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

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Edited byAshley Jacobs

Updated: July 25, 2023

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It can be difficult and complicated to determine the ideal personal loan provider for your needs. To make it easier for average borrowers to decide between Truist vs. SoFi, MoneyGeek researched and compiled the latest information on the benefits and drawbacks of each lender.

SoFi is an online finance company and bank that provides personal loans through mobile as well as desktop apps. Meanwhile, Truist is the seventh-largest bank in the United States, with clients in over 10 million households.

MoneyGeek evaluates up-to-date information to create comparisons and is a trusted source when comparing the biggest personal loan lenders in the United States.

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Truist or SoFi: Overview

Both Truist and SoFi provide fast funding, but their standards for approval are based on credit ratings that are different. In comparison to SoFi, which has higher loan maximums and longer repayment terms, Truist offers smaller loans with shorter repayment periods.

MoneyGeek compares these providers in terms of their respective loan amounts, APR ranges, loan disbursement times, repayment flexibility and qualifying requirements for minimum credit scores.

Truist

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SoFi

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APR Range

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The amount of interest you will be required to pay on your loan for the given year is expressed as an annual percentage rate (APR). To avoid paying a lot of money in interest, it is ideal to get the lowest APR available.

While several elements go into calculating APR, the first thing that any lender will want to know is if the applicant has a good track record of making payments on time. Lenders are more inclined to offer a reduced APR to borrowers they can trust. In addition, longer repayment terms typically have higher APRs, while shorter repayment terms come with lower APRs.

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MONEYGEEK’S VERDICT

Between Truist and SoFi, the clear winner is Truist because it has a significantly lower APR range. This means that Truist borrowers are more likely to pay lower interest fees on average.

However, the APR you get still depends on your credit score and other factors. In addition, borrowers should also take into account other expenses, such as fees charged by the lender and any restrictions on using loans.

Minimum Credit Score

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Different lenders have different credit score standards for personal loans. Many lenders favor clients with good or exceptional credit scores, but some will work with those who have less-than-perfect credit. Lenders typically assess other factors in addition to your credit score, such as your income, debt and employment history.

Generally, lenders view those with good scores as less risky to provide loans to since they have a history of making payments on time. This means that those with higher credit scores can qualify for the lowest APRs.

Truist has no minimum credit score requirement, while SoFi requires a good credit score of at least 680 for approval. Because of this, Truist might be more likely to accept applicants with poor credit.

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MONEYGEEK’S VERDICT

In terms of credit score requirements, Truist could be willing to work with applicants with bad credit, while SoFi has a minimum requirement of 680. This shows that Truist is more flexible overall and has the edge in this comparison.

Remember that a low credit score may result in higher interest rates, increasing the total cost of the loan. However, there are other factors, such as origination fees and loan processing timeframes, to consider when choosing the best personal loan for your requirements.

Loan Amount Range

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The loan range refers to the maximum and minimum amounts that applicants may obtain from their lender. The figure that a lender will offer you is based on your credit score and your financial goals.

Smaller loans can be used to fund vacations and small home improvement projects. However, larger loans might be a better option if you want to cover a significant medical expense. As a rule, try only to borrow what you need and can afford to avoid paying expensive fees later on.

Some lenders may have restrictions on how you can use your personal loan, so it is best to check with your lender before proceeding with your application.

Both Truist and SoFi offer relatively low minimum loan amounts at $3,500 and $5,000, respectively. However, SoFi is the ideal choice for larger loans of up to $100,000.

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MONEYGEEK’S VERDICT

For those looking for smaller loans, Truist and SoFi offer comparable minimums. However, Truist offers the lowest figure between the two at $3,500. Conversely, SoFi offers a much higher maximum of $100,000, while Truist has a maximum of only $50,000. SoFi’s higher maximum loan amount makes it the winner in this comparison.

Borrowers should have a solid grasp of their intended use for the loan before applying to identify the loan size that matches their financial goals. Applicants should also consider other factors, such as APR ranges and origination costs, that may affect the total cost of their loan.

Repayment Terms

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The length of time you have to repay a loan is called the repayment term. Usually, lower interest rates are associated with shorter repayment terms. However, other variables, such as your credit score, may still play a role.

Depending on your preferences, you may wish to pay off larger sums over a shorter duration or pay smaller amounts spread out over several years. Keep in mind that a longer term has its disadvantages. Even if your APR is on the low end of the spectrum, you will pay more interest overall if you choose to pay off your loan over a longer period of time.

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MONEYGEEK’S VERDICT

If you’re looking for shorter repayment terms with minimal interest rates, consider Truist. With a minimum loan period of six months, it’s one of the shortest among most lenders. On the other hand, those who prefer a longer loan period should consider SoFi because it provides a repayment period from 12 to 60 months.

Ideally, a shorter payback period is advised if you can afford the higher monthly installments. However, your approved repayment period depends on your credit score and your lender’s criteria.

Don’t forget to evaluate all terms within your loan agreement to ensure you choose the right lender for your needs.

Time to Receive Funds

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The time it generally takes for conventional lenders to deposit money into your bank account is somewhere from a few days and a few weeks once your loan is approved.

Applying for loans online is usually better than applying in person if you need the money right away. This is because you don't have to stand in line or print out any forms. One way to receive your funding quickly is to upload all the necessary application materials online.

Truist and SoFi are excellent choices to consider if you have strong credit and require your funds immediately. Truist offers next-day funding, while SoFi can get you your loan funds a few days after your application is approved.

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MONEYGEEK’S VERDICT

Truist takes the top spot in this comparison. Since it can distribute your funds the day after your application is approved, it is a better option than the funding timeline that SoFi offers. Getting your funds quickly can be important if you have a financial emergency that requires money immediately.

Applicants should also consider other factors when choosing the best lender for their needs, such as APR ranges and credit score requirements.

Final Thoughts

Overall, Truist is our top pick in terms of low APR ranges, flexible credit score requirements and the funding of small loans. Based on these factors, Truist comes out on top regarding accessibility and affordability. On the other hand, SoFi can be a better choice if a borrower is looking for large loans of up to $100,000, longer repayment terms and an easy online application process.

Keep in mind that both lenders provide fast funding, which can come in handy during emergency situations. However, SoFi requires borrowers to have a good-to-excellent credit score, while Truist has no minimum credit score requirement.

Before applying for a loan, a borrower should consider their own specific needs and priorities when it comes to evaluating each factor. In addition to fees that lenders often charge as well as interest rates, the ease of application, level of customer service and other benefits should also factor into the decision-making process.

Frequently Asked Questions About Personal Loan Lenders

Deciding to get a personal loan can be a complex decision. MoneyGeek answers some of the most common questions about personal loans to help you with your decision.

Lenders can differ in what they require for an application depending on the type of personal loan. However, the majority of lenders need you to fill in a loan application and provide proof of income, home address and identity.

You can contact TransUnion, Equifax or Experian to get a detailed breakdown of your credit score.

Yes. Most lenders will make a hard inquiry once you submit your application, which may temporarily lower your score. Some lenders offer the option to conduct a soft credit check during prequalification.

No. Lenders use several factors to calculate your individual APR, including your credit score, employment history, educational background and more. This means each lender will provide you with a different interest rate.

Yes. Some lenders charge a late payment fee if you fail to make payments on time or a penalty for prepayment (paying off your loan early). Certain lenders may also charge origination fees.

Applying for a loan online means that you can often get faster approval compared to applying in person.

Yes. However, some lenders charge a prepayment fee, so it is best to ask your lender about any penalties before attempting to pay off your loans early.

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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.