SoFi vs. Prosper Loans (2026): Which Is Better for Your Needs?

Quick summary: SoFi offers large personal loan amounts, longer loan terms and faster funding, while Prosper is a better choice for mid-range credit scores due to its AI-driven underwriting.

Clear answer: SoFi is best if you need to borrow more than $50,000 and you have an excellent credit score. Prosper is likely better if your credit score isn’t high enough to qualify for SoFi’s best rates.

*rates reflect a 0.25% autopay interest discount and a 0.25% direct deposit discount

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Detailed Comparison: SoFi vs. Prosper Personal Loans 

Interest Rates & APR

Annual percentage range (APR) is the yearly interest rate, including any fees, that you’ll pay to borrow money. Lenders calculate the APR you’ll qualify for based on your credit score and other financial information. Higher credit scores and income generally qualify for lower APRs, because these borrowers present less of a risk to lenders.

When you’re shopping for a personal loan, one of the most important factors to consider is each lender’s APR range. 

SoFi personal loans have APRs ranging from 8.74% to 35.49%, though it’s important to note that these numbers reflect a 0.25% interest rate discount for enabling autopay and another 0.25% for using direct deposit.

Prosper personal loans have a very similar APR range: 8.99% to 35.99%. 

Loan Amounts 

Both lenders offer a wide range of loan amounts, but SoFi has the wider range: $5,000 to $100,000. Meanwhile, you can borrow between $2,000 and $50,000 with Prosper. If you need to borrow between $51,000 and $100,000, SoFi would be the obvious pick between the two. 

There are many reasons why people take out loans, and both companies’ loan amounts fit most of them. If you need a loan to cover an unexpected expense like a car repair or a hospital visit, you’ll probably be fine with Prosper’s range. If you’re looking for a loan to fund a home-improvement project, having the flexibility to borrow up to $100,000 with SoFi could be helpful.

Repayment Terms 

With SoFi, you can choose loan repayment terms starting at 2 years all the way up to 7 years. Prosper loan repayment terms similarly start at 2 years but end at 5 years, which reflects the lower maximum amount you can borrow.

Having a variety of repayment terms is helpful for finding the best option for your budget. If you choose a longer term, you’ll pay less per month, but more in total interest over the course of your loan.

SoFi offers an interest-rate discount of 0.25% for enabling autopay for your loan payments, as well as a 0.25% discount for setting up direct deposit with a qualifying SoFi checking or savings account. It’s worth setting up autopay so you don’t miss any repayment dates, though the direct deposit discount won’t be as useful to everyone considering a loan through SoFi since you’ll need a relevant SoFi account.

Prosper doesn’t offer any similar discounts.

Fees & Costs 

Origination Fees

SoFi doesn’t require an origination fee when you take out a loan, but borrowers can choose to pay an origination fee of up to 7% in exchange for a lower interest rate over the life of the loan.

On the other hand, Prosper does require an origination fee, ranging from 1% to 9.99% of the loan amount.

Late Fees

SoFi doesn’t charge late fees, either, though it may report your loan as delinquent if it’s more than 30 days past due.

Prosper charges a late fee of $15 or 5% of the unpaid amount, whichever is greater, for payments that haven’t been made in full within 15 days of the due date.

Failed Payment Fees

There’s no failed payment fee for SoFi personal loans, while Prosper charges an insufficient funds fee of $15 for each returned or failed payment. 

Prepayment Penalties

Neither lender charges a prepayment fee, so borrowers can pay their loan off early without any extra charges. This is a positive, because paying off your loan early can be a great way to save on interest fees (if your budget can accommodate it).

Eligibility & Approval 

Minimum Credit Score Requirements

Neither SoFi nor Prosper publishes a hard-and-fast minimum credit score, though both lenders do share some details on how credit scores translate to loan eligibility and interest rates.

SoFi recommends applicants aim for a minimum credit score of 690 to secure the lowest interest rates, while Prosper says that borrowers with scores lower than 600 may not be approved for its personal loans.

Other Requirements

The two lenders evaluate applicants based on their credit scores, financial history and debt-to-income ratios to determine eligibility and set interest rates. Prosper also uses AI as part of its underwriting process and to inform its lending decisions.

Both SoFi and Prosper also require the following for applicants to be eligible for their personal loans:

• 18 years or older

• U.S. citizen, permanent resident or visa holder

• Reside in a state where the lender does business

• Employed or proof of sufficient income

Application & Funding Experience 

Both lenders have relatively easy, 100% online application processes.

SoFi

To apply for a personal loan through SoFi:

1. View your rates on the SoFi website through the prequalification option by providing personal and financial details. Prequalifying doesn’t involve a hard credit check, so it shouldn’t affect your score.

2. Choose your repayment term, from 2 to 7 years.

3. Submit your application.

4. If your application is approved, sign your documents and wait to receive your funds. They could arrive as quickly as the same day.

You can complete the application process online or through SoFi’s mobile app for Android or iOS.

Prosper

Here’s the loan application process with Prosper: 

1. Check your rates through the Prosper website to prequalify without a hard credit pull. 

2. From there, choose your loan term and monthly payment. 

3. Submit the required documentation, such as proof of income. 

4. Wait for loan approval.

5. If you’re approved, you’ll receive funds as soon as the next business day.

As with SoFi, Prosper has mobile apps on Android and iOS, and you can complete the application through the apps if you prefer.

Pros & Cons 

SoFi

Prosper

Best For: Who Should Choose Which 

If you’re looking for a to-the-point recommendation, here’s a cheat sheet for deciding between the two lenders: 

Choose SoFi if: 

• You’re looking to borrow more than $50,000

• You can qualify for both the autopay and direct deposit discounts

• You want the fastest funding

• You want to avoid extra fees

Choose Prosper if: 

• Your credit score might not qualify for SoFi’s best rates 

• You have a thinner credit file but strong bank transaction or rental payment history

• You prefer a lender that uses AI-driven underwriting

Final Recommendation & Next Steps 

SoFi and Prosper are both excellent options for personal loans, with reasonable interest rates, easy online application processes and a variety of repayment terms. 

SoFi is a better pick if you want to avoid most fees and you need to borrow more than $50,000, while Prosper could be the optimal choice if your credit score isn’t quite as high. 

Luckily, both lenders let you prequalify to see what rates you’d get, so compare both lenders plus a few alternatives before signing a loan application.

FAQs 

Which is better, SoFi or Prosper? 

The better option depends on your credit score and the amount you’re looking to borrow. SoFi offers larger loan amounts and fewer fees, while Prosper is a better choice if your credit score is fair to good rather than good to excellent.

Can you pay off loans early?

Yes, both SoFi and Prosper let you repay your loans early with no prepayment fee.

Does either lender allow co-signers or co-applicants?

SoFi and Prosper don’t let you apply for a personal loan with co-signers, but they do allow for co-borrowers. Unlike co-signers, co-borrowers have equal access to the loan funds.

Do loans from either lender hurt your credit?

Taking out a loan from SoFi or Prosper can impact your credit score, as your application involves a hard credit inquiry that can temporarily drop your score by a few points. Both lenders report loan payments to the credit bureaus, so if you don’t stay on top of payments, you could see a more significant drop.

Sources

• https://www.sofi.com/ - Official SoFi website

• https://www.prosper.com/ - Official Prosper website