Do you intend to apply for a personal loan? If so, the importance of picking the right lender given your circumstances can hardly be underestimated. In case you are stuck between borrowing from SoFi vs. Best Egg, our article will present the major differences between the two and describe what each of them is best suited for.
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SoFi vs Best Egg: a Comparative Chart
| SoFi | Best Egg | |
|---|---|---|
| APR Range | 7.99 - 23.43% | 7.99 - 35.99% |
| Term | 24 - 84 months | 36 - 60 months |
| Loan amount | $5,000 - $100,000 | $2,000 - $50,000 |
| Min Score | Good (670-739) | Good (670-739) |
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| Cons |
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How to Choose between SoFi & Best Egg
General terms
The term length for the loans we are reviewing here differ quite considerably. Best Egg gives borrowers a choice between loan term lengths of 36 - 60 months, while SoFi offers a personal loan with an expanded range – from 24 - 84 months.
Another difference lies in the minimum and maximum APR. Best Egg personal loan are equipped with an APR in the range of 7.99 - 35.99%. The actual APR given in your case will reflect a number of key factors; among those, your credit score, economic status, loan term, etc. To be eligible for Best Egg’s best APR at 8.99%, you must have a FICO score of not less than 700, as well as an annual income no less than $100,000.
Unfortunately, SoFi, Best Eggs’s opponent of today, does not reveal its minimum credit score for potential applicants. Regardless of this fact, it remains true that as your credit score goes up, the expected APR reliably goes down.
Although Best Egg’s minimum loan amount is overall lower ($2,000), there are some territorial discrepancies. Applicants from Massachusetts cannot borrow less than $6,500. For residents of New Mexico and Ohio, this drops to $5,000. In Georgia, finally, the application must specify at least $3,000. To bypass the upper limit, one can apply for another Best Egg loan, on the condition that the sum of your current Best Egg loan balances does not exceed $100,000.
Finally, SoFi deserves major acclaim for its policy of charging no origination fee. Best Egg, by contrast, has an origination fee which varies between 0.99 - 8.99% for the different loan amounts.
Availability
Among other factors, the selection of a lender is necessarily constrained by territorial limitations. SoFi covers the territory of nearly all states (Mississippi is the only exception) and Washington D. C, while Best Egg’s services are unavailable to clients from Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. Both companies provide their services only to citizens and permanent residents of the United States who have reached the age of maturity.
Payment flexibility
The payment options provided by SoFi are ACH bank transfers, online bills and paper checks. As a small bonus, you get a symbolic 0.25% off APR for setting up ACH autopay as your default payment method. Best Egg also supports all of the same options, but here you won’t get a discount.
If you miss a payment, Best Egg will give you 3 days to catch up. The moment this grace period runs out, you will be charged a $15 late fee besides the interest accrued in the meantime, not to mention your credit score taking a hit.
SoFi is substantially more lenient in this respect. Not only do they charge no fees for late payments; the fact is not disclosed to credit rating agencies until 30 days past the due date. In other words, you get a whole month to fulfill your obligations without harming your credit score. That doesn’t mean delaying your payments is a particularly great idea, however.
The due date for the upcoming monthly payment can be moved once a year with SoFI. Best Egg restricts this to two times in total.
For additional payments made ahead of schedule, nothing extra is charged by either lender. This means that savvy clients can return their loan early, thus avoiding accumulating interest for the rest of the original term.
Application process
The procedure is basically identical between both lenders. You fill out an online questionnaire and wait to see whether you are approved. If your application gets a green light, you will immediately receive loan offers tailored for your circumstances. Normally, this only takes a couple of days.
In certain cases, however, it can be drawn out for longer; for example, if you have a co-applicant, you should be prepared for up to 10 days to pass before SoFi can assess your application. Best Egg, while usually very fast, warns of up to 5 days of delay in some cases.
In addition, once the contract is signed, it can take up to several days for the funds to land in your bank account.
Sharing responsibilities
A cosigner is a person who is accountable in case the borrower becomes insolvent before the debt is paid off. When choosing a cosigner, keep in mind that the person should be financially secure, have a steady source of income and a very decent credit score. In some cases, adding a cosigner may even reduce your APR (however, it’s not guaranteed).
Moreover, SoFi also accepts joint applications. The primary applicant and the co-borrower share the funds while being jointly responsible for all payments. The lender requires that the co-borrower live at the same address as the primary borrower.
If you would like to join hands with another applicant, you must clarify this before the submission is sent to SoFi. In the matter of sharing responsibilities, Best Egg’s options amount to nothing: the lender allows adding neither joint applicants nor cosigners.
Which lender is better for debt consolidation: SoFi or Best Egg?
Debt consolidation involves merging multiple existing debts into a single one. For instance, you may hold several credit cards with a negative balance, and take out another loan to pay them off. From that point onwards, you will only owe money to the one loan provider.
For SoFi, the sum available for consolidation ranges from $5,000 - $100,000. In other words, the upper limit is two times that of Best Egg ($2,000 - $50,000). Because of this, SoFi is a lot more convenient to consolidate large existing debt (but keep in mind the high credit requirements). With Best Egg, this would need two separate loans.
Reputation
SoFi and Best Egg are near-universally regarded as superb businesses. Best Egg was established in 2014, and SoFi is an even more experienced lender that arrived in 2011 (initially as a student loan lender). Best Egg’s financing is done by Cross River Bank and Blue Ridge Bank.
Best Egg is given as high as A+ rating by the Better Business Bureau (BBB) and has excellent reviews on the corresponding BBB page. In turn, SoFi is not approved by BBB.
Our Recommendations
You can read our recommendations below on which of the two lenders might be the best for you.
When is SoFi Better?
- You are applying for a loan exceeding $50,000.
- You want a short-term (2 years) or long-term personal loan (5+ years).
- You happen to live in Iowa, Vermont, West Virginia, the District of Columbia, or one of U.S. Territories.
- You want to add a co-applicant or a cosigner.
Check SoFi personal loan rates
When to choose Best Egg?
- You require quick loan approval.
- You want an amount less than $5,000.
- You are a resident of Mississippi.
Check Best Egg personal loan rates