Is Lantern by SoFi Worth It? Honest Review for Borrowers
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
Most people take out loans for big purchases like a house, car, or college tuition. While loans offer the relief of instant capital, the interest rates and terms can make these loans take up a large percentage of your monthly budget.
Lantern is a lending marketplace powered by SoFi that helps borrowers compare offers from dozens of lenders. Having many loan offers in one place can make it easier to find a loan with competitive rates and terms. A lower interest rate can help you save thousands of dollars on your loan.
Those extra savings can make a big difference in your finances. This Lantern review will help you decide if the lending marketplace is the right choice for you.
In this article
What is Lantern by SoFi?
Lantern by SoFi, located in Newport Beach, California, is a lending marketplace connecting borrowers with dozens of lenders. Instead of applying for the same type of loan on multiple websites, you only have to submit one application and then receive several offers.
Some borrowers receive their loans within 24 hours. Applying will not impact your credit score depending on the type of loan. Lantern by SoFi also offers secured credit cards and high-yield savings accounts. Secured cards make it easier for people with low credit to rebuild their scores. They’re also a great choice for people without a credit history.
High-yield savings accounts allow your money to grow faster even if you don’t make additional investments. Higher interest rates will increase your total returns, and Lantern by SoFi can help you find the best rates.
5.54% - 15.86% VARIABLE rate APRs 3.54% - 14.83% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
How does Lantern by SoFi work?
Lantern by SoFi allows consumers to apply for several types of loans. The company offers mortgages, personal loans, auto loan refinancing, student loan refinancing, and small business loans.
You can visit the Lantern website and click on the type of loan you want to receive. Then, you will be directed to a page inviting you to fill out details to help you qualify for a loan.
When you apply for a loan through Lantern, you will receive loan offers from various lenders. Lantern is not a loan originator, which means it partners with lenders to present several offers if you fill out the form.
Lantern also lets you compare credit cards and savings accounts. Consumers can also visit the Learn section to learn more about starting a business, getting approved for loans, and receiving grants.
How much does Lantern by SoFi cost?
Lantern by SoFi is free to use. Borrowers only pay if they accept a loan offer. Each lender has different rates and terms that they outline in the contract. You should also check each lender’s administrative fees before accepting an offer.
Lantern makes money by charging lenders a small fee for placements and approved loan applications. This business model allows the lending marketplace to provide a free experience for its customers.
Lantern by SoFi features
Free rate comparisons
Consumers can compare rates from dozens of lenders for free. You don’t have to put your information into numerous lending websites when you can do it all from a single platform.
Credit score protection
You can check your personalized rate without impacting your credit score. Some lenders only require a hard credit check when you want to get approved. Other lenders only conduct soft credit checks throughout the entire process. It depends on the type of loan and the lender. However, you can see your rate without losing points on your credit score.
Loans
Consumers can choose from mortgages, personal loans, and business loans. Lantern has several mortgage choices available, such as conventional loans, FHA home loans, jumbo loans, and VA home loans. This variety can help people afford high-ticket items and get the extra capital they need.
Refinancing
Lantern by SoFi offers refinancing for auto, mortgage, and student loans. Refinancing a loan can serve several purposes, such as lowering your monthly payment, securing a lower interest rate, capitalizing on a cash-out, or reducing your term to get out of debt sooner.
Credit cards
Choose from several credit-building cards. These secured credit cards require security deposits to open. The security deposit becomes your credit limit. These cards are much easier to get than unsecured ones, and your payment history is still reported to the major credit bureaus.
Savings accounts
Choose from several savings accounts with yields above 4% APY. Lantern by SoFi lists each bank’s monthly fees, check writing privileges, and the minimum balance requirement for the high APY.
Educational resources
Learn more about obtaining loans and grants, plus some strategies to grow your business. Lantern by SoFi has a “Learn” section filled with useful articles.
Loan counseling and consolidation guidance
Some platforms provide access to loan counselors who can offer personalized advice and assistance in navigating the complexities of student loan management. Information and guidance on federal loan consolidation may be available, helping users understand the benefits and potential drawbacks of consolidating their loans.
5.54% - 15.86% VARIABLE rate APRs 3.54% - 14.83% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
Who is Lantern by SoFi best for?
Borrowers who want to refinance their loans
Refinancing your loan can help minimize monthly expenses and free up your budget. Lantern offers refinancing options for student loans and auto loans. You can also use a personal loan as debt consolidation to eliminate credit card debt.
Consumers looking to rebuild their credit
Lantern by SoFi connects consumers with several secured credit cards. These cards make it easier to build credit and can make it easier to qualify for better financing in the future. A secured credit card can help you obtain an unsecured credit card. Unsecured cards tend to have lower interest rates, no annual fees, and better rewards programs.
People who need to borrow money
Lantern makes it easy to borrow money from lenders. You can compare mortgage, personal, and business loan rates and terms.
Who shouldn’t use Lantern by SoFi?
People with excellent credit
Lantern’s credit card suggestions only contain secured credit cards. Consumers with high credit scores should look at other websites for credit cards with the best rewards programs and perks.
Consumers who are happy with their high-yield savings accounts
Lantern by SoFi presents several high-yield savings accounts with competitive APYs. If you are happy with your banking experience and have a savings account yielding more than 5% APY, you probably don’t need Lantern to find a bank account.
Pros and cons
Pros
- The lender network. Lantern by SoFi connects you with dozens of lenders. That means more offers and competitive rates.
- The variety of loans. You can choose from several types, such as mortgages, personal loans, business loans, auto refinancing, and student loan refinancing.
- High-yield savings accounts. A higher interest rate increases your risk-free return. Lantern displays bank accounts yielding above 5% APY.
- Secured credit cards. Use these cards to rebuild your credit or establish a credit history for the first time. These cards can help you get better rates and terms for future debt.
Cons
- No unsecured credit cards. Lantern isn’t the best place to find credit cards with the best rewards programs for people with excellent credit.
- You can only refinance auto loans. Lantern does not allow people to obtain loans to buy new cars. However, the platform is helpful if you want to refinance your auto loan.
- Spreading your finances across many platforms. You will receive many loan offers from one place. However, if you work with multiple lenders, open bank accounts, and establish credit cards, you will spread your finances across many platforms. Not everyone wants to remember numerous usernames and passwords, and losing track can result in an unintentional late payment.
Lantern by SoFi vs. competitors
Lantern by SoFi shines because it offers various types of loans alongside secured credit cards and high-yield savings accounts. Most lending marketplaces only offer personal loans, business loans, or both. These are some of Lantern’s top competitors.
Lending Marketplace | Free | Type of Loans | Funding time |
Lantern by SoFi | Yes | Personal and business | As little as 24 hours |
Lendio | Yes | Only business loans (but more variety) | As little as 24 hours |
LendingClub | Yes | Personal and business | As little as 24 hours |
Lendio
Lendio focuses on business loans but has more variety than most small business lenders. You can apply for a small business loan in a few minutes and receive capital for your business in as little as 24 hours. Lendio has a network of over 75 lenders.
LendingClub
Borrowers can check their interest rates without any impact on their credit scores on LendingClub. The lending marketplace lets you borrow personal and business loans. The maximum amount for a personal loan is $40,000. LendingClub also offers personal, business, and commercial banking.
FAQs
Is Lantern by SoFi legitimate?
Lantern by SoFi is a legitimate company founded in 2013 as Lantern Credit. SoFi then acquired the company. Lantern operates in all 50 states and helps consumers and business owners access extra capital.
Does Lantern hurt your credit score?
Lantern only runs soft credit checks on your report. Your credit score will not get hurt. However, if you apply for a loan offered by one of Lantern’s lending partners, you may end up with a hard credit check. You can see your personalized rate through Lantern without impacting your score.
What is the difference between Lantern and SoFi?
Lantern is a lending marketplace and SoFi affiliate that partners with several lenders to provide offers. While Lantern is a marketplace, SoFi originates its loans like a traditional bank.
5.54% - 15.86% VARIABLE rate APRs 3.54% - 14.83% FIXED rate APRs
- Easy online application!
- No origination fees, late fees, and no insufficient fund fees
- Flexible repayment options to help you find the right loan for you
- Student loans for college, graduate, law, MBA, Health Professionals, and Parent loans
- Students are 5x more likely to be approved with a cosigner
- 0.25% discount when you set up autopay
The bottom line
Getting the right loan can help you save thousands of dollars over your lifetime. A good term can also reduce monthly payments and make extra capital more affordable.
Lantern by SoFi simplifies the process by connecting you with dozens of lenders. You can then compare offers and decide which one is right for you.
Lantern also recommends several secured credit cards and high-yield savings accounts to fortify your finances. The lending marketplace is a useful resource for anyone needing extra cash quickly. You can receive capital in as little as 24 hours after submitting your application.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
Share this article
