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Upstart and SoFi are two popular online personal loan lenders. Founded in 2011, SoFi began as a student-focused lender and has since grown to offer a range of loans and other financial services. Upstart was founded in 2012 and matches potential borrowers with lenders using factors other than credit scores, such as education and work history.
When choosing between these lenders, consider factors like annual percentage rates (APRs) and qualification requirements to determine the best option for you.
Comparing Upstart and SoFi
Both Upstart and SoFi offer strong personal loan options, but one targets borrowers with poor credit, while the other offers generous amounts and terms to borrowers with good to excellent credit.
| Bankrate Score | 4.8 | 4.7 |
| Better yet | • People with poor credit • Microloans | • Highly creditworthy borrowers • Large loans |
| Loan amount | $1,000-$50,000 | $5,000-100,000 |
| APR | 7.80% to 35.99% Fixed APR | 8.99% to 29.49% Fixed APR |
| Length of loan term | 3 or 5 years | 2 to 7 years |
| Fee | • Commission: up to 12% • Late Fee: $15 or 5%, whichever is greater. • ACH refund or check refund: $15. • Paper statement fee: $10 | Optional charges |
| Minimum Credit Score | No requirements | 680 |
| Requirements | • Valid Email Address • social security number • Personal bank account • Stable income or the ability to start work within 6 months • Minimum annual salary of $12,000 | • U.S. citizen, permanent resident, or non-permanent alien • Receiving service |
| Time to fundraise | 1 business day if approved by 5pm Monday through Friday | If approved by 7pm, same-day funding available |
| Co-signers allowed | no | yes |
Launching a personal loan
SoFi Personal Loan
Choosing Upstart vs SoFi
Upstart and SoFi are both great lenders, but they excel in different situations.
APR Range
These lenders offer comparable APR ranges. Upstart has a slightly lower minimum rate, but it’s only for borrowers with good credit. That said, SoFi caps its interest rate at 29.49%, so you can save money on interest.
Minimum Credit Score
SoFi requires a minimum FICO score of 680. Upstart doesn’t have a minimum credit score requirement, and if you meet the other requirements, you may be eligible for a loan. However, past issues like missed payments, defaults, or bankruptcies could prevent you from qualifying.
Repayment Terms
Upstart only offers two loan terms for borrowers to choose from, while SoFi offers terms up to seven years. Longer terms mean lower payments, but you’ll also pay more interest over time.
Neither lender charges prepayment penalties, so there’s no downside to paying off your loan early with either lender.
Loan amount
Again, borrowers with good credit and a good financial standing can get more funding with SoFi, but for borrowers looking for smaller loans, Upstart allows you to borrow as little as $1,000, while SoFi allows you to borrow as little as $5,000.
Fee
With SoFi, the origination fee is optional, allowing you to avoid other additional costs. You don’t have this luxury with Upstart, which charges an unusually high origination fee of up to 12 percent. This cost can still be worth it if you need cash and have exhausted all other options.
Conclusion: Which Lender is Better?
SoFi and Upstart are both strong lenders: Upstart has higher top interest rates and origination fees, but makes up for that by being willing to lend to people with poor credit, while SoFi lets you choose whether to charge extra to adjust your monthly payments and offers much larger loans, but only to those with good or excellent credit.
Compare multiple lenders before applying
If you need a loan, it’s worth checking the personal loan rates of both lenders to see which one offers the best loan offer, and also consider other lenders before applying – there may be an option that suits your needs better.
