SoFi and Discover both offer customers personal loans with competitive interest rates. SoFi is great for larger loan amounts while Discover has borrower-friendly annual percentage rates (APRs).
Before deciding on either lender, review and compare their features and rates to see which one fits your needs.
SoFi vs. Discover Personal Loans at a Glance
Discover and SoFi both have distinct APRs, loan details, fees and minimum requirements between them. Check out this table to see how they compare:
| SOFI | DISCOVER | |
|---|---|---|
|
APR
|
8.99% to 29.99%
|
7.99% to 24.99%
|
|
Loan Amounts
|
$5,000 to $100,000
|
$2,500 to $40,000
|
|
Loan Terms
|
two to seven years
|
three to seven years
|
|
Funding speed
|
Same day
|
Next business day
|
|
Credit Score Requirement
|
650
|
660
|
|
Late Fees
|
No
|
$39
|
|
Origination Fees
|
No
|
No
|
|
Co-signer Option
|
No, but it accepts co-borrowers
|
No
|
|
Minimum Income
|
$45,000 per year
|
$25,000 per year
|
|
Rate Discounts
|
0.25%
|
No
|
|
Usage Restrictions
|
Can’t use funds for real estate, business purposes, investments, purchasing securities, post-secondary education or short-term bridge financing
|
Can’t use funds for post-secondary education or to pay off a secured loan or Discover credit card
|
SoFi Personal Loans
SoFi® personal loans range between $5,000 to $100,000 and have multiple repayment terms. The lender also offers an autopay rate discount and additional features to help manage your payments.
Pros & Cons
| PROS | CONS |
|---|---|
|
Offers loans from $5,000 to $100,000, which is ideal if you need to cover a large purchase or expense
|
APRs are higher than most other lenders
|
|
Charges no fees
|
Can’t use funds for real estate, business purposes, investments, purchasing securities, post-secondary education or short-term bridge financing.
|
|
You can use a co-borrower to increase your chances of getting a lower interest rate
|
Minimum credit score requirement of 650
|
|
SoFi may release your loan funds on the same day you apply
|
Minimum income requirement of $45,000 per year
|
|
No minimum income requirement
|
Eligibility Requirements
To qualify for a SoFi personal loan, you must meet these requirements:
- Minimum credit score of 650
- At least 18 years old
- A U.S. citizen, permanent resident or non-permanent resident alien
- Employed, have a job offer that starts within the next 90 days or have enough income from other sources
- Enrolled or graduating from an eligible school
You can get a rate quote online with a soft credit check before pre-qualifying to review your potential loan terms.
Once you select a loan, SoFi will conduct a hard credit check and verify your information. Once you qualify, the lender will finalize the loan details, and you may receive your money that same day.
Loan Terms and Repayment Options
SoFi offers terms between two and seven years with fixed monthly payments. You can set up autopay to get a 0.25% interest rate discount and ensure you don’t miss any payments.
Perks and Features
SoFi personal loan borrowers can use the following perks and features:
- Adjustable payment date. SoFi allows you to change your monthly payment dates once per year. You can schedule payments around specific dates to ensure that you tackle payments on time.
- No fees. SoFi charges no origination, prepayment or late fees.
- Unemployment protection. SoFi offers unemployment protection that adjusts your payments during your employment search.
Discover Personal Loans
Discover offer loan amounts between $2,500 to $40,000. You can choose repayment terms between three to seven years, depending on your needs.
Pros & Cons
| PROS | CONS |
|---|---|
|
Lower minimum and maximum APRs than SoFi, meaning there’s a good chance you could qualify for better rates
|
Discover charges a $39 late fee
|
|
Loan amounts range from $2,500 to $40,000, which is ideal for smaller expenses
|
Borrowers can’t take out a loan with a co-signer or co-borrower
|
|
Discover imposes fewer usage restrictions when compared to SoFi and other lenders
|
Discover requires a minimum household income of $25,000
|
Eligibility Requirements
You can qualify for a Discover personal loan if you meet these requirements:
- Minimum credit score of 660
- At least 18 years old
- U.S. citizen or permanent resident
- At least $25,000 in annual household income
- Physical address
- Active email address
Similar to SoFi, you can check your rate online with a soft credit check. If you prequalify, you can review and customize your loan terms before you apply.
Discover performs a hard credit check—which temporarily dings your credit score—when you apply and may ask for other documentation. Once your loan is approved, Discover typically disburses funds one day after approval.
Loan Terms and Repayment Options
Repayment terms range between three to seven years, depending on your loan amount and other criteria. If you have trouble making payments on the standard repayment plan, Discover offers three payment assistance options:
- Payment deferral. If you make three consecutive, on-time monthly payments or the equivalent within the same timeframe, Discover will delay your past due amount to the end of your loan term.
- Short-term assistance. You can temporarily lower your payments for three months before they gradually return to your regular payment amount. Discover will delay your past-due amount until the end of your loan term, similar to a standard payment deferral.
- Long-term assistance. Discover will extend your loan term to accommodate lower payments. Once you enroll in this payment plan, your account will automatically become current.
Perks and Features
- Fast disbursement. Once you’re approved, Discover may disburse your loan funds as early as the next business day, if you meet certain conditions.
- Credit scorecard. You can review your updated FICO credit score monthly and credit utilization records, missed payments and inquiries.
- Direct payment to creditors. Discover will send your funds directly to your creditors if you use your loan for debt consolidation.
Is SoFi or Discover Right for You?
SoFi stands out for its higher loan amounts, no fees and same-day funding. The lender offers a fast disbursement timeline and unemployment protection benefits. However, SoFi has higher-than-average APRs and strict usage guidelines that may dissuade you.
Discover personal loan rates are competitive compared to SoFi, which could save you money on interest. Also, Discover’s loan minimum could cover expenses like car repairs or medical bills without overborrowing. However, the lender doesn’t allow co-signers, making it challenging for some applicants to qualify.
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