Best Egg vs. SoFi: Which Personal Loan Is Right for You?

MoneyGeek helps you compare the best personal loans and choose one that meets your needs. We researched the up-to-date features of Best Egg and SoFi, so you can make an informed decision about which personal loan is best for your needs.

Best Egg offers loan amounts of $2,000 to $50,000, which is ideal for people who are looking to make small purchases. On the other hand, SoFi offers personal loan amounts of up to $100,000. This is helpful for those who find themselves in an emergency.

Best Egg and SoFi are well-established personal loan companies known for their straightforward lending processes and reasonable rates. While their personal loans differ in APR ranges, repayment flexibility and loan amounts, both companies require similar credit scores and disburse funds quickly.

MoneyGeek compares the two in detail for those considering a personal loan.

The annual percentage rate, or APR, is the interest rate you pay yearly, expressed as a single percentage. A borrower's credit score, risk profile, loan type, size and payment term can impact the loan’s interest rate.

Best Egg's personal loan APRs range from 4.99% to 35.99%, while SoFi's APRs range from 5.74% to 20.28%. Although both lenders offer low starting APRs, Best Egg’s maximum is significantly higher than SoFi’s.

A low APR is preferable to a high one, but it’s only one of many factors to consider when choosing a personal loan lender.

A credit score is a numerical summary of your creditworthiness based on factors such as the amount of debt you carry and whether you've paid your bills on time. Credit scores range from 300 to 850.

Generally, a high credit score can help you secure the best loan terms, such as a low-interest rate. Building your credit over time requires consistency and commitment to your financial responsibilities.

Lenders consider borrowers with credit scores above 670 acceptable or low-risk applicants and may offer them quick loan approval. Best Egg requires that borrowers have a minimum credit score of 700, 20 points higher than SoFi’s 680 minimum requirement. SoFi's low APRs are slightly easier to obtain than Best Egg's.

The loan amount range spans the lowest and highest amounts a lender will offer borrowers. Lenders determine loan amounts based on your needs and the lender’s loan amount range.

Best Egg’s personal loan amounts range from $2,000 to $50,000. Meanwhile, SoFi has higher minimum and maximum limits — $5,000 to $100,000. The ranges suggest Best Egg loans are better for minor expenses, like paying for a car repair or a small kitchen renovation. In contrast, SoFi’s personal loans are great for larger expenses, such as debt consolidation.

Your ideal loan amount depends on your current financial situation. Assess your needs and determine the loan amount you require before applying. Loans cost money, so only apply for the amount you need.

The time it takes to pay off your loan is called the repayment term. Repayment terms usually range from two to four years, depending on your needs and financial situation. Or course, the longer you have to repay the loan, the higher your interest rate will be (although factors like your credit score and debt-to-income ratio also help determine your interest rate).

Best Egg and SoFi have a maximum repayment term of 60 months. However, SoFi has a shorter minimum repayment window of 12 months compared to Best Egg’s minimum of 36 months.

The repayment term you need depends on your unique situation, although securing a short-term loan is best if you want to save on interest rates.

While a traditional lender can take days to weeks to disburse loan funds, Best Egg and SoFi offer rapid funding. The former can deliver funds the next business day after signing a contract. Meanwhile, the latter can provide funds after two days.

However, note that the loan amount, length of your repayment period and your credit score can affect the disbursement time. The best way to secure funding fast is to apply online since companies allow you to prequalify via their websites or mobile apps.

SoFi beats Best Egg in this comparison. It has lower APRs, a lower credit score requirement and larger loan amounts than Best Egg. SoFi also disburses loans after a few days, although Best Egg has next-day disbursement.

However, your unique circumstances will determine which of the two lenders is best. Always assess your needs and research your options before choosing a personal loan lender.

MoneyGeek answers common questions about personal loans that can help you make a decision.