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SoFi vs. Prosper: Which Is Right for You?

SoFi and Prosper allow you to apply for and receive a personal loan in as soon as one business day.

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By Nick Dauk

Written by

Nick Dauk

Writer

Nick Dauk is a Credible authority on personal finance. His work has been featured in Business Insider, The Edge, Bisnow, The Telegraph, BBC, and Culture Trip.

Edited by Meredith Mangan

Written by

Meredith Mangan

Senior Editor

Since 2011, Meredith Mangan has helped steer content creation in the areas of mortgages and loans, insurance, credit cards, and investing for major finance verticals, including Investopedia, Credible, and The Balance. Her focus on writing and editing data-driven content has helped readers save thousands of dollars, whether it's through wisely selecting financial products or finding the best deals.

Updated June 3, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

Featured

SoFi and Prosper are two lenders of many you can choose from when searching for a personal loan. While they share some similarities, they differ in terms of fees, maximum and minimum loan amounts, available repayment terms, and more. Learn more about each and explore how they compare to find the best personal loan for you.

SoFi vs. Prosper: A side-by-side comparison

SoFi is an online loan lender that claims you can receive a rate in as little as 60 seconds without impacting your credit score. It offers relatively large loan amounts, from $5,000 to $100,000, with term lengths ranging from two to seven years. It charges no fees, such as origination or late fees.

Prosper is also an online loan lender that lets you prequalify without impacting your credit. But unlike SoFi, the company offers smaller loans, from as little as $2,000 to $50,000, and term lengths range from two to five years. Prosper also charges a range of fees, including origination and late fees. Loans with Prosper are originated by WebBank, which then sells the loans to Prosper, which, in turn, sells to investors.

Annual percentage rates (APRs) range from 6.99% to 35.99% at Prosper, while SoFi’s APRs range from 8.99% to 25.81%, with both the autopay and direct deposit discounts applied. SoFi is a Credible partner lender; Prosper is not.

sofi personal loans
prosper personal loans
Credible rating
4.9
4.1
Loan amount
$5,000 to $100,000
$2,000 to $50,000
Loan terms
2 to 7 years
2 to 5 years
Min. credit score
Does not disclose
640
Time to fund
As soon as same day
On average, within 5 days of accepting your offer
Origination fee
None
1% to 5%
Cosigners permitted
No
No
Income
Employed, have sufficient income from other sources, or have an offer of employment to start within the next 90 days
Debt‐to‐income ratio below 50%, earned income, and no bankruptcies filed within the last year
Perks
Can postpone payments if you lose your job and SoFi will help you find a new one
Loan review process usually completed in 5 business days or less

What to know about SoFi personal loans

SoFi began in 2011 as a social financing model for Stanford business school students before eventually offering personal loans in 2015. It was the first fintech company based in the country to receive a $1 billion funding round.

Pros

  • No fees: SoFi has no origination, prepayment penalty, or late fees.
  • Membership discounts available: If you enroll in a SoFi membership, you’re eligible to receive a discount on a second, different lending product. For example, if you refinance your student loans with SoFi and need a personal loan later, you could receive a 0.125 percentage point discount.
  • Quick funding: You could receive funds as soon as the same day you’re approved.

Cons

  • No minimum credit score specified: Although SoFi does not explicitly state an acceptable credit score range, it does note that lower scores could negatively impact not only your rate and term length, but your eligibility for a personal loan.
  • You might not be able to secure a $5,000 personal loan: The lender offers personal loans as low as $5,000. But in some states, the minimum loan amount is higher due to legal requirements.

What to know about Prosper personal loans

Prosper began as the country’s first peer-to-peer lending marketplace in 2005, where borrowers can apply for loans that individuals and institutions can invest in. Nearly 1.5 million people have received $23 billion in loans from the lender.

Pros

  • Loans as low as $2,000: If you don’t need a loan as large as $5,000, Prosper may be preferable to SoFi.
  • Credit scores as low as 640 considered: A 640 credit score is considered “fair” and is lower than what some lenders will consider. Borrowers with bad credit may be more likely to secure a loan with Prosper than with SoFi.
  • Quick funding: Though you may not get funds the same day (like with some SoFi loans), you could receive funds as soon as the next business day after you’re approved.

Cons

  • Fees: A personal loan from Prosper has fees: origination, check payment, late, and insufficient funds fees. Fees increase the overall expenses associated with your loan.
  • Not available in all states: Prosper is not available to borrowers residing in West Virginia or Iowa.
  • Not suitable for loans over $50,000: Prosper caps its loans at $50,000, while SoFi offers loans up to $100,000..

When SoFi may be a better fit

You need a large loan

SoFi can offer loans up to $100,000. Whether you’re trying to finance a large wedding, pay for unexpected medical expenses, or consolidate high-interest credit card debt, SoFi offers significantly higher loan amounts than other lenders, including Prosper.

You want a fee-free loan

If you qualify for the same interest rate from two different lenders, you’ll pay less over the life of the loan to the lender that doesn’t charge fees. Since SoFi doesn’t charge any fees, it could be the better fit.

When Prosper may be a better fit

You need a small loan

If you need less than $5,000, Prosper may be the better option since you can take out a minimum $2,000 loan. Since you’ll pay interest on the entire loan amount, it’s rarely a good idea to take out a larger loan than what you actually need.

You don’t have good credit

Prosper accepts borrowers with “fair” credit scores of 640 or higher. With more flexible eligibility requirements, Prosper can help you achieve your current financial goals, such as debt consolidation, while also building for your future.

Other personal loan lenders to consider

SoFi and Prosper may offer the type of loan that you need, but they are not the only two personal loan lender options. Consider these lenders as you research personal loans:

  • If you’re a borrower with little, no, or poor credit history, lenders like Upstart and OneMain Financial might be able to work with you.
  • If you need a loan amount over $50,000 but can’t qualify with SoFi, consider a lender like BHG Financial that offers loans up to $200,000.
  • If you’re planning on using a cosigner, consider a lender that accepts them, like Laurel Road.

Or, other Credible partner lenders may be a better fit for your needs, especially if you need a personal loan for bad credit, want a higher loan amount, or need a cosigner.

Advertiser Disclosure
4.24.2

Credible rating

Fixed (APR)

6.99% - 25.49%

Loan Amounts

$5000 to $100000

Min. Credit Score

700

Check Rates

on Credible’s website

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3.93.9

Credible rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

620

Check Rates

on Credible’s website

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4.44.4

Credible rating

Fixed (APR)

-

Loan Amounts

$2500 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

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4.54.5

Credible rating

Fixed (APR)

8.49% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

44

Credible rating

Fixed (APR)

8.98% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

660

Check Rates

on Credible’s website

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4.94.9

Credible rating

Fixed (APR)

8.99% - 29.99%1

Loan Amounts

$5000 to $100000

Min. Credit Score

Does not disclose

Check Rates

on Credible’s website

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44

Credible rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

600

Check Rates

on Credible’s website

View Details

3.93.9

Credible rating

Fixed (APR)

9.95% - 35.99%

Loan Amounts

$2000 to $35000

Min. Credit Score

550

Check Rates

on Credible’s website

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4.34.3

Credible rating

Fixed (APR)

-

Loan Amounts

$5000 to $35000

Min. Credit Score

700

Check Rates

on Credible’s website

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4.34.3

Credible rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

560

Check Rates

on Credible’s website

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44

Credible rating

Fixed (APR)

-

Loan Amounts

$20000 to $200000

Min. Credit Score

660

Check Rates

on Credible’s website

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3.93.9

Credible rating

Fixed (APR)

12.45% - 17.99%

Loan Amounts

$5000 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

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3.73.7

Credible rating

Fixed (APR)

14.30% - 35.99%

Loan Amounts

$3500 to $40000

Min. Credit Score

640

Check Rates

on Credible’s website

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3.93.9

Credible rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

540

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on Credible’s website

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All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms

Meet the expert:
Nick Dauk

Nick Dauk is a Credible authority on personal finance. His work has been featured in Business Insider, The Edge, Bisnow, The Telegraph, BBC, and Culture Trip.