SoFi 2023 Review
Social Finance, better known as SoFi, has a reputation as an elite online lender that provides personal loans for individuals with good credit scores and a high income.
The company is unique in the fact that SoFi personal loans reviews more than your credit score or income. It also considers other factors including your employment history, degree, education, financial history, and payment history that shows you are a reliable borrower.
- Multiple loan types: SoFi offers student loan refinancing, mortgages, and personal loans.
- SoFi looks at the big picture for loan approvals: They examine the following factors before making their decision: your credit score, income, earning potential, education, and financial history.
- Fixed and variable rates: SoFi offers both fixed and variable rates.
- Discounts and referrals: A discount of 0.25% on interest rates is given to those who sign up for autopay. Individuals can receive a reward for referring friends or family to SoFi.
- Unemployment grace period: If you find yourself unemployed, they allow you to stop your payments for three months at a time, up to 12 months, until you are employed again or have another source of income.
- Exclusive member benefits: SoFi has added perks for members, such as career counseling, holding exclusive happy hours, social networking for their clients, and access to a Career Services department to look for a new job.
- Multiple accreditations and honors: SoFi also holds an AAA bond rating from Moody’s and according to Forbes, SoFi has a nearly $4 billion valuation.
- High loan amounts and debt consolidation: Their high loan rate amounts are a great option for those who need to consolidate credit card debt.
- No hidden fees: Because their personal loans cater towards qualified and low-risk borrowers, many of the extra fees and penalties that other companies have are not present with SoFi.
- Credit bureau reporting: SoFi reports to all three credit bureaus, which gives you the opportunity to improve your credit score.
- Payment date flexibility: SoFi allows some flexibility when it comes to payments. For example, borrowers can change their payment date or have a late fee waived if they have a history of on-time payments.
- Online application: Unlike many other lenders, the entire process of signing up can be done solely online. This includes applying for your loan and receiving your funds.
- No prepayment penalty: You are not penalized for paying off your loan early.
- Multiple payment methods: Loan payments can be made online or through paper check.
- No collateral needed: SoFi’s loans are unsecured, meaning you do not have to provide collateral to receive the funds.
- Their services are only available in 48 states. Mississippi and Nevada currently do not offer these services.
- They do not allow co-signers on their personal loans.
- Current SoFi personal loans cannot be refinanced, although you can apply for an additional loan to pay off the existing one.
- SoFi does not offer direct payment to creditors if you are using your personal loan for debt consolidation.
How Does SoFi Work?
SoFi works like many other personal lenders. You can visit the company’s website and apply for a personal loan, borrowing as much as $100,000 for a variety of purposes. The company offers loans with no origination or pre-payment fees and offers same-day funding.
One useful feature of SoFi’s loans is its unemployment protection. If you lose your job, SoFi can help you out, modifying your loan payments or payment schedule to help you avoid late fees or damaging your credit.
SoFi may also consider less traditional factors when making lending decisions, such as your employment history or education. That can make it easier for you to qualify for a loan.
SoFi offers a wide variety of lending products, including:
- Student loans
- Student loan refinancing
- Personal loans
We’ll focus mostly on the company’s personal loans.
Personal loans are highly flexible loans that you can use for almost any purpose. Some of the specific reasons that SoFi offers as examples are:
- Home improvement
- Credit card consolidation
- Family planning
Though you can apply for a SoFi personal loan for many different reasons, the details of your loan will be the same regardless of why you’re applying.
How to Qualify for a SoFi Personal Loan?
Qualifying for a loan from SoFi is much like qualifying for any other loan. There are two factors that you should focus on to maximize your chances.
The first is your credit score. The higher your credit score, the better your chances of qualifying for a loan. On top of that, your credit score can also influence the cost of the loan. Better scores lead to lower interest rates.
The second is your financial situation. The higher your income and the lower your existing debt, the easier it will be to qualify for a personal loan from SoFi.
SoFi may also consider factors like your education or career history, so working in a highly-paid or in-demand field can help.
How to Apply for a SoFi Personal Loan?
Applying for a personal loan through SoFi is easy. When you visit the company’s website, you’ll be prompted to check your rate. You can get a quote without impacting your credit or obligating you to finish your application.
You’ll have to provide information, such as:
- Your personal info
- How much you want to borrow
- Why you want a loan
- Your citizenship status
- Your address
- Whether you own or rent your home
- Your annual income
- Your co-borrower's details (if you have one)
If you’re pre-approved, SoFi will give you a quote that includes interest rates and repayment terms. If you think the loan is a good deal, you can finalize the application process.
Terms & Requirements
Applicants for a SoFi personal loan must meet the following requirements:
- Be a US citizen or permanent resident
- Over 18 years of age
- Live in one of the 48 eligible states
- Have a minimum credit score of 700
- Loan amounts range from $5,000 to $100,000.
- Fixed rates range from 7.99% to 23.43%.
- Loan terms are 2 to 7 years.
- It takes around 3 business days to receive the funds.
- A late fee is incurred 15 days after your grace period and is either 4% of your loan or $5, whichever is lower.
- There are no origination fees, closing costs, or prepayment penalties.
- The initial payment is due 15 days after the funds are given, and no later than 45 days. You can change the monthly payment date to any day between the 1st and 25th of each month if you have a fixed rate and you are in good standing.
- If you make a large payment towards your personal loan that is more than your monthly amount, the first part will go towards interest you have accrued and the rest will go to the principal balance.
- SoFi allows you to temporarily stop your payments if you become unemployed. These payments can be stopped for three months at a time, up to 12 months, until you are employed again or have another source of income. Interest still accrues even during the Unemployment Protection period, although you can make payments on your interest during this time. To receive Unemployment Protection, you must work with SoFi’s career strategy services and show that you are receiving unemployment benefits and actively seeking a job.
For Whom SoFi is Good?
SoFi generally targets borrowers with solid credit and good financial situations. It offers loans with good interest rates and repayment terms. It also considers a few factors other than your credit, which may make it easier to qualify.
Overall, the people who will benefit the most from working with SoFi are people with strong credit and those with in-demand education.
SoFi Personal Loan Alternatives
There are many personal loan websites out there, each with pros and cons. Whenever you apply for a loan, you should shop around to get multiple quotes. Finding the lowest possible rate can help you save a lot of money over the life of a loan.
If you’re looking for a personal loan, consider these alternatives to SoFi:
SoFi is one of the leading personal loan services with a trusted reputation, entirely online service, and additional perks like Unemployment Protection, exclusive social networking, and career counseling. Interested individuals can contact SoFi to see potential rates and terms.
Phone: 855-456-7634 Hours: Monday through Thursday 4am to 9pm PT, Friday through Sunday 4am to 5pm PT Email: [email protected] Address: SoFi Lending Corp Personal Loans PO Box 654158 Dallas, TX 75265
Frequently Asked Questions
How does SoFi compare to other lenders?
SoFi is unique in the fact that they lend to clients who are recent graduates and have high-income careers and an excellent credit score. They offer benefits such as career counseling, access to exclusive social networking events, and Unemployment Protection. Additionally, SoFi offers student loan refinancing as part of its loan options.
How do I know if I qualify for SoFi?
Individuals who are eligible for SoFi must be a US citizen or permanent resident, over 18 years of age, and live in one of the 48 eligible states. Those who are interested can create an account with basic financial information to see if they are pre-approved by SoFi.
Will using SoFi affect my credit?
Checking your potential terms and rates from SoFi will result in a soft pull, which does not affect your credit. However, SoFi will authorize a hard pull (which does impact your credit) if you apply with one of your pre-approved offers.
Can I change my monthly payment date with SoFi?
You may be able to change your payment date by contacting SoFi's customer service as long as you have a fixed rate personal loan and you have been making on-time payments.
Does SoFi offer secured or unsecured loans?
SoFi offers unsecured loans that do not require collateral.
Is SoFi a legitimate lender?
Yes, SoFi is a legitimate lender that offers personal loans and other types of loans to its customers.
Is SoFi hard to get approved?
SoFi does have higher credit score requirements than other personal lenders, which may make it harder to get approved.
Does SoFi approve instantly?
Yes, SoFi can offer instant approval for well-qualified borrowers.
Is SoFi safe and legit?
Yes, SoFi is a safe and legitimate lender that has been operating for more than a decade.
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|Credit Score Required||660|
|Minimum Loan Amount||$5,000|
|Max Loan Amount||$100,000|
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