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Key findings
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LightStream personal loans are better suited for borrowers with good credit who want to find the best deal.
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SoFi personal loans are also a good option, but may be better suited for borrowers with slightly lower credit scores.
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Both lenders offer attractive personal loan options, but LightStream has some better deals, so it may make sense to apply to both to see where your application gets approved.
If you’re looking to take out a personal loan and have a solid credit score, consider LightStream and SoFi. Both lenders offer a range of features and have similar loan products.
SoFi began in 2011 as a lender focused on students, but has since expanded its offerings to offer a variety of banking and lending services. LightStream is an online lending division of Truist Bank and started in 2013 as a lender focused on borrowers with excellent credit.
When comparing Sofi and LightStream, both lenders are good options for people with a good credit profile. Compare all the details to decide which is best for you, and research other loans with excellent credit before applying.
LightStream vs. SoFi at a glance
Both LightStream and SoFi offer unsecured personal loans. They have very similar products, so you should compare them closely to find out which is the better choice for your finances.
| SoFi | Luminous flux | |
|---|---|---|
| Bankrate Score | 4.7 | 4.7 |
| Better for | Borrower with a co-borrower | Fast financing |
| Loan amounts | $5,000 to $100,000 | $5,000 to $100,000 |
| APR | 8.99%–29.49% fixed annual percentage rate | 7.49%–25.49% fixed annual percentage rate (* with AutoPay) |
| Loan terms | 24-84 months | 24-84 months |
| Fees | Optional fees | None |
| Minimum credit score | 680 | 695 |
| Time to financing | Within a few days | On the same day |
LightStream Personal Loans
Better for quick financing
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LightStream offers flexible personal loans you can use for everything from buying a car to renovating your home to consolidating existing debt. The company focuses on borrowers with excellent credit to keep costs low. And unlike many online lenders, LightStream doesn’t charge origination fees or prepayment penalties.
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Per
- Same day financing.
- Low interest rates.
- Rate the beat program.
Disadvantages
- Good credit rating required.
- No co-signers allowed.
- No pre-qualification.
SoFi Personal Loans
Better for borrowers with co-borrowers
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Although SoFi started as a lender focused on students, today the company offers personal loans to all types of borrowers in addition to banking and investment services. If you already work with SoFi for other loans, banking, or investments, it can be convenient to keep all your money in one place and use it for loans as well.
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Per
- Co-borrowers permitted.
- Qualify with a short credit history.
- Lower maximum annual percentage rate.
Disadvantages
- Funding may take a few days.
- Good credit rating required.
How to choose between LightStream and SoFi
LightStream and SoFi offer nearly identical products when it comes to loan amounts, interest rates, and loan terms. Because of this, choosing between them can be difficult—and it may actually be beneficial to apply to both if you’ve determined that one best fits your needs.
APR range
LightStream has a fixed APR range that starts and ends lower than SoFi. Both ranges are similar, but LightStream will likely have a lower APR if you qualify.
Another benefit of LightStream is the Rate Beat program. If you get a better interest rate from another lender, LightStream promises to beat it by 0.10 percent.
Minimum credit score
A good credit score is between 670 and 739, according to FICO. Both SoFi and LightStream require borrowers to have a good credit score, but LightStream has a higher minimum credit score.
LightStream requires a minimum score of 695, while SoFi requires a minimum score of 680. You’ll need to have relatively good credit with both lenders, but if your score is lower, you may have better luck getting approved with SoFi.
Repayment terms
Both lenders offer identical repayment options. SoFi and LightStream can offer you flexible repayment terms ranging from 24 to 84 months. The high end is much longer than many competitors, who typically offer terms of up to 60 months. This allows you to make smaller payments over a longer period of time.
Loan amount
The loan amounts offered by SoFi and LightStream are also the same. You can get loans from $5,000 to $100,000 from both lenders. Keep in mind that not every individual can get the highest loan amount—$100,000 is simply the highest possible loan amount you can get.
Fees
LightStream is the winner when it comes to fees—the lender doesn’t charge any fees on its personal loans. But SoFi isn’t far behind. SoFi’s fees are optional—you can choose to pay an origination fee on your loan to get a lower interest rate.
Bottom line: Which lender is better?
LightStream and SoFi both offer similar loans. However, for borrowers with excellent credit, LightStream is a step ahead of the competition thanks to its Rate Beat program and the ability to get funds the same day. However, if you already use SoFi for other financial services or need to apply with a co-borrower, it’s still a solid lender.
Since SoFi offers pre-qualification, you’ll want to check to see if you qualify for the best loan rate before applying. Once you’ve narrowed your choices down to SoFi and LightStream, apply to both and see who has the better deal. Just make sure you submit the applications within a short period of time so they’re only counted as one loan request.
Compare multiple lenders before applying
LightStream and SoFi aren’t the only lenders that offer personal loans, so it’s a good idea to look at several lenders before deciding on one.
Consider these personal loan options for borrowers with good credit:
