Is upscaling beneficial or are there other solutions?

I've been recording things, and the native resolution of my monitor is 1080p, but OBS seems to have problems recording at 1080p60, like the encoder overloaded message showing up, which makes large numbers of frames not show up in the final recording (my computer isn't that much of a beast, its a budget build costing about 500ish as my first gaming comp). But if I set the resolution of the recording down to 720 or 900p, then the problem goes away.

My question is does recording in 900p and rendering in 1080p make the recording messy, or are there other solutions, like recording at a lower frame rate for some games? (the game I was recording was an action game, and I feel like 60fps is important there)