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Whether you need to consolidate your credit card debt or finance a big purchase, SoFi and LendingClub offer personal loans that can help you accomplish your goals.
Both offer competitive interest rates, so deciding between the two companies can be difficult. In this breakdown of SoFi vs LendingClub, learn about the pros and cons of each.
In this post:
- SoFi vs. LendingClub
- SoFi personal loans
- LendingClub personal loans
- Choosing a personal loan company
SoFi vs. LendingClub
Here’s a comparison of each company’s loan options and eligibility requirements.
LendingClub isn’t currently offering loans through Credible. But you can use Credible to compare rates from SoFi and other lenders in just 2 minutes.
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SoFi personal loans
- Borrowers with good to excellent credit
- Those who need large loan amounts
- People who want to avoid costly fees
If you have excellent credit, you may be able to qualify for a low-interest loan from SoFi. You can borrow up to $100,000 and have up to seven years to repay your debt. Plus, SoFi offers extra perks like unemployment protection, career coaching, and exclusive member events.
- Autopay discount: If you sign up for automatic payments, you’ll get a 0.25% interest rate discount.
- No origination fees: SoFi personal loans don’t have origination fees.
- Higher loan maximums: SoFi allows you to borrow up to $100,000, more than double LendingClub’s maximum.
- Offers variable rate loans: You can choose between fixed and variable rate loans. Interest on a fixed-rate loan stays the same for the length of your loan. Variable interest rate loans tend to start off with a lower rate than fixed-rate loans, but can fluctuate over time. Those looking to aggressively pay off their debt may prefer a variable rate loan to take advantage of a lower interest rate.
- Unemployment protection: If you lose your job, SoFi offers up to 12 months of payment deferment. And, the company even offers job placement assistance.
- Cosigners accepted: SoFi allows you to add a cosigner to your application. Having a cosigner can increase your chances of qualifying for a loan and getting a lower interest rate.
- Only those with good to excellent credit will qualify: With a minimum credit score requirement of 680, you’ll need good credit to qualify for a SoFi loan.
- High loan minimums: If you only need a few thousand dollars to fix your car or consolidate a small credit card balance, SoFi likely isn’t for you. SoFi’s loan minimum is $5,000.
- Not available to all U.S. residents: SoFi doesn’t issue loans to residents of Mississippi.
For more information, check out our SoFi review.
LendingClub personal loans
- Borrowers in need of small personal loans
- Those with less-than-perfect credit
LendingClub is a peer-to-peer marketplace, meaning that investors invest in your loans through LendingClub Notes or trust certificates. Borrowers who don’t have excellent credit scores can often qualify for loans through LendingClub and may be able to get lower rates.
- Lower credit requirements: While SoFi has a minimum credit score of 680, LendingClub’s minimum is just 540. If your credit isn’t that great, you’re more likely to qualify for a loan from LendingClub than SoFi.
- Smaller loan options: If you only need a small personal loan, LendingClub allows you to borrow as little as $1,000.
- Cosigners accepted: LendingClub allows you to apply for a loan with a cosigner. Having one increases your chances of getting approved for a loan and qualifying for a lower interest rate, even if you have a high debt-to-income ratio.
- High origination fees: LendingClub has origination fees as high as 6%. To put that in perspective, if you took out a $10,000 personal loan, you could have to pay up to $600 in origination fees.
- Longer processing time: Because LendingClub is a peer-to-peer lender, it can take a while to connect you to investors willing to lend to you. It can take about seven days to receive your loan.
- Not available to all U.S. residents: LendingClub is not available to residents of Iowa, Guam, or Puerto Rico.
- Fewer repayment term options: LendingClub only offers loan terms of three to five years, while SoFi offers terms from two to seven years in length.
- No autopay discount: Signing up for automatic payments doesn’t come with an interest rate deduction.
For more information, check out our LendingClub review.
Choosing a personal loan lender
Both companies offer personal loans for good credit borrowers. If you’re facing high-interest credit card debt or need to finance a major repair, taking out a personal loan can be a smart financial decision. When looking at SoFi vs LendingClub, it’s important to take into account their eligibility requirements, how much you need to borrow, and what fees they charge so you can choose the right loan for you.
It’s a good idea to shop around to ensure you get the best rate on a loan. Currently, LendingClub isn’t offering loans through Credible. But you can compare quotes from SoFi and other companies by filling out just one form with Credible.
Compare More: LendingClub vs. Prosper