Taking out a loan can be an intimidating process, and it’s easy to feel overwhelmed by the many offers available. But with SoFi Loans, you can rest assured that you are making an informed decision when it comes to your financial future. SoFi is one of the few lenders offering lower rates for those looking for personal loans in 2023 and beyond. With their commitment to providing excellent customer service, dedicated advisors, and straightforward terms, they make it easier than ever to get the funds you need without breaking the bank.
In this post, we will explore everything you should know before applying for a SoFi personal loan: updated SoFi reviews from our team of experts along with benefits and drawbacks associated with choosing them as your lender – all so that you can take advantage of what may very well be one of the best options on the market today.
SoFi Loans: An Overview
The United States-based fintech company SoFi, abbreviated as Social Finance, was established in 2011. In the beginning, it concentrated on refinancing educational loans but thereafter entered the dealer business. The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) of the United States oversee SoFi. They have a history of providing various finance-related services, products, and solutions. They are able to assist you with investing, budgeting, and additional financial requirements.
- Minimum Credit Score- 680
- APR- 7.99% – 23.43%.
- Loan Amount Limit- $5,000 to $100,000
- Loan Repayment Duration- 2 to 7 Years
- Loan Obtainability- All States
- No prior fees
- The size of loan amounts
- Joint loan applications are acceptable
- App for managing loan
- Special program for needy borrowers
What are the Features and Perks of SoFi?
Here, SoFi loans are offering a protection service for unemployment. It is available for borrowers with status. It grants you three months of forbearance on your loan If you suddenly lose your job due to any reason and then you are unable to repay the loan installment. Another advantage of this benefit is the chance to get free assistance along with your employment search.
When you sign up for automatic repayments, you can get a 0.25% interest rate reduction. There are also additional perks which include finance-related planning, in-person networking opportunities, individualized career guidance, and professionals who can address your concerns regarding college funding.
SoFi is Great for Debt Consolidation Loans Without Fees
With SoFi’s debt consolidation loan, you can easily help your finances by consolidating multiple high-interest debts into a single monthly loan repayment at an attractive rate and without costly fees. Their convenient online application process makes it fast and simple to get started and their expert team provides comprehensive assistance throughout the duration of your repayment plan. Furthermore, with access to educational materials and helpful customer support, it gives you all the guidance and resources necessary for creating a smart financial journey. With SoFi’s services and commitment to offering helpful advice, you can have the proper tools needed to not only address debt but invest in your future as well. All of these powerful features combine to make them one of the leading lenders when it comes to taking control of your finances.
Penalties and Fees Imposed by SoFi
There are no fees attached to SoFi loans. It is among some lenders who are not changing origination fees from their borrowers. If you make your payment before the stipulated time for repayment, then you do not have to go through any penalty for that. There are no late fee charges if you are late in paying off; however, if you miss payments, you may experience negative effects on your credit and accrue even more interest.
SoFi stands apart among different banks by providing unemployment
It is on the list of great lenders as it also offers features like unemployment assistance. You can also apply here to suspend loan payments in case you suddenly lose your job and there is no harm to your credit in this matter. You can stop making payments on your loan for up to 1 year, but you will still have to pay the interest on the rest balance.
SoFi set up a career-related strategic service that assists you in your job search and you must agree to follow this. It demonstrates that you are actively seeking employment in addition to getting benefits of unemployment in order to enact this installment stop.
SoFi Offers App Support and Other Conveniences
By accessing SoFi mobile app, you can apply for personal loans, can check your balance, and also maintain your payments. You can easily get this app on Google Play and App store, this app supports devices like Android, and iPhone and you can also use it on your desktop and laptop.
It offers different features to make its user’s experience smooth, which are as follows:
- It adjusts headings or labels to explain specific topics in a better way.
- Content’s functionality through the interface of the keyboard.
- Alternative texts for content that isn’t text.
In the upcoming days, SoFi is all set to offer a non-chargeable Web Enhancement to make their user’s experience more personalized. Simply turn AudioEye On to enable the AudioEye Ally Toolbar. Users can access AudioEye Accessibility functions according to their needs by enabling the Ally Toolbar.
SoFi’s Customer Support Service
SoFi loans provide good customer service to resolve all the queries of the customer, as there are different types of clients so you can find both good and bad reviews about SoFi’s customer service.
You can ask your doubts through a phone call and you can also send them a mail if you don’t want to call them. Just make sure to explain all your doubts, queries, and any suggestion you have so that their customer support can clarify all your problems in an effective manner.
What SoFi Prohibits Using Loan Funds for?
SoFi personal loans cannot be accessed to obtain property, securities, or additional investments, nor can they be accessed for commercial purposes. It is also against the law to make use of the loan fund proceeds to pay for higher education or bridge loans which are for short-term.
SoFi Login With Simplest Steps
The process of SoFi login is very simple and we have guided you on how to do it:
- First of all, go to the official website of SoFi.
- At the top, you will get the option of Login, click on it.
- Enter your Email Address and Password in the boxes provided.
- Select the Login button.
Now, in a few moments, your account will be displayed. You can use all of SoFi’s financial features and services, including a loan calculator.
How Does SoFi Work?
From a company that refinanced student loans, it became a provider of financial support. It entices customers by allowing them to join multiple borrowings to create one debt and offers lower interest charges. It gives most of its funds through the private investment fund. Investments, personal loans, brokerage, mortgages, financial & investment guiding services, and deposit accounts are now part of SoFi’s expanded offerings. The entire line of products is as follows:
- SoFi Loans- It covers refinancing student loans, personal loans, and home loans.
- SoFi Money- A platform for managing money that includes savings and checking accounts. In contrast to other bank accounts, there is no requirement for a minimum deposit, costs are lower, and no high overdraft fees there.
- SoFi Invest- A platform for a brokerage that makes it possible for you to trade securities or put money into an automated investment portfolio.
- SoFi Relay- It can be accessed to monitor credit.
- SoFi Credit Card- A credit card with cashback rewards that give you a lot of benefits if you transfer the rewards to any different account. A Debit card is also offered by them.
- SoFi Protect– Utilizes outside partners to provide a variety of insurance items.
SoFi Student Loans are a well-known feature of it. A loan rate can be obtained quickly online or through the mobile app for prospective borrowers. If they accept the terms, they can submit a formal application. When your application is approved, the fund will be deposited directly into your bank account within a few days.
The SoFi saving and checking account is yet another popular feature. Instantaneous direct deposit can be made to their other accounts. But if the recipient already has a different bank account, things are different. Therefore, before the fund comes into the account, you must check what kind of connected account the recipient has.
SoFi Reviews on Like and Dislike Features
What We Found Appealing:
- Free of Charge- If you are late in making the payment, then no penalty will be imposed on you. It also does not charge you prepayment or origination fees.
- Loan Amount Limitations- SoFi loans are always ready to provide you loans ranging from $5,000 to $100,000 and this is what makes it an excellent option for financing several purchases or settling the debt of your credit card with high-interest rates.
- Digital Procedures- The whole cycle happens on the web. Whether you apply for a loan, manage any payment, or check your account balance, every single work is done digitally.
- Permit to Include Co-Applicant- It also allows you to add a co-applicant when you fill out the application. It proves helpful to you in many aspects like when you are not getting approval for getting a loan or when you want to get a lower interest rate.
- Licensed Financial Developers- A future significant advantage of using SoFi is having connections to licensed financial builders. You can get the support of these planners if you have any questions about money or want to get guidance on investing.
- Manage Your Account- A SoFi account offers basic bank-related functions like fund transfer, online banking, and an ATM card without charging a monthly fee.
What We Find Unappealing:
- Require a Good Credit- To be considered for a SoFi personal loan, a credit score of at least 680 is required.
- No Options for Cosigners- Despite the fact that two applicants are permitted by SoFi to borrow loans, you cannot obtain a loan by adding a consigner.
- Excessive Lowest Loan Amount- SoFi loans set a minimum loan amount of $5,000, which may be significantly more than the requirement of a client if the money will be utilized to cover a more modest cost or unforeseen expenses.
- No Real Branches- If you would rather submit an application by meeting with a lender for individualized assistance may find the absence of physical locations to be a challenge.
- No Option for Socially Responsible Investing- It is a major flaw because investors are interested to understand how their money is invested and how it affects them.
Ways to Apply for SoFi Loans
The right method to apply for a SoFi Personal Loan is as follows:
Prequalification through SoFi’s Mobile App or Website
The creditor will ask for your basic details such as your name, email address, state, phone number, etc. Along with this, you also have to answer the reason for borrowing the loan and how much amount you think to borrow. Lenders will put some questions related to your employment and income before you can see the credit offers. At this point, you will not face any hard inquiries.
Decide Which Offer is Best for Your Budget
Once you have accepted any loan offer, a formal application will be submitted. In order to verify the information you provided at the time of prequalification, additional documents, such as pay stubs, W-2s, and statements of the bank, may be required. After you apply, it will also conduct a hard credit check, which may cause your credit score to temporarily drop.
Plan How You Will Pay Back the Loan
Since SoFi transmits payment information to all 3 major credit agencies, making timely payments will build a credit score, but missed payments hurt it. Two ways to manage your loan payments are to set up automatic repayments and monitor your pocket.
What to Know Before Applying?
- Credit Verification- You can receive the credit report for free through the official website of the Annual Credit Report. You will be able to identify and correct errors or faults before applying.
- Monthly Payments Calculation- To determine the APR and the duration of paying off the loan, you should use a personal loan calculator so that you can obtain a loan with low monthly repayments.
- Set a Plan to Pay Off Loan- Check how the monthly loan payments affect the cash flow by reviewing your earring & savings. Before you apply to borrow, it’s a good thing to understand if you need to stop the additional expenses in order to pay back the loan.
- Keep the Documents Ready- It also verifies your documents such as ID and address proof, a Social Security Number (SSN), and income proof, which can be a pay stub or W-2. The procedure of application can be sped up if these documents are ready in your hand.
What are the Eligibility Criteria to Apply for SoFi Loans?
Lenders set fundamental prerequisites to apply. Most lenders want people applying to be able to meet their basic requirements, some of the lenders accept the applications of only those applicants who are also successful in fulfilling the requirements related to finance.
To apply for SoFi, you must qualify the following requirements:
- You must be 18 years old.
- A citizen of the United States, whether permanent or non-permanent, including DACA recipients and asylum-seekers.
- Have a job, a steady income, or a job offer that can begin in the next 3 months.
- Possess a credit score of at least 680.
There are no specific income or credit score requirements for SoFi loan applicants. The lender looks at all types of cash flows, your financial and credit history, and other factors to see if you qualify.
The majority of SoFi’s borrowers have a credit score of at least 700, The prevailing uses for SoFi loans are for emergencies, home renovation, and consolidating credit cards.
Is SoFi an Ideal Option for You?
Are you an investor or novice looking for a no-brokerage trading lender? If so, then it is really made for you. Since it offers loans only to those people who live in the United States. It has great features which prove to be very beneficial.
You can pay your rent, utilities, credit cards, and several bills with SoFi. If you cover the minimum required credit score which is 680 then you can apply for any loan repayment term of your choice. Refinancing your house is another option.
If you use any additional SoFiaccount, then it becomes a very good choice for you. Transferring funds from a SoFi investment to an Invest account is not difficult. In this way, you can easily invest a paycheck or increase your wealth with a different source of income.
Consider your options carefully because lenders of personal loans offer a range of rates, amounts to borrow, and notable features. Typically, the lower the interest rate of the personal loan, the better it becomes. We are here to give you details about two personal loans namely LightStream and LendingClub as both offer a variety of loan amounts, terms and offers just like SoFi. However, SoFi might be a good choice as it offers free-of-cost loans and distinct ideal features for qualified borrowers.
If you are trying to get a lender who can approve your borrowing request then you may need to take the support of a CO-borrower. This option is not provided by all lenders, however, LendingClub permits joint applications (with a co-borrower) to help you obtain an affordable interest rate or qualify for your required loan.
- Optional joint loan.
- Direct installment to lenders with consolidating debt loans.
- Possibility to prequalify through a soft inquiry.
- Change the date of your repayment.
LightStream provides an online lending service that focuses on a fast process of application and quick funding along with charging low interest. As LightStream provides a wide range of borrowing amount sizes and payback options, the loan will be beneficial to those borrowers who want to consolidate their debts or undertake costly home remodeling or improvement projects.
- No Fee
- Rate discounts for autopay enrollment
- Loans for home remodeling have long-term repayments
- Rate Beat program and Experience Assurance
Comparison Between SoFi and Other Similar Lenders
|APR||7.99% to 23.43%||8.30% to 36%||6.99% to 23.99%|
|Loan Term||2 – 7 Years||3 – 5 Years||2 – 7 Years|
|Loan Amount||$5,000 to $100,000||$1,000 to $40,000||$5,000 to $100,000|
|Minimum Credit Score||680||600||660|
How Do We Rate Personal Loans from SoFi?
Rating- 4.4 out of 5.0
- Clarification- You get approval on the same day when you apply, and funds are credited to your account either on the same day or after a few days.
Rating- 4.7 out of 5.0
- Clarification- The borrower will find a low APR and no fees here, making it one of the most affordable lenders.
3. Customer Interaction
Rating- 5.0 out of 5.0
- Clarification- It has an advantage with regards to clients’ experience as it gives an application, a user-friendly experience, a chatting feature, and a variety of product support and operational hours. It has an advantage in terms of the customer experience.
What is the Overall Rating?
Rating- 4.7 out of 5.0
- Clarification- After ascertaining the track record of all the services provided by them, we find it a trustworthy lender which is joining the list of top lenders.
Is it Worthwhile to Borrow a Loan from SoFi?
A SoFi personal loan is a great choice for borrowers with good credit and a decent and fixed income. If you pay off your loan balance early, you won’t be hit with any fees and there is no penalty on late payments along with no origination fees. The SoFi loans include every standard attribute of an excellent lender— a wide range of loan amounts, no fees, and adaptable payback terms.
However, this lender has a number of distinct advantages that set it apart from the competition. A mobile application, advice on finance and career is provided for free, and unemployment insurance and discounts for estate planning are available to SoFi borrowers.
We have explained all the details above in a very simple way, from where you will also be able to know what requirements the lenders can put before you at the time of application. They do not delay in taking a decision on loan application approval and disburse the funds quickly if you qualify.
Frequently Asked Questions
Q.1 Is SoFi a legitimate company?
The SoFi is legitimate. It provides customers with a variety of financial management services and products, such as loan refinancing, debt consolidation, insurance purchases, and investment resources.
Q.2 Is SoFi better than a bank?
If you want to avoid bank standard fees, then we must say that SoFi Checking and Savings Account is a great option for you. It doesn’t charge month-to-month service fees, overdraft charges, or fees by ATMs that aren’t in your network. Additionally, the account provides a few unique benefits. Money Vaults is a savings featured tool that assists you to save for personal objectives.
Q.3 What is special about SoFi?
The most important benefits of SoFi are as follows:
- There are no origination fees
- Doesn’t charge fees for having non-sufficient funds
- No penalty for late payment
- Provide ideal online experience
- Help borrowers when they are jobless
- Affordability and transparency
- Customer-friendly service
Q.4 What credit score does SoFi require?
Sophie requires a good credit score. If your credit score is 680 or above, then only you can get the possibility of getting approval for SoFi’s application.
Q.5 Can I buy crypto with SoFi?
If you are a SoFi app user, you are eligible to buy crypto along with the fractional type of shares, stocks, and Exchange Traded Funds (ETF) that you are trading already.
Q.6 Does SoFi bank hurt your credit score?
No, SoFi adopts a soft inquiry to check the eligibility details provided at the time of your application and it does not affect your credit score at all.
Methodology We Use to Review
We have adopted a great methodology to shortlist the best personal loan lenders. To gather this information, we have made some factors the basis, some of which we have mentioned below:
- Range of APR
- Charging Fees
- Loan Amounts
- Loan Requirements
- Required minimum credit score
- Loan repayment terms
- Pre-qualifying option
- Flexibility with repayment dates and others