SoFi started in 2011 as a student-focused lender, but has since expanded to offer personal loans and other banking services. LendingClub was founded in 2006 as a peer-to-peer lending platform. In 2020, the company acquired Radius Bank and changed its business model to traditional banking and lending. Both online lenders are good alternatives if you are looking for a personal loan, but they respond to different consumer needs.
SoFi vs. LendingClub at a glance
Both lenders offer solid personal loans that can help in a variety of financial situations. However, there are important differences that may affect your choice.
| SoFi | CreditClub | |
|---|---|---|
| Bank rate score | 4.8 | 4.4 |
| Better for |
|
|
| Loan amounts | $5,000 – $100,000 | $1,000 – $40,000 |
| APRs | 8.99%-29.49% Fixed APR | 8.98%-35.99% Fixed APR |
| Length of the loan | 24-84 months | 24-60 months |
| Cost | No origination fees, late fees or prepayment penalties |
|
| Minimum credit score | 680 | Not known |
| Time for financing | You are approved the same day | On average within four working days |
Personal loans from SoFi
Learn more
in our bank interest overview
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SoFi is an online lender that offers a range of lending, banking and investment products. If you’re already taking advantage of SoFi’s other offerings, you may find it helpful to borrow from SoFi and keep your accounts in one place.
SoFi’s minimum credit score requirement is on the higher side compared to similar lenders, so it may not be the best option for those who don’t have a strong credit profile. That said, SoFi accepts co-borrowers, which could increase your chances of approval.
SoFi charges no setup fees, late fees, or prepayment penalties, helping you save money on your monthly payments. The lender also offers flexible terms and conditions. Loans can be for as little as two years or as long as seven years, for amounts up to $100,000.
In addition, SoFi offers exclusive rewards, discounts and exclusive member events for its customers. The latter is almost a unique feature in the personal loan industry, as it not only temporarily pauses payments, but also gives you access to career tools to help you get back on your feet.
LendingClub personal loans
Learn more
in our bank interest overview
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LendingClub started as a peer-to-peer lending platform, but has since grown into a more traditional bank and lender. The company’s loans have competitive starting APRs and a lower minimum loan amount, making them an attractive option for minor emergencies and to consolidate debt.
But because of the wide range of rates, the loans tend to be more expensive than SoFi. LendingClub also charges an origination fee between 1 and 8 percent. While it may not seem like much, it affects the total amount you can borrow, meaning you may end up spending more money over time. That can make it difficult to choose LendingClub if you qualify for a SoFi loan.
How to Choose Between SoFi and LendingClub
SoFi and LendingClub are both good choices if you need a personal loan, but excel in different scenarios.
Choose SoFi for large, flexible loans
When you need to borrow a large amount, SoFi is the better option. It offers loans up to $100,000, making it the better choice if you need to finance a major purchase or an expensive home improvement project.
SoFi also has more flexible terms and conditions. This allows you to take more or less time to pay back what you borrow, which in turn makes it much easier to fit your monthly payment to your budget.
Unlike many online lenders, SoFi does not charge origination fees or late fees. The loans also have a lower interest rate cap than LendingClub’s. Although not guaranteed, the SoFi loan will generally be cheaper, especially if you have good or excellent credit.
Choose LendingClub for smaller expenses or to consolidate debt
LendingClub offers loans starting at $1,000, compared to SoFi’s $5,000 minimum. This makes it a better choice if you just need a small cash boost to cover a small expense, like a car repair or appliance replacement.
Although both LendingClub and SoFi offer direct payment to creditors, LendingClub’s starting APR is much lower than SoFi’s. Depending on your credit score and origination fee, LendingClub’s loans can provide greater savings than SoFi’s, making it a better alternative to consolidating high-interest debt.
Compare more lenders before signing up
SoFi and LendingClub may be good choices for lenders, but SoFi may be the better option for most people. The loans are more flexible and have lower fees, along with an autopay discount and other member benefits. If you qualify for a SoFi loan, chances are it’s the better deal.
Still, applying for a loan from LendingClub isn’t bad because it allows you to compare your offers. You may also find LendingClub a much cheaper option if you can guarantee the lowest APR and origination fees.
That said, these two lenders aren’t your only borrowing options. Also compare the rates of other lenders before committing. This way you can be sure that you get the best possible deal for your situation.
