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SoFi vs. LendingClub: Which is better?
SoFi surpasses LendingClub with lower rates and no fees.
Borrowers seeking lower interest rates and a minimal fee structure will align with SoFi personal loans. The lender also boasts a faster funding timeline, delivering funds in a few days compared to LendingClub’s week turnaround. LendingClub may support those seeking smaller purchases, but SoFi’s competitive rates and fee transparency make it a strong contender.
SoFi vs. LendingClub: A quick comparison
| SoFi | LendingClub | |
|---|---|---|
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| Finder rating | ★★★★★ | ★★★★★ |
| Loan products offered |
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| Interest rates | 8.99% to 25.81% | 9.57% to 35.99% |
| Fees | No fees | $150 –$400 origination fee for a $5,000 loan |
| Loan amounts | $5,000 to $100,000 | $1,000 to $40,000 |
| Turnaround time | Up to 3 business days | As soon as 24 hours |
| Eligibility requirements |
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| Ratings |
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| State availability | Available in all states | Available in all states |
| Pros |
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| Cons |
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SoFi vs. LendingClub: Which is better?
SoFi and LendingClub both provide personal loans, each catering to a different type of borrower. SoFi is likely suited for people with good to excellent credit profiles who don’t want to pay fees, seek higher maximum loan amounts and want unemployment protection. SoFi also offers career coaching and investing advice to strengthen other areas of your finances. LendingClub, on the other hand, is an accessible option for those with fair credit scores who need smaller loans.
When to consider SoFi
SoFi may work best for your needs if you:
- Want lower rates: SoFi offers competitive rates, making it a good choice for individuals seeking lower interest rates than LendingClub.
- Need higher loan amounts: SoFi shines in providing higher maximum loan amounts ranging from $5,000 to $100,000.
- Prefer fixed rates: SoFi only offers fixed rates. You can learn what rate you qualify for in as little as a minute.
- Need your money fast: While neither lender offers next-day financing, SoFi only takes a few days to get your funding. LendingClub can take as long as a week.
When to consider LendingClub
While SoFi offers lower rates, LendingClub could be your best bet in these scenarios:
- You want to use your loan for debt consolidation: LendingClub allows you to pay different creditors directly using a single loan.
You have a lower credit score: LendingClub is available to borrowers with credit scores as low as 600.
You want a joint loan: You can bring on a cosigner to increase your chances of being eligible for a loan.
The similarities
Both lenders have flexible eligibility requirements compared to other lenders, making them accessible to a wide range of borrowers. They are also highly rated, both holding an excellent 4.6 rating from Trustpilot as of November 2023. Each offers solid personal loans suitable for various financial needs, such as debt consolidation, home improvements and other purposes.
Alternatives to SoFi and LendingClub:
Here are three alternatives to SoFi and LendingClub:
- Upgrade: Upgrade offers fixed-interest loan products also up to $50,000. Depending on the lender’s set terms, you may have up to seven years to repay your loan. There is also a hardship program 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.
- Prosper: Prosper serves borrowers who may not have perfect credit. Provided you have a score of at least 640, you may qualify for a loan.
Compare other personal loans
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See how other lenders stack up
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- LightStream vs. SoFi
- Upgrade vs. Upstart
Frequently asked questions
Can I still get a loan from LendingClub if it’s not fully funded by investors?
Yes, you may still get a partially funded loan. If investors don’t fully back your loan, you aren’t required to accept it and can cancel it without affecting your credit score.
Since investors fund LendingClub’s personal loans, what institution issues them?
WebBank is the financial institution that issues loans for LendingClub.
Can I change my payment date with LendingClub or SoFi?
Yes. Both lenders allow you to change your payment date. You can either change it in your online dashboard or call customer service.
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