SoFi and Best Egg are two of the best personal loan companies in the industry. They both offer loans to eligible borrower but each has its own rates, terms, benefits, and downsides.
Learn more about how the companies compare so you can decide which is better for you.
SoFi vs. Best Egg: Comparison
|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%|
SoFi is the older of the two, having launched back in 2011 – originally as a lender aiming to make private student loans more accessible. Since it was introduced, SoFi has expanded its offerings beyond student-focused loans and now provides personal loans and even mortgages.
Borrowers can get a SoFi personal loan in the range of $5,000 to $100,000.
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 housing renovation or upcoming travel costs).
Personal loans from Best Egg range from $2,000 to $50,000.
Which Company Offers Lower Interest Rates and Other Fees?
Best Egg only offers fixed-rate personal loans, and its APRs start at 5.99%.
Meanwhile, SoFi offers fixed-rate personal loans with the lower starting interest rate of 6.99%. But unlike Best Egg, SoFi also offers variable-rate personal loans – which have starting APRs of 6.26%. And with a 0.25% discount when you sign up for autopay, SoFi clearly has the lower interest rates between the two.
When it comes to fees, SoFi is also the winner:
- No origination fee
- No fee for not signing up for autopay
- Origination fee: 0.99% – 5.99%
- Non-autopay payments can come with a fee
What About Eligibility
When it comes to which types of borrowers each company is willing to work with, both Best Egg and SoFi have similar eligibility criteria for personal loans. Both companies require borrowers to:
- have a credit score that falls in the range of “good” to “excellent”
- be an American citizen or permanent resident in the United States
- be a least the age of majority, which varies by state
There are, however, differences in the average borrower for each company.
SoFi’s borrowers need to have a credit score of at least 660, but most of its borrowers typically have a score higher than 700. SoFi doesn’t mind if you are new to credit either – you don’t need to have a long credit history to be qualified.
The median income for SoFi borrowers is $101,000.
Best Egg’s borrowers have an average credit score of 700. Unlike SoFi, Best Egg’s borrowers need to have at least seven years of credit history to qualify.
Best Egg says that its borrowers usually earn about $60,000 each year.
Which Company Will Get Me My Money Faster?
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.
Best Egg gets its borrowers their funding faster: after you apply online, you can have your money deposited into your bank account within just one business day.
Which Personal Loan Company is Right for Me?
SoFi (which doesn’t offer personal loans in Mississippi or Nevada, by the way) and Best Egg are similar online personal loan providers – but there are some important differences that make each one better for certain types of borrowers.
If you don’t have a long credit history, but you have a high income, you should apply for a SoFi personal loan – which come with both fixed and variable rates.
If you have solid credit history (of at least 7 years), a slightly-above-average level of income, and you want a fixed-rate personal loan – Best Egg might be the best option for you.
Author: Jeff Gitlen
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