process, which considers nontraditional factors such as education, employment history, and income in addition to traditional credit scores. This approach allows Upstart to approve borrowers with lower credit scores who might not qualify with traditional lenders.

Upstart's minimum credit score requirement is 510, making it an attractive option for borrowers with fair or poor credit. The lender's network offers loan amounts ranging from $3,000 to $60,000, with APRs starting at 6.89% and going up to 29.99%. Upstart's funding time is relatively quick, with funds available within 15 to 20 days.



Caribou: The Co-borrower Option

Caribou, founded in 2016, is a lending platform that partners with community banks and credit unions to offer auto loan refinancing. Caribou's network is slightly smaller than Upstart's, but it still provides access to competitive refinancing options for many borrowers. One of Caribou's standout features is the ability to apply with a co-borrower, which can help improve approval rates and potentially secure better loan terms. This option is particularly beneficial for borrowers with lower credit scores or those who want to share the responsibility of the loan.

Caribou's minimum credit score requirement is 640, which is higher than Upstart's. The lender's network offers loan amounts ranging from $10,000 to $125,000, with APRs starting at 5.48% and going up to 28.55%. Caribou's processing time varies depending on the lender, but it generally takes longer than Upstart.

Which Lender is Right for You?

When choosing between Upstart and Caribou, consider your credit profile, loan amount, and whether you want to apply with a co-borrower. Upstart's lower minimum credit score requirement and wider range of loan amounts make it an attractive option for borrowers with lower credit scores or those seeking smaller loan amounts. Caribou's ability to apply with a co-borrower and slightly lower APR range may be more appealing for borrowers with higher credit scores or those who want to share the responsibility of the loan.

Ultimately, the best choice depends on your individual financial situation and preferences. Be sure to compare offers from both Upstart and Caribou, and consider factors such as processing time, fees, and customer support when making your decision.

In conclusion, Upstart and Caribou both offer competitive auto loan refinancing options, but the best choice depends on your credit profile, loan amount, and whether you want to apply with a co-borrower. By carefully considering the factors discussed in this article, you can make an informed decision and secure the best possible auto loan refinancing terms for your needs.