SoFi vs. Upstart Personal Loans: Which Is Better?
Review
Updated
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SoFi® (Social Finance) and Upstart have emerged as two of the most popular and fastest-growing personal lenders in the industry. SoFi focuses on meeting the needs of top-tier borrowers and offers both loans and a full-featured banking ecosystem to customers, including bank accounts, credit cards, and an investment platform. Upstart focuses on borrowers who have a tough time getting a loan from traditional lenders.
In this comparison, we'll take a closer look at SoFi vs. Upstart personal loans, weigh the pros and cons of each, and compare how they stack up.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
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.
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.
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.
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.
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.
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.
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. Loans through Upstart have been approved for borrowers with FICO® Scores as low as 300, and in some cases, for borrowers with no scorable credit histories at all.
Upstart offers loans between $1,000 - $50,000¹. 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.
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.
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.
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.
Because Upstart lends to borrowers who might have trouble getting approval or decent rates elsewhere, it has a few major downsides.
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.
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.
Upstart doesn't offer a mobile app, which means customers must apply for and manage their loans through the company's desktop platform.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Fixed: 8.99%-29.99% APR (with all discounts)
|
$5,000 - $100,000
|
680
|
|
Apply Now for Discover Personal Loan
Powered by Credible
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
7.99% - 24.99%
|
$2,500 - $40,000
|
660
|
Apply Now for Discover Personal Loan
Powered by Credible |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
6.70% - 35.99%³
|
$1,000 - $50,000¹
|
300
|
SoFi personal loans charge zero fees -- including origination, prepayment, or late payment fees. To be fair, SoFi focuses on prime borrowers, and no-fee financial products are more common with this subset of customers.
Upstart personal loans don't have prepayment fees, but they typically have an origination fee. The origination fee is included in your quoted APR, but borrowers should be aware that the fee is withheld from the loan proceeds. For example, a $20,000 loan with a $1,000 fee will actually produce $19,000 in net proceeds.
SoFi offers repayment terms ranging from two to seven years, in one-year increments. Generally speaking, the shorter terms have lower interest rate ranges, and this gives borrowers excellent flexibility to select a monthly payment that fits their budget.
On the other hand, Upstart only offers two loan terms: three or five years. This can be a significant drawback, as SoFi's seven-year option allows borrowers to keep their payments at a minimum. Like SoFi, shorter terms tend to get the best rates.
Both lenders excel here. SoFi often funds a loan the same day an application is approved, although when the money will actually show up in your bank account depends on the receiving institution.
Upstart also funds its loans quickly, sending 99% of all personal loan funds the next business day after signing.⁴ Like SoFi, it's important to point out that actual fund availability depends on the receiving bank account.
| Offer detail | SoFi | Upstart |
|---|---|---|
| Minimum credit score | 680 | 300 |
| Loan amounts | $5,000 - $100,000 | $1,000 - $50,000¹ |
| Repayment terms | 24 - 84 months | 36 or 60 months³ |
| Origination fee | $0 | 0% - 12% |
| Prepayment fee | None required | None |
| Funding | As soon as the same day | As soon as the next business day⁴ |
| Offers mobile app | Yes | No |
The right choice comes down to your loan qualifications and borrowing needs.
SoFi is clearly the better choice if you need to borrow more than $50,000 or spread your payments out over more than five years. SoFi is also a clear winner for customers interested in its other banking products and services, all of which can be managed in the same place. Borrowers with top-notch credit scores, high incomes, and/or stellar employment histories will likely find better loan offers from SoFi because it charges zero fees and offers strong applicants low APRs.
On the other hand, Upstart is the clear winner for borrowers who have a tough time qualifying for loans through traditional methods like the FICO® Score. That includes borrowers who haven't established a credit history yet.
There are infinite combinations of potential loan qualifications, so the number one way to find the best personal loan for you is to obtain rate quotes from both of these lenders (and a few others) to see where you get the best offer. You can check your customized offers quickly and easily, and with zero impact to your credit score.
Upstart and SoFi are both technology-focused lenders, but they cater to different borrowers. Upstart's mission is to democratize loans to trustworthy individuals who traditional lenders ignore. SoFi aims to disrupt the banking industry by offering a full-fledged suite of services better than those offered by legacy banks.
Yes, SoFi is a full-featured financial institution and is a reliable and reputable lender. The company recently received approval for its own banking charter.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Upstart disclosure:
⁴ If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. When the funds will be available to you will depend on your bank’s transaction processing time and policies.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Upstart disclosure:
⁴ If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. When the funds will be available to you will depend on your bank’s transaction processing time and policies.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount.
SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice.Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
*Upstart Loan Disclaimer
¹ Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
³ The full range of available rates varies by state. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.60% and a 8.51% origination fee of $851, for an APR of 23.07%. In this example, the borrower will receive $9149 and will make 60 monthly payments of $258. APR is calculated based on 5-year rates offered in December 2024. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
