LightStream vs. SoFi Personal Loans 2026: Which Is Better for Your Needs?

Quick Summary: LightStream and SoFi are both known for their competitive, customizable personal loans, though LightStream, which edges SoFi on costs, typically lends only to the most creditworthy borrowers. 

LightStream is best if you have excellent credit and aren’t worried about pre-qualifying, or if you’re looking for an extra-long repayment period. SoFi is best if you have good-to-excellent credit, want to pre-qualify or are interested in its other financial products.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Detailed Comparison: LightStream vs. SoFi

Interest Rates & APR 

Annual percentage rates (APRs) represent the total cost of interest plus fees that you’ll pay each year for your loan, expressed as a percentage. Most unsecured personal loans carry fixed-rate APRs between 8% and 36%. SoFi’s APRs fall squarely in that window, with a minimum rate of 8.74% and a maximum of 35.49%. 

LightStream, however, is known for its industry-leading low APRs, which range from 6.49% to 25.39%. As you can see from the chart below, which assumes you’re borrowing $15,000 over five years, those low APRs can save you handsomely. 

If you qualify for LightStream’s maximum APR, for instance, you’ll pay $93 less a month and $5,602 less in total costs than if you were to qualify for SoFi’s maximum APR. The catch is that LightStream loans are more challenging to get.

Loan Amounts 

LightStream offers loans between $5,000 and $100,000, as does SoFi. That makes both options for larger loans, as many lenders cap loans at $35,000 to $50,000.​

Conversely, neither LightStream nor SoFi is a fit for smaller-dollar personal loans, given their minimum borrowing requirement, so if you need less than $5,000 for, say, a vet bill or emergency car repair, you’ll need to look elsewhere.

LightStream advertises lower APRs for smaller loan amounts, which is fairly commonplace in the industry, since larger loans require lenders to take on more risk.   

Repayment Terms 

SoFi offers 2-, 3-, 4-, 5-, 6-, and 7-year repayment terms, which are fairly standard. LightStream, meanwhile, offers repayment terms of two to 20 years, though you’ll need to borrow $50,000 or more to apply for a loan with a term over 7 years.

Big-dollar, long-term loans can help cover large medical bills, home renovations, specialty vehicles, and certain life events, like weddings or funerals, while keeping payments more manageable. But there’s a trade-off.      

This chart illustrates the total borrowing costs and monthly payments for a $50,000 personal loan across four longer-term loans, assuming the minimum APRs cited by SoFi and LightStream. 

As you can see, even with LightStream’s comparatively low APRs, the total interest and fees on a 20-year loan exceed the original loan amount by $13,439 by the time you repay it. 

Both lenders offer rate reductions if you enroll in autopay. LightStream’s 0.50% discount is higher than SoFi’s 0.25%, but it’s only available before funding. LightStream also has a RateBeat program that bests competitor rates by 0.10 percentage points, so long as the other approval is within a select timeframe.

Fees & Costs 

LightStream’s other big draw is its fee-free structure: You won’t pay origination fees, application fees, late payment fees, or prepayment penalties. 

SoFi also has a borrower-friendly fee structure, skipping prepayment penalties, application fees, and late fees for loans originated after April 17, 2018. It defaults to no origination fees, but you can elect to pay one to get a lower APR. 

SoFi origination fees range from 1% to 7%, based on a loan’s terms and your financial profile; they’re deducted from your loan proceeds before you receive them.  

Eligibility & Approval   

Both lenders cater to borrowers with good-to-excellent credit and strong financial profiles, assessing employment, loan usage, and monthly income vs. expenses. But LightStream, the online lending division of Truist Bank, is perhaps notoriously selective about who it lends to. 

Its website makes clear that a “high FICO score” (scores of 740 and above) doesn’t mean you’ll get approved, and many of its negative Trustpilot reviews are from good-credit applicants upset with unexpected denials. Plus, LightStream doesn’t let applicants pre-qualify directly, meaning you can’t request rates or a conditional approval without risking some damage to your credit. 

SoFi, which outperforms LightStream on Trustpilot, lets you pre-qualify without a hard credit check, and has been known to accept applicants with credit scores in the mid-to-high 600s. 

Application & Funding Experience 

LightStream and SoFi offer fully digital loan applications, and advertise fast, “same-day” funding, but there are caveats. First, you need to apply on a banking business day. 

Next, for LightStream, your loan must be fully approved and you must sign, provide funding preferences, and complete final verification by 2:30 p.m. E.T. on the day you applied. SoFi, similarly, requires full loan approval, but has a later cutoff (5:30 p.m. ET). Both will take longer to approve loans if they require additional documentation.

LightStream doesn’t have a mobile app, while SoFi’s is well-rated in the Google Play and Apple App stores. 

Pros & Cons 

Best For: Who Should Choose Which 

LightStream and SoFi are both strong options if you need a personal loan, but they cater to slightly different customers and have a few other minor differences that can make one a better fit than the other. This overview can help you determine which is right for you.

Choose LightStream if: 

• You have excellent credit and aren’t worried about a hard credit inquiry.

• You want a loan term that’s longer than eight years. 

• You want a chance at an ultra-low APR.

• You’re looking to skip origination fees and other extra charges.

Choose SoFi if: 

• You want to pre-qualify or rate-shop without dinging your credit. 

• You have (or plan to have) other SoFi accounts and want to keep your finances consolidated.

• You have (or plan to have) multiple SoFi accounts and want to maximize perks and discounts. 

• You're willing to pay an origination fee to get a lower APR.

Final Recommendation & Next Steps 

LightStream and SoFi rate among the top personal loan providers, but both require good-to-excellent credit, and LightStream is particularly selective. If your credit isn’t in range, take steps to improve your standing before applying or consider a personal loan for bad credit. If your credit and financial profile are strong, pre-qualify and rate-shop with SoFi and other top lenders. It could also be worthwhile to apply for a LightStream loan without pre-qualification, given its low rates. A hard inquiry usually has a minimal impact on your credit score. 

FAQs 

Is LightStream a reputable lender?

LightStream is a reputable lender, scoring 6th overall and 1st among non-traditional lenders in J.D. Power’s 2025 U.S. Consumer Lending Satisfaction Study. It’s been in business for 28 years and holds an A rating from the Better Business Bureau (BBB). 

Is LightStream or SoFi better?

LightStream offers lower APRs than SoFi, but lends primarily to borrowers with top-tier credit and strong financial histories. SoFi is a better fit if your credit is good (as opposed to excellent) and you want to pre-qualify for a loan without a hard credit inquiry.

Is it hard to get a loan through LightStream?

Yes, it’s hard to get a loan through LightStream, as it has stringent underwriting standards, beyond even simply having a high credit score. LightStream borrowers generally have excellent credit, sufficient income, and low existing debt obligations.  

Is a SoFi loan a good idea?

A SoFi loan is a good idea if you can comfortably afford its monthly payments and ultimately repay the loan as agreed. SoFi, overall, has good customer service scores, flexible loan options, and competitive rates and fees. 

Sources

• SoFi.com - Personal Loans Official Website

• Lightstream.com - Personal Loans Official Website

• Reddit.com - Official SoFi Response to “Odds of being approved?”

• Truist.com - Personal Loans Official Website

• JDPower.com - Consumer Loan Satisfaction Stagnant as Financial Health of Customers Declines, J.D. Power Finds

• Trustpilot.com - Sofi Review

• Trustpilot.com - LightStream Review