SoFi vs Prosper Personal Loans: Which one is right for you?

SoFi and Prosper direct online lenders who offer personal loans quickly and at competitive rates.

But when it comes to personal loans SoFi vs. Prosper, is one business better than the other? Overall, neither one nor the other lender is the winner – the answer depends on your needs as a borrower.

To help you choose, here is a complete comparison of SoFi and Prosper personal loans. Read on to find out which lender is right for you.

SoFi vs. Prosper Overview of Personal Loans

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

SoFi is a direct lender, with borrowings from SoFi Lending Corp. Prosper is a peer-to-peer lender, which means that your loan will usually come from individual investors.

As a borrower, your experience with both companies will not be very different. But it's helpful to understand how both lenders work.

The table below closely examines the rates and terms of SoFi and Prosper personal loans. Check them before diving deeper into what these differences mean to you.

Prosper's rates and conditions were as of July 12, 2018. For the latest information, go to Prosper

	SoFi personal loans [19659011] Personal Loans Prosper
Loan Amount	$ 5,000 – $ 100,000	$ 2,000 – $ 40,000
ANT	6.28 % – 15.62 %	6, 95% – 35.99%
Repayment terms	3, 5 or 7 years	3 or 5 years
Type of Rate	Fixed or variable, depending on the country in which you live	] Fixed
Origin tax	0%	2.41% – 5%
Authorizes joint applications	Yes, if you and your co-signer share the same address	No [19659014] Instant pre-qualification	Yes	Yes
Eligibility	Must have an income or an offer of employment sufficient to start within 90 days; other requirements are not disclosed	FICO score minimum of 640; debt ratio below 50%; no bankruptcy in the last 12 months
Conditions of Residence	Loans everywhere except in Mississippi	N / A
Additional Benefits	Protection of Unemployment	Nil

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

Choose SoFi if you need a large personal loan

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

You need to borrow more than $ 40,000

Unlike Prosper, who has a loan limit of $ 40,000, SoFi allows you to take out a personal loan of up to $ 100,000. This high limit could be useful if you are consolidating a large debt or undertaking a major home improvement project.

Online lenders generally do not offer such large loans, so SoFi is unique in its flexibility. Keep in mind that the minimum loan amount of SoFi is $ 5,000, so you do not have as many options to borrow a small amount of money.

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

SoFi does not disclose the credit score you need to qualify for one of his personal loans, but it looks like the lender is looking for a credit good to excellent. Considering that it offers competitive rates ranging from 6.28 % to 15.62 % SoFi is looking for creditworthy borrowers having the means to repay the loan.

If your credit is not up to par, you can also apply with a solvent co-signer, such as a spouse or relative with whom you live. The identification information of your co-signer could boost your app and help you get low rates. Make sure you are comfortable sharing your debt with the co-signer, and that you both have a clear idea of ​​who is responsible for repaying the loan.

3. Looking for a long repayment period

SoFi provides long repayment terms. The terms offered by other personal lenders such as Upstart or Payoff do not exceed five years, but SoFi lets you choose a term of up to seven years.

The long term could give you some leeway if you need more time. repay your loan, and it could reduce your monthly payments. But you do not have to choose such a long term.

In addition, you can repay the loan more quickly. There is no penalty for prepayment, and you will save a lot of money on changes of interest accordingly.

4. You want insurance against unemployment protection

SoFi is unique in its unemployment protection benefit for personal loan borrowers. If you lose your job, SoFi will suspend your payments in installments of three months for one year.

To qualify for this benefit, you must apply for unemployment benefits and work with SoFi career coaches to find a new job. 19659002] This benefit could be a huge help in case you lose your income. Instead of worrying that your loan becomes a delinquent, you can pause your payments until you are up again.

Visit SoFi

Choose Prosper if you do not have excellent credit

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

• Fair credit scores are between 580 and 669.
• Good credit scores are between 670 and 739.
• Excellent credit scores are between 740 and 799 19659062] Outstanding credit scores range between 800 and 850.

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

Your credit score is about 640

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

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

2. Looking for a personal loan of less than $ 5,000

Prosper does not issue large personal loans as SoFi does; its loans reach a maximum of $ 40,000. But Prosper has lower loan limits, which allows you to get a loan as low as $ 2,000

This can be useful if you are consolidating a small amount of debt or if you are funding a relatively minor personal expense. You do not want to take on more debt than you need.

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

3. You do not intend to apply with a co-signer

Prosper offers low rates on his personal loans starting at 6.95% APR. But since it does not allow you to apply with a co-signer, you will have to prove that you are a solvent borrower.

To benefit from the lowest rates, you will need a strong credit score and a stable income. Fortunately, Prosper and SoFi offer instant quotes on their websites, so you can compare the offers of both lenders.

If you like the details of one or the other offer, you can choose the lender with the lowest rates.
Visit Prosper

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

In the end, you should choose the lender that offers lower rates and fees, as well as the best repayment period.

SoFi could be the winner if you need a large loan and up to seven years to pay it back. The unemployment protection benefits of the business can also give you peace of mind.

Prosper could be a better choice if you want to borrow less than $ 5,000. In addition, its credit score requirements may be less stringent than those of SoFi, making it easier to qualify for a good loan.

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

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

Interested in a personal loan?

Here are the main personal lenders of 2018!

Creditor	Rate (APR)	Loan Amount
1 Includes AutoPay reduction. . 2 . * .
	7.73 % – 29.99 %	1,000 – [19659090] $ 50,000
	6.28 % – 15.62 % 1	5,000 – [19659090] $ 100,000
	6.87 % – 35.97 % *	1,000 – 50 000 [19659105] Visit Upgrade
	8.00 % – 25.00 %		5,000 – 35,000
	4.99 % – 29.99 % [19659107] 10 000 – 35 000	To consult with FreedomPlus
	5.99 % – 18.99 % 2	5,000 – 50,000	Visiting Citizens
	15.49 – 34.49 %	] 2,000 – 25,000	Visit the site LendingPoint
	5.99 % – 35,89 %	1,000 – $ 40,000	Visit LendingClub
	] 5,49 % – 18.24 %		5,000 – 000	Official Visit
	9.95 % – 35.99 %	$ 2,000 ] – $ 35,000	Visit Before