LightStream vs. SoFi: Which is better?

For borrowers looking for a personal loan, LightStream provides quick funding for cost-conscious borrowers. On the flip side, SoFi offers flexible repayment options, catering to borrowers desiring financial protection.

LightStream vs. SoFi: A quick comparison

	LightStream	SoFi
	< Go to site	< Go to site
Finder rating	★★★★★	★★★★★
Loan products offered	Kitchen and bath remodel, landscaping, solar, swimming pool, aircraft, boat, credit and debt consolidation, wedding, medical, dental, education (K-12 only) and many others	Personal loans for credit card consolidation, home improvements, family planning, travel, IVF, weddings and more
Interest rates	7.49% to 25.49%	8.99% to 29.99% fixed APR
Fees	No fees	No fees
Loan amounts	$5,000 to $100,000	$5,000 to $100,000
Turnaround time	As soon as same day	Up to 2 business days
Eligibility requirements	Good to excellent credit profiles Proof of income Proof of US permanent citizenship Social Security Number Driver’s license	Minimum 680 credit score Proof of US permanent citizenship, non-permanent, 18 years of age or residing in eligible states Social Security Number Permanent residents need 2-year valid green cards
Ratings	A+ Rating from Better Business Bureau 1.8 Rating from Trustpilot based on 67 customer reviews	A+ Rating from Better Business Bureau 4.7 Rating from Trustpilot based on 7,307 customer reviews
State availability	Not available in: Iowa, West Virginia	Available in all states
Pros	No fees You can get a 0.50% Home improvement loans are unsecured up to 12 years Offers rate beat program 0.5% autopay discount	No origination or late fees Coapplicants allowed Can have two loans at a time if you qualify 0.25% autopay discount
Cons	Cannot be used for post-secondary expenses Rates differ based on the loan’s purpose Some personal loans can only have a maximum of 7-year terms, not 12 years Only 22% of applicants are approved for the lowest rates	Higher minimum APRs than LightStream Cannot be used for post-secondary education
	Go to site	Go to site

• SoFi's terms and conditions

  Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.

  Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.

  Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.

  Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

LightStream vs. SoFi: Which one’s better?

LightStream and SoFi both offer unsecured personal loans. LightStream serves as a more compatible fit for most borrowers due to its Rate Beat program, guaranteeing lower rates than competitors and 0.5% autopay discounts, which is larger than SoFi’s 0.25%.

LightStream, a subdivision of Truist Bank, is ideal for borrowers with good to excellent credit looking for the lowest minimum APRs. SoFi, which started later than Lightstream in 2011, might be a good fit for borrowers looking for financial assurance through a suite of repayment options. Both might be a good fit, depending on your financing needs.

When to consider LightStream

LightStream is a compatible fit for borrowers who want:

• More rate options: If you get approved by another lender, two days before receiving the funds, LightStream provides a more competitive rate through its rate beat program.
• Generous discounts: LightStream offers a 0.50% discount on monthly payments if you choose an automatic payment via your bank account. This is slightly higher than SoFi’s 0.25%
• Customer service guarantee: After you receive your loan, LightStream sends you a questionnaire. Once you complete the questionnaire, LightStream reviews your feedback and sends you $100.

When to consider SoFi

SoFi is a great fit for borrowers who prefer:

• Loan usage flexibility: Besides some hard and fast rules about not using the funds for secondary school expenses, you don’t need to choose a specific use case for your loan like LightStream requires.
• Ability to have two loans at the same time: Any US borrower besides Michigan residents can take out a second SoFi loan as long as they have made three consistent payments on the first loan.

The similarities

While both SoFi and LightStream have different consumer ratings, both have an independent A+ rating from the Better Business Bureau, prefer good to excellent borrowers and offer autopay discounts to lower your monthly costs.

Alternatives to LightStream and SoFi

Here are three alternative products similar to both LightStream and SoFi.

• Upstart: This lender may approve loans for borrowers with credit scores starting at 300.
• Avant: Ideal for borrowers with a fluctuating income, such as self-employed individuals.
• Upgrade: This lender may be a good option for borrowers needing smaller loan amounts, with a minimum loan amount of $1,000.

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