Discover vs. SoFi: Which offers better personal loans?

Discover and SoFi are two popular options in the online lending space. It’s likely you have seen them pop up regardless of how far along you are in your search for the best personal loan.

Both Discover and SoFi offer personal loans for borrowers with good or excellent credit and therefore have similar eligibility requirements. While both lenders gear their loans toward specific consumers, SoFi is accessible to a wider range of borrowers by allowing co-signers.

Discover vs. SoFi at a glance

Discover offers smaller loans and low fees, while SoFi offers much larger loans with slightly higher rates and more potential fees. However, because SoFi allows for co-signers, borrowers with credit scores across the spectrum have a better chance of getting approved with lower interest rates, even though the minimum credit score requirement is higher than Discover’s.

Discover personal loans

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Pros and cons

  

  Pros

  • No origination fees.
  • Offers prequalification.
  • Repayment assistance program.

  

  Cons

  • Late fee.
  • No co-signers allowed.
  • Low maximum loan amount.

• Bankrate's view

  Discover’s personal loans are ideal for those with a solid financial history. If you’re not sure you qualify, you can limit credit decline by using the prequalification tool. Plus, its repayment assistance program could come in handy should you become unable to make the payments.

SoFi personal loans

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Pros and cons

  

  Pros

  • Rate discounts.
  • Member benefits.
  • Co-signers accepted.

  

  Cons

  • Stringent eligibility criteria.
  • High minimum loan amount.
  • No physical branches.

• Bankrate's view

  SoFi is a fully online lender, so there are no physical locations — but it does have a 24/7 customer service chat option. Regardless, if you’re looking for a reputable lender that offers competitive loans and benefits, SoFi is worth checking out.

  The large loan amounts offered can be offset by long terms. If you’re unsure whether a loan will fit your budget, use a personal loan calculator to find out how much it will cost each month and how much interest you will pay overall.

How to choose between Discover and SoFi

Discover and SoFi meet the needs of different consumers. On one hand, a personal loan from SoFi may be better for borrowers who may have a hard time managing their payments and need a larger loan. On the other hand, Discover’s personal loans are smaller, but may be less expensive for those with excellent credit, both in fees and interest.

Discover allows you to borrow smaller amounts

Borrowers who need under $5,000 with a solid credit history, a minimum annual income of $25,000 and an excellent credit score will benefit most from a Discover personal loan. To its most creditworthy borrowers, Discover has the potential to be more affordable than SoFi. Its rates start at 7.99 percent, while SoFi’s start at 8.99 percent.

Discover also doesn’t tack on an origination fee or associated fees. It does, however, charge a late fee of $39. If Discover’s low fees and rates sound enticing to you, make sure your credit is at least above 660 — it’s minimum score — as the lender doesn’t allow for co-signers.

SoFi offers extensive borrower perks and benefits

SoFi is well-known for its perks, resources and customer benefits, and is best suited for borrowers who are looking for a larger loan. It also offers prequalification, which allows you to check your eligibility odds and potential rates with impacting your credit, so those who don’t have near-perfect credit can see if they’ll need a creditworthy co-signer before applying.

SoFi’s member benefits are really what set the company apart from the rest. It offers member-only benefits that include rewards and events. What’s more, it has a Special Handling Team that is dedicated to reviewing your circumstances and finding options for you should you experience financial hardship and aren’t able to make your payments.

Compare more lenders before applying

Discover and SoFi both have similar eligibility requirements and are well-known, reputable lenders. However, SoFi’s co-signer option and unique member benefits make this lender stand out among the rest. Still, you can borrow a much lower amount with Discover. And if you have exceptional credit and a stable income of over $25,000 annually, then you may have better luck qualifying for a cheaper loan.

If you can’t decide which lender to go with, compare rates to find the loan that will best benefit your financial goals in the long-run.