SoFi and Best Egg are two of the best personal loan lenders 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. For mortgages, the minimum loan is $100,000 and the maximum loan is $3 million, while student borrowers must apply for at least $5,000.
Best Egg, on the other hand, is the younger online lender. 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 Lender 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 online lenders.
When it comes to fees, SoFi is also the winner:
- No origination fee
- No fee for not signing up for autopay
- Late payments (more than 15 days):
- $15.00 or 4.0% of the amount due, whichever is lower
- Origination fee: 0.99% – 5.99%
- Non-autopay payments can come with a $7.00 fee
- Late payments (more than 15 days):
- Flat $15.00 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 lenders 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 lender.
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 to have a score of at least 640, and the average credit score for this company’s borrowers is 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 Lender Will Get Me My Money Faster?
Both of these online lenders 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 lender for you.
Best Egg Disclosures
To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.
The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%-29.99%, which may include an origination fee from 0.99%–5.99% that is deducted from loan proceeds. Any origination fee on a loan term 5-years or longer will be at least 4.99%. The APR offered will depend on your credit score, income, debt payment obligations, loan amount, loan term, credit usage history and other factors, and therefore may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. “Best Egg” is a trademark of Marlette Funding LLC. All uses of “Best Egg” on this site mean and shall refer to “the Best Egg personal loan” and/or “Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan,” as applicable. Loan amounts generally range from $2,000-$35,000. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. The minimum individual annual income needed to qualify for a loan of $50,000 is $130,000. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least six months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000. Borrowers should refer to their loan agreement for specific terms and conditions. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank’s policies. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.
Author: Jeff Gitlen
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