SoFi vs. Prosper Personal Loans: How They Compare

SoFi and Prosper offer personal loans to borrowers with good credit. SoFi has lower rates and unique perks.
Last updated on Dec 21, 2021

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SoFi and Prosper offer online personal loans. SoFi targets borrowers with good credit, while Prosper accepts fair-credit borrowers.

SoFi markets itself as a forward-thinking finance company that offers perks like financial advising and career coaching. Prosper pioneered peer-to-peer lending and favors consumers with established credit histories.

In comparing the two lenders, SoFi’s starting rates are lower than Prosper’s and don’t include fees. Beyond cost, SoFi’s other features — including larger loan amounts and networking opportunities for its members — may tip your decision.

Here’s a closer look at key differences between SoFi and Prosper.

5.0

NerdWallet rating 

4.5

NerdWallet rating 

Loan amounts

$5,000 to $100,000.

$2,000 to $40,000.

APR range

7.99% - 22.73%.

6.99% - 35.99%.

Origination fee

None.

2.41% - 5%.

Repayment terms

Two to seven years.

Three or five years.

Minimum qualifications

  • Minimum credit score: 680.

  • Minimum credit history: Not specified.

  • Minimum annual income: None.

  • Debt-to-income ratio: Not specified.

  • Minimum credit score: 600.

  • Minimum annual income: None.

  • Minimum credit history: Two years or longer.

  • Debt-to-income ratio: 50% (excluding mortgage).

Good option for:

  • Good or excellent credit.

  • Large loan amounts.

  • Co-sign loans.

  • Fair to good credit.

  • Joint loans.

SoFi may be a better option if:

  • You have good or excellent credit (a FICO score of 690 or above).

  • You want a large loan.

  • You want to add a co-signer.

SoFi, founded in 2011, refers to its borrowers as “members” and provides unique perks like happy hours, dinners and networking events throughout the country. SoFi’s customer base has been described as HENRY — high earners not rich yet.

How to qualify: SoFi has a minimum credit score requirement of 680. The company also requires applicants to either be employed, have sufficient income from other sources or have a job offer to start within 90 days.

SoFi also considers your financial history and monthly income versus expenses.

Approval to funding time: The entire process, from loan approval to funding, takes four to seven days — slightly shorter than Prosper.

Costs: SoFi's annual percentage rates start around 5% and top out around 20%, lower than Prosper’s maximum of 36%. SoFi’s APRs include a 0.25 percentage point autopay discount and no origination, prepayment, late or overdraft fees.

Payment flexibility: Like Prosper, SoFi lets borrowers change their payment due date once every 12 months.

In case of job loss, SoFi has a forbearance program that suspends payments or allows interest-only payments for up to a year.

Prosper may be a better option if:

  • You don’t need extras like networking and social events.

  • Your credit history goes back two years or longer.

  • You want to add a co-borrower.

Prosper is among the first peer-to-peer lenders, which means that rather than funding loans itself, the company matches potential borrowers with individual investors who can choose to fund the loans.

While the company doesn’t offer perks like networking events or career coaching, it does offer joint personal loans, which have two people on a loan application and may increase your chance of qualifying or getting a lower rate.

How to qualify: Prosper requires a minimum credit score of 600 and at least two years of credit history. Its debt-to-income ratio maximum is 50%, excluding a mortgage. Single applicants who qualify for a Prosper loan have an average credit score of 722, average annual income of $106,000 and an average debt-to-income ratio of about 18%.

Approval to funding time: Prosper’s loan approval and funding process typically takes five to eight days — possibly a little longer than SoFi.

Costs: Prosper’s APRs range from about 8% to 36%. Unlike SoFi, Prosper charges an origination fee of 2.4% to 5% of the loan amount and doesn’t have an autopay discount.

Like SoFi, Prosper doesn't charge fees for extra payments or paying off your loan early. There is a late payment fee of 5% of the amount due or $15, whichever is greater.

Shop around to find the best personal loan

Especially if your credit is good, your best bet may be to compare loans from SoFi and Prosper with other lenders. 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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