SoFi vs. Prosper: Which Personal Lender is Right for You?


Prosper and SoFi are two great online personal lenders. SoFi, founded in 2011, got its start as a student-focused company. It has since expanded to offer a variety of financial services, including personal loans. Prosper started as a peer-to-peer lending site in 2005 and now offers a variety of lending products.

If you’re trying to figure out which one is best for your situation, compare some of their key traits.

Prosper vs. SoFi at a Glance

Both SoFi and Prosper are good personal lenders. However, if you are considering applying for a loan, you should take the time to compare them to ensure you choose the best loan for your needs.

Prosper SoFi
Discount rate score 4.4 4.6
better for Borrowers with lower credit scores

High Interest Debt Consolidation

Small loan amounts

Borrowers with strong credit

Large loan amounts

Loan amounts $2,000 – $40,000 $5,000 – $100,000
APR 5.99% – 35.99% 5.74% – 21.78%
Duration of loans 3 or 5 years 2 to 7 years old
Costs Creation costs: 2.41% – 5% Nothing
Minimum credit score 640 680
Terms Debt to income ratio not exceeding 50%

Reported income greater than $0

No bankruptcy filed in the last 12 months

Fewer than five credit bureau inquiries in the past six months

Minimum of three open transactions reported on their credit report

U.S. citizen, permanent resident, or non-permanent resident alien

Employed and with sufficient income, or written offer for employment to start within 90 days

Funding deadline The next day In a few days
Authorized co-signers Yes Yes

Thrive Personal Loans

Prosper is an online peer-to-peer lending marketplace. This means that when you apply for a loan through Prosper, it will be funded by ordinary people who want to invest in personal loans.

Prosper allows borrowers with lower credit scores than SoFi, but has stricter requirements regarding the number of other loans you’ve applied for and the amount of your existing debt.

A downside of Prosper is the inevitable origination fees, which add to the cost of your loan.


  • Lower loan minimum
  • Lower minimum credit score
  • Next Day Funding

The inconvenients

  • Less flexible loan terms
  • Assembly costs
  • Lower maximum loan
  • Stricter requirements for existing debt

SoFi Personal Loans

Although SoFi started out as a student-focused lender, today it offers services and loans to a much wider group of customers. You can even work with the company to manage your banking and investments if you wish.

If you already have student loans from SoFi or use them for its other services, this may be a good reason to get a personal loan from the company. It can make your life easier to keep all your money in one palace.

SoFi is also known to be a good lender for people with good but short credit histories. It also does not charge origination fees for its loans.


  • High maximum loan
  • Qualify with a limited credit history
  • More flexible loan conditions
  • Lower maximum interest rate

The inconvenients

  • Higher minimum credit score
  • More time to get funded

How to choose between Prosper and SoFi

Prosper and SoFi can be a good option for personal loans, but excel in different situations.

If you want to borrow a lower amount, consider Prosper. Prosper’s minimum loan is just $2,000, which is lower than SoFi’s. Working with Prosper can help you avoid borrowing more than you need and paying extra interest.

If you want a cheap loan, consider SoFi. SoFi wins in that it doesn’t charge origination fees for its loans and has lower interest rates than Prosper. If you can get a loan through SoFi, chances are you can save some money over Prosper.

If you have a lower credit score, consider Prosper. Prosper approves borrowers with lower credit scores than SoFi. If you’re struggling to get a loan from SoFi, you still have a chance of getting approved by Prosper.

If you need to borrow a large amount, consider SoFi. SoFi offers loans of up to $100,000, more than double Prosper’s maximum loan amount. If you’re consolidating a lot of debt or trying to pay a big expense, SoFi is ready to lend the big amounts needed.

If you want more flexibility in the length of your loan, consider SoFi. SoFi offers terms ranging from two to seven years compared to Prosper’s binary choice of three or five years. This means you have more flexibility in designing your monthly loan payment with SoFi.

At the end of the line

Both SoFi and Prosper are solid lenders, but if you can qualify for a loan with SoFi, chances are SoFi is the better choice. SoFi loans are cheaper and the lender is willing to lend large amounts. Where Prosper wins is with people looking for very small loans and with slightly lower credit scores than SoFi will accept.


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