LightStream vs. SoFi: Personal Loan Comparison
Both LightStream and Sofi provide affordable loans to borrowers with good credit, but which lender is best for you? In this guide, we review both loans and cover some scenarios where one lender may be better than the other.
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Need to cover an unexpected bill or some planned spending? A personal loan can be a good option. Personal loans often have lower rates when compared to other flexible financing options, like credit cards.
In addition, they can typically be used to cover a variety of expenses, including medical bills, weddings, auto or home repairs, and even debt consolidation.
If you have good credit and are looking for a low rate personal loan, two lenders you may want to consider are SoFi and LightStream. These lenders offer quick and easy access to affordable personal loans as well as other perks and benefits. This comparison will tell you which lender is best.
In this comparison:
- LightStream vs. SoFi Personal Loans Overview
- SoFi vs. LightStream: Which Personal Loan Is Right for Me?
LightStream vs. SoFi Personal Loans Overview
|Interest Rates (APR)||4.99% – 16.99%* with AutoPay||5.74% – 16.99%|
|Loan Terms||2 – 7 years**||3 – 7 years|
|Loan Amounts||$5,000 – $100,000||$5,000 – $100,000|
|Fees||No origination or prepayment fees||No origination or prepayment fees|
SoFi vs. LightStream: Which Personal Loan Is Right for Me?
As the table above indicates, they offer borrowers low interest rates, high loan amounts, and loans with no fees—including application fees, origination fees, and prepayment penalties.
Deciding between the two can be difficult, especially when rates and terms are so similar. To help you decide, we’ll share a few scenarios that may make one lender better suited for your needs.
- If you need a long repayment term
- If you need more than one financial product
- If you want a satisfaction guarantee
- If you are worried about losing your job
- If you have average or below-average credit
If you need a long repayment term
If you’re taking out a larger loan and prefer more time to pay it off, then you may want to consider working with LightStream.
That’s because LightStream offers repayment terms of 24 months to 144 months** on loans for $25,000 or more.
If you need more than one financial product
Thinking of taking out a student loan or refinancing an existing one? What about a mortgage or a wealth portfolio?
If you want to keep consolidate your financial matters, particularly loans and investment accounts, SoFi can be a good option because they offer a wide range of products.
SoFi also has a loyalty program that entitles existing customers a 0.125% rate reduction when they take out a different type of loan.
If you want a satisfaction guarantee
Personal loans don’t typically come with the benefit of satisfaction guaranteed, but LightStream customers can leverage the lender’s Loan Experience Guarantee.
If you’re not satisfied with your loan experience, LightStream will send you $100 as long as you complete and return their questionnaire.***
If you’re worried about losing your job
If you’re questioning your job security, you may not want to take on the burden of a new loan, but sometimes waiting is not an option.
SoFi offers an Unemployment Protection Program that can make it easier to manage your debt obligations in the event of a job loss. This program allows borrowers in good standing to pause payments in three-month increments for up to a total of 12 months.
If you have average or below-average credit
Both SoFi and LightStream originate personal loans to borrowers with good-to-excellent credit scores. If you don’t meet their minimum credit score requirements of 660, then you won’t be eligible for a loan through either of these lenders.
Bottom Line: LightStream vs. SoFi
LightStream is usually a better option than SoFi because they typically offer lower interest rates and a Rate Beat Program in which they will beat any competitor’s rate by 0.10 percentage points.**** In addition, you can receive an automatic payment discount of 0.50% compared to the 0.25% that SoFi offers.
*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.
**Payment example: Monthly payments for a $10,000 loan at 5.95% APR with a term of three years would result in 36 monthly payments of $303.99.
***After receiving a loan from LightStream, if not completely satisfied with the experience, the customer can contact LightStream. LightStream will email a questionnaire to the customer so LightStream can improve our services. When LightStream receives the completed questionnaire, they will send the customer $100. LightStream’s guarantee expires 30 days after the customer receives their loan. LightStream reserves the right to change or discontinue the guarantee at any time. Limited to one $100 payment per funded loan. Truist teammates do not qualify for the Loan Experience Guarantee.
****LightStream will offer a rate .10 percentage points lower than the rate offered on any competing lender’s unsecured loan provided that you were approved for that lower rate (with the same loan terms offered by LightStream) no later than 2 p.m. Eastern time two business days prior to loan funding. The Rate Beat Program excludes secured or collateralized loan offers from any lender, and the competitive offer must be available to any customer with a similar credit profile. Terms are subject to change at any time.
If you believe you have been approved by another lender for a lower qualifying rate, contact LightStream customer service. We will work with you to determine your Rate Beat eligibility and obtain the necessary documentation.
Author: Jennifer Lobb