SoFi vs. LendingClub: Which Has the Better Personal Loan?

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.

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sofi vs. lendingclub: which has the better personal loan?
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As leaders in the personal loan space, SoFi and LendingClub offer competitive rates and easy online applications.

But when it comes to SoFi personal loans versus LendingClub personal loans, does one lender come out ahead of the other?

Well, it comes down to your personal needs, including how much you want to borrow and what repayment terms you’d like.

Let’s take a closer look at SoFi and LendingClub personal loans so that you can decide which lender would be better for you.

SoFi vs. LendingClub personal loans: The basics

SoFi and LendingClub are online companies that offer personal loans to borrowers with strong credit, but they do so in different ways.

SoFi is a direct lender, while LendingClub is a peer-to-peer lender. When it comes to peer-to-peer lending, individual investors decide whether they want to fulfill your loan request, and then they provide the funds.

That said, your experience as a borrower will be similar with both SoFi and LendingClub. But the various personal loans these companies offer have some key differences.

Check out this chart for the full details of SoFi versus LendingClub personal loans.

SoFi personal loans

LendingClub personal loans

Loan amount

$5,000 – $100,000

$1,000 – $40,000

APR range

5.99% – 20.01%

6.95% – 35.89%

Repayment terms

3, 5, 6, or 7 years

3 or 5 years

Rate type

Fixed or variable, depending on where you live

Fixed rate only

Origination fee

0%

1% – 6%

Allows joint applications

Yes

Yes

Instant pre-qualification

Yes

Yes

Residency requirements

Lends everywhere but Mississippi

Lends everywhere but Iowa, Guam, and Puerto Rico

Extra benefits

Unemployment protection

Changing your due date; natural disaster support

SoFi and LendingClub offer competitive rates and flexible terms, but other features of their personal loans differ. Read on for a closer look at who would benefit from a SoFi personal loan and who would be better off sticking with LendingClub.

Choose SoFi if you can qualify for the lowest rates

SoFi personal loans have one clear advantage over LendingClub ones: They could come with lower interest rates. But not everyone will qualify for a low APR. Here are four circumstances when a SoFi personal loan might be the better option.

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

SoFi could offer you lower rates on a personal loan than LendingClub. Even its maximum APR is less than half that of a LendingClub personal loan as of June 18, 2018.

But you must have strong credit to qualify for a low rate. Otherwise, you might end up on the higher end of the range, which could cost you a lot in interest over the life of your loan.

For example, let’s say you took out $10,000 on a three-year repayment term. With a 6.00% rate, you would pay $952 in total interest. But if you had a 12.00% rate, you’d pay $1,957 in interest.

SoFi could potentially save you money with a lower rate, as well as no origination fee, compared to LendingClub. But you’d have to qualify for the low rate in the first place, so make sure to do a pre-qualification rate check with both lenders before assuming SoFi is the cheaper option.

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

SoFi has another potential advantage over LendingClub when it comes to borrowing limits. While LendingClub caps its personal loans at $40,000, SoFi lets you borrow up to $100,000.

This could be useful if you’re financing a big expense or consolidating a great deal of debt. Of course, anyone should think twice before taking on a lot of debt.

Before borrowing such a large personal loan, make sure you’ve planned out the details of repayment. You can estimate your monthly payments with our personal loan calculator. This tool also reveals how much interest you’ll pay over the life of your loan.

Crunching the numbers before you borrow will help you avoid taking on more debt than you can manage.

3. You want a repayment term longer than 5 years

Besides having higher borrowing amounts, SoFi also allows for a longer repayment term of up to seven years. With a longer repayment term, you can lower your monthly bills.

For example, that $10,000 personal loan at a 6.00% rate would cost you $304 a month on a three-year plan. But on a seven-year plan, your monthly bills would go down to $146.

But you’ll also be in debt for longer. If you can pay the debt back faster, you’ll save money on interest.

Since SoFi doesn’t have any prepayment penalties, you could pay off your debt ahead of schedule, even if you initially choose a long term.

4. You want to be protected in case you lose your job

One unique benefit SoFi offers to borrowers is unemployment protection. If you lose your income, SoFi will pause your payments.

You can pause payments in three-month increments for up to a year. To qualify for this benefit, you must show that you applied for unemployment compensation.

You’ll also be expected to work with SoFi’s career coaching team to find a new position. This benefit could be a huge help if you run into financial hardship.

If you’re already worried about losing your job, you might want to avoid borrowing a personal loan until your income is more stable.

Visit SoFi

Choose LendingClub if you need a small personal loan and have a stable income

Although SoFi is useful for those looking to borrow a large personal loan, it doesn’t offer personal loans for less than $5,000. That’s why LendingClub would be better if you’re looking for a small loan. Here are three main reasons LendingClub might be best for you.

1. You want to borrow between $1,000 and $40,000

LendingClub lets you borrow a personal loan as small as $1,000 and as big as $40,000. This could be useful if you’re using a personal loan to pay for moving or a small home renovation.

Although LendingClub charges an origination fee, this charge might be minor if you’re not borrowing much. For instance, a 1% origination fee on a personal loan of $1,000 would only add $10 to your balance.

Since LendingClub is a peer-to-peer lender, you’ll likely see a variety of offers if you get approved. You’ll get funding in a few days after you select an offer.

2. You don’t need longer than 5 years to pay back your loan

A maximum repayment term of five years is typical for many personal loan lenders, and LendingClub is no different.

You can’t choose a longer term, but you can pay your loan off ahead of schedule with no penalty.

If you don’t need a term longer than five years, LendingClub could be a good option. If you’re borrowing a small loan, chances are you won’t need to extend your terms past five years anyway.

3. You’re not worried about losing your job

Unlike SoFi, LendingClub doesn’t offer forbearance if you lose your income. It does allow you to temporarily or permanently change your payment due date, but you’ll only be able to move it to a different day of the month.

LendingClub will also help if you’ve experienced a natural disaster. In this case, it will hold off on late-payment fees for at least 30 days. The lender will also notify the credit bureaus of your situation, so your credit shouldn’t be affected if you fall behind on your loan.

Apart from this support, LendingClub doesn’t offer protections for unemployment. Before choosing a LendingClub loan, consider whether you have a reliable source of income for paying it back.

Visit LendingClub

What to know before choosing a personal loan company

Although SoFi and LendingClub are great options for taking out a personal loan, they’re not the only lenders that could meet your needs. Before choosing one or the other, make sure to shop around and compare your rates.

Other companies, such as Upstart and Avant, also let you check your personal loan rates with no impact on your credit score. That way, you can compare your pre-qualification offers to see which has the lowest costs of borrowing.

Besides interest rates, watch out for any extra fees or eligibility requirements. You should also check out customer reviews to learn about firsthand experiences with the lender.

Finally, search for benefits, such as SoFi’s unemployment protection. These extra perks might be the deciding factor when it comes to choosing one lender over another.

SoFi vs. LendingClub personal loans: Which one is right for you?

In the contest between SoFi and LendingClub, there’s no clear winner. Both offer competitive rates to borrowers with strong credit. Plus, both let you apply with a co-borrower, which could boost your chances of qualifying if your credit is subpar.

Because SoFi and LendingClub are both good choices, choosing one comes down to your needs as a borrower.

If you’re looking to borrow a large personal loan with the option of a long payoff term, SoFi might be the right decision. But if you need less than $5,000, LendingClub could be the better option.

Your state of residency might also be a factor, as SoFi doesn’t lend in Mississippi, while LendingClub doesn’t operate in Iowa.

Either way, you should check your rates with both lenders and compare preliminary offers. Once you find the right one, you can submit a full application to get your loan.

Then you’ll be well on your way to using the best personal loans for meeting your financial goals, whether you’re looking to consolidate debt or finally start that renovation project to complete your dream home.

Interested in a personal loan?

LendingTree allows you to compare rates from multiple lenders by filling out one easy form. Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.

Advertiser Disclosure

Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. 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 to help you understand what you are buying. Be sure to consult with 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.

RATES (APR)loan amount
5.99% – 20.01%1 $5,000 to $100,000
6.14% – 35.99% $1,000 to $50,000
6.98% – 35.89%* $1,000 to $50,000
99.00% – 199.00%2 $500 to $4,000
5.99% – 24.99%3 $5,000 to $35,000
5.99% – 29.99%4 $7,500 to $40,000
compare rates on Lendingtree now
NMLS #1136: Terms & Conditions Apply
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Fixed rates from 5.99% APR to 20.01% APR (with AutoPay). Variable rates from 6.49% APR to 14.70% APR (with AutoPay). SoFi rate ranges are current as of November 15, 2019 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 6.49% APR assumes current 1-month LIBOR rate of 1.81% plus 4.93% 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. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.
    See Consumer Licenses.
  3. Minimum Credit Score: Not all applicants who meet SoFi’s minimum credit score requirements are approved for a personal loan. In addition to meeting SoFi’s minimum eligibility criteria, applicants must also meet other credit and underwriting requirements to qualify.
  4. If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.
  5. 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 Includes AutoPay discount. Important Disclosures for Opploans.

Opploans Disclosures

Direct Deposit required for payroll.

Opploans currently operates in these states: . *Approval may take longer if additional verification documents are requested. Not all loan requests are approved. Approval and loan terms vary based on credit determination and state law. Applications processed and approved before 7:30 p.m. ET Monday-Friday are typically funded the next business day.

  1. To qualify, a borrower must (i) be a U.S. citizen or permanent resident; (ii) reside in a state where OppLoans operates; (iii) have direct deposit; (iv) meet income requirements; (v) be 18 years of age (19 in Alabama); and, (vi) meet verification standards.
  2. NV Residents: The use of high-interest loans services should be used for short-term financial needs only and not as a long-term financial solution. Customers with credit difficulties should seek credit counseling before entering into any loan transaction.

  3. OppLoans performs no credit checks through the three major credit bureaus Experian, Equifax, or TransUnion. Applicants’ credit scores are provided by Clarity Services, Inc., a credit reporting agency.

  4. Based on customer service ratings on Google and Facebook. Testimonials reflect the individual’s opinion and may not be illustrative of all individual experiences with OppLoans. Check loan reviews.

  5.  

    Rates and terms vary by state.

3 Includes AutoPay discount. Important Disclosures for Payoff.

Payoff Disclosures

  1. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
4 Important Disclosures for FreedomPlus.

FreedomPlus Disclosures

  1. All loans available through FreedomPlus.com are made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. All loan and rate terms are subject to eligibility restrictions, application review, credit score, loan amount, loan term, lender approval, and credit usage and history. Eligibility for a loan is not guaranteed. Loans are not available to residents of all states – please call a FreedomPlus representative for further details. The following limitations, in addition to others, shall apply: FreedomPlus does not arrange loans in: (i) Arizona under $10,500; (ii) Massachusetts under $6,500, (iii) Ohio under $5,500, and (iv) Georgia under $3,500. Repayment periods range from 24 to 60 months. The range of APRs on loans made available through FreedomPlus is 5.99% to a maximum of 29.99%. APR. The APR calculation includes all applicable fees, including the loan origination fee. For Example, a four year $20,000 loan with an interest rate of 15.49% and corresponding APR of 18.34% would have an estimated monthly payment of $561.60 and a total cost payable of $7,948.13. To qualify for a 5.99% APR loan, a borrower will need excellent credit on a loan for an amount less than $12,000.00, and with a term equal to 24 months. Adding a co-borrower with sufficient income; using at least eighty-five percent (85%) of the loan proceeds to directly pay off qualifying existing debt; or showing proof of sufficient retirement savings, could help you also qualify for the lowest rate available.
* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

* Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by WebBank, Member FDIC.

** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.

Published in Loans, Personal Finance

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