Personal Loans » Compare Loans » SoFi Vs Discover: Which Personal Loan Suits You Best?
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SoFi Vs Discover: Which Personal Loan Suits You Best?

For those people who are looking to get their hands on a personal loan, there are many great lenders out there today. This particular review is going to focus on what SoFi and Discover have to offer when it comes to personal loans and which stands out in certain areas.
Author: Andrew O'Malley
Andrew O'Malley

Writer, Contributor

Experience

Andrew O’Malley has a BSc in Economics and Finance. He has worked in the finance industry as a risk analyst and is now pursuing a career in writing. In recent years, he has written for a number of leading publications. He studied Economics and Finance and has been fascinated with the financial markets since his teens.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Andrew O'Malley
Andrew O'Malley

Writer, Contributor

Experience

Andrew O’Malley has a BSc in Economics and Finance. He has worked in the finance industry as a risk analyst and is now pursuing a career in writing. In recent years, he has written for a number of leading publications. He studied Economics and Finance and has been fascinated with the financial markets since his teens.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

You can trust the integrity of our unbiased, independent editorial staff. We may, however, receive compensation from the issuers of some products mentioned in this article. Transparency is a core value for us, see how we make money.

Table Of Content

When SoFi Shines

SoFi has built up a reputation for being one of the very best in the business, having no fees, many different loan options, and a flexible set of terms for making repayments.

SoFi personal loan can be a better choice than Discover if:

sofi logo
sofi logo

When Discover Shines

Discover is another high-quality lender that also does not have any origination fees, offers an ideal range of repayment options, and can provide next day funding. 

Discover personal loan can be a better choice than SoFi if:

discover logo
discover logo

Requirements

The loan sizes you will get with SoFi will usually start at $5,000 and go up to $100,000. The loan range at Discover is a bit tighter generally being between $2,500 and $35,000. Therefore, people who are looking for relatively low sums will often be better served by Discover’s offering.

For getting a personal loan, SoFi's minimum credit score that is needed will be 680. With Discover, this minimum required credit score rises to 720, which means that there is a relatively high barrier to entry in place.

There is no specific debt-to-income (DTI) ratio that SoFi highlights when it comes to providing personal loans. With Discover, your minimum household annual income needs to be $40,000 to get a loan.

Both lenders will have a variety of other requirements in place, which include being 18 years old at least, as well as either being a US citizen, visa holder, or a permanent resident.

SoFi
Discover
APR
8.99% – 29.99%
7.99% – 24.99%
Terms
24-84 months
36 to 84 months
Range
$5,000 – $100,000
$2,500 – $40,000
Minimum Score
680
660

SoFi - Pros

Similar to other lenders such as Marcus and LightStream, there are no origination fees or late fees that you need to pay when you get a personal loan through SoFi. 

There are many different loan types you can get with SoFi, including variable and fixed-rate options. It is also good for people who are looking for relatively large sums and flexible term lengths.

Getting a personal loan in times of inflation can be a hassle, SoFi gives you the ability to alter your payment due dates if you have a fixed-rate loan. There is also forbearance of up to three consecutive months available.

You can receive funds as soon as the same day you apply, allowing you to address urgent expenses promptly.

SoFi - Cons

The lowest personal loan amount you can get with SoFi is $5,000.

SoFi doesn't allow co-signers on personal loan applications, which could make it challenging for those with weaker credit histories to qualify.

You will find that the minimum required credit score at SoFi is going to be higher than a lot of other good credit lenders.

SoFi has more restrictions regarding how their personal loans can be used.

Discover - Pros

Discover does not charge any origination fees when you get a personal loan.

Discover has a relatively low minimum loan size of just $2,500, which is ideal for people who are looking to only get their hands on a few thousand dollars.

Discover provides people with their funds from a personal loan on the following business day, which is very fast.

Applicants can pre-qualify online without affecting their credit score, allowing them to compare rates conveniently.

Discover - Cons

Discover does not currently offer you the ability to get a secured loan, joint loan, or a co-signed loan.

Discover may charge a late fee of $39 for missed payments, which can increase the overall cost of the loan. Also, they don't provide any form of autopay discount.

Repayment Options

You have a flexible range of repayment terms when it comes to SoFi personal loans. For fixed-rate loan holders, you can alter the payment due date with ease. There will also be access to up to three consecutive months of forbearance if you lose your employment without it being your own fault. There are also no pre-payment fees that you need to worry about if you are looking to make early payments, while late fees are also not a thing.

While there are no origination fees charged by Discover, it will require you to pay late fees if you do not meet your repayment obligations on time. It also does not give you any discount if you are making automatic repayments.

Customer Experience

SoFi
Discover
iOS App Score
4.8
4.9
Android App Score
4.2
3.6
BBB Rating
A+
A+
WalletHub Rating
3.1
4
Contact Options
phone/social
phone
Availability
5 am – 7 pm (PT)
24/7

SoFi boasts a comprehensive resource center for extensive information on various topics. Its customer service team is available via phone, email, or Twitter during business hours every day.

SoFi holds an A+ BBB rating and offers a top-rated mobile app. Discover features a transparent website with clear loan terms and a comprehensive FAQ section.

Seven-day support is available, along with high-quality financial education content. Discover holds an A+ BBB rating.

Which Personal Loan is The Winner?

SoFi and Discover offer very good terms when it comes to personal loans and they have the track records to give confidence to lenders.

The application process is very fast with both of these options, with Discover offering next business day funding. SoFi stands out for its zero-fee approach, while both options have a good range of repayment options.

Personal Loan Lenders Reviews

Compare Alternative Lenders

SoFi is widely regarded as the best option for people with excellent credit who require larger loan sizes while paying low fees. Prosper is best suited to people with low credit scores.

Read Full Comparison:  SoFi Vs Prosper: Which Personal Loan Is Better?

Each of these three lenders will be appropriate for a different type of person. OneMain is generally beneficial for accepting applications from people with less-than-perfect credit.

SoFi, on the other hand, caters to people with good credit who are looking for large loan amounts. Happy Money is somewhere in the middle, and it gives you quick access to your borrowed funds.

Read Full Comparison: Happy Money Vs SoFi Vs OneMain: Compare Personal Loan Providers

SoFi is regarded as one of the best lenders in the industry, with zero fees, a diverse range of loan options, and favorable repayment terms. It was founded in 2011 and began as a student loan lender before expanding into other areas.

Best Egg was founded in 2014 and has since funded over 788,000 loans totaling more than $14 billion. It has a wide range of loan amounts to choose from, as well as a secured loan option, and accepts lower credit scores than many other lenders.

Read Full Comparison: SoFi Vs Best Egg: Which Personal Loan Suits You Best?

 

SoFi has been around for a long time and is regarded as one of the best options. It has no fees, a flexible repayment system, and a wide range of loan options. Marcus, a Goldman Sachs subsidiary, is yet another high-quality online lender. It is an excellent choice for anyone with good credit who wants to avoid fees and customize their repayment terms.

Finally, while Rocket Loans does not have a competitive offering in many ways compared to the other two options, it does have an extremely fast funding speed.

Read Full Comparison: Rocketloans Vs SoFi Vs Marcus: Which Personal Loan Is the Best?

Both of these companies have advantages and disadvantages that will be discussed throughout this comparison. LendingClub, based in California, has over 3 million customers in the United States, while SoFi has won numerous awards in recent years for its offering.

LendingClub is better suited to people with low credit scores, whereas SoFi has better rates and more repayment flexibility. Both of these options are centered on their online operations and offer a simple way for you to obtain a personal loan without having to jump through a lot of hoops.

Read Full Comparison: SoFi Vs LendingClub: Which Personal Loan Is Better?

Each of these lenders prefers to work with borrowers who have good credit. Because there is no origination fee, SoFi is an excellent choice for people looking for low-cost personal loans.

When it comes to repayments, Axos is flexible, whereas PenFED offers some of the smallest loans in the online lending space.

Read Full Comparison: SoFi Vs PenFED Vs Axos: Which Personal Loan Is Best?

Upstart is a one-of-a-kind proposition because it employs an artificial intelligence (AI)-based system rather than relying solely on FICO scores. The Consumer Financial Protection Bureau has determined that it is a reputable lender. Upstart is a good option for people who do not have a long credit history and who need funds quickly.

SoFi has been in business since 2011, and in that time it has served over 2.5 million people and funded loans totaling more than $50 million. It is regarded as one of the best in the industry and an excellent choice for those with excellent credit.

Read Full Comparison: Upstart Vs SoFi: Which Personal Loan Is Best?

Marcus is a Goldman Sachs offshoot who is one of the best in the business. It is best suited to people with good credit and those who want repayment flexibility. Discover is another high-quality lender known for its low origination and fats funding fees. Axos is an online bank that caters to people with excellent credit and aims to process funds quickly.

Read Full Comparison: Axos Vs Marcus Vs Discover: Which Personal Loan Suits You Best?

Discover is an online lender with a good reputation that does not charge origination fees. It also provides same-day funding and a variety of excellent repayment options. Citibank is one of the largest financial service providers in the United States today. For many years, the New York-based company has provided personal loans.

It is an excellent choice for those looking for no-fee personal loans as well as access to autopay discounts. Finally, Wells Fargo, like Citi, is a well-established financial services powerhouse in the United States. It is an excellent choice for those seeking large loans with a high degree of flexibility.

Read Full Comparison: Citi Vs Discover Vs Wells Fargo: Which Personal Loan Is Better?

Over the years, Discover has earned a good reputation for not charging origination fees, offering flexible repayment options, and providing quick funding. Upgrade has been in the personal loan business for many years, serving over 500,000 customers and originating $7 billion in loans. It gives you quick access to funds as well as flexible repayment terms.

Finally, Happy Money is a financial wellness company that wants its customers to have a positive relationship with money.

Read Full Comparison: Upgrade Vs. Happy Money Vs. Discover: Which Personal Loan Suits You Best?

Picture of Andrew O'Malley

Andrew O'Malley

Andrew O’Malley has a BSc in Economics and Finance. He has worked in the finance industry as a risk analyst and is now pursuing a career in writing. In recent years, he has written for a number of leading publications. He studied Economics and Finance and has been fascinated with the financial markets since his teens.
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