LendingClub Vs SoFi: How They Compare For Personal Loans

When it comes to personal loans, responsible consumers are likely to stumble upon the same list of legitimate lenders over and over again while doing their due diligence. And among this group of trusted platforms, LendingClub and SoFi typically stand out as being two of the best loan providers in the business. But how do these two lenders actually stack up against one another? And is SoFi better than Lending Club? Or is it the other way around?
Find out the answers to all of your burning questions in this in-depth comparison of Lending Club vs SoFi.

About LendingClub

Headquartered in San Francisco, LendingClub was founded in 2006 and initially launched as an application for Facebook. A pioneer in the field of peer-to-peer lending, LendingClub paved the way for other platforms in the industry by becoming the first lender of its kind to register with the Securities and Exchange Commission in 2008. More than a decade later, LendingClub is a publicly traded company and remains the largest peer-to-peer lender in existence.

About SoFi

SoFi, short for “Social Finance,” is an internet-based lender that helps consumers secure personal loans and refinance student loans. SoFi was founded in 2011 by four students at Stanford who initially launched the platform exclusively using funds from their school’s alumni. Over time, however, SoFi scaled dramatically, and in May 2016, it became the first lending startup to receive a AAA rating from Moody’s.

Key Differences Between LendingClub and SoFi

While there is a considerable amount of overlap between the services Lending Club and SoFi each offer, these two lenders are far from identical. To help you develop a better understanding of how these platforms differ, let’s take a look at their rates and terms.

LendingClub Comparison

Loan amounts: $1,000–$40,000
Interest rate (APR): 6.95%–35.89%
Minimum credit score: 660
Repayment terms: 3–5 years
Origination fee: 1.00%–6.00%
Cosigners Accepted: Yes
Prepayment fee: None
Late fee: The greater of $15 or 15% of the payment amount
Hard or Soft Credit Check: Soft
Time to funding: Typically within one week
Click “Check Rates” to apply to LendingClub

SoFi Comparison

Loan amounts: $5,000–$100,000
Interest rate (APR): 5.99%–18.64%
Minimum credit score: 680
Repayment terms: 2-7 years
Origination fee: None
Cosigners Accepted: Yes
Prepayment fee: None
Late fee: None
Hard or Soft Credit Check: Soft
Time to funding: Typically within one week
Click “Check Rates” to apply to LendingClub

» MORE: Personal Loans For Good Credit

As you can see, LendingClub and SoFi are rather similar, but neither company outdoes the other across the board. SoFi offers lower APRs and longer windows for repayment, but loans with this company can be more difficult to secure. LendingClub, on the other hand, charges higher APRs and offers shorter terms for repayment, but some borrowers might find more favorable rates with this platform.

So which lender, LendingClub or SoFi, might be a better fit for your particular set of needs? Here are a few scenarios when choosing one might make more sense than opting for the other.

Why You Might Need LendingClub

Costs: If you only need to borrow a small sum of money and you have a healthy credit score, LendingClub could be a better option because this platform assigns lower interest rates to the exceptionally creditworthy crowd. In fact, anyone who’s worked hard to maintain an immaculate credit report and low level of debt should absolutely apply for a LendingClub loan because this lender offers a slightly lower APR than SoFi, which could allow you to keep more of your money.

Debt Consolidation: If you’re taking out a loan to consolidate credit card debt, LendingClub can make your life easier by paying your creditors directly using up to 80% of your initial loan amount.

Why You Might Need SoFi

Costs: If your credit score is above average — but not quite astonishing — there’s a good chance SoFi will offer you more attractive terms than LendingClub would. SoFi is also more appealing by virtue of not charging any origination fees or late fees, and SoFi’s can loan up for $100,000 compared to $40,000 limit from LendingClub.

Payment Flexibility: SoFi gives borrowers the freedom to choose their own payment date and change it at any time. Plus, Sogi offers longer repayment terms than LendingClub and provides borrowers with unemployment protection in case they lose their jobs before fully paying off their balances.


Both LendingClub and SoFi require applicants to be American citizens at least 18 years of age, but neither lender presently operates in all 50 states. SoFi is limited to issuing loans in Alabama, California, Delaware, Idaho, Indiana, Iowa, Louisiana, Maryland, Michigan, Minnesota, Missouri, Montana, Nevada, North Dakota, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Vermont, Washington, and Washington D.C. LendingClub’s territory includes far more of the country, covering every state except Iowa and West Virginia.

SoFi requires a higher credit score than LendingClub does, but neither lender requires a specific length of credit history. SoFi also insists that all applicants be employed in order to gain approval for a loan.

Application & Approval Process

SoFi and LendingClub have similar application processes that individuals can quickly complete online. Applicants will be asked to upload various documents including forms of identification and proof of income. If and when you are approved for a loan, you’ll be presented with the rates and terms to help you decide if you want to move forward. If you elect to take out a loan, you can expect the funds to arrive in your bank account within seven business days.

Which Company is Better?

So when it comes down to it, which loan provider is preferable: SoFi or LendingClub? For most people with better-than-average credit, SoFi is more likely to offer a lower APR. And, at the end of the day, the lower the cost of a loan, the easier it is to choose which lender to go with. Plus, SoFi’s can issue larger loan amounts, which is preferable for people seeking to consolidate more significant sums.

If you’re on the fence between these two lenders, you can apply for a loan with both without it negatively affecting your credit score. So what are you waiting for? Find out now whether SoFi or LendingClub is prepared to offer you a lower interest rate.

Check Rates

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