Upstart vs. SoFi: Which Is Right for You?

If you're looking for an easy online personal loan experience, Upstart and SoFi are both great options that made our list of the best personal loans. You may prefer SoFi if you have very good credit and are looking for a large loan with flexible repayment terms, or if you're interested in SoFi's other banking products and membership perks.

Upstart may be the better option if you're looking for some of the lowest rates in the industry, you want a small loan, or if you have a limited credit history and are struggling to qualify elsewhere.

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How Upstart and SoFi compare

Both are reputable lenders, but SoFi is rated higher in the 2025 J.D. Power U.S. Consumer Lending Satisfaction Study, while Upstart has a better Trustpilot rating. To help you choose between Upstart vs. SoFi, we'll highlight the benefits of each and provide some tips on comparing your options.

Upstart personal loans

Upstart is a lending marketplace that connects borrowers with banks and credit unions to provide personal loans and auto refinance loans. The company uses AI to more accurately predict lending risk, which leads to higher approval rates at lower APRs than traditional lenders, according to the company.

The technology makes a difference for borrowers with credit issues who might face denials from other lenders. Upstart may consider applicants with bad credit or a limited credit history, provided they meet other requirements. The platform offers personal loans from $1,000 to $75,000 with a three or five-year repayment term. Upstart's lending partners may charge an origination fee. The starting APR, which reflects interest charges along with upfront fees, is competitive — though typically available only to borrowers with excellent credit.

SoFi personal loans

SoFi is an FDIC-insured online bank that offers a wide variety of financial products in addition to personal loans. It doesn't charge late fees, but you may have the option to pay an origination fee to reduce your interest rate. SoFi also offers flexible repayment terms between two and seven years and can issue loan funds as soon as the same business day.

When you take out a personal loan from SoFi, you become a SoFi member, which offers unique benefits. You can schedule a free session with a financial planner, qualify for a mortgage discount, attend networking events, earn referral bonuses, and more. SoFi also offers a well-rated, feature-packed mobile app.

Tips on choosing between Upstart and SoFi

Upstart and SoFi are both reputable finance companies with great customer reviews, but depending on your financial needs, one may be a better fit than the other. For example, Upstart is more accessible to borrowers with credit issues, is good for those who need a small loan, and offers near rock-bottom rates for borrowers with excellent credit. SoFi has larger loan amounts, is an FDIC-insured bank, and offers joint loans and more digital tools.

When comparing personal loans, it's helpful to consider the following features.

APR range

APR expresses the annual cost of the loan as a percentage of the loan amount. Lenders provide an APR range, and only borrowers with excellent credit scores and other strong financial criteria qualify for the lowest APRs. Upstart has a lower starting APR than SoFi, indicating that borrowers with excellent credit may be eligible for a better rate from Upstart. Unlike Upstart, SoFi's lowest APR requires that you set up autopay and direct deposit to a SoFi bank account.

Minimum credit score

SoFi doesn't publish a minimum credit score, but borrowers with fair or poor credit may struggle to qualify. That said, you could potentially apply with a co-borrower if you have fair credit, which could be a spouse or family member who has good or excellent credit and agrees to be jointly responsible for the loan.

Upstart doesn't allow you to apply with a co-borrower or cosigner, but the company's AI underwriting technology and numerous lending partners make it a better fit if you have credit issues. Applicants with a limited credit history may be able to qualify by meeting other financial criteria.

Loan purpose

Both Upstart and SoFi allow you to use your loan funds for a variety of purposes, including:

• Credit card consolidation
• Medical expenses
• Home improvement
• Large purchases
• Travel

While SoFi personal loans are strictly for personal and household expenses, some of Upstart's lending partners may allow you to use the funds to start or expand a small business. If you're an entrepreneur considering a personal loan for business purposes, Upstart is definitely the better option for you.

SoFi explicitly prohibits you from using a personal loan to pay for business expenses, real estate, investments, or college education. Upstart's lending partners may have their own exclusions, which will be outlined in your loan agreement.

Repayment terms

SoFi takes the cake for flexible repayment terms, with options ranging from two to seven years, while Upstart only offers three- or five-year terms. Since your repayment term impacts your monthly payment and interest rate, more options make it easier to find the best fit for your budget. Like most personal loan lenders, neither SoFi nor Upstart charges prepayment penalties, so you can choose to repay your loan early to save money on interest.

Loan amount

Upstart offers loans as small as $1,000 and as large as $75,000. But if you need more than that, SoFi is the better choice — the lender offers loan amounts up to $100,000. But SoFi's minimum loan amount is $5,000, so it's not an option for people who need a small personal loan.

Time to fund

Both SoFi and Upstart offer fast funding. But if you need an emergency loan, you might get your money faster with SoFi. In most cases, SoFi can issue the loan funds the same day you're approved if you sign your loan documents before 6 p.m. ET on a business day. Upstart sends funds the next business day for applicants who accept a loan before 5 p.m. ET on a business day.

How to apply for a personal loan

The process of applying for a personal loan is fairly similar across loan providers, though SoFi and Upstart may ask for slightly different information.

Generally speaking, you'll follow these steps:

1. Use a loan marketplace site like Credible to prequalify with SoFi, Upstart, and a few other lenders.
2. Compare APRs, repayment terms, monthly payments, and total interest.
3. Choose a loan option with a low APR and a monthly payment you can afford.
4. Authorize a hard credit inquiry and proceed with the formal application.
5. Answer additional questions and upload documents that prove your income.
6. If approved, review your loan agreement carefully.
7. E-sign your loan documents to get the funds deposited in your bank account or sent to your creditors.

Which lender is best for you?

Best for limited credit history: Upstart

Upstart may be a good fit if you have a limited credit history, especially if you're a college graduate with a job or offer of employment that provides sufficient income for loan payments. Upstart lenders consider your educational attainment and earning potential and may approve you for a loan even if you have a short history of credit use.

If you don't qualify for a personal loan, Upstart offers short-term loans up to $2,500 with APRs capped at 36% as an alternative to a payday loan. Plus, you can potentially extend the loan term (and lower payments) as you build credit.

Best for debt consolidation: SoFi

You're not required to pay an origination fee to get a loan from SoFi, and the bank will pay your creditors directly. That makes SoFi a slightly better option for debt consolidation, especially if you have a large amount of credit card debt or many open credit card accounts.

The option to apply jointly with your spouse is also great if you have shared credit cards - SoFi will consider income from both borrowers when making a lending decision.

Best for home improvement: SoFi

The combination of high borrowing limits and long repayment terms makes SoFi ideal for financing expensive home improvement projects while keeping monthly payments affordable. If you're remodeling your home to increase its value because you plan to sell, you might also consider choosing SoFi for your new mortgage. You may be eligible for a discount on your home loan origination fee for having a current or prior SoFi personal loan.

Best for small business owners: Upstart

If you're starting a business or trying to expand a new business, you may have difficulty qualifying for a business loan. A personal loan from Upstart may be the next-best option, as some of Upstart's lending partners allow you to use personal loan funds for business, and rates are very competitive for applicants with excellent personal credit scores.