2021 SoFi Personal Loan Review
- Competitive interest rates for qualified candidates: SoFi personal loan rates start as low as 5.99%. Just like with any lender, only certain applicants will qualify for the lower rate. To qualify for SoFi’s lowest rate, you must demonstrate a responsible financial history, years of experience, sufficient income, and other conditions.
- Pay no fees to borrow: The fact that SoFi does not charge any fees, including late fees, could make borrowing more affordable. If you pre-qualify for the same APR elsewhere, but the other lender charges a fee, SoFi is probably the best choice.
- High loan amounts available for borrowers who need large loans: SoFi offers loans of up to $ 100,000. The lender also allows co-applicants for personal loans. It could work in your favor if you try to qualify for a larger loan amount. Co-borrowing can be risky from a credit and financial point of view for you and your co-applicant. But, if you and a partner want to fund a large home improvement project and need both of your incomes to qualify, SoFi might be a good choice.
- Good personal credit needed to qualify: Applicants must have a minimum credit score of 670 to be eligible for a personal loan. If your credit score falls below this threshold, you may need to work for improve your credit and, perhaps, consider a different lender in the meantime.
- Borrowers with excellent credit may find lower rates with other lenders: Lower interest rates can help you save money when you borrow money. If you have great credit, naturally you want to take advantage of it to get the best rates and terms available. If you are looking for a lower rate, be sure to factor in the fees charged by other lenders. A lower rate from a lender who charges high fees might not be a better deal in the long run.
- The funding process is slower than some other lenders: Some lenders give you the money you borrow on the day you apply. SoFi requires more time. If you need to access funds quickly, you should consider this fact before applying. Once you are approved and electronically sign your loan documents, you will receive a call to confirm your application information (such as your address). From there, it may take a few more days to access your funds.
Personal loan borrowers affected by the coronavirus pandemic can request a deferral of payment. SoFi states that “for those who continue to have difficulty, we will work with you to find possible options.”
Types of personal loans offered by SoFi
You can use a personal loan from SoFi for a variety of purposes. Loans are available for credit card consolidation, home renovations, medical bills, relocation, etc. As long as you don’t plan to use the loan for limited reasons (see below), it’s up to you where you spend the money you borrow.
SoFi same day loans cannot be used for any of the following reasons:
- Business objectives
- Post-secondary education
- Short-term interim financing
- Purchase of securities
It’s time to receive funds
One downside to SoFi personal loans is the time it can take to receive your funds. Where some lenders may let you access funds from the day you apply for a personal loan, SoFi borrowers may have to wait several days to receive the money they borrow.
Characteristics of the SoFi personal loan
As a SoFi personal loan borrower, the lender gives you the option of temporarily deferring your payments if you lose your job through no fault of your own. You can ask to put your loan on hold for three months. SoFi offers you the option of temporarily suspending payments up to four times over the life of your loan (12 months total forbearance).
Initial inquiry into flexible credit
You can check the rates and terms that you are eligible to receive with only a flexible credit check that will not impact your credit score. If you decide to apply for the loan, a thorough investigation (which could affect your credit score) will take place.
Common applications available
Want a loved one to co-sign your personal loan? SoFi allows joint applications from borrowers sharing the same address. It may take up to two additional weeks to process joint requests. Keep in mind that the co-signers are also responsible for the debts. So if the worst happens and you can’t make your payments, it could damage your credit and that of your co-borrower.
SoFi offers a mobile application for Apple and Android users. You can use the app to apply for loans, make payments, and view your balances.
When your loan application is approved, you become a SoFi member. Membership offers you benefits such as free financial planning assistance, career services, and access to member events across the country.
Apply for a SoFi personal loan
You can find out if you’re eligible for a SoFi personal loan, along with your rate and terms, through an initial credit check. Use the SoFi website or app to initiate this process. Here’s what to expect.
- Fill in some initial information online, including your name, state, and email address. Create a password and accept SoFi’s online consent forms to register for your online account. (Tip: Read all of the terms to make sure you’re comfortable agreeing to them first, including the arbitration agreement.)
- Let SoFi know how much you want to borrow, between $ 5,000 and $ 100,000, and how you plan to use the funds. Choose from options like credit card repayment, loan consolidation, major purchase, home improvement, moving expenses, and more.
- Choose your desired monthly payment amount. Your minimum and maximum payment options will vary depending on the amount you indicated you want to borrow in step 2.
- Enter your date of birth and citizenship status. You must be a U.S. citizen, green card or visa holder to be able to borrow.
- Indicate your home address for SoFi to see if they can match your information to data from a credit reporting agency. Tell SoFi if you own your home, rent, or live with friends or family.
- Disclose your annual income (total basic income before taxes). You should only include income that you can prove you are earning.
- Choose between an individual or joint request. If you choose to include a co-signer, you will also need to provide their information.
- Check your rate. If SoFi cannot find your credit information, you may need to provide your Social Security number first to proceed with the credit check.
- Review your loan terms and continue with a formal request if you are satisfied with the offer. SoFi can contact you if they need additional documents, such as a copy of your driver’s license, proof of income, etc.
Once your loan is approved and your loan agreement electronically signed, you should be able to access your funds within days.
Can you refinance a personal loan with SoFi?
SoFi does not offer the option of refinancing your personal loan. Still, you can take out a second personal loan if you qualify. You can use the new loan to pay off existing debt, including previous SoFi personal loans.
A personal loan might be a good idea if you need to pay off high interest debts or cover large, potentially unforeseen expenses. Still, you should proceed with caution before applying for any type of financing. Most importantly, make sure that your budget has room for the additional loan payment.
Because SoFi offers low rates and no fees, it is worth considering if you are looking for a personal loan if you have good credit. You can use a SoFi personal loan for almost any purpose, aside from the fact that borrowers receive a host of other benefits like free financial planning, making it a solid choice. The best way to find out if SoFi has the best financing offer for your situation is to complete the online prequalification process. From there, you can compare SoFi’s offering to options from other lenders.
Investopedia is dedicated to providing consumers with unbiased and comprehensive reviews of personal lenders. We collected over 25 data points from over 50 lenders, including interest rates, fees, loan amounts, and repayment terms to ensure our content helps users make the right decision. borrowing according to their needs.