Paying for unexpected expenses or seeing high-interest debt accumulate can feel like a strain. Whether you’re looking to fund home improvements, medical expenses or a special occasion, a personal loan usually serves as a lower-interest option than other financial tools such as a credit card. But, not all lenders are created equal. Upstart and SoFI are both marketplaces offering personal loans, but each caters to a different type of borrower. We’ll compare the rates, fees and more to help you decide which marketplace fits your needs best.
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.
Upstart vs. SoFi: Which one’s better?
While Upstart and SoFi both offer personal loans, Upstart’s loans may offer more flexibility in terms of repayment plans, maximum lending amounts and eligibility requirements. Its 300 minimum credit score requirement and a rubric that includes educational background means younger or lower-credit score borrowers may have an easier time qualifying. Meanwhile, SoFi requires a higher credit score but has zero additional fees.
When to consider Upstart
Upstart has a lower minimum credit score requirement and may work best if:
You have a lower credit score. Upstart lends to borrowers with a minimum of 300 credit scores.
You have a short employment history. Upstart also considers your education if you don’t have an extensive employment history.
When to consider SoFi
Sofi offers quick approval and more flexible loan terms that may work best if you need:
Faster loan funding. SoFi offers same-day funding for approved borrowers.
Flexible repayment options. Depending on your loan’s terms, you may have up to seven years to repay the full amount and interest.
No additional fees. SoFi has zero fees, so you won’t pay late fees, origination fees or prepayment penalties.
The similarities
Upstart and SoFi are digital lenders that offer personal loans for debt consolidation, higher education, home improvements and more. They both have positive reviews from verified third-party organizations such as Better Business Bureau and Trustpilot.
SoFi stands out in the marketplace due to its lower APRs and longer repayment periods. On the flip side, Upstart caters to those with fair to poor credit and offers loans as little as $1,000 in select states. At the end of the day, we recommend comparing other loan options to determine which lender best suits your credit profile, ideal repayment terms and overall life needs.
Alternatives to SoFi and LendingClub:
Here are three alternatives to SoFi and Lending Club:
Upgrade: Upgrade offers fixed-interest loan products also up to $50,000. Depending on set terms by the lender, you may have up to seven years to repay your loan. A hardship program is also available to help with repayments.
Best Egg: Best Egg offers personal loans with APRs starting from 8.99% and offers loan amounts up to $50,000 with a variety of repayment methods. It was ranked the number-one company in 2021 by Best Company, a consumer review site.
Avant: Avant is more lenient than most lenders since it does not require a credit score and welcomes self-employment income.
Compare other personal loans
Tap compare for up to four personal loan lenders to see how your options stack up side by side.
Dhara Singh is a freelance personal finance writer at Finder specializing in loans. Formerly she was a top 10 journalist at Yahoo Finance with more than 38+ million content views where she covered retirement and mortgages. She has also written for Bankrate, and CNET and continues to write for a variety of outlets, such as Investopedia and Worth magazine. Her articles focus on equipping readers with the right information and data so they can make the most informed decisions related to their finances.
Dhara previously worked as an insights analyst for Finder’s PR team, where she started the Deadliest Cities to Drive series in 2018, connecting interesting data analysis to a suite of car insurance products. When she’s not writing, Dhara coaches small business owners through her Stories to Sales programs and empowers them to use their life experiences to help other people. She has also self-published a poetry book on Amazon called Tell her She’s Lovely.
Dhara holds a B.S. in Finance and Supply Chain Management from Rutgers University and a M.S. in Journalism from Columbia University.
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