LightStream vs. SoFi: Which Personal Loan Is Right for You?

LightStream and SoFi are both personal loan lenders that offer great perks for borrowers. LightStream is an online lender that’s committed to offering a streamlined loan process for its fixed-rate loans. The lender also provides loan funding as soon as the same day, and you have a wide range of loan amounts to choose from. And if you qualify for its ”rate beat” program, you may be offered rates that are 0.10 percentage points lower than those of LightStream’s competitors.

Like LightStream, SoFi offers large personal loans and can fund your loan the same day you sign your loan agreement. Plus, you can prequalify with SoFi, while with LightStream that's not an option.

LightStream and SoFi share some similarities, but there are distinct differences between the two. Here’s a comparison of both lenders to help you make a sound choice.

LightStream personal loans

Whether you’re looking for credit card debt consolidation or money to renovate your bathroom, LightStream has loans designed to fit your needs. Depending on the use of the loan, you can qualify for a repayment term as long as seven years (up to 12 for certain loans), and there are no fees (like an origination fee or prepayment penalty). You can borrow between $5,000 and $100,000.

Pros

• Low interest rates: LightStream boasts low interest rates, and guarantees that it’ll outdo other lenders’ loan rates with its rate bBeat program. If you find a qualifying lender with a lower rate, LightStream will beat it (terms and conditions apply).
• Loan experience guarantee: You decide how much you want to borrow and your repayment term. If you’re not satisfied with your loan experience, LightStream will send you $100 (terms and conditions apply).
• Quick loan disbursement: Depending on the type of loan you take out, you could get your funds as soon as the same business day.
• Autopay discount: If you sign up for automatic payments prior to loan funding, LightStream will give you a 0.50% interest rate deduction.

Cons

• Lowest interest rates only available for some loan purposes: Because LightStream offers loans for specific uses — such as weddings or vacations — interest rates vary. The lowest rates are reserved for only some specific loan purposes.
• Loans only available to those with good credit: LightStream works with customers who have established good credit. If you don’t meet the minimum credit score requirements, you’ll likely need a cosigner, or you won’t qualify for a loan.
• Loans can only be used for specified expenses: With most personal loans, you can use the money almost any way you want. But with LightStream, you must use the money for the expense you specified on your application.
• Can't prequalify: It's helpful to prequalify with multiple lenders to compare the rates and terms you might get with each one. But LightStream doesn't offer this.

Check out our LightStream review to learn more about its personal loan options.

SoFi personal loans

With SoFi, you can borrow up to $100,000 to make a large purchase or to refinance high-interest debt. There aren’t any origination fees, prepayment fees, or late fees; you only pay the interest on the loan. SoFi offers loan terms as long as seven years.

Pros

• Fast funding: SoFi can fund your loan as soon as the same business day that you sign your loan agreement.
• Flexible loan payment options: SoFi allows you to change your payment date once a year, making it easier to schedule your monthly payments around when you get paid.
• Prequalification: With SoFi, you can prequalify without any impact to your credit to get a sense of the loan rates and terms you might get. Lightstream doesn't offer this option, which can make comparing lenders difficult.

Cons

• Low autopay discount: While LightStream offers a 0.50% autopay discount, SoFi only offers a 0.25% discount.
• Shorter repayment terms than LightStream: Certain LightStream personal loans (like home improvement loans) have repayment terms up to 12 years, which can make it easier to pay for a large expense. SoFi’s maximum repayment term is 7 years.

For more information on its personal loans, check out our SoFi review.

Learn More: The Best Personal Loans

Is Sofi or LightStream better for me?

The ideal lender for you is the one that’s most beneficial for your financial situation. Here are some reasons that you may want to lean toward one lender over the other. Remember, it’s essential to compare many key factors when you choose a lender to determine which one is right for you.

Prequalification: SoFi

If you want to check personal loan rates and terms without hurting your credit, SoFi lets you, LightStream does not. Though a formal application could ding your credit with any lender (hard credit pull), it's nice to get an idea of rates beforehand so you can see how lenders, and the rates you might get with them, stack up.

Lower APRs: LightStream

While both LightStream and SoFi offer competitive rates for borrowers with strong credit, LightStream’s rate beat program can help ensure you get a lower rate. The lender will take 0.10 percentage points off a competitor’s rate offer for an unsecured loan.

Its eligibility requirements for this benefit include:

• You must have been approved for the lower rate no later than 2 p.m. ET 2 business days before loan funding.
• The competitor’s loan terms must be the same as LightStream’s.
• You can’t use the rate beat program for secured or collateralized loans.
• The competitor’s offer must be available to any borrower with a similar credit profile.

Longer repayment terms: LightStream

While both lenders offer repayment terms from two to seven years, LightStream offers extended terms for certain types of loans. For example, the lender offers loan repayment terms up to 12 years for home improvement loans.

Payment flexibility: SoFi

If you need to change your monthly payment due date for any reason, you can do so once a year with SoFi. LightStream doesn’t offer this option.