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

Updated: July 25, 2023

Advertising & Editorial Disclosure

SoFi is a fintech company known for offering flexible personal loans with no hidden fees. LightStream, a consumer lender, offers personal loans for a variety of purposes, with lower interest rates for qualified borrowers.

MoneyGeek provides helpful resources about personal loans, including deciding whether a personal loan is right for you and determining which type of personal loan best matches your needs.

If you’re considering getting a personal loan from SoFi vs. LightStream, MoneyGeek’s guide is a helpful resource that will tell you about how these lenders compare. We listed their APR ranges, loan limits, repayment terms and more.

Key Takeaways

SoFi is an excellent lender as it comes with a wide range of loan amounts, repayment terms and no hidden fees. LightStream is best for those needing a longer repayment term or the lowest rate as long as they have excellent credit.

Having a list of what you need in a personal loan, such as the loan amount, the interest that you can afford to pay and how long before you can pay it off, can make deciding which lender is more suitable for your situation easier.

Personal loan lenders each have their set of qualifying conditions that determine your creditworthiness when assigning you an APR. This might include your credit history, score and more.

WHAT WE’RE GEEKING OUT ON

SoFi or LightStream: Overview

MoneyGeek compared SoFi vs. LightStream based on their APR range, loan limits, repayment terms, credit score requirement and fund disbursement period. We also compared the pros and cons of getting a personal loan from each lender.

SoFi and LightStream can disburse your loan quickly and have flexible repayment terms. However, one has a lower APR range, while the other has a more flexible credit score requirement.

The best option for you will depend on your unique financial profile and funding needs.

SoFi


  • SoFi

    SoFi offers competitive rates and zero fees with a bonus perk of employment protection.

    • 5.74% to 20.28%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • Two DaysTime to Receive Funds

    SoFi, or Social Finance Inc., is a Stanford alumni-funded fintech company. In its initial stages, SoFi funds student loan refinancing and mortgages. It started offering personal loans around 2015. SoFi currently has over $50 billion in funded loans and over four million members.

    SoFi personal loans offer loan amounts ranging from $5,000 up to $100,000 with an APR ranging from 5.74% to 20.28%. There is a minimum credit score requirement of at least 680, and borrowers with good credit scores are able to get a better loan offer. There are no origination, closing costs or prepayment penalties that come with a SoFi loan.

    The personal loan calculator provides you with an estimated rate within 60 seconds and only conducts a soft credit pull during the initial application.

    You can get funded a few days after approval. If you lose your job, SoFi offers employment protection.

    Pros

    • Soft credit pull
    • Unemployment protection
    • Autopay discount
    • A+ BBB rating
    • No prepayment, late or origination fees

    Cons

    • High minimum loan amount
    • No co-signers
    • Income requirements
    • Somewhat high credit score requirement
    • Won’t accept borrowers with new or no credit
    • Loan amount: $5,000 to $100,000
    • Repayment terms: 12 to 60 months
    • Minimum credit score: 680
    • Time to receive funds: Two days
    SoFi

LightStream


  • LightStream

    LightStream offers high loan amounts with same-day funding.

    • 4.49% to 20.49%APR Range
    • 660Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Same DayTime to Receive Funds

    LightStream is an online consumer lender that offers low-interest loans with no fees and prepayment penalties. As part of Truist, a widely trusted financial corporation, customers are ensured excellent service.

    LightStream personal loans are suitable for virtually any type of loan purpose. Funds are disbursed immediately after approval. The lender also has an app where borrowers can check payment due dates, monitor account balances, make payments and apply for a new loan.

    What sets LightStream apart from other lenders is its Rate Beat Program, which offers a lower rate (.10 percent) than what’s offered by any competing lender. You just need to submit proof of loan approval two business days prior to loan funding.

    Loan proceeds should be used for the loan purpose selected upon application and must not be used to refinance an existing LightStream personal loan.

    Pros

    • A+ BBB rating
    • Autopay discount
    • Quick fund disbursement
    • No prepayment, origination or late fees
    • Allows joint loans

    Cons

    • Hard credit pull
    • Restrictions on fund usage
    • No co-signers
    • Won’t accept people with new or no credit
    • High minimum loan amount
    • Loan amount: $5,000 to $100,000
    • Repayment terms: 24 to 84 months
    • Minimum credit score: 660
    • Time to receive funds: Same day
    LightStream

APR Range

Lender
APR Range

SoFi

5.74% to 20.28%

LightStream

4.49% to 20.49%

SoFi offers personal loans with an APR range of 5.74% to 20.28%. LightStream, on the other hand, offers loans with an APR range of 4.49% to 20.49%.

The annual percentage rate is the rate of interest that you need to pay back for having your loan. Lenders with a lower APR are better since it costs less to repay over the course of your loan. Take note that lenders look at your credit score and overall risk profile when calculating your loan’s APR.

Factors such as loan size, term and other variables are also considered.

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MONEYGEEK’S VERDICT

Both SoFi and LightStream reward responsible borrowers with lower APR offers. However, SoFi is the better lender in this comparison because its maximum APR is lower than what LightStream offers. Even though LightStream has a lower minimum APR, you have to have a great credit score to get that low rate.

A personal loan’s APR increases the total cost of what a borrower needs to pay in total. Interest rates, especially on a longer repayment term, can add up.

However, make sure to evaluate all terms of your loan, not just the APR.

Minimum Credit Score

Lender
Credit Score

SoFi

680

LightStream

660

Credit bureaus rate borrowers’ creditworthiness by assigning them a credit score. Credit scores are a good yardstick to measure how likely you are to pay your debts. Whatever your score, lenders determine a matching APR as well as loan terms and ultimately decide whether they should approve your application. Having good credit gives you better rates, while poor scores will cause you to pay higher interest rates.

SoFi requires a credit score of 680 to be eligible for its loans. LightStream requires applicants to have a score of 660 or higher to be able to access loans.

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MONEYGEEK’S VERDICT

LightStream wins this category because it has a lower minimum credit score requirement, making it accessible to more borrowers. However, keep in mind that not having enough credit or having a bad credit score may result in higher APR fees.

Be sure to evaluate more than just a lender’s minimum credit score requirement when choosing which loan provider to apply with.

Loan Amount Range

Lender
Loan Amount Range

SoFi

$5,000 to $100,000

LightStream

$5,000 to $100,000

Loan amounts depend on how much you need for funding and how much a lender is willing to offer you.

A loan amount range refers to the minimum and maximum amount each lender can offer. Both SoFi and LightStream offer the same minimum loan amount of $5,000, which can be too high for some borrowers who need less. However, these lenders are both excellent choices if you need more funding. Both SoFi and LightStream allow you to borrow up to $100,000.

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MONEYGEEK’S VERDICT

In this comparison, both SoFi and LightStream offer the same range of loan amounts, resulting in a tie.

Choosing a loan amount should be based on how much you need for funding. If you need a smaller loan for a minor cash emergency, you may want to consider other lenders, as SoFi and LightStream's minimum loan amounts are fairly high. Even if you get qualified for the maximum amount, you don’t want to borrow more than what you need.

Don’t forget to evaluate all terms of your potential loan before applying.

Repayment Terms

Lender
Repayment Terms

SoFi

12 to 60 months

LightStream

24 to 84 months

SoFi personal loan repayment terms range from 12 to 60 months, whereas LightStream allows you to repay your loan within 24 to 84 months.

Repayment terms are important since they determine your monthly payments. Longer repayment terms mean low monthly payments spread over a longer time. Shorter terms mean higher monthly payments but a faster repayment period.

Keep in mind that APRs can be higher for longer repayment terms.

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MONEYGEEK’S VERDICT

LightStream has more flexible repayment terms, extending from 24 to 84 months, compared to SoFi’s 12 to 60 months.

The repayment terms you choose may also affect which APR is assigned to your loan. Shorter repayment terms get a lower APR than a longer repayment term. If you can afford to pay a higher monthly payment, you could pay off a loan much faster, which can give you a lower interest.

Repayment terms are just one factor when choosing a lender. Other factors like credit score requirements, loan amounts and APRs are equally important.

Time to Receive Funds

Lender
Time to Receive Funds

SoFi

Two days

LightStream

Same day

SoFi and LightStream disburse funds quickly. Once your SoFi personal loan is approved, you can receive the funds directly in your bank account. On the other hand, LightStream funds your loan within the same day as long as it's a banking business day.

To quicken the process of loan funding, borrowers can choose to apply online and ensure that all the relevant documents are complete.

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MONEYGEEK’S VERDICT

LightStream has a slight edge in this category because it offers same-day funding and gives borrowers the option to choose their funding date.

How fast you can receive your loan could be of particular importance to you, especially when you need the funds for emergencies. The sooner a lender can release the funds to your account, the sooner you can make use of the money.

Make sure to evaluate all factors of your loan prior to applying so that you choose the best option for your financial needs.

Final Thoughts

Between SoFi and LightStream, both are contenders since they have similar loan amount ranges and disbursement periods. However, some borrowers may find one lender better than the other.

SoFi is a great choice for borrowers who want a lower maximum APR. It also has unemployment protection that helps defer payments temporarily if you lose your job.

LightStream, on the other hand, one-ups SoFi for having lower minimum APRs, offering to beat competitor rates and having a wider range of repayment terms.

Keep in mind that these recommendations are based on an average borrower profile. You will want to consider your unique financial profile and needs before choosing a lender.

Frequently Asked Questions About Personal Loan Lenders

Find out more about SoFi vs. LightStream personal loans with these frequently asked questions:

What documents do I need to provide to personal loan lenders?
How do I know what my credit score is?
Do lenders conduct a hard inquiry?
Are interest rates on personal loans the same for all lenders?
Do lenders charge fees for personal loans?
What are the advantages of applying for a personal loan online?
Is prepayment allowed on personal loans?

Read More on Personal Loans

sources
Shield Insurance

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.

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