Why we like SoFi
There's no such thing as a perfect lender, but there's a lot to like about SoFi, especially for borrowers with impressive credit histories.
Competitive interest rates
SoFi has strict lending standards, but its interest rates are some of the lowest in the industry. This can make SoFi a great choice for borrowers with a good credit history who need to consolidate debt or fund large purchases.
No fees
SoFi doesn't charge origination fees, late fees, or prepayment penalties for paying off a loan early. Many personal lenders skip one or two of these fees, but skipping all three is uncommon. This is a big differentiator between SoFi and other lenders, as many (including Upstart) charge rather large origination fees.
Large loan limits
SoFi offers personal loans of up to $100,000, one of the highest limits in the industry. SoFi lends mostly to highly qualified, high-income borrowers, so it can afford to take bigger risks like this.
Great mobile app and full financial ecosystem
SoFi's fantastic mobile app lets customers manage accounts from anywhere. SoFi also offers checking and savings accounts, an investment platform, credit cards, other loan types, and more -- all of which can be accessed, applied for, and managed from the app.
>> Read More: SoFi personal loans review
Where Upstart is better
SoFi isn't for everyone. If you have a low credit score or have yet to formally establish a credit history, for example, you might have a tough time getting approved at SoFi. But that's where Upstart comes in. Upstart is designed for credit situations that don't meet most lenders' definitions of "prime," or trustworthy. Here is what makes Upstart stand out.
Easier (and different) qualifications than most lenders
Upstart's key mission is to help borrowers with low credit scores take out loans, and to do so without needing co-borrowers. It considers more thant traditional standards like the FICO® Score and adds over 1,000 customer data points into its process. Upstart loans have been approved for borrowers with FICO® Scores as low as 580, and in some cases, for borrowers with no scorable credit histories at all.
Wide range of loan amounts
Upstart offers loans for as little as $1,000 or as much as $50,000. This is a much wider range than most lenders offer. Upstart is a solid choice for borrowers who just need to borrow a few thousand dollars.
>> Read More: Our full review on Upstart personal loans
Where SoFi can improve
As mentioned, no lender is perfect, and SoFi certainly isn't an exception. Here are two of the biggest downsides of SoFi's personal loan business.
Few options for subprime borrowers
SoFi lends mostly to well-qualified borrowers. It judges trustworthiness differently than most banks, but it's true that most people approved for SoFi loans have excellent credit histories, haven't been unemployed recently, have relatively high incomes, and have other strong qualifications. Because of this, SoFi lacks options for borrowers without top-tier credit and employment histories.
High minimums
SoFi offers bigger loans than most, but it also has one of the highest minimums at $5,000. Not all borrowers need to borrow $5,000 or more, and SoFi could improve by offering lower-balance loans to customers.
Where Upstart can improve
Because Upstart lends to borrowers who might have trouble getting approval or decent rates elsewhere, it has a few major downsides.
Origination fees
Upstart's origination fee can be zero, but it also can be up to 12% of the loan amount (many fall somewhere in the middle). Sure, origination fees are far more common in the subprime lending world, which is Upstart's bread and butter, but it's worth noting this will hike prices.
High APRs
Because it focuses on borrowers without stellar credit histories and top-tier incomes, Upstart's potential APR (how much you pay each year to borrow money) is on the high end. For many borrowers, Upstart's rates could actually exceed what credit cards charge.
Mobile app
Upstart doesn't offer a mobile app, which means customers must apply for and manage their loans through the company's desktop platform.