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Key takeaways
- Upstart is best for consumers with less-than-perfect credit.
- SoFi is best for those with good to excellent credit seeking larger loan amounts.
- Assess each lender’s terms, rates, eligibility guidelines, funding times and fees to make an informed decision.
Upstart and SoFi are two popular online personal loan lenders. Founded in 2011, SoFi began as a lender focused on students and has since grown to offer a variety of loans and other financial services. Upstart was founded in 2012 and matches potential borrowers to lenders using factors beyond credit score, including education and employment history.
If you are trying to choose between these lenders, consider factors like the annual percentage rate (APR) and eligibility requirements to determine the best option for you.
Upstart vs. SoFi at a glance
Both Upstart and SoFi offer strong personal loan options. However, one targets bad-credit borrowers, while the other offers generous amounts and terms for those with good and excellent credit.
| Bankrate Score | 4.8 | 4.7 |
| Better for | • People with poor credit • Small loan amounts |
• Borrowers with strong credit • Large loan amounts |
| Loan amounts | $1,000–$50,000 | $5,000–$100,000 |
| APRs | 7.80% to 35.99% Fixed APR | 8.99% to 29.49% Fixed APR |
| Loan term lengths | 3 or 5 years | 2 – 7 years |
| Fees | • Origination fee: Up to 12% • Late fee: The greater of $15 or 5% • ACH return or check refund: $15 • Paper statement fee: $10 |
Optional fees |
| Minimum credit score | No requirement | 680 |
| Requirements | • Valid email address • Social Security number • personal bank account • steady income or job offer starting within 6 months • Minimum annual income of $12,000 |
• U.S. citizen, permanent resident or nonpermanent resident alien • Reside in a serviced state |
| Time to funding | One business day if accepted before 5 p.m. ET, Monday to Friday | Same-day funding available if approved by 7 p.m. ET |
| Co-signers permitted | No | Yes |
Upstart personal loans
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Upstart is a unique lender because its approval process looks at unusual factors. Most lenders base lending decisions on your credit score, debt-to-income (DTI) ratio and your income. Upstart’s software also considers including where you were educated and what you studied as well as your employment history and future opportunities. The lender claims this process lets it approve more borrowers, making it a strong choice for people with fair credit, bad credit or no credit history.
But its unusually low minimum APR means it’s worth a look for good- and excellent-credit borrowers, too.
SoFi personal loans
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SoFi sets a high credit score requirement at 680, but qualifying borrowers should find competitive APRs and a higher max loan amount than Upstart offers. Plus, unlike with Upstart, SoFi’s origination fee is optional — you can opt in or out to change your APR. If you want to consolidate debt, you can use the DirectPay feature to simplify the process and receive a 0.25 percent rate discount. Borrowers who already bank with SoFi might appreciate keeping their financial business in one place.
How to choose between Upstart and SoFi
Upstart and SoFi are both good lenders, but they excel in different situations.
APR range
These lenders offer comparable APR ranges. The minimum with Upstart is slightly lower, but it’s reserved or borrowers with excellent credit. That said, SoFi caps its rates at 29.49 percent, which could save you in interest.
Minimum credit score
You’ll need at least a 680 FICO score with SoFi. There’s no minimum credit score requirement with Upstart. If you meet its other requirements, you may qualify for a loan. However, past issues like missed payments, defaults or bankruptcies may prevent you from qualifying.
Repayment terms
Upstart gives borrowers just two loan terms to choose from. SoFi, meanwhile, offers terms of up to seven years. A longer term can mean lower payments, though it also means paying more interest over time.
Since neither lender charges a prepayment penalty, there’s no drawback to paying off a loan early with either lender.
Loan amount
Again, if you’re a creditworthy borrower with a strong financial profile, you can access more funding with SoFi. However, borrowers seeking smaller loan amounts can borrow as little as $1,000 with Upstart, whereas the minimum is $5,000 with SoFi.
Fees
With SoFi, the origination fee is optional, and you can steer clear of other added costs. You won’t have this luxury with Upstart, which charges an unusually high origination fee of up to 12 percent. This cost could still be worth it if you need to access cash and have exhausted all other options.
The bottom line: Which lender is better?
Both SoFi and Upstart are strong lenders. While Upstart has higher maximum rates and charges origination fees, it makes up for it by being willing to lend to people with poor credit. SoFi, on the other hand, allows you to choose whether you want additional fees to adjust your monthly payments and offers much larger loans — but only to people who have a good or excellent credit score.
Compare more lenders before applying
If you’re in need of a loan, it’s worth checking personal loan interest rates with both lenders to see which gives you the best loan offer. Also, consider other lenders before applying, as there could be options out there that better suit your needs.
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