Upstart vs. SoFi Personal Loans 2026: Which Is Better for Your Needs?

Upstart and SoFi are top personal loan marketplaces that cater to different people, but which is best for your needs? Upstart uses AI to assess and approve qualified applicants with thin or poor credit, while SoFi offers flexible repayment terms and high-dollar loans to borrowers with good-to-excellent credit. 

Upstart is best for less than stellar credit or for those who need a loan under $5,000, while SoFi is best for solid credit, need flexible loan terms or those want to borrow over $75,000. 

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Key Takeaways

• Upstart vs. SoFi personal loans have different credit score requirements. Upstart uses AI-driven underwriting with alternative data to potentially approve borrowers with thin or imperfect credit, while SoFi applies traditional underwriting standards better suited to good-to-excellent credit borrowers.

• Upstart offers a lower starting annual percentage rate (APR) of 6.3% and loans as small as $1,000, but repayment is limited to three or five years, which can be a trade-off if you're looking for flexibility. The good news is that Upstart doesn't charge prepayment penalties if you pay off your loan early.

• SoFi charges no late fees for new borrowers and offers six repayment terms ranging from two to seven years, plus loans up to $100,000. Some borrowers may even be able to qualify for a 0.25% autopay and a 0.25% member rate discount.

Summary generated by AI, verified by MoneyLion editors

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

How Upstart and SoFi Compare

Both Upstart and SoFi offer competitive personal loans, but they serve different borrowers. Upstart is better for those with fair or limited credit and smaller loan needs, while SoFi caters to borrowers with stronger credit who want larger loan amounts and longer repayment terms. Here's how they compare at a glance:

Interest Rates and APR 

Your APR is what your loan costs each year in select fees and interest, minus the principal expressed as a percentage. Upstart offers fixed personal loan APRs from 6.3% to 35.99%, while SoFi’s fixed APRs range from 6.99% to 35.49%. Both lenders base their APR offers on a loan’s terms and your borrower profile.   

Generally speaking, the better your financial health, the lower your APR and the less you’ll pay over the life of a loan.

Loan Amounts 

SoFi is one of the few lenders to offer personal loans as high as $100,000, making it an option if you’re looking to finance pricey IVF treatments, major home renovations or large illness-related medical bills. It maintains a borrowing requirement of at least $5,000.  

Upstart, meanwhile, caps personal loans at $75,000, but offers as little as $1,000 in financing. That means it’s a fit if you need to fund a short-term cash gap or unexpected emergency expense, like car repairs or a broken refrigerator. Note that the exact minimums and maximums you could qualify for on your loan may depend on the state you live in.

Repayment Terms 

Upstart only offers repayment terms in three or five years. This can could prove restrictive since loan terms affect your monthly payment and total borrowing costs. Shorter terms require higher monthly payments, but charge less total interest. Longer terms have lower monthly payments, but charge more total interest. Fortunately, Upstart doesn't charge prepayment penalties if you're able to pay off your loan early.

SoFi offers six repayment terms, ranging from two to seven years. Its shorter repayment terms are available even for lower starting APRs. That flexibility could make it easier to find a financial sweet spot. And unlike Upstart, SoFi offers a 0.25% interest rate reduction for enrolling in automatic monthly payments. SoFi members can also receive a possible 0.25% interest rate discount.

Fees and Costs 

Upstart

• Origination fees: Charges origination fees, but does not disclose their range

• Prepayment penalty: $0

• Charges late fees

You'll pay an origination fee upfront when Upstart issues your loan. Sometimes, you can opt to pay one to get a lower interest rate. Like Upstart, SoFi deducts the origination fee (typically up to 7%) from your loan proceeds. 

SoFi

• Origination fees: Although SoFi maintains origination fees are not required, it does maintain origination fees up to 7%

• Prepayment penalty: $0

Eligibility and Approval 

Both lenders are tight-lipped about their minimum credit score requirements, but Upstart advertises an AI-enabled approval process that helps borrowers with limited or less-than-stellar credit histories qualify for its personal loans. It uses alternative data points, like education, professional background and digital spending signals to determine creditworthiness.   

SoFi meanwhile, looks at traditional data, including employment verification, credit score and debt-to-income ratio, during underwriting so borrowers in poor or so-so financial health might not qualify for financing or favorable terms.    

Application and Funding Experience 

Upstart and SoFi check all the big boxes if you’re looking for a borrower-friendly application and funding process. Both offer fully digital applications, pre-qualification (with a soft credit check), phone support and fast approvals.

Funding timelines are similar: SoFi advertises same-day funding, but its approval process typically takes one to two business days, while Upstart advertises instant approval, but needs at least one business day to send your funds. Those timelines shift if applicants need to provide extra documentation.

Pros and Cons 

Upstart vs. SoFi: Who Each Lender Is Best For

Upstart and SoFi are well-known lenders with strong customer service scores. However, they cater to different audiences and have virtually opposite pros and cons. Here's how to choose between the two:

When Upstart may be a better fit:

• You have poor or limited credit.

• You'd otherwise benefit from AI-driven underwriting.

• You need a loan under $5,000.

• You have excellent credit and want the lowest possible APR.

• You want potentially faster funding.

When SoFi may be a better fit:

• You need a loan over $75,000.

• You want flexible repayment term options.

• You don't want to risk paying a high origination fee.

• You want additional financial products and perks.

• You're applying with a co-borrower.

Final Take 

Upstart and SoFi offer competitive personal loans, with Upstart proving considerably more open to credit-challenged borrowers and SoFi offering greater flexibility for people with strong financial profiles.

Both SoFi and Upstart allow you to pre-qualify without hurting your credit, so it’s worth requesting personalized rates from each to find your best offer. You may also wish to explore other personal loan providers, such as SoFi vs. Prosper, to find your best fit.

FAQs 

Is SoFi or Upstart better for personal loans?

SoFi is better for borrowers looking for large-dollar loans and offers more flexible repayment terms, though it generally requires good-to-excellent credit. Upstart is often better for borrowers looking for smaller-dollar loans or those with a limited or spotty credit history, as its AI-driven approval process uses alternate data, such as education.  

Does Upstart or SoFi have lower fees?

SoFi doesn't charge origination fees, though Upstart might, depending on your loan's terms. Upstart also may charge fees for late payments, ACH or check returns and/or paper statements.

Is Upstart a good personal loan option?

Upstart is a good personal loan option for borrowers with limited or imperfect credit, as it uses AI-driven underwriting to quickly approve applicants based on non-traditional data, including education, professional background and digital spending signals.

Is SoFi hard to get approved?

SoFi doesn't openly disclose its minimum credit or financial requirements, but it relies on traditional data, like credit score and debt-to-income ratio, in underwriting. Online communities suggest it's more stringent than lenders like Upstart, which cater to borrowers with limited credit histories. 

Can you prequalify with SoFi and Upstart?

Yes, both SoFi and Upstart offer prequalification, which is a soft credit check.

Who funds loans faster, SoFi or Upstart?

Both Upstart and SoFi can send funds in as little as one business day. With SoFi, the loan agreement must be signed and completed by 5:30 EST to get same-day funding.

What are the risks of using Upstart?

The risks of using Upstart include paying a high origination fee, incurring late payment fees or winding up with a potentially high APR. Mismanaging a personal loan can generally hurt your credit and overall financial health.  

Key Terms

• APR (Annual Percentage Rate): The yearly cost of borrowing expressed as a percentage, incorporating the interest rate and certain fees.

• AI-driven underwriting: A loan evaluation process that uses machine learning models to assess creditworthiness at scale.

• Origination fee: A one-time upfront charge deducted from loan proceeds before disbursement.

• Pre-qualification: A preliminary credit review using a soft credit check that estimates the rates and amounts you may qualify for without affecting your score.

• Co-borrower: A person who applies for a loan jointly with the primary applicant and shares equal legal responsibility for repayment.

• Debt-to-income ratio (DTI): The percentage of your gross monthly income that goes toward existing debt paymentss.

Summary generated by AI, verified by MoneyLion editors

Sources

• CFPB: What is a debt-to-income ratio?

• CFPB: What is a credit inquiry?

• CFPB: What is the difference between a loan interest rate and the APR?

• Upstart.com - Upstart Personal Loans Official Website

• Sofi.com - SoFi Personal Loans Official Website

• Myfico.com - SoFi Personal Loan Pre-approved then declined before submission?

• Trustpilot.com - Upstart Review

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