• Author: The Loans.pro
  • Date: August 14 2024

SoFi has positioned itself as the nation’s leading provider of personal loans, offering competitive rates, zero fees and a user-friendly experience. However, SoFi is not the only option. Whether you want better terms, products, or other lenders, SoFi has several options that offer the same benefits In this article, we’ll dive into the top 6 loans like SoFi, exploring their features, pros, cons and how they compare to SoFi. This guide will help you find the right lender for your needs, and ensure you make the right financial decision.

1. LightStream

Overview: LightStream, a unit of Truist Bank, offers some of the most competitive personal loan rates on the market, making SoFi a strong alternative. With a variety of loan amounts and flexible terms, LightStream is ideal for borrowers with excellent credit who want to pay off larger debts such as home renovations, car purchases, or debt consolidation

The main features:

  • Loan Range: $5,000 – $100,000
  • APR: 7.99% – 23.99% (with actual fees)
  • Loan term: 24 to 144 months
  • Fees: There are no origination, prepayment, or late fees
  • Credit Score Requirement: 660 or higher

Pros:

  • Highly competitive rates for qualified borrowers
  • There is no charge anywhere
  • Fast approval and funding, usually same day

Cons:

  • Good value requires a good to excellent credit score
  • Not available for small loans under $5,000
  • There are no pre-qualifying options, which means pulling hard credits

How does SoFi compare

Lightstream is comparable to SoFi at competitive prices and free. However, LightStream may be more attractive to borrowers seeking higher loan rates and longer terms. If you have good credit and prefer a lower rate lender, LightStream may be a better option.

2. Marcus by Goldman Sachs

Overview: Marcus by Goldman Sachs is known for shoestring personal loans, competitive pricing and strong customer service. It’s a suitable alternative to SoFi, especially for those who want a straightforward personal loan with no hidden costs or surprises. Marcus also offers flexible payment options, including a series of 12 timed payments and the ability to stop payments.

The main features:

  • Loan Range: $3,500 – $40,000
  • APR: 6.99% – 24.99%
  • Loan terms range from 36 to 72 months
  • Fees: There are no origination, prepayment, or late fees
  • Credit Score Requirement: 660 or higher

Pros:

  • There are no fees including late fees
  • 12 Option to stop payment after making consecutive payments on time
  • Fixed APR and flexible credit terms

Cons:

  • Single signatures or joint applications are not permitted
  • Compared to Sophie, it’s only small loans
  • Not available for business or educational purposes

How does SoFi compare

Goldman Sachs has made Marcus a strong contender for SoFi, especially for those who want free personal loans with flexible repayment options. While Marcus offers low-cost loans, its lack of debt and ability to repay in advance makes it an attractive option for those seeking simplicity and flexibility

3. Discover Personal Loans

Overview: Discover is a well-known name in finance, and its personal loans are a favorite of SoFi’s. Discover offers competitive interest rates, no origination fees, and the ability to pay lenders directly for loan consolidation, making it a viable option for borrowers looking to streamline their finances

The main features:

  • Loan Range: $2,500 – $40,000
  • APR: 6.99% – 24.99%
  • Loan terms range from 36 to 84 months
  • Cost: There is no origination fee, but there may be a late charge
  • Credit Score Requirement: 660 or higher

Pros:

  • There is no origination fee
  • Option to pay creditors directly for debt consolidation
  • Soft loans up to 84 months

Cons:

  • Those with lower credit scores may have higher interest rates
  • If a payment is missed, it charges a late fee
  • The minimum loan is $2,500

How does SoFi compare

Discover offers the same benefits as SoFi, especially in terms of no origination fees and flexible credit terms. But Discover’s late fee policy and potentially higher loans for lower credit scores could make it less attractive to some borrowers. If you’re consolidating debt and want to find a lender that can pay your creditors directly, Discover is a strong option.

4. Upstart

Overview: Upstart is an online lending platform that sets itself apart by using artificial intelligence and non-traditional data to assess creditworthiness. This approach allows upstarts to approve borrowers who don’t qualify with traditional lenders, making SoFi an excellent choice for those with limited credit histories or low credit scores

The main features:

  • Loan Range: $1,000 – $50,000
  • APR: 5.42% – 35.99%
  • Loan term: 36 or 60 months
  • Fees: Origination fees range from 0% to 8%.
  • Credit score requirements: 600 or higher (possibly with lower exceptions plus other criteria) .

Pros:

  • Uses non-traditional sources to screen applications, which can lead to higher approval rates
  • Quick financing, usually available next day work
  • Suitable for borrowers with low credit history

Cons:

  • It charges an origination fee, which can be as high as 8%.
  • Higher APR compared to other lenders, especially for lower credit scores
  • Only two loan term options (36 or 60 months) are limited.

How does SoFi compare

Upstart’s use of AI and other data makes SoFi a unique choice, especially for those with low credit scores or credit histories. While SoFi can offer better rates and terms for those with strong credit, it offers opportunities for borrowers who might not qualify elsewhere. If you’re struggling to get a loan approved through a traditional lender, Upstart is worth considering.

5. LendingClub

Overview: LendingClub is a peer-to-peer lending platform that offers personal loans with competitive rates and flexible terms. Lending Club is a particularly good platform for borrowers looking to consolidate their debt, as it offers lenders a direct payment option, such as Discover. As a peer-to-peer networking platform, LendingClub connects borrowers with private investors, allowing for more personalized loans.

The main features:

  • Loan Range: $1,000 – $40,000
  • APR: 8.30% – 36.00%
  • Loan term: 36 or 60 months
  • Fees: Origination fees range from 3% to 6%.
  • Credit Score Requirement: 600 or higher

Pros:

  • Direct payment option for cost consolidation
  • Soft loans and grants
  • How more personalized loans can be offered through peer-to-peer lending

Cons:

  • They charge origination fees
  • Higher interest rates for borrowers with lower credit scores
  • Only two loan term options (36 or 60 months) are limited.

How does SoFi compare

LendingClub offers a similar free, direct payment loan consolidation option, making SoFi a viable alternative for borrowers with low credit scores or interested in peer-to-peer lending but LendingClub funds who increases and interest rates can make it less attractive for those who qualify for lower rates through SoFi. If you’re looking for a loan to add to a loan you’ll pay directly from lenders, LendingClub is worth considering.

6. Avant

Overview: Avant is an online lender that specializes in providing borrower personal loans ranging from reasonable to excellent. Avant offers flexible loan terms and quick financing, making it the best choice for those who need money quickly. While Avant’s interest rates are higher than those offered by SoFi, it’s a tough option for borrowers who don’t qualify for SoFi’s best interest rates.

The main features:

  • Loan Range: $2,000 – $35,000
  • APR: 9.95% – 35.99%
  • Loan term: 24 to 60 months
  • Fees: Origination fees up to 4.75%.
  • Credit Score Requirement: 580 or higher

Pros:

  • Quick financing, usually available next day work
  • Suitable for fair to good borrowers
  • Loan terms and variable rates

Cons:

  • Increased profitability compared to Sophie
  • They charge origination fees
  • Loan rates are low compared to other lenders
  • How does SoFi compare

Avant is SoFi’s solid alternative for fair borrowers who don’t qualify for SoFi’s lower rates. While Avant’s interest rates and fees are high, it offers a flexible loan process and quick financing, making it a viable option for those who need cash quickly If your credit score prevents you from getting approved for a SoFi loan , Avant might be that good choice.

Conclusion

While SoFi is a top choice for a personal loan, it’s important to look for other lenders to find the one that best fits your financial needs. Each of the six options listed above offers unique advantages, whether it’s lower credit, easier terms, or the ability to qualify for less-performing loans

Goldman Sachs’ LightStream and Marcus stand out for their competitive pricing and free plans, making them great choices for hard-core borrowers Discover and Lending Club offer direct payment options for debt repayment together, Upstart and Avant handled those with low credit scores or low credit history

When choosing a loan, consider your credit score, the amount you owe, the purpose of the loan, and the lender and terms. By comparing these factors, you can find the best lender to help you reach your financial goals.

Whether you stick with SoFi or choose one of these options, taking the time to research your options will ensure you make the best investment decision for your situation.