In this Review..
SoFi is a credit company that offers a variety of personal loan options. These options may be used for credit card consolidation, home improvement, family planning, travel, and even for weddings. They don’t charge any fees for their services and are a good loan option for anyone with a credit score of at least 680 .
This company offers competitive rates and allows for joint applications too. Unlike other lenders, SoFi has unemployment protection in the case of falling on hardship. They have competitive rates, only do a soft pull inquiry upon application, and offer an autopay discount too.
These certainly are great benefits, however, there are some things to keep in mind before you decide to move forward. SoFi has high requirements for their applicants and slow turnaround times on their loans. They require a higher minimum amount, limited usage, and they aren’t available in all 50 states either.
SoFi is an online lender with a unique underwriting model. It's best for those who have a long, solid credit history.
APR
6.99% - 22.23% (with discounts)
Loan Amount
$5,000 – $100,000
Term
24-84 months
Min score
680
** include a 0.25% autopay discount and a 0.25% direct deposit discount
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Customer Experience
SoFi | |
|---|---|
iOS App Score | 4.8 |
Android App Score | 4.2 |
BBB Rating | A+ |
TrustPilot Rating | 3.5 |
WalletHub Rating | 3.1 |
Contact Options | phone/social |
Availability | 5 am – 7 pm (PT) |
SoFi has an extensive help center where you can learn a variety of things about personal loans and personal finance in general. During normal business hours, you can reach the customer service team seven days a week.
You can also use social media to send an email or a message. SoFi has an A+ rating with the Better Business Bureau, and it also has a very strong mobile app that allows you to manage all aspects of your loan.
Finally, SoFi ranks 4th in the study and got 871 out of 1000 possible points in the 2020 JD power research, higher than industry average.
Sofi Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
Pros
- Joint Borrowers – SoFi allows for joint borrowers on their personal loans as of April 2018. Many loan providers do not allow for this.
- Soft Pull Inquiry – SoFi does an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify.
- Competitive Interest Rates –SoFi has very competitive rates for strong borrowers.
- Referral Program – SoFi has a referral program that allows borrowers to earn $300 per referral. Your referral will also get a $100 welcome bonus.
- More than One Loan – The borrower can get two loans at the same time from SoFI.
- No Fees – SoFi personal loans have no origination or late fees. They also do not have a prepayment penalty so the loan can be paid off early without additional costs.
- Flexible Payments – SoFi gives borrowers flexibility in payments. They allow you to change payment due dates and do not charge late fees.
- High Maximum Loan Amount – SoFi’s highest maximum loan amount is $100,000 for personal loans.
- Autopay Discount – SoFi allows for a .25% discount if you sign up for auto pay.
Chime Banking App
- 0.50% APY on Chime Savings
- Build Credit History
- No Monthly Fees
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Cons
- Slower Turnaround Times –It can take many days to fund your loan and then a few days longer to send your money. If you need money more quickly, there are other providers that can turn around your application much faster.
- Limited Uses – SoFi has more restrictions regarding how their personal loans can be used.
- Only Available to the Strongest Borrowers – If you do not have the best credit history, you may not be able to get a loan through SoFi. They cater to those with very good to excellent credit histories and very strong cash flows.
- Higher Minimum Amount –The lowest personal loan amount you can get with SoFi is $5,000.
- Not Available in All States –SoFi does not operate in Mississippi.
What Can a SoFi Personal Loan Be Used For?
SoFi offers personal loans for many different reasons including debt consolidation, home improvements, relocation, medical expenses, and auto refinancing. SoFi has many restrictions on what their personal loans can be used for.
For example, you cannot use their personal loans for purchasing real estate, business purposes, investments or purchase securities, any postsecondary education or as short-term bridge financing.
- Home Improvement
SoFi home improvement loans are for home repairs or renovations.
The advantage of using a SoFi home improvement loan is that you do not have to use your home as collateral and you get funds much quicker with less documentation. Typically, it takes a month or more to get an equity line of credit on your home.
- Relocation
Moving can be expensive. There are many costs associated with moving and SoFi can help cover those moving costs.
- Medical Expenses
SoFi loans for medical expenses help borrowers manage large, unexpected medical costs. This can include costs for drugs, selective surgery, and adoption.
- Debt Consolidation
SoFi debt consolidation is paying off one or more prior unsecured loans with the new SoFi loan. Instead of multiple payments to multiple lenders you can create one payment to one lender. The idea is that you can take a high revolving interest credit card and save money by replacing it with a low rate fixed installment.
SoFi offers variable rates as well, but still provides a term that clearly indicates when you will be out of debt. SoFi also has a debt consolidation calculator, so you can get an idea of how much you can save.
- Auto Refinancing
SoFi personal loans can be used to buy a new or used car or for refinancing your current auto loan. If you have good credit history you may even get a better rate. One advantage is that you do not have to use your car as collateral and you may be able save some money since you won’t need gap insurance
How to Apply For SoFi Personal Loan?
Here are the steps you should take on Sofi website if you would like to apply for SoFi personal loan:
- 1.
SoFi takes a broader look at its borrowers than just evaluating their credit scores. SoFi requires a better understanding of their borrowers’ ability to repay.
- 2.
Taking this into consideration, understand that SoFi will have more questions and require more documentation than some other personal loan providers.
- 3.
The application process begins with you creating an account and answering a few questions. SoFi will do a soft pull on your credit. A soft pull does not affect your credit report. At this point, you could be declined. Otherwise, SoFi will give you a list of options for which you can apply. If you want to move forward, SoFi will do a hard credit check and you will then be asked to upload documents to verify information.
- 4.
You may need to provide pay stubs, bank statements, W-2s, social security card, or state ID. You can sign loan documents online. SoFi also offers a .25% discount if you set up auto pay.
- 5.
SoFi will usually let you know whether you are approved within one day. Because SoFi checks your documentation, it usually takes up to 7 days for your loan to be funded. SoFi may also call you directly to verify some information.
SoFi FAQs
Is SoFi a good place to get a loan?
SoFi is an excellent lender offering a large maximum loan amount at reasonable rates. The loans also have zero fees, flexible repayment terms and fast funding. However, you do need to have a credit score of more than 680 to qualify.
What makes SoFi a good place to get a loan is that there are also perks offered to customers. As a SoFi member, you’ll have access to an active online community, referral bonuses, financial advice, and complimentary estate planning.
Does SoFi check your bank account?
SoFi does evaluate loan applications based on credit score, financial history and income vs expenses. This typically involves a soft credit pull, but in some cases SoFi may need to verify your details by checking your bank transactions. This will allow SoFi to finalize your application and issue a formal offer with a confirmed rate.
Is SoFi better than Best Egg?
SoFi does offer more favorable terms compared to Best Egg. The maximum loan amounts are higher and you can take a longer term with a SoFi Loan. While Best Egg has similar starting rates, the maximum rate is higher. Additionally, Best Egg loans have an origination fee of up to 5.99%.
So, unless you are only looking to borrow a small amount, SoFi is a far better choice.
Is SoFi better than FIGURE?
FIGURE offers loans with a far lower maximum loan amount but potential longer terms and lower rates. While the rates are lower, they are obviously more designed for offering a debt consolidation solution rather than a basic personal loan. However, FIGURE also requires a FICO score of 680 or more, so you will still need good credit. FIGURE also requires that applicants have a debt to income ratio of 40% or less.
If you’re looking for debt consolidation, FIGURE is a solid option, but if you’re looking for a loan for another purpose, SoFi is a more flexible option.
Is LightStream better than SoFi?
SoFi has more similarities to LightStream compared to Marcus. Both companies offer loans up to $10,000 with no fees. Additionally, SoFi’s rates are similar if you have good credit and use autopay.
Both lenders are suited to those with good to excellent credit. SoFI is best suited to those who want a shorter term loan, as LightStream offers longer terms of up to 12 years, rather than the 7 offered by SoFi. However, SoFi does have less stringent criteria, so if you may struggle to meet the LightStream requirements, SoFi could be a good alternative.
Alternative Lenders For Fair - Good Credit
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APR Range
The annual percentage rate (APR) is the total annual cost of borrowing money. This rate includes the interest rate as well as any additional finance charges. When you take out a personal loan, for example, you may be required to pay loan origination fees.
| 7.04% – 35.89%
| 5.35% – 35.99%
| 5.99% – 29.99%
|
Term
The term of your loan is the amount of time you have to repay it. For example, if you get a 24 months personal loan, the loan term is 24 months.
| 36 – 60 months
| 36-60 Months
| 36-60 months
|
Loan Amount | $1,000 – $40,000
| $1,000 – $50,000
| $2,000 -$50,000
|
Minimum Score | 600
| 600
| 640
|
Funding Time | Up to 7 days
| 1-2 Days
| N/A |
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SoFi vs FIGURE vs Upstart
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 vs FIGURE vs Prosper
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?
SoFi vs Payoff vs OneMain
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 vs Best Egg
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 vs Discover
SoFi has a reputation for being one of the best in the business, with no fees, a wide range of loan options, and a flexible set of repayment terms.
Discover is another high-quality lender that does not charge origination fees, has a wide range of repayment options, and can provide funding the same day. This article will compare and contrast the similarities and differences between SoFi and Discover.
Read Full Comparison: SoFi Vs Discover: Which Personal Loan Suits You Best?
SoFi vs LendingClub
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?
SoFi vs PenFED vs Axos
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?
SoFi vs Upstart
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?
SoFi vs RocketLoans vs Marcus
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?
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