Prosper and SoFi are both large online lenders. SoFi, founded in 2011, got its start as a company focused on college students. 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 loan products.

Compare their key traits to determine which one is better for your situation.

Prosper vs. SoFi at a glance

SoFi and Prosper are solid lenders. However, if you’re thinking about applying for a loan you should take the time to compare them to make sure you choose the best loan for your needs.

Prosper Sofi
Bankrate Score 4.7 4.7
Better for • Borrowers with lower credit scores
• Consolidating high interest debt
• Smaller loan amounts		 • Borrowers with strong credit
• Large loan amounts
Loan amounts $2,000-$50,000 $5,000-$100,000
APRs 8.99% to 35.99% Fixed APR 8.99% to 29.49% Fixed APR
Loan term lengths 24-60 months 24-84 months
Fees Origination fee: 1%-7.99% Optional fees
Minimum credit score Not specified 680
Requirements • Debt-to-income ratio of no more than 50%
• Stated income greater than $0
• No bankruptcies filed within the last 12 months
• Fewer than five credit bureau inquiries within the last six months
• Minimum of three open trades reported on their credit report		 • U.S. citizen, permanent resident or nonpermanent resident alien
• Employed and with sufficient income, or written offer for employment to start within 90 days
Time to funding As soon as next day Within a few days
Cosigners permitted Yes Yes

Prosper personal loans

Prosper is an online peer-to-peer lending marketplace. That means that when you apply for a loan through Prosper, it will be funded by either individuals or businesses that want to invest in personal loans.

Prosper accepts borrowers with lower credit scores than SoFi but has more stringent requirements when it comes to the number of other loans you’ve applied for and your existing debt amounts.

One drawback of Prosper is the unavoidable origination fee, which adds to the cost of your loan.

Pros

  • Lower loan minimum.
  • Lower minimum credit score.
  • Next day funding.

Cons

  • Less flexible loan terms.
  • Origination fees.
  • Lower loan maximum.
  • Stricter requirements regarding existing debt.

SoFi personal loans

Although SoFi began as a lender focused on students, today it offers loans to a much wider group of customers. You can even work with the company to handle your banking and investing if you want.

If you already have student loans from SoFi, or use it for its other services, that can 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 place.

SoFi is also known for being a good lender for people with good, but short, credit histories. It also offers the option for additional fees for its loans — meaning you could opt for a lighter monthly payment if needed.

Pros

  • High loan maximum.
  • Qualify with limited credit history.
  • More flexible loan terms.
  • Lower maximum interest rate.

Cons

  • Higher minimum credit score.
  • More time to get funded.
  • Must borrow at least $5,000.

How to choose between Prosper and SoFi

Both Prosper and SoFi can be a good option for personal loans, but excel in different situations. If you want to borrow a smaller amount, consider Prosper — its minimum loan is just $2,000. Working with Prosper can help you avoid borrowing more than you need and paying additional interest.

Opt for SoFi if you want larger, more flexible loans

SoFi wins out because it has optional fees for its loans and it has a lower maximum interest rate than Prosper. And its terms range from two to seven years compared to Prosper’s binary choice of three or five years. That means that you have more control over your monthly payment.

It also offers loans as large as $100,000, more than double Prosper’s maximum loan amount. If you’re consolidating a lot of debt or trying to pay for a big expense, SoFi is willing to lend the large amounts required.

Opt for Prosper if you have a lower credit score

Prosper approves borrowers with lower credit scores than SoFi. If you find yourself struggling to get a loan from SoFi, you still have a chance of getting approved by Prosper. Plus, you can borrow less — which will give you a chance to build your credit history and secure better rates in the future.

Compare more lenders before applying

SoFi and Prosper are both strong lenders, but if you can qualify for a loan with SoFi, the odds are good that SoFi will be the better choice. Its loans are cheaper and it offers larger amounts. However, Prosper wins for people looking for very small loans and with slightly lower credit scores than SoFi will accept.