SoFi and Prosper are leading online lenders that offer personal loans fast and with competitive rates.
But when it comes to SoFi vs. Prosper personal loans, is one company better than the other? On the whole, neither lender comes out as the clear winner — the answer depends on your needs as a borrower.
To help you choose, below is a full comparison of SoFi and Prosper personal loans. Read on to learn which lender is right for you.
SoFi vs. Prosper personal loans overview
Both SoFi and Prosper offer personal loans, but they do it in different ways.
SoFi is a direct lender, with its loans originated by SoFi Lending Corp. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.
As a borrower, your experience with both companies won’t be much different. But it’s useful to understand how the two lenders operate.
The chart below takes a close look at the rates and terms on SoFi and Prosper personal loans. Check them out before we take a deeper dive into what these differences mean for you.
The rates and terms for Prosper were as of July 12, 2018. For the latest information, go to Prosper.
|SoFi personal loans||Prosper personal loans|
|Loan amount||$5,000 – $100,000||$2,000 – $40,000|
|APR range||6.26% – 14.87%||6.95% – 35.99%|
|Repayment terms||3, 5, or 7 years||3 or 5 years|
|Rate type||Fixed or variable, depending on where you live||Fixed|
|Origination fee||0%||2.41% – 5%|
|Allows joint applications||Yes, if you and your cosigner share the same address||No|
|Eligibility requirements||Must have sufficient income or offer of employment to start within 90 days; other requirements are not disclosed||Minimum FICO score of 640; debt-to-income ratio below 50%; no bankruptcies within last 12 months|
|Residency requirements||Lends everywhere except in Mississippi||N/A|
|Extra benefits||Unemployment protection||None|
There are significant differences between the personal loan products of SoFi and Prosper, so read on to consider which one could work better with your finances.
Choose SoFi if you need a large personal loan
One of the biggest differences when comparing SoFi-versus-Prosper personal loans is their borrowing limits. If you find yourself in any of the following situations, SoFi could be the superior choice.
1. You need to borrow more than $40,000
Unlike Prosper, which has a lending limit of $40,000, SoFi lets you take a personal loan of up to $100,000. This high limit could be helpful if you’re consolidating a large amount of debt or undertaking a major home renovation project.
Online lenders typically don’t offer such large loans, so SoFi is unique in its flexibility. Keep in mind that SoFi’s minimum loan amount is $5,000, so you don’t have as many options for borrowing a small amount of money.
2. You have strong credit and can qualify for low rates
SoFi doesn’t disclose the credit score you need to qualify for one of its personal loans, but it seems that the lender looks for good to excellent credit. Considering that it offers competitive rates ranging from 6.26% to 14.87%, SoFi is looking for creditworthy borrowers with the means to pay back the loan.
If your credit isn’t up to scratch, you also can apply with a creditworthy cosigner, such as a spouse or parent you live with. Your cosigner’s credentials could boost your application and help you snag low rates. Make sure you’re comfortable sharing debt with the cosigner, and that you both have a clear sense of who is responsible for paying back the loan.
3. You’re looking for a long repayment term
The longer term could give you breathing room if you need extra time to pay back your loan, and it could lower your monthly payments. But you don’t have to choose such a long term.
Plus, you can pay the loan back sooner. There’s no penalty for prepayment, and you’ll save a lot of money on interest changes as a result.
4. You want the assurance of unemployment protection
SoFi is unique in its unemployment protection benefit for personal loan borrowers. If you lose your job, SoFi will pause your payments in three-month increments for up to a year.
To qualify for this perk, you must apply for unemployment benefits and work with SoFi’s career coaches to find a new job.
This benefit could be a huge help in case you lose your income. Instead of worrying about your loan becoming delinquent, you can pause payments until you’re back on your feet.
Choose Prosper if you don’t have excellent credit
Even if you have a fair credit score, you could qualify for a personal loan from Prosper. According to Experian, credit scores are organized into the following tiers:
- Fair credit scores are between 580 and 669.
- Good credit scores are between 670 and 739.
- Excellent credit scores are between 740 and 799.
- Exceptional credit scores are between 800 and 850.
If any of the following scenarios apply to you, Prosper might be your preferred lender.
1. Your credit score is about 640
Like other lenders, Prosper offers the lowest rates to borrowers with strong credit scores. But it says you can qualify for a loan even with a fair credit score of at least 640.
So if you don’t have excellent credit, Prosper might work with you while other lenders might not. However, a low credit score could leave you with high rates, so make sure you understand the long-term costs of borrowing before signing on the dotted line.
2. You’re looking for a personal loan of under $5,000
Prosper doesn’t issue large personal loans like SoFi does; its loans max out at $40,000. But Prosper has lower borrowing limits, allowing you to get a loan that’s as low as $2,000.
This might be useful if you’re consolidating a small amount of debt or funding a relatively minor personal expense. You don’t want to take on more debt than you need.
If you’re in the market for a small loan, Prosper could be a better choice than SoFi.
3. You don’t plan to apply with a cosigner
Prosper offers low rates on its personal loans starting at 6.95% APR. But since it doesn’t allow you to apply with a cosigner, you’ll need to prove you’re a creditworthy borrower all on your own.
To qualify for the lowest rates, you’ll need a strong credit score and a steady income. Fortunately, Prosper and SoFi offer an instant rate quote on their websites, so you can compare offers from both lenders.
If you like the details of either offer, you can choose the lender with the lower rates.
SoFi vs. Prosper personal loans: Which should you choose?
Ultimately, you should choose the lender that offers lower rates and fees, as well as the best repayment term.
SoFi could be the winner if you need a large loan and up to seven years to pay it back. The company’s unemployment protection benefit also might give you peace of mind.
Prosper could be a better choice if you want to borrow less than $5,000. Plus, its credit score requirements might be less strict than SoFi’s, making it easier to qualify for a Proper loan.
Whichever lender you choose, make sure you have a plan for repayment. Our personal loan calculator can help you refine your plan and understand long-term costs. Play around with different loan amounts and repayment terms so you can find the right balance for your wallet.
Note: Student Loan Hero has independently collected the above information related to Prosper personal loans. Prosper has neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000|
|6.26% – 14.87%1||$5,000 - $100,000|
|6.99% – 35.97%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|4.99% – 29.99%3||$10,000 - $35,000|
|5.99% – 18.99%4||$5,000 - $50,000|
|15.49% – 34.49%5||$2,000 - $25,000|
|6.16% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|