SoFi vs. Prosper Personal Loans: Which One Is Better for You?

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SoFi and Prosper are leading online lenders that offer personal loans fast and with competitive rates.

But when it comes to SoFi vs. Prosper personal loans, is one company better than the other? On the whole, neither lender comes out as the clear winner — the answer depends on your needs as a borrower.

To help you choose, below is a full comparison of SoFi and Prosper personal loans. Read on to learn which lender is right for you.

SoFi vs. Prosper personal loans overview

Both SoFi and Prosper offer personal loans, but they do it in different ways.

SoFi is a direct lender, with its loans originated by SoFi Lending Corp. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.

As a borrower, your experience with both companies won’t be much different. But it’s useful to understand how the two lenders operate.

The chart below takes a close look at the rates and terms on SoFi and Prosper personal loans. Check them out before we take a deeper dive into what these differences mean for you.

The rates and terms for Prosper were as of July 12, 2018. For the latest information, go to Prosper.

SoFi personal loans Prosper personal loans
Loan amount $5,000 – $100,000 $2,000 – $40,000
APR range 6.28% – 14.87% 6.95% – 35.99%
Repayment terms 3, 5, or 7 years 3 or 5 years
Rate type Fixed or variable, depending on where you live Fixed
Origination fee 0% 2.41% – 5%
Allows joint applications Yes, if you and your cosigner share the same address No
Instant pre-qualification Yes Yes
Eligibility requirements Must have sufficient income or offer of employment to start within 90 days; other requirements are not disclosed Minimum FICO score of 640; debt-to-income ratio below 50%; no bankruptcies within last 12 months
Residency requirements Lends everywhere except in Mississippi N/A
Extra benefits Unemployment protection None

There are significant differences between the personal loan products of SoFi and Prosper, so read on to consider which one could work better with your finances.

Choose SoFi if you need a large personal loan

One of the biggest differences when comparing SoFi-versus-Prosper personal loans is their borrowing limits. If you find yourself in any of the following situations, SoFi could be the superior choice.

1. You need to borrow more than $40,000

Unlike Prosper, which has a lending limit of $40,000, SoFi lets you take a personal loan of up to $100,000. This high limit could be helpful if you’re consolidating a large amount of debt or undertaking a major home renovation project.

Online lenders typically don’t offer such large loans, so SoFi is unique in its flexibility. Keep in mind that SoFi’s minimum loan amount is $5,000, so you don’t have as many options for borrowing a small amount of money.

2. You have strong credit and can qualify for low rates

SoFi doesn’t disclose the credit score you need to qualify for one of its personal loans, but it seems that the lender looks for good to excellent credit. Considering that it offers competitive rates ranging from 6.28% to 14.87%, SoFi is looking for creditworthy borrowers with the means to pay back the loan.

If your credit isn’t up to scratch, you also can apply with a creditworthy cosigner, such as a spouse or parent you live with. Your cosigner’s credentials could boost your application and help you snag low rates. Make sure you’re comfortable sharing debt with the cosigner, and that you both have a clear sense of who is responsible for paying back the loan.

3. You’re looking for a long repayment term

SoFi provides long repayment terms. The terms offered by some other personal loan lenders such as Upstart or Payoff max out at five years, but SoFi lets you choose a term of up to seven years.

The longer term could give you breathing room if you need extra time to pay back your loan, and it could lower your monthly payments. But you don’t have to choose such a long term.

Plus, you can pay the loan back sooner. There’s no penalty for prepayment, and you’ll save a lot of money on interest changes as a result.

4. You want the assurance of unemployment protection

SoFi is unique in its unemployment protection benefit for personal loan borrowers. If you lose your job, SoFi will pause your payments in three-month increments for up to a year.

To qualify for this perk, you must apply for unemployment benefits and work with SoFi’s career coaches to find a new job.

This benefit could be a huge help in case you lose your income. Instead of worrying about your loan becoming delinquent, you can pause payments until you’re back on your feet.

Visit SoFi

Choose Prosper if you don’t have excellent credit

Even if you have a fair credit score, you could qualify for a personal loan from Prosper. According to Experian, credit scores are organized into the following tiers:

  • Fair credit scores are between 580 and 669.
  • Good credit scores are between 670 and 739.
  • Excellent credit scores are between 740 and 799.
  • Exceptional credit scores are between 800 and 850.

If any of the following scenarios apply to you, Prosper might be your preferred lender.

1. Your credit score is about 640

Like other lenders, Prosper offers the lowest rates to borrowers with strong credit scores. But it says you can qualify for a loan even with a fair credit score of at least 640.

So if you don’t have excellent credit, Prosper might work with you while other lenders might not. However, a low credit score could leave you with high rates, so make sure you understand the long-term costs of borrowing before signing on the dotted line.

2. You’re looking for a personal loan of under $5,000

Prosper doesn’t issue large personal loans like SoFi does; its loans max out at $40,000. But Prosper has lower borrowing limits, allowing you to get a loan that’s as low as $2,000.

This might be useful if you’re consolidating a small amount of debt or funding a relatively minor personal expense. You don’t want to take on more debt than you need.

If you’re in the market for a small loan, Prosper could be a better choice than SoFi.

3. You don’t plan to apply with a cosigner

Prosper offers low rates on its personal loans starting at 6.95% APR. But since it doesn’t allow you to apply with a cosigner, you’ll need to prove you’re a creditworthy borrower all on your own.

To qualify for the lowest rates, you’ll need a strong credit score and a steady income. Fortunately, Prosper and SoFi offer an instant rate quote on their websites, so you can compare offers from both lenders.

If you like the details of either offer, you can choose the lender with the lower rates.

Visit Prosper

SoFi vs. Prosper personal loans: Which should you choose?

Ultimately, you should choose the lender that offers lower rates and fees, as well as the best repayment term.

SoFi could be the winner if you need a large loan and up to seven years to pay it back. The company’s unemployment protection benefit also might give you peace of mind.

Prosper could be a better choice if you want to borrow less than $5,000. Plus, its credit score requirements might be less strict than SoFi’s, making it easier to qualify for a Proper loan.

Whichever lender you choose, make sure you have a plan for repayment. Our personal loan calculator can help you refine your plan and understand long-term costs. Play around with different loan amounts and repayment terms so you can find the right balance for your wallet.

Note: Student Loan Hero has independently collected the above information related to Prosper personal loans. Prosper has neither provided nor reviewed the information shared in this article.

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LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal LoansFixed rates from 6.58% APR to 14.87% APR (with AutoPay). Variable rates from 6.275% APR to 12.575% APR (with AutoPay). SoFi rate ranges are current as of July 16, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.275% APR assumes current 1-month LIBOR rate of 2.10% plus 4.175% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  • Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  1. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  2. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

  • Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  1. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  2. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.73% – 29.99%$1,000 - $50,000
Check rate nowon SLH's secure site
6.28% – 14.87%1$5,000 - $100,000
Check rate nowon SLH's secure site
6.87% – 35.97%*$1,000 - $50,000Visit Upgrade
8.00% – 25.00%$5,000 - $35,000
Check rate nowon SLH's secure site
4.99% – 29.99%$10,000 - $35,000Visit FreedomPlus
5.99% – 18.99%2$5,000 - $50,000Visit Citizens
15.49% – 34.49%$2,000 - $25,000Visit LendingPoint
5.99% – 35.89%$1,000 - $40,000Visit LendingClub
5.49% – 18.24%$5,000 - $75,000Visit Earnest
9.95% – 35.99%$2,000 - $35,000Visit Avant
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.