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

MoneyGeek gathered information to help the average borrower compare SoFi vs. Upgrade personal loans to find the best lender.

SoFi offers high loan limits and relatively low APRs, but you need a high credit score to qualify for its personal loans. Upgrade, on the other hand, accepts borrowers with fair credit scores, but APR rates can be high. Overall, SoFi is a good option for those with good credit, while Upgrade is more flexible for those with average credit.

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SoFi personal loans are a good option if you have good credit and need to borrow large sums. This lender also offers relatively low APRs compared to Upgrade. However, borrowers need a minimum credit score of at least 680 to be eligible for a SoFi personal loan.

Compared to SoFi, Upgrade loans are more accessible to borrowers with average credit since this lender accepts credit scores starting from 560. Upgrade also offers loan limits ranging from $1,000 to $50,000, which can be ideal if you need to borrow small amounts of money.

Both lenders offer flexible repayment terms, but Upgrade loans could be more costly since they have higher APRs.

SoFi offers APRs that range from 5.74% to 20.28%. Upgrade’s rates typically range from 5.94% to 35.47%, depending on your creditworthiness.

Since the annual percentage rate is an indicator of the annual interest and fees payable on your loan, a lower APR usually means that the cost of your loan will be lower. It is important to compare APRs when shopping for personal loans since they can vary widely depending on the lender.

Keep in mind that while lenders have a fixed APR range, your individual rate will also depend on profile factors like your credit score, loan amount and repayment term.

SoFi personal loans require a minimum credit score of 680, while Upgrade accepts borrowers with fair credit starting from 560. This makes it easier for borrowers to get a loan with Upgrade.

Your credit score is usually based on factors like your payment history, debts owed and the length of your credit history. This data is used to rate your creditworthiness on a scale from 300 to 850, with higher scores implying better creditworthiness.

Having good-to-excellent credit makes you more eligible for loans and you can even borrow more if you have good credit. You will also get better APRs if your credit score is high.

You can borrow a personal loan between $1,000 and $50,000 from Upgrade, while SoFi offers much higher limits of $5,000 to $100,000. This means if you need large sums, SoFi offers better flexibility. However, since the minimum amount you can borrow from SoFi is also high at $5,000, this lender may not be ideal if you are looking for funds for small expenses.

Lenders typically have maximum and minimum loan limits, which restrict how much you can borrow. Depending on your needs, you can choose a lender with a higher or lower loan limit depending on the purpose of your loan. However, keep in mind that the amount you can borrow will also depend on your creditworthiness.

Repayment terms refer to the length of time over which you will pay back your loan. SoFi’s repayment terms range from 12 to 60 months, while Upgrade’s terms range from 36 to 60 months.

Repayment terms are important since they will determine how high or low your monthly payments will be. With a longer repayment term, you can have low monthly payments spread over a longer time. Shorter terms will have higher monthly payments, but you will be able to pay your loan off faster.

Your repayment term will also depend on factors like your credit score and loan amount. It is important to note that APRs can be higher for longer repayment terms.

Same-day funding is available for Upgrade personal loans. SoFi, on the other hand, provides funding after two days for most loans.

The time to receive funds is an important consideration when choosing a lender because it determines how quickly you will be able to access your funds. Some lenders fund loans within a day, but others will take longer. This can be inconvenient if you have an emergency or urgent need.

Other factors other than disbursement time that you should use when comparing lenders are APR ranges, minimum requirements and loan limits.

When comparing SoFi vs. Upgrade to find the best lender, the most important factors will be how much you need to borrow, your credit score and average APRs.

For borrowers with good credit, SoFi offers better options in terms of higher loan limits and lower maximum APR. SoFi is also relatively low on fees and does not charge any origination, early payment or late fees. In comparison, Upgrade will be more costly for borrowers since it has a higher APR range and also charges origination and late fees.

That said, Upgrade is the better choice for borrowers with fair or average credit since it has a lower minimum credit score requirement of 560. SoFi requires borrowers to have a minimum score of 680, so those with average scores may not qualify.

Depending on your unique needs and profile, you should choose the lender that offers the most favorable terms for you. For instance, SoFi may be cheaper overall, but if you don’t meet the minimum requirements, you are better off with Upgrade.

To help you learn more about how SoFi personal loans compare to Upgrade, MoneyGeek answered the frequently asked questions below.