Bank Loan

SoFi Personal Loan Review: Shocking Truth Revealed!

Published On March 6, 2024

bankcreditrates.com

At BankCreditRates, our mission is to assist you in making informed financial choices. We are committed to upholding rigorous editorial standards. Please note that this article may make mention of financial products offered by our trusted partners.

SoFi (short for Social Finance) is an online lending company that offers personal loans with flexible terms and competitive interest rates. With a SoFi personal loan, you can borrow from $5,000 to $100,000 for nearly any purpose. These unsecured loans provide an easy application process, fast funding, and unique features that make SoFi a popular lending choice.

Benefits of a SoFi Personal Loan

SoFi personal loans offer several advantages:

  1. Lower interest rates – SoFi offers fixed rates that are often lower than credit card rates, helping you save on interest costs. Rates range from 8.99% to 29.49% APR.
  2. Multiple uses – You can use a SoFi personal loan for debt consolidation, home improvements, medical expenses, moving costs, or any personal need. 
  3. Fixed monthly payments – SoFi personal loans come with fixed repayment terms ranging from 2 to 7 years. This allows you to budget for the same predictable payment each month.
  4. No collateral required – SoFi personal loans are unsecured, so you don’t have to put up an asset like your home or car as collateral. This reduces risk.
  5. Prequalification – You can check loan options and interest rates through SoFi’s prequalification process without impacting your credit score.
  6. Fast funding – If approved, SoFi deposits your loan into your account as soon as the same day. This will provide quick access to funds when you need them.

Qualification Criteria

To qualify for a SoFi personal loan, you will need to meet the below mention criteria:

  1. A credit score of 670+ – SoFi does not disclose its minimum score requirement, but you’ll need good to excellent credit for the highest approval chances. A score above 670 is recommended.
  2. Stable income – Proof of income from employment, self-employment, retirement, or other sources is required. SoFi will review your debt-to-income ratio.
  3. 2+ years of credit history – You need to demonstrate responsible use of credit over time. Insufficient credit history may disqualify an application.
  4. No recent bankruptcies – If you have had a bankruptcy in the past 7 years, you may not qualify. Bankruptcies older than 7 years are reviewed case-by-case.

SoFi’s Loan Application Process

Applying for a SoFi personal loan is straightforward and can be done fully online:

  1. Prequalify – Use SoFi’s online prequalification tool to get an initial eligibility decision without a hard inquiry on your credit report.
  2. Complete application – If prequalified, proceed with SoFi’s full application. You’ll need to provide personal information, income documentation, and bank account info.
  3. SoFi reviews application – If you meet the eligibility criteria, SoFi will conduct a hard credit check and verify your information.
  4. Get a decision – SoFi generally provides a loan decision within minutes. If approved, you can have funds deposited as soon as the same day.

SoFi Personal Loan Products

SoFi offers personal loan products with varying loan amounts, terms, and eligibility:

SoFi Personal Loans

  • Loan amounts – $5,000 to $100,000
  • Terms – 2 to 7 years
  • Rates – Fixed rates from 8.99% to 29.49% APR with autopay discount

SoFi’s standard personal loan product offers borrowers a wide range of loan amount and term options. Approval is based on factors like income, credit score, and debt-to-income ratio.

SoFi Co-Borrower Personal Loans

  • Loan amounts – $10,000 to $100,000
  • Terms – 2 to 7 years
  • Rates – Fixed rates from 5.99% to 29.49% APR with autopay discount

With a co-borrower loan, you apply with another co-signer. Adding a creditworthy co-borrower may help you qualify and get a lower interest rate.

Unique Features and Benefits

SoFi personal loans come with features that provide flexibility and support:

  1. Unemployment protection – SoFi offers forbearance if you lose your job involuntarily, temporarily pausing or reducing loan payments.
  2. No fees – SoFi doesn’t charges origination fees or prepayment penalties. You only have to pay your principal and interest.
  3. Flexible payment dates – Pick a payment due date that aligns with your pay schedule, any day between the 1st and 28th of each month.
  4. Financial planning – SoFi members get access to career advising, buying/selling home services, and other financial tips.
  5. Member rewards – SoFi members are eligible for discounts and perks from partner brands.

Comparing SoFi with Other Lenders

SoFi offers competitive rates and flexible terms, but it’s important to compare options from other top online lenders like LendingClub, Lightstream, and Upstart. Consider factors like:

  • Loan amount limits
  • Minimum credit requirements
  • Loan term length
  • Interest rates and fees
  • Funding speed

SoFi provides an easy application process and fast funding but may have higher minimum score requirements than some other lenders. Shopping and comparing quotes can help you find the best personal loan for your needs.

Customer Reviews of SoFi

SoFi currently holds an A+ rating from the Better Business Bureau and largely positive customer reviews. Favorable feedback includes:

  • Easy and fast application process
  • Quick access to funds when approved
  • Helpful customer service

However, some borrowers say SoFi has:

  • Stricter eligibility and credit requirements compared to other lenders
  • Higher APRs for those with lower credit scores or income

SoFi is best suited for those with good or excellent credit who value a convenient application and funding experience. Individuals with credit challenges may find approval easier and lower rates with other lenders.

Applying for a SoFi Personal Loan

Ready to apply? Here are the steps to getting a SoFi personal loan:

  • Visit SoFi.com and click “Borrow” then “Personal Loans”.
  • Select the type of personal loan product you want and desired loan amount.
  • Provide information for the quick prequalification form.
  • Review personalized rates and terms. If eligible, proceed to SoFi’s full application.
  • Submit all required documents, like pay stubs and bank statements.
  • SoFi processes the completed application, including a hard credit check.
  • If approved, e-sign your loan agreement and SoFi will deposit your funds.

Conclusion: 

SoFi personal loans provide fast access to funds and flexibility in using the money for different needs. Their online application and transparent rates make financing easy and clear. While SoFi offers competitive options, make sure to compare lenders, rates, and terms to find the ideal loan for your situation. Analyze SoFi’s eligibility criteria and your financial situation to determine if one of their personal loans is a good choice.

FAQs

What is SoFi and what types of personal loans do they offer?

SoFi, short for Social Finance, is an online lending company that offers personal loans ranging from $5,000 to $100,000. They provide unsecured loans with flexible terms and competitive interest rates for various purposes such as debt consolidation, home improvements, medical expenses, and more.

What are the key benefits of getting a SoFi personal loan?

SoFi personal loans come with several advantages, including lower interest rates, multiple use options, fixed monthly payments, no collateral requirement, prequalification without impacting credit score, and fast funding. These features aim to provide borrowers with a convenient and cost-effective borrowing experience.

What are the qualification criteria for a SoFi personal loan?

To qualify for a SoFi personal loan, applicants typically need a credit score of 670 or higher, a stable income source, a credit history of at least 2 years, and no recent bankruptcies within the past 7 years. SoFi reviews these criteria along with your debt-to-income ratio during the application process.

What unique features and benefits come with SoFi personal loans?

SoFi personal loans offer unique features such as unemployment protection, no origination fees or prepayment penalties, flexible payment due dates, financial planning resources, and member rewards. These features are designed to provide borrowers with added flexibility, support, and financial planning assistance.

How does the SoFi loan application process work, and how quickly can funds be accessed?

The SoFi loan application process involves prequalification, completing the full application with required documentation, SoFi reviewing the application with a hard credit check, and receiving a loan decision. If approved, you can deposit the funds  the same day. The online application process aims to be straightforward and efficient for borrowers.

Leave a Comment

Related Bank Loan Articles