SoFi vs. LendingClub Personal Loans: How They Compare

SoFi's personal loans edge out LendingClub with lower rates and no fees.
Dec 16, 2021

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SoFi and LendingClub are two options for unsecured personal loans. Both offer loans for debt consolidation, home improvements and other purposes.

For borrowers with strong credit and income, we give SoFi the edge over LendingClub because it offers a lower range of rates plus no fees.

Here’s a side-by-side comparison of SoFi and LendingClub. We always recommend borrowers compare personal loans — including rates, terms and features — before applying.

SoFi vs. LendingClub at a glance

5.0

NerdWallet rating 

5.0

NerdWallet rating 

Loan amounts

$5,000 to $100,000.

$1,000 to $40,000.

Typical APR

6.99% - 22.28%.

6.34% - 35.89%.

Origination fees

None.

1% - 6%.

Time to funding

Four to seven days.

Less than five days.

Repayment terms

Two to seven years.

Three or five years.

How to qualify

  • Minimum credit score: 680.

  • Minimum credit history: Not specified.

  • Minimum annual income: None.

  • Debt-to-income ratio: Not specified.

  • Minimum credit score: 600.

  • Minimum credit history: None.

  • Minimum annual income: None.

  • Debt-to-income ratio: Less than 40% for single applicants, 35% for joint applicants.

Best for

Good credit, debt consolidation, home improvements.

Fair credit, debt consolidation, joint applicants.

SoFi may be a better option if:

  • Your credit score and income are strong enough to get you the lowest rate.

  • You want no origination or late fees.

  • You want a large loan amount.

Founded in 2011, SoFi is an online finance company that offers personal loans as well as student loan refinancing, mortgages and financial planning. It provides personal loans up to $100,000 — an unusually large loan amount among online lenders — plus perks like unemployment protection and career coaching.

How to qualify: SoFi’s minimum credit score is 680. The company says borrowers with good or excellent credit are the most likely to qualify.

The company also requires applicants to be employed, have sufficient income from other sources or have an offer to begin employment within 90 days.

You can apply with a co-signer, which may help you qualify for a loan or get a lower rate. Co-signers don’t have access to the funds, but they’re responsible for loan payments if you fail to pay.

Approval to funding time: SoFi’s timeline — including approval and funding — typically takes between four to seven days, possibly longer than LendingClub.

Costs: SoFi offers fixed-rate loans at annual percentage rates ranging from about 5% to 20% with an autopay discount of 0.25 percentage points.

SoFi personal loans carry no origination fees, prepayment penalties, late fees or overdraft fees.

Repayment flexibility: SoFi allows borrowers to choose their payment due date at signing and once every 12 months if they’re in good standing. The company also offers forbearance — temporary suspension of payments — for three months at a time if you lose your job at no fault of your own. Interest continues to accrue on suspended loans.

Good option for: SoFi loans work best for debt consolidation and funding large one-time expenses, such as home improvements. The lender offers high borrowing amounts, low rates and no fees. You’ll need good credit and strong income to qualify.

LendingClub may be a better option if:

  • You want a smaller loan.

  • You want to add a co-borrower.

  • You have a lower credit score.

LendingClub is a fit for fair-credit borrowers and offers loans ranging from $1,000 to $40,000 that can be used for many purposes, including debt consolidation, home improvements and medical expenses.

How to qualify: LendingClub accepts applicants with lower credit scores than SoFi; its minimum credit score is 600. There’s no minimum credit history requirement, but single applicants must have a debt-to-income ratio of less than 40%.

Unlike SoFi, LendingClub offers joint applications. The minimum credit score required for a co-borrower is 540, and the borrowers' combined DTI ratio must be under 35%.

Approval to funding time: The entire process — from application to loan approval and funding — can take less than five days, potentially shorter than SoFi.

Costs: LendingClub’s APRs range from about 7% to 36%. This includes a one-time origination fee between 1% to 6%, which is deducted from the loan proceeds.

If a monthly payment is 15 days late, LendingClub charges a late fee of 5% of the payment or $15, whichever is greater.

Good option for: LendingClub loans work best for debt consolidation, borrowers with fair credit and those who want to apply with a joint application. It requires a lower minimum credit score to qualify and may offer faster funding than SoFi, but it also carries a higher APR range.

Shop around for the best personal loan

If you have good credit, your best bet is to compare loans from SoFi and LendingClub against other lenders to ensure you receive the rate and terms that work best for you. Click the button below to pre-qualify on NerdWallet and receive a personalized rate from multiple lenders.


Personal Loans Rating Methodology

NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.

This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Learn more about our ratings methodologies for personal loans and our editorial guidelines.

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