LightStream vs. SoFi: Which Is Right for You?

If you have good-to-excellent credit and need a personal loan, LightStream and SoFi are two of the best personal loan lenders you can choose. Both lenders offer large loan amounts, flexible repayment terms, and fast funding. However, there are some key differences to be aware of.

LightStream charges no origination or other fees. And applicants with strong financials may qualify for LightStream's lowest rates, which beat SoFi's. LightStream also offers longer repayment terms for some loan purposes like home improvement loans, boat loans, and RV financing. But the lender doesn't offer prequalification on its website, and offers minimal options for customer support. (You can prequalify with LightStream via the "check rates" links on this page.)

SoFi, on the other hand, offers prequalification on its website, has robust customer support features, and has several attractive perks and discounts. While it doesn't charge any "required" fees, SoFi has optional origination fees — you may be given the choice between paying one or paying a higher APR.

LightStream personal loans

LightStream is a division of Truist Bank and offers appealing options for borrowers with good to excellent credit. The lender's starting APRs are among the lowest in the personal loan industry. Plus, it offers same-day funding, doesn't charge fees of any kind, and provides extended repayment terms of up to 20 years for some home improvement loans. It also allows for a wide array of loan uses, including loans for timeshares, fertility treatments, horses, classic cars, and aircraft. Notably, LightStream plants a tree for every loan it issues.

Lightstream also offers a couple of unique customer service programs. If you prequalify with another lender at a lower APR, LightStream will beat that rate by 0.10 percentage points, provided you meet certain requirements. LightStream also guarantees a positive customer experience and offers $100 to borrowers who aren't satisfied.

LightStream offers a 0.50% point discount if you set up autopay before the loan funds.

SoFi personal loans

SoFi is a bank that offers large loan amounts, flexible repayment terms, same-day funding, and plenty of extra benefits for borrowers. Benefits include free financial advice, a variety of discount opportunities, and a referral program that pays. The lender doesn't charge any required fees, but borrowers may negotiate an origination fee in exchange for a lower interest rate.

If you're applying through the lender's website, you can use the funds for almost anything, but SoFi only allows applicants on the Credible marketplace to use the funds for debt consolidation or credit card refinancing.

Sofi offers the following discounts:

• Autopay discount: 0.25% interest rate reduction for setting up autopay
• Direct deposit discount: a 0.25% interest rate reduction if you have a SoFi checking and savings account with a minimum $1,000 per month direct deposit
• Direct pay discount: a 0.25% interest rate reduction if you use the loan to refinance credit cards and have loan funds sent directly to your creditors.

Tips on choosing between LightStream and SoFi

When deciding between LightStream and SoFi, consider how these lenders compare with regard to the following features. We've picked our winners below.

APR range and fees: LightStream

LightStream offers lower starting and lower maximum APRs than SoFi. Note that the lowest APR includes a 0.50% point autopay discount and is reserved for borrowers with excellent credit and other indicators of strong financial health. LightStream doesn't charge any fees at all, including late fees, while SoFi gives borrowers the option to pay an origination fee to get a lower interest rate. In this category, we prefer LightStream's lower rates and straightforward approach to fees.

Minimum credit score: Inconclusive

LightStream and SoFi both cater to borrowers with high credit scores. However, LightStream explicitly requires good-to-excellent credit, or a FICO score of at least 700 through Credible. SoFi doesn't disclose a specific minimum credit score.

LightStream doesn't offer a prequalification option on its website, so you'll need to use a site like Credible to check your prequalification rate without impacting your credit score. Applying with either SoFi or LightStream may cause your credit score to dip slightly, which is why prequalification is important. Some reviewers on Trustpilot report being denied a loan from LightStream even with a very good FICO score.

SoFi allows you to check your rate without hurting your credit, which may make the lender a better option if your score is in the low 700s. Bear in mind that both LightStream and SoFi allow joint applications, and applying with another person who has excellent credit may help you get approved.

Loan purpose: LightStream

If you're applying through Credible, you can only use the loan proceeds from a SoFi personal loan to pay off debt. If you're applying through the lender's website, you can use the funds for almost any personal expense, except real estate, investments, or college expenses.

LightStream loans can be used for a wide range of personal expenses both directly via the lender's site and through Credible. Some examples of how you can use a LightStream personal loan include:

• Debt consolidation
• Vehicle purchases
• Timeshare purchase or refinance
• PreK-12 educational expenses
• Medical expenses
• Adoption and family planning
• Weddings

Repayment terms: LightStream

SoFi offers flexible repayment terms ranging from two to seven years, while LightStream offers options between two and 20 years, depending on loan use. Most lenders don't offer repayment terms longer than seven years for personal loans, so LightStream stands out in this area.

A 20-year term may be helpful if you're pursuing an expensive home remodel or repairs and don't qualify for home equity financing or don't want to. LightStream also offers terms up to 12 years for boat and aircraft purchases. Just keep in mind that a longer term means you'll pay more in interest over time, while keeping monthly payments low.

Loan amount: Tie

SoFi and LightStream both offer loan amounts between $5,000 and $100,000, but the amount you'll qualify for depends on your credit score and other financial factors. Since these lenders evaluate borrowers differently, you could qualify for a larger loan from one lender than the other. If you need a loan for less than $5,000, you should consider another lender that offers small personal loans. It's usually not a good idea to borrow more than you need.

Time to fund: SoFi (both offer same-day loans)

SoFi and LightStream can both issue personal loan funds as soon as the same business day of a loan approval. However, neither lender guarantees you'll receive your cash the same day, and the timeline can vary depending on where you bank.

If you need an emergency loan, SoFi provides a bit more wiggle room — most borrowers who sign their loan documents by 7 p.m. ET on a business day get same-day funding. LightStream, on the other hand, requires you to login by 2:30 p.m. ET to schedule a same-day wire transfer.

How to apply for a personal loan

1. Prequalify: Check your rate via Credible or the lender's website. Note that LightStream doesn't offer this option on its website — to prequalify, you'll need to do so via one of the "check rates" links on this page or with another loan marketplace. This is a great way to compare loan quotes between SoFi and LightStream and from other lenders as well.
2. Review your options: Consider the repayment terms the lender offers and select an option that fits your budget.
3. Formally apply: Complete the application questions and upload any required documents, like your photo I.D. and tax return. Submitting your application will trigger a hard credit check, which may cause a minimal decline in your credit score.
4. Sign your loan documents: Read your loan agreement and sign the documents to accept the loan offer.
5. Get your cash: You'll receive the funds in your bank account, potentially as soon as the same day but typically within a few days, depending on the lender and your bank.

Which lender is best for you?

Best for home improvement loans: LightStream

LightStream offers flexible repayment terms, with term lengths up to 20 years for some loan amounts. The lender also offers loan amounts up to $100,000, making LightStream's personal loans ideal for extensive home renovations.

Best for credit health: SoFi

SoFi allows you to get an estimate of your APR and repayment term options with only a soft credit pull, which doesn't hurt your credit. (You'll have to go through a third-party, like Credible, to prequalify with LightStream.) If your goal is to improve your credit, SoFi also offers free credit monitoring and other great tools to track your progress, and you can get free advice from a financial planner.

Best for excellent credit: LightStream

If you have excellent credit along with a high income and low debt utilization, there's a high likelihood you'll be approved for a personal loan. LightStream offers a lower starting APR than SoFi, so applicants with very strong financials may save more by getting a personal loan from LightStream.

Best customer experience: SoFi

SoFi offers a wide range of customer support options, including extended phone support hours, live chat, and a feature-packed mobile app. The company also received a high rating in the J.D. Power 2024 U.S. Consumer Lending Satisfaction Study. LightStream, on the other hand, only offers email support.