Upstart vs Sofi: which personal loan is right for you?

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If you are looking for a personal loan, you will likely come across Upstart and SoFi. Both companies offer flexible loans for a variety of purposes, but there are some differences to keep in mind when choosing between them.

Here’s a comparison between Upstart and SoFi to help you choose. Upstart and SoFi are both credible partners.

sofi personal loan
Fixed rates 6.46% – 35.99% APR4 5.99% – 18.83% APR
Amount of the loan $ 1,000 to $ 50,0005 $ 5,000 to $ 100,000
Loan conditions 3 to 5 years4 2-7 years
Min. credit rating 580 Do not disclose
It’s time to fund As quickly as 1 business day6 3 working days
Original fees 0% to 8% of the loan amount Nothing
Authorized co-signers No Yes
Returned $ 12,000 Check with the lender
Residence Available in all 50 states Available in all states except MS
Advantages
  • Options available for lower credit scores
  • Could be easier to qualify for
  • Higher borrowing limits
  • Coverage if you lose your job
All APRs Reflect Auto Pay and Loyalty Discounts, where applicable | Learn more about prices and conditions

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Personal loans for beginners

Founded by former Googlers, Upstart’s artificial intelligence platform fully automates the majority of its personal loans. It has granted $ 6.9 billion in loans and notably offers loans to those whose credit is not perfect.

Upstart offers personal loans for a variety of uses, including debt consolidation loans, wedding loans, and more. You can borrow as little as $ 1,000 or up to $ 50,000 and expect quick financing.

Learn more: Personal loan vs credit card

Advantages

  • Lower minimum credit score: Upstart offers personal loans to borrowers with a credit score as low as 580. If you are looking for bad credit personal loans Where personal credit personal loan, Upstart might be a good choice.
  • No early repayment penalties: You don’t have to worry about fees if you prepay your loan.
  • Quick financing: If your request is successful, you will likely receive your money back in just a few business days. In fact, Upstart claims that 99% of applicants get their money back after just one business day.
  • Low minimum loan amount: You can borrow as little as $ 1,000 with Upstart, which could be useful if you only need a small loan.

The inconvenients

  • Maximum loan amount lower: With Upstart, you can only borrow up to $ 50,000. This could make it more difficult to finance larger debt consolidations or larger home improvements.
  • High assembly costs: With Upstart, you can pay origination fees of up to 8% of the loan amount.
  • No options for visa holders: Upstart does not offer personal loans for visa holders – you must have a social security number to borrow with this lender.

Check out our Upstart Personal Loan Review to learn more.

SoFi personal loans

SoFi offers a variety of financial products, including credit card consolidation loans and other types of personal loans. It also offers several benefits to its members, such as unemployment protection, career coaching and networking events.

With SoFi, you can borrow between $ 5,000 and $ 100,000. In addition, SoFi personal loans are offered free of charge.

Learn more: How personal loans impact your credit score

Advantages

  • Large loans: You can borrow up to $ 100,000 in unsecured funds with SoFi. This can be useful for home improvement loans, marriage loans and other major borrowing needs.
  • Discounts available: If you subscribe to automatic payment, you can benefit from a reduction on your SoFi personal loan. You might also get a discount if you use other SoFi products.
  • Benefits and advantages for members: As a SoFi member, you will have access to additional resources including financial planning, career coaching, and networking events. SoFi also offers unemployment protection in the event of job loss.
  • Options for visa holders: If you are a visa holder without a social security number, you can still benefit from a SoFi personal loan.

The inconvenients

  • Higher credit score requirements: You will need good to excellent credit for get a personal loan via SoFi. If your credit is poor or fair, you will likely need to consider other lenders.
  • Higher minimum loan requirement: You will need to withdraw at least one $ 5,000 personal loan borrow via SoFi. If you need a smaller loan, SoFi may not be the right choice for you.
  • Longer financing time: SoFi personal loans typically take a few business days to fund. If you need a faster loan financing time, you may have to look elsewhere.

See our SoFi Personal Loan Review for more details.

Choosing a lender for a personal loan

A personal loan could help you cover large or unexpected purchases. Before borrowing, it’s a good idea to shop around and consider as many lenders as possible to find a loan that meets your needs. Credible makes it easy for you: you can compare multiple lenders, like Upstart and SoFi, in two minutes.

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  • A simple form, easy to complete and your information is protected
  • More options, choose the loan option that best suits your personal needs
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4The full range of rates available vary by state. The average 3 year loan offered by all lenders using the Upstart platform will have an APR of 24.4% and 36 monthly payments of $ 36 per $ 1,000 borrowed. There is no deposit or early repayment penalty. The average APR is calculated based on the 3-year rates offered in the last month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.

5This offer is conditional on final approval based on our review and verification of financial and non-financial information. The rate and loan amount are subject to change based on the information received in your complete application. This offer can only be accepted by the person identified in this offer, who is old enough to legally enter into a Extended Credit Agreement, a U.S. Citizen or Permanent Resident and Current Resident of the United States. Duplicate offers received are void. Closing your loan is conditional on you meeting our eligibility criteria, verifying your information, and agreeing to the terms and conditions on the website www.upstart.com.

Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be eligible for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $ 7,000. The minimum loan amount in Ohio is $ 6,000. The minimum loan amount in NM is $ 5,100. The minimum loan amount in GA is $ 3,100.

6If you accept your loan before 5 p.m. EST (excluding weekends or holidays), you will receive your funds the next business day. Loans used to finance education related expenses are subject to a 3 business day waiting period between loan acceptance and funding in accordance with federal law.

About the Author

Miranda Marquit

Miranda Marquit

Miranda Marquit is an authority on mortgage, investment and business. His work has been published on NPR, Marketwatch, FOX Business, The Hill, US News & World Report, Forbes, etc.

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