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Key takeaways
- LightStream personal loans are better for borrowers with strong credit who want to find the best deal.
- SoFi personal loans are also a solid option, but may work better for borrowers with lower credit scores.
- Both lenders offer large loan amounts, competitive rates and no required fees. Before applying, consider both lenders (and others) to find the best fit.
If you’re looking for a personal loan and have a solid credit score, LightStream and SoFi are two online lenders worthy of consideration. SoFi began in 2011 as a student-focused lender, but has since expanded to offer a variety of banking and lending services. LightStream is the online lending division of Truist Bank, specializing in serving borrowers with excellent credit.
When comparing Sofi versus LightStream, both lenders are good options for borrowers with strong credit profiles. Compare all the details to decide which one works best for you, and research additional options before making a decision.
LightStream vs. SoFi at a glance
Both LightStream and SoFi offer unsecured personal loans. They have very similar products, so you should compare them closely to see which is the better choice for your finances.
|
LightStream |
SoFi |
|
|
Bankrate Score |
4.5 |
4.7 |
|
Better for |
Fast funding |
Unique perks |
|
Loan amounts |
$5,000–$100,000 |
$5,000–$100,000 |
|
APRs |
6.99%-25.29% (with autopay) |
8.99%-29.49% (with autopay) |
|
Repayment terms |
24–84 months |
24–84 months |
|
Fees |
None |
Optional origination fee |
|
Minimum credit score |
695 |
300 |
|
Time to funding |
As soon as the same day |
Within a few days |
LightStream personal loans
-
LightStream offers flexible personal loans that you can use for anything from buying a car to remodeling your home or consolidating existing debt. It focuses on borrowers with excellent credit, which allows it to keep costs low. If you qualify for a similar loan at a lower rate with another lender, LightStream may offer a rate that is 0.1 percentage points lower.
-
Pros
- Same-day funding
- Low interest rates
- Rate Beat program
- Co-borrowers accepted
Cons
- Good credit required
- Long credit history required
- No prequalification
SoFi personal loans
-
SoFi offers competitive personal loan rates, flexible repayment terms and no fees — but it also provides student loans, mortgages and banking services. If you already have another type of SoFi loan, you may qualify for a rate discount on a new personal loan. And SoFi borrowers can access unique perks, like free financial counseling and travel discounts.
While SoFi doesn’t charge any required fees, you may have to accept an origination fee of up to 7 percent to receive this lender’s lowest rates.
-
Pros
- Same-day funding
- No required fees
- Cosigners and co-borrowers allowed
- Prequalification offered
Cons
- Funding can take a few days
- Optional origination fee
- Higher maximum APR
How to choose between LightStream and SoFi
LightStream and SoFi offer nearly identical products in terms of loan amounts, rates and repayment terms. It may be beneficial to apply to both if you’ve determined that either one will be the best match for your needs.
APR range
LightStream has a fixed APR range that starts and caps out lower than SoFi’s rates. Both ranges are similar, but LightStream will likely offer a lower APR if you qualify. Plus, LightStream’s autopay rate discount is more generous: 0.5 percentage points, versus SoFi’s 0.25-point discount.
Another benefit of LightStream is its Rate Beat program. If you’re approved for a better personal loan rate with another lender (on the same repayment term), LightStream may beat that rate by 0.10 percent.
Minimum credit score
LightStream caters to borrowers with good-to-excellent credit. To qualify, you’ll need a score above 695, a long credit history and a low debt-to-income ratio. If you don’t meet these criteria on your own, you can apply with a creditworthy co-borrower to improve your eligibility.
SoFi is more flexible with its credit requirements — the lender told Bankrate that it doesn’t have a minimum credit score or income threshold. Instead, it takes a holistic view of your credit history and finances to determine your eligibility and rate. That said, if you’re having trouble qualifying, consider applying with a cosigner or co-borrower.
Repayment terms
SoFi and LightStream offer identical repayment term options: 24 to 84 months. The top end is much longer than that of many competitors, which typically offer terms of up to 60 months. This allows you to make smaller payments for a longer amount of time. But remember that the longer your repayment term, the more interest you’ll pay overall.
If you’re borrowing a personal loan for home improvement, LightStream may offer a repayment term as long as 12 years, one of the longest in the unsecured lending market.
Loan amounts
The loan amounts offered by both SoFi and LightStream are also the same. You can get loans from $5,000 up to $100,000 from both lenders. Just remember, only borrowers with excellent credit are likely to qualify for larger loan amounts.
Fees
LightStream comes out as the winner for fees — the lender doesn’t have any fees for their personal loans. It doesn’t charge origination fees, prepayment penalties or even late payment fees.
But SoFi doesn’t fall far behind. SoFi’s fees are optional — you can choose to pay an origination fee on your loan in exchange for a lower rate.
Bottom line: Which lender is better?
LightStream and SoFi offer similar loan options. However, for borrowers with excellent credit, LightStream edges out the competition thanks to its Rate Beat program and lower rate cap. But, if you already use SoFi for its other financial services or are intrigued by its member benefits, it is still a solid lender.
Since SoFi offers loan prequalification, you can check your eligibility and preview your rates without harming your credit. If you’ve narrowed it down to SoFi and LightStream, apply for both and see which lender presents the better offer. Just make sure you do the applications within a short period so they’re only counted as one credit inquiry.
Compare more lenders before applying
LightStream and SoFi aren’t the only lenders offering competitive personal loans. It’s a good idea to look at several lenders before choosing where you want to apply.
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