SoFi vs. Upstart: Which One Is Best?
- July 28, 2024
- 9 min read
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83 reads
Upstart and SoFi offer similar services with slight differences.
Choosing Between Upstart and SoFi – Quick Answer
Choose Upstart if:
- You’re looking for a small loan
- You have a lower credit score or limited credit history
- You’re willing to potentially pay higher fees for accessibility
Choose SoFi if:
- You need a large loan
- You have good to excellent credit
- You prefer a fee-free structure with lower rates
SoFi vs Upstart: Quick Comparison
| Feature | Upstart | SoFi |
|---|---|---|
| Loan type | Personal loans | Personal loans, mortgage loans, auto loan refinancing |
| Loan amount | $1,000 – $50,000 | $5,000 – $100,000 |
| Repayment term | 36 – 60 months | 24 – 84 months |
| Interest rate | 7.8% – 35.99% | 8.99% – 25.81% |
| Minimum credit score | 300 | 680 |
| Monthly fees | None | None |
| Origination fee | 0% – 8% (one-time) | None |
| Payout time | 1 business day | Same-day funding |
| Weekend payout | No | No |
| Loan requirements | At least 18 years oldU.S. citizenActive bank account regular income | At least 18 years oldU.S. citizen, permanent resident, or visa holderLive in an eligible stateGood credit |
| Apply for Upstart loan now | Apply for SoFi loan now |
SoFi vs Upstart Personal Loans
We compare:
- Amounts and repayment terms
- Rates and fees
- Loan costs
- Loan requirements
- Mobile app and online experience
Amounts and Repayment Terms
Upstart offers loans from $1,000 to $50,000, perfect for a wide range of financial needs from minor emergencies to significant home renovations.
SoFi takes it a step further, offering loans from $5,000 to a whopping $100,000. This higher ceiling makes SoFi an excellent choice for those with substantial financing needs.
When it comes to repayment flexibility, SoFi edges out with terms ranging from 24 to 84 months, compared to Upstart’s 36 to 60 months.
Rates and Fees
Interest rates can make or break a loan deal. Here’s how they stack up:
- Upstart: APR ranges from 7.8% to 35.99%
- SoFi: APR ranges from 8.99% to 25.81%
While Upstart’s minimum rate is slightly lower, SoFi’s maximum rate is significantly more favorable. Plus, SoFi offers a 0.25% APR reduction for AutoPay users.
The fee structure is where SoFi really shines:
- SoFi: No origination, prepayment, or application fees
- Upstart: May charge an origination fee between 0% and 8%
Loan Cost Comparison
To illustrate the impact of fees, let’s compare the total cost of loans with identical APRs:
| Loan Amount | Loan Term | APR | Total Cost with Upstart (8% origination fee) | Total Cost with SoFi (no fees) | Savings with SoFi |
|---|---|---|---|---|---|
| $5,000 | 60 months | 10.99% | $6,920.81 | $6,520.81 | $400.00 |
| $10,000 | 60 months | 10.99% | $13,841.78 | $13,041.78 | $800.00 |
| $15,000 | 60 months | 10.99% | $20,762.63 | $19,562.63 | $1,200.00 |
| $30,000 | 60 months | 10.99% | $41,525.23 | $39,125.23 | $2,400.00 |
| $50,000 | 60 months | 10.99% | $69,208.59 | $65,208.59 | $4,000.00 |
As you can see, Upstart’s origination fee can significantly increase the overall cost of the loan.
Loan Requirements
Both lenders have similar basic requirements, but the key difference lies in the credit score:
- Upstart: Accepts scores as low as 300
- SoFi: Requires a minimum score of 680
This makes Upstart more accessible for those with less-than-stellar credit, while SoFi caters to borrowers with good to excellent credit profiles.
Mobile App and Online Experience
Both SoFi and Upstart provide robust mobile apps and online platforms. SoFi’s app is highly rated for its comprehensive features, including account management, loan tracking, and access to other financial services.
Upstart’s app is praised for its simplicity and ease of use, making loan management straightforward.
SoFi vs Upstart: Customer Reviews Comparison
Upstart Customer Reviews
Upstart has received generally positive feedback from customers, particularly for its:
- Accessibility for borrowers with lower credit scores
- Quick and straightforward application process
- Fast loan approval and funding (often within one business day)
- Use of AI to assess creditworthiness beyond traditional credit scores
However, some customers have concerns about:
- High origination fees (up to 8%)
- Maximum APR of 35.99%, which can be steep for lower credit score borrowers
SoFi Customer Reviews
Chosen 16,688 times- See Rates in 60 seconds
- High Trustpilot Score
- NO fees required and same-day funding
- Unemployment Protection
SoFi is well-regarded by customers for its:
- Competitive interest rates
- No fees (origination, prepayment, or application)
- Comprehensive suite of financial services
- Responsive and helpful customer service
- User-friendly mobile app
The main drawback noted is:
- Higher minimum credit score requirement (680), which can be a barrier for some borrowers
Remember
The best lender for you will ultimately depend on your specific financial situation and credit history.
Which Is Better: SoFi or Upstart?
The best choice depends on your specific situation:
- Large Loan Amount: SoFi is the winner, offering up to $100,000.
- Low Credit Score: Upstart is more suitable, accepting scores as low as 300.
- Cheaper Loan: SoFi has lower APRs and no origination fees.
- Small Loan Amount: Upstart offers loans starting at $1,000, while SoFi starts at $5,000.
- Future Online Banking Services: SoFi provides additional services like mortgages and credit cards.
Choose a company based on your needs. You can go to the company’s websites and apply now.
FAQ
Whose loan is better: SoFi or Upstart?
If you have a good credit history and need a loan in the amount of more than $ 5,000, then contact SoFi. SoFi offers a lower interest rate for customers with a high credit score. If you have a low credit score, then borrow from Upstart.
What is the difference between SoFi and Upstart?
SoFi offers a large loan amount of up to $100,000 and has a lower APR. However, the company’s services are suitable only for borrowers with a high credit score of 680. A loan from Upstart is slightly more expensive but is suitable for a borrower with a credit score of 300.
Where will I get the money faster: Upstart or SoFi?
Both companies offer quick payout. However, if you receive approval early in the morning, then at Upstart you will receive funds the next day and at SoFi you have the opportunity to receive money on the same day.
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