LightStream vs. SoFi: Personal Loan Comparison

Now that you’ve decided to take out a personal loan, your next step is figuring out where to apply. To support those efforts, we’ve compared two top contenders, LightStream and SoFi. Keep reading to learn what each lender offers—and to decide which is best for you.

LightStream vs. SoFi: At a glance

	4.8 View Rates	5.0 View Rates
Loan amounts	$5,000 – $100,000	$5,000 – $100,000
Loan amounts	Loan amounts
$5,000 – $100,000	$5,000 – $100,000
Terms	24 – 144 months	24 – 84 months
Terms	Terms
24 – 144 months	24 – 84 months
Fees	None	None required
Fees	Fees
None	None required
	See the best personal loans.

LightStream and SoFi both cater to borrowers with good to excellent credit. Both lenders consider scores down to 660, but you’ll see the best rates and have the best approval odds if your score is even higher.

SoFi doesn’t require fees, but you have the option to pay an origination fee in exchange for a discount on your interest rate. LightStream doesn’t charge any fees—so you can’t change the rate it offers.

Another important difference between SoFi and LightStream is the length of time you’ll have to repay your loan. SoFi offers loan terms of up to seven years, while LightStream allows up to 12 years.

How does LightStream work?

In 1995, LightStream only offered auto loans. Now, this online lender funds just about anything you can think of—from cars to weddings to swimming pools. 

LightStream is part of Truist Bank, but you don’t need to be a Truist account holder to borrow from LightStream. Because LightStream operates entirely online, you can apply, sign your loan agreement, and get your funds with just a few clicks. 

Besides convenience, LightStream also offers these benefits:

• Same-day funding: You can get your funds the day you apply if you sign your loan docs and complete the verification process by 2:30 p.m. Eastern on a banking day.
• Rate Beat Program: Did you qualify for a better rate from another lender? LightStream will beat it by 0.10 percentage points.
• Loan Experience Guarantee: LightStream is so confident in its service that you’ll get $100 if you’re not totally satisfied.

As a bonus for environmentally conscious borrowers, LightStream plants a tree for every funded loan. While this doesn’t have a direct impact on your personal loan, you might appreciate knowing your LightStream loan gives something back to the planet.

Despite these benefits and features, LightStream loans aren’t for everyone. You can’t check your rates with LightStream before you apply, which may dissuade borrowers who want to minimize hard inquiries on their credit reports.

Check out our full LightStream review to learn more about its qualification criteria and lending process. 

How does SoFi work?

SoFi’s been around since 2011, when it started offering alumni-funded loans to recent grads. The online lender then transitioned to student loan refinance before launching its personal loan product in 2015.

You can use a SoFi personal loan for almost any expense. You’ll qualify for a 0.25% rate discount if you use your loan for debt consolidation and let SoFi pay off your creditors. 

Here’s a quick look at SoFi’s rate reduction opportunities, including the Direct Pay discount:

Rate discount	Amount	How to qualify
Direct pay	0.25%	Let SoFi use at least 50% of the loan to pay off debt
Autopay	0.25%	Enroll in automatic loan payments
Direct deposit	0.25%	Open a SoFi bank account and set up direct deposit
Member rate	0.125%	Take out a SoFi student loan

In some cases, you may be able to combine these discounts for maximum savings. And if you’re curious about your SoFi rate before any discounts, you can prequalify in 60 seconds without risking a hard credit inquiry.

If you decide to apply and get approved, your SoFi loan will come with the following borrower benefits:

• Same-day funding: Get your loan proceeds in just a few hours when you apply and sign your loan agreement before 7 p.m. Eastern on a business day.
• Exclusive member perks: From travel discounts to member workshops and events, SoFi cultivates a community its borrowers belong to even after they’ve repaid their loans.
• Minimal fees: SoFi never charges late fees or prepayment penalties—and you aren’t required to pay an origination fee.

If you opt to pay an origination fee for the rate discount, it will be taken out of your loan proceeds and reduce your loan funds. 

For more details about SoFi’s personal loans and lending experience, read our full review.

LightStream vs. SoFi eligibility

	LightStream	SoFi
Min. credit score	660	660
Allows co-applicants?	✅	✅
Avail. in all 50 states?	✅	✅
Addt’l. reqs.	Won’t consider income earned from cannabis industry	If permanent resident, status must be valid for at least two more years

Neither LightStream nor SoFi mentions minimum income requirements or maximum debt-to-income ratios (DTIs). However, LightStream specifies that applicants need several years of credit history and few to no late payments to qualify.

Since both lenders prefer better-credit borrowers, it’s reasonable to assume that SoFi has similar underwriting preferences.

LightStream considers each applicant’s creditworthiness individually, even in the case of joint applications. Furthermore, SoFi allows co-borrowers, not cosigners. With both lenders, you and your co-applicant share ownership of—and bear equal responsibility for—the personal loan.

What customers say about LightStream and SoFi

Researching customer reviews is an important part of the lender evaluation process. At first glance, the below ratings for LightStream and SoFi might give you pause. But when you delve into the reviews themselves, you’ll see that things aren’t always what they seem.

	LightStream	SoFi
Trustpilot	1.6 out of 5	4.6 out of 5
Better Business Bureau	1.32 out of 5	1.59 out of 5

Most of LightStream’s negative reviews come from borrowers targeted by third-party scams—not from actual LightStream customers. Other poor ratings are from applicants expressing frustration about not getting approved for a LightStream personal loan. 

SoFi’s customer complaints primarily come from its banking clients as opposed to loan borrowers. Of the loan applicants who left reviews, their complaints tend to be about:

• Issues with the identity verification process
• Rates increasing or loans being denied after customers prequalify

Positive reviews for both companies highlight easy applications and fast funding.

We encourage you to read each lender’s reviews and form your own opinion. As you do, you’ll notice that LightStream and SoFi both hold high BBB ratings (A and A+, respectively)—but only LightStream is BBB-accredited. 

BBB accreditation signifies that a company commits to operating ethically and legally, but it’s a designation that businesses pay for. In other words, a business that isn’t accredited isn’t necessarily illegitimate or unreliable—it just hasn’t paid for an accreditation review.

Which is better—LightStream or SoFi?

LightStream and SoFi offer standout features and customer-appreciated lending experiences, but one may be a better choice than the other in these scenarios:

If you want…	Choose…
To prequalify before you commit	SoFi
A longer loan term	LightStream
More rate discounts	SoFi
Addtl. loans in the future	SoFi
Zero fees	LightStream

Prequalify before applying

Prequalifying lets you check your rates without any commitments or hard inquiries. It’s a valuable loan comparison tool that protects your credit while ensuring you get the best deal.

If you’re confident LightStream is the right lender for you—and that you’ll be approved—you might be OK with its lack of a prequalification process. However, if you’re at all on the fence, consider at least checking your rates with SoFi (and other personal loan lenders) first.

Winner

SoFi

Loan terms

Extended repayment periods translate to lower monthly payments. LightStream’s term lengths may appeal to borrowers looking for a budget-friendly personal loan.

A longer term will likely cost you more in interest, so be sure to weigh your current cash flow needs against your loan’s overall borrowing cost.

Winner

LightStream

Discounts and loan options 

LightStream boasts a lower rate range than SoFi, but SoFi offers more ways to save. If you’re willing and able to meet its qualification requirements—opening a bank account, for example, and signing up for direct deposit—SoFi’s rate discounts may win you over.

Another advantage is the ability to borrow other types of loans. You might need a personal loan now, but if you anticipate needing student loans in the future, SoFi’s multiple lending options and member rates could be a source of added convenience.

Winner

SoFi

Zero fees

While neither lender charges prepayment or late fees, you have the option to pay an origination fee with SoFi for a lower rate. LightStream charges no fees whatsoever.

If you’re not willing to exchange part of your loan proceeds for a lower rate and instead simply want to know what rate you qualify for, LightStream might be your top contender.

Winner

LightStream

Recap of LightStream vs. SoFi

	LightStream	SoFi
LendEDU rating (out of 5)	4.8	5.0
Best for	Excellent credit	Good credit
Terms	24 – 144 months	24 – 84 months
Fees	None	None required
	View rates	View rates