SoFi Vs Prosper: Personal Loan Comparison

For many Americans, there comes a time when having access to a substantial amount of money can make life much simpler. Whether you’re seeking funds for a home improvement project or hoping to consolidate your current debt to make it more manageable, pursuing a personal loan might be the perfect option for you. Yet there are so many lenders in today’s marketplace, how are consumers to know which institutions they can trust?

Among the constellation of companies that offer personal loans, SoFi and Prosper are two of the most popular options. But what makes these two peer-to-peer lenders so special? And when it comes to SoFi vs Prosper, how do they stack up against one another? Read on for the answers to these questions and many more.

About SoFi

Founded in 2011, SoFi is a peer-to-peer lender that almost exclusively works with borrowers who have better-than-average credit and earn an above-average income. SoFi is a great choice for people with good credit and for young professionals who need access to funds fast. Additionally, SoFi invites its members to exclusive experiences to help them become more successful. Here’s an overview of this lender’s terms.

  • Loans range from $5,000 to $100,000 with repayment terms from three to seven years.
  • APRs range from 5.99% to 18.64% for borrowers who activate autopay on their accounts.
  • Applicants must earn at least $45K per year and have a FICO score greater than 680 to get approved.
  • SoFi does not charge origination fees or late fees.
  • SoFi doesn’t have any requirements regarding credit history length or debt-to-income ratio.
  • SoFi doesn’t charge any prepayment fees and this lender permits the use of a cosigner.
  • SoFi’s approval process is near instant, and time to funding can take up to one week.

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About Prosper

Prosper revolutionized the lending industry in 2005 when the company established itself as the world’s first peer-to-peer lender. Since then, Prosper’s platform has facilitated the funding of more than $10 billion in personal loans. Prosper almost exclusively works with borrowers who have solid FICO scores and well-established credit histories.

  • Loans range from $2,000 to $35,000 with repayment terms from three to five years.
  • APRs range from 7.95% to 35.99% and origination fees can be anywhere from 2.41% to 5%.
  • Applicants aren’t required to earn a set income, but they must have a minimum credit score of 640.
  • Prosper requires applicants to have a credit history of at least two years with a credit utilization of less than 50%.
  • Prosper does not charge any prepayment fees, but they do charge late fees of 5% (or $15) after 15 days.
  • Prosper’s approval process can take up to seven business days and time to funding is a few additional business days.

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Which Lender Is Right for You?

If you’re considering applying for a loan from one of these lenders, you might be wondering which one you should choose. Depending upon your specific situation, it might make more sense to borrow from SoFi rather than Prosper — or the other way around.

Say, for instance, you don’t have a lengthy credit history or you’re interested in borrowing an especially large amount. In these scenarios, SoFi would be a better choice than Prosper. On the other hand, if you have a cosigner or only need to borrow a few thousand dollars, Prosper would likely be a better fit.

Key Differences Between SoFi and Prosper

Although SoFi and Prosper are similar in a number of ways, they each have their own standout features as well. SoFi, for example, gives borrowers payment flexibility, allowing them to set their own payment due dates. The company also offers a forbearance program whereby they’ll temporarily suspend your payments if you lose your job. Plus, SoFi offers greater loan amounts and longer repayment terms, which can make all the difference to some borrowers.


You’ll need to live in America and be at least 18 years old in order to borrow from either SoFi or Prosper, but neither of these lenders offers loans in all 50 states, so depending upon where you reside, your options might be limited.

You don’t need a lengthy credit history or a set debt-to-income ratio in order to qualify for a loan from SoFi, but that doesn’t mean everyone will get approved. SoFi will, however, carefully consider an applicant’s financial history and career trajectory prior to making a decision either way.

Application & Approval Process

It’s easy to apply for a loan online with either of these lenders, and their applications each take about the same amount of time to complete. The Prosper loan approval process and the SoFi approval process do have some distinctions, though. With SoFi, you can get a customized quote in mere minutes, and the funds will be delivered to your account within a few days. With Prosper, however, the application process is a bit more involved, and it usually takes seven business days to receive a final decision.

Which Company is Better for Debt Consolidation?

When it comes to comparing SoFi debt consolidation and Prosper debt consolidation it all comes down to the interest rates. If your credit is strong enough to qualify for SoFi’s lowest APR, the we recommend choosing SoFi. SoFi also offers longer-term loans, which gives borrowers with high balances more time to pay off what they owe.

Which Company is Better?

Both SoFi and Prosper are quality lenders, and you don’t have to look far to find positive reviews about either of them. But for most people on the fence between these two lenders, SoFi will be a better choice. SoFi offers more attractive terms for loans of greater amounts. And if you have a clean credit report and an impressive score, then the choice is clear. SoFi offers more flexible terms than Prosper, and there are a bunch of bells and whistles that Prosper can’t compete with.

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