LightStream vs. SoFi Personal Loans, July 2025

LightStream and SoFi are two of the best lenders that offer good credit personal loans. Neither lender requires you to pay any fees, though SoFi has optional fees (we’ll get into that later). 

LightStream offers ultra-long repayment terms for its home improvement loans and more competitive APRs than SoFi. SoFi is an FDIC-insured bank and may provide more discount opportunities and other perks. 

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How LightStream and SoFi compare

The table below shows how the two lenders compare based on several important criteria. We’ll also cover the pros and cons of each lender and provide a few tips on how to choose the right one for you. 

LightStream personal loans

LightStream is our choice for best personal loan lender among the 33 partner and non-partner lenders we reviewed. It has ultra-low APRs, doesn’t charge any fees (no origination fees or late fees), and offers same-day loan funding. Plus, loan amounts are available up to $100,000 for a wide range of loan purposes, and repayment terms up to 20 years (for home improvement loans). Most lenders cap repayment terms at seven years. 

But let’s take a minute to talk about LightStream’s rates. Not only is its starting APR 2.5 percentage points lower than SoFi’s, but according to Credible personal loans data, its rates were the lowest of all our partner lenders for borrowers with excellent credit, very good credit, and good credit. It also features a rate beat program with a 0.10 percentage point discount if you’re approved for a lower rate elsewhere. 

LightStream scored 6th in the 2025 J.D. Power U.S. Consumer Lending Satisfaction study, coming in one spot ahead of SoFi.

SoFi personal loans

SoFi is an FDIC-insured bank that offers online banking products like checking and savings accounts in addition to personal loans. The bank offers unique membership benefits to personal loan borrowers, including an exclusive online community, free financial planning, and discounts on financial products. 

SoFi also offers large loans up to $100,000 for a variety of purposes and doesn’t require fees on its loans, though you can opt to pay an origination fee up to 7% in exchange for a lower APR. Like LightStream, the bank offers funding as soon as the same business day. However, its average funding time is five days, which beats out LightStream’s average by one day, based on Credible closed loans data from May 2024 through April 2025.

SoFi offers a number of stackable discount opportunities, including:

• Autopay discount: 0.25% rate discount for enrolling in autopay
• Direct deposit discount: 0.25% rate discount for setting up direct deposit with a SoFi bank account
• Direct pay discount: 0.25% rate discount for allowing SoFi to use the majority of your loan funds to directly pay your creditors
• Return borrower discount: Eligible borrowers can earn a 0.5% rate reduction on their second personal loan with SoFi

SoFi scored 7th in the 2025 J.D. Power U.S. Consumer Lending Satisfaction study, following LightStream. 

Tips on choosing between LightStream and SoFi

When choosing the best personal loan for your needs, compare LightStream and SoFi based on the following factors:

APR range

LightStream offers lower APRs than SoFi. With a lower starting rate of 6.49%, LightStream may be a better deal for borrowers with excellent credit. SoFi rates start at 8.99%, but you’d need to enroll in autopay and set up direct deposit with a SoFi bank account to qualify for the lowest APR. 

Minimum credit score

LightStream only accepts applicants with good or excellent credit. SoFi doesn’t publish a minimum credit score, but poor and fair credit borrowers may have difficulty getting approved. 

Loan purpose

Both SoFi and LightStream allow borrowers to use the loan funds for most personal and household expenses. Restricted loan uses include college educational expenses, business expenses, and investments. SoFi additionally prohibits you from using the funds for real estate purposes, while LightStream allows you to use a personal loan to purchase a timeshare. 

However, LightStream stands out if you need to finance home improvements, given the longer repayment term options, and SoFi might work better for debt consolidation because the bank provides a discount if you have the funds sent directly to your creditors. 

Repayment terms

SoFi and LightStream both offer a range of repayment terms, with options from two to seven years for most loan types, but LightStream offers long repayment terms up to 20 years for home improvement loans. If you’re planning to use the loan for a home renovation project, LightStream offers more flexibility than SoFi and lower rates.

Loan amount

LightStream and SoFi offer an identical range of loan amounts — from $5,000 to $100,000. Depending on your financial profile, however, you may qualify for a larger amount with one lender than the other. If you’re looking for a loan for less than $5,000, consider lenders that offer small personal loans. 

Time to fund

LightStream and SoFi offer funding as soon as the same business day, but their average funding times were much longer — six and five days, respectively — based on Credible personal loans data. Other lenders like Discover, Upgrade, and Upstart fund loans in two days, on average, making them better options for an emergency loan. 

SoFi disburses the funds via ACH transfer the same day you’re approved, provided you sign your loan documents before 6 p.m. ET on a business day. LightStream offers same-day wire transfers, but you’ll need to log in by 2:30 p.m. ET on a business day to get your cash that day. Depending on where you bank, you may also have to pay a wire transfer fee. 

How to apply for a personal loan

LightStream and SoFi have slightly different personal loan application processes. Generally speaking, here’s what you can expect. 

1. Check your credit: Before applying with any lender, check your credit score to ensure you meet the lender’s minimum credit score requirement. SoFi doesn’t disclose this, but LightStream requires a minimum 700 FICO credit score if applying through Credible. 
2. Prequalify: Use a personal loan marketplace to qualify with LightStream, SoFi, and other lenders to get an estimate of the APR and loan terms you might be approved for. SoFi allows you to prequalify directly on its website with no credit impact. LightStream does not. When comparing your options, pay attention to the monthly payment and total interest in addition to the APR.
3. Formally apply: Once you’ve compared loan quotes and made a choice, apply on the lender’s website or follow the next steps to apply outlined after the prequalification process. You’ll need to provide info about your employment, income, and assets. Since formally applying typically requires a hard credit inquiry, you should limit the number of applications to minimize the damage to your credit. 
4. Sign your loan documents: If approved, the lender will send a formal loan offer. Read the terms and conditions of your loan agreement, and ensure the final rate and monthly payment work for you. Then, e-sign the documents.
5. Get the money: If you want a same-day wire transfer from LightStream, you’ll need to log in to your account and request the transfer in time. SoFi will transfer funds via ACH automatically, so you can sit back and wait for the money to arrive in your account. In either case, the exact timeline for receiving the funds will depend on your application, when you sign, and where you bank. 

Which lender is best for you?

Best for home improvement: LightStream

LightStream offers large loan amounts up to $100,000, APRs as low as 6.99%, and repayment terms up to 20 years for its home improvement loans. While not all applicants will have access to the full range of loan amounts and term lengths, LightStream offers the potential for a longer repayment term and lower monthly payment than any other personal loan lender, making LightStream an ideal choice for home renovation expenses. 

Best for debt consolidation: SoFi

SoFi can pay your credit card issuers on your behalf, and the bank offers a rate discount for choosing this option. SoFi also offers financial resources like no-cost advice from a financial planner and a highly rated mobile app with free budgeting tools and personalized financial insights. If you struggle with budgeting and debt management, these can help ensure you don’t rack up more credit card debt later on. And if paying down your credit card balances improves your credit score, you may qualify to refinance your personal loan with SoFi to earn a lower rate. 

Best for excellent credit: LightStream

LightStream really shines when it comes to rates. For excellent credit borrowers, its rates were 3.04 percentage points lower than SoFi's, on average, according to Credible personal loans data over the last year. Its rates for very good credit borrowers were over two percentage points lower, while good credit borrowers received rates almost three percentage points lower, on average. 

With a high income and good or better credit score, you may find that a personal loan from LightStream is less costly — potentially much less costly if you’re getting a large loan. Plus, LightStream doesn’t charge any fees (even optional ones). 

Best for customer experience: Tie

SoFi offers an array of member benefits and robust digital tools for managing your loan. If you’re interested in SoFi’s other financial products, you’ll enjoy the convenience of managing your accounts in one place. Unlike LightStream, SoFi provides several customer service options, including phone support and live chat support (you’ll need to log in to access live chat). 

However, LightStream received higher marks for customer satisfaction from J.D. Power, beating out SoFi by one position and five points.