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

MoneyGeek collected information about LendingClub and SoFi to help you choose between the two lenders. We strive to keep our information up-to-date to make relevant comparisons of different personal loan lenders. Through these efforts, MoneyGeek remains a trusted source of information, guiding you in comparing the most prominent personal loan lenders in the U.S.

Based on the data we collected, LendingClub and SoFi have their individual strengths. SoFi personal loans waive certain fees and offer unemployment protection. LendingClub, on the other hand, has different types of personal loans to cater to a wide array of your financial needs.

MoneyGeek compiled the pros, cons and key information that you might consider when choosing between LendingClub and SoFi. We found that there are significant differences in their APRs, loan amounts, credit score requirements, repayment terms and fund disbursement.

There may be other factors that can affect your decision since each lender has unique features. For example, LendingClub allows borrowers to change their payment dates and gives them a 15-day grace period. One of SoFi’s most notable features is that it does not have fees.

The annual percentage rate (APR) reflects the annual amount that you will pay for your loan. It includes the fees and charges attached to your loan. Lenders are required to disclose the APR so that you’re aware of the true cost of your loan. Your credit score, loan terms, payment history and other financial factors affect your APR.

LendingClub’s APR range is 7.04% to 35.89%, while SoFi’s APR range is 5.74% to 20.28%. SoFi has a significantly lower APR than LendingClub. These comparisons matter when you’re trying to assess which lender’s APRs would work best for you, as the APR you receive will be based on your credit score.

Your credit score is a significant factor that determines the approval of your loan application. A higher credit score increases your chances of approval, but every lender has different credit requirements.

For instance, borrowers need to have a credit score of at least 680 to qualify for a SoFi personal loan. Meanwhile, borrowers only need a credit score of 600 to get a LendingClub personal loan. Though LendingClub has lower credit score requirements, there are other factors that may influence your application.

A credit score is a measure of your financial stability and responsibility. Your payment history, debt-to-income ratio and your credit history are some of the most important factors that influence your score.

LendingClub personal loans range from $1,000 to $40,000. SoFi, on the other hand, provides loans of $5,000 to $100,000. Take note, however, that the amount that can be approved for your loan depends on several factors, including creditworthiness.

The better option for you depends on how much funding you need. This is why it’s important to know the purpose of your loan and the amount you need before applying.

Additionally, knowing the loan amount ranges of lenders helps narrow down your options. For example, if you need funds for large expenses, SoFi is the better option since it can give you as much as $100,000 in loans. If you’re only looking for a small loan, LendingClub can give you a loan of at least $1,000.

Repayment terms refer to the period of time over which you’ll repay your loan. LendingClub offers repayment options from 36 to 60 months, while SoFi personal loans feature repayment terms from 12 to 60 months.

The repayment term you choose impacts your monthly dues. For example, choosing a longer repayment term of 84 months will allow you to make smaller monthly installments, but you may end up paying more in interest since it will take longer to repay.

Once your loan application has been approved, LendingClub can release your funds the next day. SoFi provides funding relatively quickly, too, with funds typically disbursed after two days. Between the two lenders, LendingClub has faster loan disbursement, making it great for borrowers who need urgent funding.

Since these disbursement periods are based on the average cases for each lender, your fund disbursement time may vary. Factors like an incomplete or incorrect application can affect the disbursement time. Online applications may also be approved faster than in-person applications.

LendingClub and SoFi have their own strengths, depending on what you’re looking for. LendingClub’s personal loans are more accessible because of their lower credit score requirement. It’s also great for borrowers looking for smaller loan amounts.

SoFi personal loans are best for borrowers with good credit who want to save money on fees, especially if they’re taking out large loans. Its repayment terms are more flexible as you have more options to choose from.

It’s important to explore a wide range of factors when looking for a personal loan. These factors come into play based on your personal circumstances. For instance, the differences in APRs may be more beneficial to you depending on your credit score. SoFi’s maximum APR may be more favorable if you have bad credit.

MoneyGeek answered commonly asked questions to give you more information about factors, application processes and other inquiries about personal loans and lenders.