If you’re looking for a personal loan, LightStream and SoFi are two online lenders to consider.
SoFi started 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 (formerly part of Suntrust). It started in 2013 as a lender targeting borrowers with strong credit.
Both lenders are good options for people with strong credit, so compare them to decide which works best for you.
LightStream vs. SoFi at a glance
Both LightStream and SoFi offer unsecured personal loans. They have very similar products, so you should compare them carefully to see which one is the better choice for your finances.
| SoFi | LightStream | |
|---|---|---|
| Bank rate score | 4.7 | 4.6 |
| Better for | Borrowers with a cosigner | Fast financing |
| 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) |
| Length of the loan | 24-84 months | 24-84 months |
| Costs | Optional costs | No |
| Minimum credit score | 680 | 695 |
| Time for financing | Within a few days | As soon as the same day |
LightStream personal loans
LightStream offers flexible personal loans that you can use for everything from buying a car, remodeling your home or consolidating existing debt. It targets borrowers with excellent credit so it can keep costs low. And unlike many online lenders, LightStream doesn’t charge origination fees or prepayment penalties.
To ensure the best interest rates, borrowers should sign up for automatic payments. LightStream offers an autopay discount of 0.5 percent APR. And if you already have an offer, LightStream offers a 0.1 percent discount on the rate with the Rate Beat program. So if you’re not sure whether to choose SoFi or LightStream, apply to SoFi first and see if LightStream gives you a better APR.
Another benefit that sets LightStream apart is that you can receive the money the same day if you sign up early in the day and have excellent credit. SoFi needs several business days to finance your loan.
Positives
- Same day financing.
- Low interest rates.
- Rate Beat program.
Disadvantages
- Good credit required.
- No co-signers allowed.
- No prequalification option.
Personal loans from SoFi
Although SoFi started as a student-focused lender, it now offers personal loans to all kinds of borrowers in addition to banking and investment services.
If you already use SoFi for other lending, banking or investing, it can be useful to keep all your money in one place and use it for loans as well. Since the product is almost identical to LightStream, you won’t make a mistake when you apply it.
SoFi also benefits from allowing co-signers. If you have bad credit but a willing cosigner, SoFi may approve you if LightStream won’t. If you have excellent credit, this is less of a concern.
Positives
- Co-signers allowed.
- Qualify with a short credit history.
- Lower maximum APR.
Disadvantages
- Financing may take a few days.
- Good credit required.
This is how you choose between LightStream and SoFi
LightStream and SoFi offer virtually identical products when it comes to loan amount, rates and loan terms. This can make it difficult to choose. And it might even be helpful to apply to both so you can see where you stand.
Keep these key differences in mind: cosigners, prequalification, and funding speed.
SoFi enables co-signing and prequalification
LightStream doesn’t let borrowers apply with a cosigner, which means you’ll have to work with SoFi if you want two people on your loan. This can be important if your credit is not good or if you want to be partly responsible for the money you borrow.
SoFi also offers prequalification. This allows you to submit an application and view your rates without affecting your credit. There will only be a hard pull on your credit after you agree to the terms. Because LightStream does not offer the option to pre-qualify, it is best to contact SoFi before signing up with LightStream.
LightStream offers same-day financing
If you have great credit and apply for a loan early in the day, LightStream can fund your loan the same day. That means money in your account on the day you sign up. If you’re facing a major financial emergency and need money quickly, LightStream is probably the better choice. SoFi offers fast financing, but it still takes a few days to hit your bank account.
Compare more lenders before signing up
LightStream and SoFi both offer similar loans. However, for borrowers with excellent credit, LightStream outperforms the competition thanks to its Rate Beat program and the ability to receive funds the same day you apply. But if you already use SoFi for its other financial services or need to get a cosigner, it’s still a solid lender.
If you need a loan, there’s little reason not to check your rate with both companies to see which one gives you the best deal.
