SoFi and Best Egg are two of the best personal loan companies in the industry. They both offer loans to eligible borrowers but each has its own rates, terms, benefits, and downsides.
This review will show you how the two lenders stack up, so you can decide which is better for you.
In this review:
SoFi vs Best Egg: At a glance
|Rates (APR)||5.74% – 16.99%||5.99% – 29.99%|
|Loan Terms||2 – 7 years||3 – 5 years|
|Loan Amounts||$5,000 – $100,000||$2,000 – $50,000|
|Fees||No origination or prepayment fees||Origination fee: 0.99% – 5.99%|
When it comes to lender experience, SoFi is the older of the two, having launched back in 2011 as a private student loan lender.
Since it was introduced, SoFi has expanded its offerings beyond student-focused loans and now provides personal loans and even mortgages. You can learn more in our SoFi personal loan review.
Best Egg, on the other hand, is the younger online lending platform. It was introduced in 2014 by its parent company—Marlette Funding. Best Egg’s personal loans are typically used to consolidate credit card debt or pay for a large expense (like a home improvement or upcoming travel costs).
Your rates from either lender will vary based on your own personal credit history and current outstanding debt. However, you can see how the rates compare in the table above.
SoFi vs Best Egg: Which is Right for me?
In general, SoFi is our preferred lender. It earned a LendEDU rating of 4.87 / 5.00, while Best Egg earned a rating of 3.41 / 5.00. However, which lender is right for you will depend on a host of other factors, such as how much you want to borrow, or how fast you need funding.
Here are a few scenarios where one lender may be better than the other:
- If you have good credit
- If your credit history is short
- If you want to avoid fees
- If you want a six-figure loan
- If you just want to borrow a little
- If you want fast funding
If you have good credit
If you have good credit, SoFi is likely your better option. SoFi advertises a minimum credit score of sofi-perl-36-mincreditscore, so if your FICO score is above that number, you should score a decent rate.
The median income for SoFi borrowers is $101,000.
Best Egg doesn’t disclose its minimum score, but its borrowers have an average credit score of 700 and they usually earn about $60,000 each year, according to the lender.
Best Egg’s interest rates can run much higher, though, indicating that borrowers with lower credit scores may pay a lot for the privilege of borrowing.
If your credit history is short
While SoFi borrowers do need to have good credit, it doesn’t mind if you are new to credit either.
Best Egg, on the other hand, wants you to have at least seven years of credit history to qualify.
If you want to avoid fees
SoFi charges no fees for loan origination, prepayment, or late payments.
Best Egg charges origination fees between bestegg-perl-54-origfee, and they may also charge fees if you decline to sign up for automatic payments. This can make the upfront cost of getting your loan more expensive, so SoFi is the winner here.
If you want a six-figure loan
SoFi offers personal loans from $5,000 to $100,000. That’s enough to make major renovations to your home, pay off a heap of medical debt, or finance another large expense.
Personal loans from Best Egg range from $2,000 to $50,000.
That’s still likely enough for many borrowers, but if you’re eyeing a six-figure expense, SoFi is the better option.
If you just want to borrow a little
Opposite of the previous section, Best Egg is the better option if you only need to borrow a small amount. SoFi’s minimum loan amount is sofi-perl-36-amountlow, whereas Best Egg allows you to borrow as little as bestegg-perl-54-amountlow.
It doesn’t make sense to take on more debt than you need, so if you’re trying to cover a smaller issue that can be solved with just a few grand, go with Best Egg.
If you want fast funding
Both of these online companies have a quick underwriting process.
After you submit your SoFi personal loan application, you need to get approved and then talk over the phone with a representative. After providing your e-signature, borrowers will get their funds in a few days.
However, Best Egg gets its borrowers their money faster. After you apply online, you can have your money deposited into your bank account within just one business day.
SoFi vs other lenders
How we rate personal loan lenders
LendEDU rates personal loans based on the weighted average of several data points relative to other products in the same credit category: bad credit, fair credit, and good credit. You can learn more about our methodology here.
Author: Daniel Caughill
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