LightStream vs. SoFi: Which personal loan is right for you?

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Key takeaways

LightStream personal loans are better for borrowers with strong credit who want to find the best deal.
SoFi personal loans are also a solid option, but may work better for borrowers with a slightly lower credit score.
Both lenders offer attractive personal loan options, but LightStream has a few better features, so it may make sense to apply to both to see where you get approved.

If you’re looking to get a personal loan and have a solid credit score, LightStream and SoFi are two online lenders you should consider. Both lenders offer a number of features and have similar loan products.

SoFi began in 2011 as a student-focused lender, but has since expanded to offer a variety of banking and lending services. LightStream is an online lending division of Truist Bank and got its start in 2013 as a lender focusing on borrowers with excellent credit.

When comparing Sofi versus LightStream, both lenders are good options for people with a strong credit profile. Compare all the details to decide which will work best for you, and research additional excellent credit loans before applying.

LightStream vs. SoFi at a glance

Both LightStream and SoFi offer unsecured personal loans. They have very similar products, so you should compare them closely to see which is the better choice for your finances.

	SoFi	LightStream
Bankrate Score	4.7	4.7
Better for	Borrowers with a co-borrower	Fast funding
Loan amounts	$5,000-$100,000	$5,000-$100,000
APRs	8.99%-29.49% Fixed APR	7.49%-25.49% Fixed APR (* with AutoPay)
Loan term lengths	24-84 months	24-84 months
Fees	Optional fees	None
Minimum credit score	680	695
Time to funding	Within a few days	As soon as same day

LightStream personal loans

Better for fast funding

LightStream offers flexible personal loans that you can use for anything from buying a car to remodeling your home or consolidating existing debt. It focuses on borrowers with excellent credit so that it can keep costs low. And, unlike many online lenders, LightStream doesn’t charge origination fees or prepayment penalties.
Pros

Same-day funding.

Low interest rates.

Rate Beat program.
Cons

Good credit required.

No co-signers permitted.

No prequalification.

SoFi personal loans

Better for borrowers with a co-borrower

Although SoFi began as a student-focused lender, it now offers personal loans to all sorts of borrowers in addition to banking and investing services. If you already work with SoFi for other loans, banking or investing, it can be convenient to keep all of your money in one place and use it for lending too.
Pros

Co-borrowers permitted.

Qualify with a short credit history.

Lower maximum APR.
Cons

Funding can take a few days.

Good credit required.

How to choose between LightStream and SoFi

LightStream and SoFi offer almost identical products when it comes to loan amounts, rates and loan terms. Because of this, it may be hard to choose — and it may actually be beneficial to submit an application to both if you have determined either will be the best match for your needs.

APR range

LightStream has a fixed APR range that starts and caps out lower than SoFi. Both ranges are similar, but LightStream will likely have a lower APR if you qualify.

Another benefit of choosing LightStream is that it offers a Rate Beat program. If you are approved for a better rate with another lender, it promises to beat that rate by 0.10 percent.

Minimum credit score

A good credit score is anything between 670 and 739, according to FICO. Both SoFi and LightStream require borrowers to have a good credit score, LightStream has a higher credit score minimum.

LightStream requires a minimum of 695 while SoFi requires a minimum of 680. You’ll need to have relatively good credit for either lender, but if your score is lower, you may have better luck getting approved with SoFi.

Repayment terms

Both lenders offer identical repayment term options. SoFi and LightStream can offer you flexible repayment terms between 24 and 84 months. The top end is much longer than many competitors, which typically offer terms up to 60 months. This allows you to make smaller payments for a longer amount of time.

Loan amount

The loan amounts offered by both SoFi and LightStream are also the same. You can get loans from $5,000 up to $100,000 from both lenders. Just remember, each individual may not be approved for the highest loan amount — $100,000 is just the highest possible loan amount you can receive.

Fees

LightStream comes out as the winner for fees — the lender doesn’t have any fees for their personal loans. But SoFi doesn’t fall far behind. SoFi’s fees are optional — you can choose to pay an origination fee on your loan in exchange for a lower rate.

The bottom line: Which lender is better?

LightStream and SoFi both offer similar loans. However, for borrowers with excellent credit, LightStream edges out the competition thanks to its Rate Beat program and the ability to get money the same day that you apply. But, if you already use SoFi for its other financial services or need to apply with a co-borrower, it is still a solid lender.

Since SoFi offers prequalification, you should see if you are eligible for the best loan rate ahead of applying. If you’ve narrowed it down to SoFi and LightStream, apply for both and see which has the better offer. Just make sure you do the applications within a short period so they’re only counted as one credit inquiry.

Compare more lenders before applying

LightStream and SoFi aren’t the only lenders offering personal loans. It’s a good idea to look at several lenders before choosing where you want to apply.

Consider these personal loan options for borrowers with good credit:

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