Upstart and SoFi are two popular online lenders that offer personal loans. Founded in 2011, SoFi started as a lender aimed at students and has since expanded into a variety of loans and other financial services. Founded in 2012, Upstart uses AI to match potential borrowers with lenders, using more factors than the typical credit score, including education and employment history.
If you’re trying to choose between these lenders, consider factors like 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, there are significant differences between lenders, making them a good choice for different types of borrowers.
| Upstart | SoFi | |
|---|---|---|
| Bank rate score | 4.7 | 4.7 |
| Better for | • People with bad 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 |
| Length of the loan | 36 or 60 months | 24-84 months |
| Costs | • Origination fee: up to 8% • Late fees: The greater of $15 or 5% • ACH return or check refund: $15 |
Optional costs |
| Minimum credit score | No requirement | 680 |
| Requirements | • Have a US residential address • Have a full-time job or an offer for a job starting within six months, a regular part-time job or a proven source of steady income • Made on-time payments on any outstanding Upstart loans within the past six months • Do not have more than one other Upstart loan |
• U.S. citizen, permanent resident, or non-permanent resident alien • Working and with sufficient income, or written offer to start working within 90 days |
| Time for financing | As soon as one working day | Within a few days |
| Co-signers allowed | No | Yes |
Start personal loans
Upstart is a unique lender because it looks at more factors than other lenders.
When you apply for a loan, personal lenders typically check your credit, your debt-to-income ratio (DTI), your income, and a few other parts of your financial life. If you have bad credit or limited income, you have no chance of getting a loan.
Upstart looks at other factors including where you were educated and what you studied, as well as your employment history and future opportunities. This allows more borrowers to be approved, making it a good choice for those with less-than-perfect credit.
Plus points
- Fast loan approval time.
- Low-end credit cards may still qualify.
- Low interest rates for well-qualified borrowers.
- Low loan minimums.
Disadvantages
- High origination costs.
- High interest rates for some borrowers.
- Few choices for loan terms.
- No co-signers allowed.
Personal loans from SoFi
SoFi started as a company aimed at students, but has since expanded to include a much broader offering, including banking services, investment services and even mortgages.
Borrowers who already work with SoFi for their banking or other lending services might appreciate keeping more of their financial activities in one place. SoFi is also a good choice for people with a strong credit or short credit history, but a solid track record. You can avoid some of the fees Upstart charges and still get a good interest rate.
Plus points
- Co-signer allowed.
- High borrowing maximum.
- Qualify with a short credit history.
- Many options for loan conditions.
Disadvantages
- Higher minimum loan interest rate.
- Higher minimum loan amount.
- Good credit score required.
- Financing may take a few days.
How to choose between Upstart and SoFi
Upstart and SoFi are both good lenders, but excel in different situations.
Choose Upstart for smaller loans
If you want to borrow a small amount, consider Upstart. It offers loans starting as low as $1,000 in most states, making it the better of the two if you want to borrow a limited amount.
It’s also a good choice if you have bad credit but have a strong educational or employment background. If you’re having trouble getting loans because of your credit score, but you have a highly sought-after degree from a good college, Upstart may be able to approve you for a loan where SoFi probably wouldn’t.
Choose SoFi for larger, flexible loans
SoFi, on the other hand, lets you borrow twice as much as Upstart – up to $100,000 – making it the lender of choice if you have a big expense you want to cover or you want to consolidate some large debts.
You can also choose loan terms ranging from two to seven years, giving you many options when it comes to the length of your loan. You can use that to prioritize saving on interest with quick repayment or a longer-term loan with smaller monthly payments.
Compare more lenders before signing up
Both SoFi and Upstart are strong lenders. Although Upstart has higher rates and charges origination fees, it compensates for this by being willing to lend money to people with bad credit. SoFi, on the other hand, lets you choose whether you want additional fees to adjust your monthly payments and offers much larger loans, but only to people with a good credit score.
If you need a loan, it’s worth checking your rate with both lenders to see which one gives you the best loan offer.
