The 3.3 kV SiC MOSFETs are essential for traction applications, so it is important to investigate the reliability of the recently developed high voltage MOSFETs and power modules as they are believed to be more susceptible to the effects of basal plane dislocations (BPDs). This paper presents measurement results and analysis of bipolar degradation and threshold voltage instability in 3.3 kV SiC MOSFETs having two distinct kinds of integrated diode, conventional body diode and embedded Schottky Barrier Diode (SBD). No bipolar degradation was observed both in MOSFET with conventional body diode and with embedded SBD after accumulated test with 100 hours each of 200%, 400% and 600% rated current stress in the 3rd quadrant of operation. However, the output characteristics show 1% (~0.2 mΩ) and 2% (~0.4 mΩ) increase in on resistance (RDS(on)) and 11% (0.23 V) and 5% (0.1 V) increase in threshold voltage (VTH), respectively, after total bipolar degradation test in the case of the MOSFET with conventional body diode and up to 74 hrs of 600% rated current stress in the case of the MOSFET with embedded SBD at 70°C. A rapid large negative VTH shift was observed in the MOSFETs with embedded SBD after ~ 74 hrs of 600% rated current stress. After accumulated Bias Temperature Instability (BTI) test at 150°C, the VTH value at 25°C has increased by 9.7% (0.14 V) and 14.5% (0.2 V) for the MOSFET with conventional body diode and with embedded SBD, respectively, while RDS(on) increased by 1mΩ at 25°C and by 5mΩ at 150°C, for both types of MOSFETs.