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

SoFi and Discover are both financial services companies suitable for emergency loans. If you have good credit and need up to $100,000, SoFi is your best bet. Discover, on the other hand, offers loans of up to $35,000 and only to those with good credit.

For this comparison, MoneyGeek gathered current information on SoFi and Discover personal loans to help borrowers choose between the two. We delved into their interest rates, credit score requirements, fees and other relevant aspects.

In the following sections, MoneyGeek digs into these two personal loan providers and discusses how they differ in terms of loan amounts, APR ranges, credit score requirements, fund disbursal times and loan repayment terms.

Each lender has specific upper and lower loan limits and acceptance requirements. Both disburse funds quickly, although SoFi offers more flexible payback terms than Discover.

Both lenders set APRs based on creditworthiness. Discover offers loans with a low APR of 5.99% and a maximum APR of 24.99%. Those who choose SoFi can expect to pay anywhere from 5.74% to 20.28%. Although the disparities are only significant for people with the best credit, SoFi has a slight edge over Discover in this comparison.

APR, or annual percentage rate, is the annual interest rate added to a personal loan's monthly payments. In addition to the loan amount, loan term and other factors, your credit score and risk profile substantially influence the APR lenders will offer you. APR levels might also vary significantly among lenders.

You’ll want to secure a low APR, but don’t make this your only consideration. Also, consider the lender’s repayment terms, fund disbursement time and other factors.

Both lenders require good credit scores, but applicants will find it easier to qualify with SoFi, giving it an edge over Discover. While Discover requires a credit score of 720 or above, SoFi accepts a minimum credit requirement of 680.

The major credit bureaus track your financial history and assign a numerical value to your creditworthiness. Lenders use this score to determine your loan APR, terms and, ultimately, whether or not to extend credit to you.

Credit scores range from 300 to 850. Applicants with credit scores of 670 or higher are typically considered low-risk by lenders, which makes them ideal candidates for personal loans and other financial products.

Factors that might affect your credit score include your credit and payment history, outstanding balances, types of credit accounts (credit cards, mortgages and loans) and new applications for credit accounts.

SoFi loan amounts range from $5,000 to $100,000, whereas Discover has a lower limit of between $2,500 and $35,000. If you want to borrow more than $35,000, consider SoFi. Conversely, if you need less than $5,000, Discover is the best option.

The loan amount range indicates a lender’s upper and lower loan limits. The amount you borrow should be based on your needs and the amount of money the lender offers.

Many lenders require you to borrow at least $5,000, making them unsuitable for those who need to borrow less. In addition to the lender's maximum, several factors will determine your loan amount, including your creditworthiness, loan repayment term, intended use and other criteria.

That said, finding a lender who offers flexible loan terms and APR ranges is always beneficial.

SoFi’s personal loan payback terms begin at 12 months, whereas Discover's start at 36 months. SoFi offers repayment terms of up to five years; Discover extends up to seven years.

The loan repayment term is the length of time you have to pay off a personal loan. Short-term loans generally carry terms of one or two years, while long-term loans can last up to seven years. Generally, you’ll have lower monthly payments with longer payment terms, although the costs will add up over time.

Your credit score will affect your loan's payback period, along with your capacity to make payments based on your monthly income and debt-to-income ratio. Your best bet is to secure a loan that offers affordable payments with the shortest repayment period. However, your particular situation will determine your ideal terms.

Both lenders disburse loan funds quickly. SoFi sends funds to the borrower's account after two business days following loan approval. Discover makes funds available the day after approval.

If you need funds quickly, applying online is preferable to applying in person. Most loan providers allow you to prequalify before you apply, which protects your credit score.

Although both SoFi and Discover provide fast funding for personal loans, SoFi emerged as the winner in almost every category we considered. SoFi offers larger loans, more lenient credit score requirements and flexible repayment terms.

Although SoFi is the winner, some borrowers, especially those with smaller loan requirements, may prefer Discover.

The degree to which you prioritize one factor over the others will determine which lender is best for you.

Questions about personal loans are common, so we've provided answers to help you find the right lender for your needs.