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SoFi and Best Egg are two companies that offer personal loans. 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 with 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. You can learn more with our Best Egg personal loan review.
SoFi vs Best Egg: Which is Right for me?
Which lender is right for you will depend on a host of factors, such as how much you want to borrow and 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 660, so if your FICO score is above that number, you can receive a competitive rate.
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 need to have good credit, the lender doesn’t have any requirements for how long your credit history should be.
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 0.99% – 5.99%, 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 $5,000, whereas Best Egg allows you to borrow as little as $2,000.
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.
If you want to compare additional options, you can check out our guide to the best personal loans.
Author: Daniel Caughill