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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.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
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.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

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.

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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
7.99% – 23.43% (with discounts)
6.99% – 24.99%
Terms
24-84 months
36 to 84 months
Range
$5,000 – $100,000
$2,500 – $35,000
Minimum Score
680
720

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.

When you obtain a SoFi personal loan, you will be to avail of free financial advice on a one-to-one basis.

SoFi - Cons

Many other lenders will have faster funding times than what you will find with SoFi. Generally, it will take seven days before you get access to your funds.

One of the downsides of the SoFi offering is that it does not have any joint loan or secured loan options.

 

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

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.

There are many different repayment options available to you when you go with Discover for your personal loan needs.

Discover - Cons

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

While Discover does not charge any origination fees, it does charge you late fees, as well as not providing 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

The resource center at SoFi is very comprehensive, allowing you to get a lot of information about various matters as needed. The customer service team is reachable over the phone during the opening hours, each day of the week. There is also the option to send a tweet or an email to the team. SoFi currently holds an A+ rating from the Better Business Bureau, while its mobile app is regarded as being one of the best around.

Discover has a very clear and transparent website, with all of its loan terms being clearly laid out on the website. The FAQ section is comprehensive, answering many questions that people might have. There is seven-day support on offer, with many different contact options open to you.

There is also top-quality financial education content available to you through the Discover website, while the mobile app provides you with plenty of benefits including the ability to manage your loans.

There is a 30-day money-back guarantee at Discover which means that you can return your loan within that time period and not have to pay any interest. Finally, Discover has an A+ rating with the Better Business Bureau.

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

Figure and SoFi primarily serve people with good credit, whereas Upstart will serve people with poor or no credit. When it comes to providing quick access to funds, Upstart will be faster, while Figure and SoFi will offer autopay discounts.

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

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, whereas FIGURE is best suited to people who want quick and easy access to funds.

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

Each of these three lenders will be appropriate for a different type of person. Payoff 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. OneMain is somewhere in the middle, and it gives you quick access to your borrowed funds.

Read Full Comparison: Payoff 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, Payoff is a financial wellness company that wants its customers to have a positive relationship with money.

Read Full Comparison: Upgrade Vs Payoff Vs Discover: Which Personal Loan Suits You Best?

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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