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

Quick Summary: Upstart and SoFi are top personal loan companies that cater to widely different audiences. 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 if you have an imperfect financial profile or need a loan under $5,000. SoFi is best if you have solid credit, need flexible loan terms or want to borrow over $75,000. 

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.

Detailed Comparison: Upstart vs. SoFi 

Interest Rates & APR 

Your annual percentage rate (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 6.5% to 35.99%, while SoFi’s fixed APRs range from 8.74% 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 lower your APR, the less you’ll pay over the life of a loan. So, say you want a $10,000 loan with a five-year term. This graph illustrates what you’d pay in total fees and interest, plus your estimated monthly payment, at Upstart’s and SoFi’s minimum and maximum APRs.

As you can see, savings can prove significant. You’ll save $639 if you qualify for Upstart’s ultra-low 6.5% APR vs. SoFi’s minimum, and even close to $200 if you’re offered SoFi’s slightly lower maximum APR vs. Upstart’s highest rate.

👉 How to Calculate Interest on Your 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 does require you to borrow 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.  

One note: Upstart has different minimum loan amounts in Georgia ($3,100), Hawaii ($2,100) and Massachusetts ($7,000).

Repayment Terms 

Upstart only offers three- or five-year repayment terms. That 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.

SoFi offers six repayment terms: 2 years, 3 years, 4 years, 5 years, 6 yearsand 7 years, and its shorter repayment terms are eligible for lower starting APRs. That flexibility could make it easier to find a financial sweet spot. 

To illustrate, the chart below shows the total borrowing costs and estimated monthly payment for a $15,000 loan across four of SoFi’s repayment terms, assuming the minimum quoted APR for each option. 

Unlike Upstart, SoFi also offers a 0.25% interest rate reduction for enrolling in automatic monthly payments.

Fees & Costs 

Upstart’s origination fees run as low as 0%, but as high as 12%, which is pretty pricey for the industry. You’ll pay this fee upfront when Upstart issues your loan. SoFi doesn’t require origination fees, but you can opt to pay one to get a lower interest rate. Like Upstart, SoFi deducts that fee (typically 1% to7%) from your loan proceeds. 

Neither lender charges prepayment penalties, but SoFi bests Upstart in overall fee structure. It skips standard ACH transfer and late payment fees for new borrowers. (It does report 30-plus-day delinquencies to the credit bureaus.)    

Upstart charges late payment fees ($15 or 5% of the past due amount, whichever is greater), $15 ACH or check return fees, and $10 paper statement fees.

Eligibility & 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 1,500 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 & 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, with SoFi’s process potentially longer and more onerous for self-employed or co-borrowing applicants. 

Both lenders let you apply through their mobile apps, though Upstart’s isn’t available on Android. 

Pros & Cons 

Best For: Who Should Choose Which 

Upstart and SoFi are well-known lenders with strong customer service scores. (SoFi leads in J.D. Power’s latest Consumer Lending Satisfaction Study, while Upstart has a higher Trustpilot score.) But they cater to different audiences and have virtually opposite pros and cons. Here are some quick ways to choose between the two.  

Choose Upstart if: 

• 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

Choose SoFi if: 

• 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 Recommendation & Next Steps 

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 allow you to pre-qualify without hurting your credit, so it’s worth requesting personalized rates from each (and other top personal loan providers) to find your best offer. 

FAQs 

Is SoFi or Upstart better for personal loans?

SoFi is often 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. 

Who is SoFi's biggest competitor?

SoFi’s top competitors vary across financial products, but, in the personal loan space, it competes with other large fin-tech lenders, like OneMain Financial, Best Egg, Upstart, and Upgrade. It also competes with traditional banks, like Citi and Discover, which market aggressively in the personal loan space.  

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 like Reddit suggest it’s more stringent than lenders like Upstart, which cater to borrowers with limited credit histories. 

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.  

Sources

• 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?

• Epicresearch.net - Personal Loan “Randos”

• JDPower.com - Consumer Loan Satisfaction Stagnant as Financial Health of Customers Declines, J.D. Power Finds

• Trustpilot.com - Upstart Review