SoFi vs. LendingClub: Which is better?

Borrowers seeking lower interest rates and a minimal fee structure will align with SoFi personal loans. The lender also boasts a faster funding timeline, delivering funds in a few days compared to LendingClub’s week turnaround. LendingClub may support those seeking smaller purchases, but SoFi’s competitive rates and fee transparency make it a strong contender.

SoFi vs. LendingClub: A quick comparison

• SoFi's terms and conditions

  Fixed rates from 8.99% APR to 29.99% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. 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, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive. Autopay: 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. Autopay is not required to receive a loan from SoFi.
  Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your “Loan”), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.

SoFi vs. LendingClub: Which is better?

SoFi and LendingClub both provide personal loans, each catering to a different type of borrower. SoFi is likely suited for people with good to excellent credit profiles who don’t want to pay fees and seek higher maximum loan amounts. SoFi also offers investing advice to strengthen other areas of your finances. LendingClub, on the other hand, is an accessible option for those with fair credit scores who need smaller loans.

When to consider SoFi

SoFi may work best for your needs if you:

• Want lower rates: SoFi offers competitive rates, making it a good choice for individuals seeking lower interest rates than LendingClub.
• Need higher loan amounts: SoFi shines in providing higher maximum loan amounts ranging from $5,000 to $100,000.
• Prefer fixed rates: SoFi only offers fixed rates. You can learn what rate you qualify for in as little as a minute.
• Need your money fast: While neither lender offers next-day financing, SoFi only takes a few days to get your funding. LendingClub can take as long as a week.

When to consider LendingClub

While SoFi offers lower rates, LendingClub could be your best bet in these scenarios:

You want to use your loan for debt consolidation:

• LendingClub allows you to pay different creditors directly using a single loan.

You have a lower credit score:

• LendingClub is available to borrowers with credit scores as low as 600.

You want a joint loan:

You can bring on a cosigner to increase your chances of being eligible for a loan.

The similarities

Both lenders have flexible eligibility requirements compared to other lenders, making them accessible to a wide range of borrowers. They are also highly rated, both holding an excellent 4.6 rating from Trustpilot as of November 2023. Each offers solid personal loans suitable for various financial needs, such as debt consolidation, home improvements and other purposes.

Alternatives to SoFi and LendingClub:

Here are three alternatives to SoFi and LendingClub:

• Upgrade: Upgrade offers fixed-interest loan products also up to $50,000. Depending on the lender’s set terms, you may have up to seven years to repay your loan. There is also a hardship program available to help with repayments.
• Best Egg: Best Egg offers personal loans with APRs starting from 7.99% and offers loan amounts up to $50,000 with a variety of repayment methods. It was ranked the number-one company in 2021 by Best Company, a consumer review site.
• Prosper: Prosper serves borrowers who may not have perfect credit. Provided you have a score of at least 600, you may qualify for a loan.

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Product	Finder Score	APR	Min. credit score	Loan amount
Promoted Best Egg personal loans	Finder score 8.6 Great	7.99% to 35.99%	640	$2,000 to $50,000	Fast and easy personal loan application process. See options first without affecting your credit score.	Go to siteView details Compare	loading Fetching your data...
Promoted LightStream personal loans	Finder score 9.7 Excellent	6.94% to 25.79%	Good to excellent credit	$5,000 to $100,000	Borrow up to $100,000 with low rates and no fees.	Go to siteView details Compare	loading Fetching your data...
Promoted Credible personal loans	Finder score 8.6 Great	6.94% to 35.99%	Fair to excellent credit	$1,000 to $200,000	Get personalized prequalified rates in minutes and then choose an offer from a selection of top online lenders.	Go to siteView details Compare	loading Fetching your data...
Achieve personal loans	Finder score 6.8 Standard	8.99% to 29.99%	620	$5,000 to $50,000	Consolidate debt and more with these low-interest loans. Cosigners welcome.	Go to siteView details Compare	loading Fetching your data...
Upstart personal loans	Finder score 8.3 Great	6.7% to 35.99%	300	$1,000 to $50,000	This service looks beyond your credit score to get you a competitive-rate personal loan.	Go to siteView details Compare	loading Fetching your data...

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See how other lenders stack up

Want to learn how other lenders compare?

• LendingCLub vs. LendingTree
• Upstart vs. Prosper
• Prosper vs. LendingClub vs. Upstart
• Upstart vs. SoFi
• BestEgg vs. Upstart
• LightStream vs. SoFi
• Upgrade vs. Upstart

Frequently asked questions

Can I still get a loan from LendingClub if it’s not fully funded by investors?

Yes, you may still get a partially funded loan. If investors don’t fully back your loan, you aren’t required to accept it and can cancel it without affecting your credit score.

Since investors fund LendingClub’s personal loans, what institution issues them?

WebBank is the financial institution that issues loans for LendingClub.

Can I change my payment date with LendingClub or SoFi?

Yes. Both lenders allow you to change your payment date. You can either change it in your online dashboard or call customer service.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Dhara Singh

Writer

Dhara Singh was a freelance personal finance writer at Finder specializing in loans. Formerly she was a top 10 journalist at Yahoo Finance with more than 38+ million content views where she covered retirement and mortgages. She has also written for Bankrate, and CNET and continues to write for a variety of outlets, such as Investopedia and Worth magazine. Her articles focus on equipping readers with the right information and data so they can make the most informed decisions related to their finances. Dhara previously worked as an insights analyst for Finder’s PR team, where she started the Deadliest Cities to Drive series in 2018, connecting interesting data analysis to a suite of car insurance products. When she’s not writing, Dhara coaches small business owners through her Stories to Sales programs and empowers them to use their life experiences to help other people. She has also self-published a poetry book on Amazon called Tell her She’s Lovely. Dhara holds a B.S. in Finance and Supply Chain Management from Rutgers University and a M.S. in Journalism from Columbia University. See full bio