SoFi Personal Loan Review

By: Heather Hanks Nov. 03, 2019

A personal loan allows you to borrow money when you need it for various reasons. It’s money that you can spend on emergency situations, such as rent, mortgage payments, or home and auto repairs. You can also use a personal loan to fund a major expense, like a dream cruise, a wedding, or college tuition. But many personal loans come with hidden fees that can leave you paying more than you expected over time.

The SoFi personal loan allows you to borrow as much as $100,000 with low APR fees that range from 5.99% to 18.38%, depending on your credit score. There are no origination fees, late fees, or prepayment fees. You can also set up autopay to ensure you never miss a payment. This can help boost your credit score while helping you fund a major expense. Here is everything you need to know about the SoFi personal loan.

Who is SoFi?

SoFi is an online lender that specializes in helping people gain financial independence so that they can follow their dreams. They offer products and services that include investing, spending, saving, and borrowing. SoFi currently serves more than half a million customers. When you sign up at SoFi, your membership comes with the tools you need to get ahead, including career advisors. You’ll also have access to a community of people just like you who want to thrive financially. The SoFi community allows you to connect to people who want to advance in their career, save on student loans and other debt, buy a home, or invest in their future. SoFi’s goal is to help you obtain financial independence to reach your desired outcome.

The company executes several core values, starting with putting their customers first. SoFi realizes that by focusing on your best interest, they are also focusing on their best interest. They also run toward potential problems instead of running away from them. This helps ensure that problems do not fall through the cracks or arise in the future. The company embraces diversity to make sure all of their customers feel comfortable and welcome when working together. They work diligently to ensure they have the correct data on file to help make accurate and fair decisions.

What Can I Use the SoFi Personal Loan For?

The SoFi personal loan is a great way to help fund a major expense. You can use it to cover a dream vacation or wedding. You can also use it to help pay for a car or a home. Personal loans can be used in emergency situations, too. This includes when you need help making rent or paying your mortgage. You can consolidate your loans into one monthly payment and then use a personal loan to pay it off. It’s a good alternative to a credit card payment, which can have high interest rates of over 17%. The SoFi personal loan can help fund any personal expense you can think of.

If you’re thinking of using a personal loan to start a small business, then you might want to check out a business loan first. It’s best to separate your personal expenses from your business endeavors. This can help save your personal credit if your business goes under. It also helps you build business credit. However, many people use a personal loan for business expenses. This is because they tend to be easier to qualify for. They also tend to have more flexible terms and don’t require collateral. We recommend talking to the professionals at SoFi to determine whether a personal loan is right for your business.

Here is a list of ways many people use a personal loan:

Wedding expenses (such as a wedding dress or engagement ring)

Funding a major vacation or destination wedding

Paying off credit card debt after consolidating loans

Medical and dental procedures, such as fertility treatments, prescription costs, hospital costs, and weight loss surgery

Home improvements, such as repairs, landscaping, roof installation, remodeling and upgrades, home additions, and deck or patio construction

Emergency situations, such as rent, mortgage payments and other bills

College tuition or student loans

Relocation assistance and moving fees

Buying a home or car

The ideal SoFi personal loan candidate will have good credit of at least 680. However, SoFi states that the majority of their clients have a credit score of 700+. SoFi wants to see that you have a steady income, but they do not have a minimum requirement. Research shows that the average SoFi client has an annual income of at least $100,000. While the requirements to qualify might be steep, SoFi boasts some of the most competitive APR fees in the industry. They also don’t charge hidden fees and offer several opportunities to save money, such as by enrolling in autopay, picking between a fixed or variable APR, and paying your loan off early.

What Does The SoFi Personal Loan Offer?

The SoFi personal loan allows you to borrow between $5,000 and $100,000, depending on your credit score. The loan is unsecured, which means that you don’t have to put collateral down to secure it. Loan terms range from two to seven years. SoFi will work with you to find the loan term and amount that is comfortable for you so that you can pay if off with ease.

The loan also features fixed interest rates that range from 5.99% to 18.38% with autopay. A fixed APR means that your interest rate won’t go up or down as the prime rate does. It’s a good way to make sure you know exactly how much money you owe each month. Many people find that it’s easier to make timely payments with fixed APRs. These rates will also depend on your current credit score. The better your credit score is, the lower your APR will be and the more money you’ll be able to borrow.

Here is a breakdown of the basic rates and fees associated with a SoFi personal loan:

Loan amount: $5,000 to $100,000 (depending on credit)

Fixed APR: 5.99% to 18.38% with autopay (also depending on credit)

No origination, prepayment or late fees

Loan term: 2 to 7 years, Type: unsecured (no collateral required)

Unemployment protection (the ability to pause payments if you lose your job)

Autopay available so you never miss a payment

SoFi Student Loan Refinancing

In addition to providing personal loans, SoFi can also refinance your student loans. This can ideally help you land a lower APR to save money on payments overtime. SoFi will pay off your student loans in full, and then you make monthly payments on your new SoFi loan. You can refinance both your private and federal student loans. To qualify, you must show proof that you graduated from a Title IV school. This includes any school that provides United States federal student aid. Unlike the SoFi personal loans, you don’t need to have a job or source of income to quality. However, you need a good credit score and a solid job offer within the next 90 days.

Here are the terms and conditions of the student loan refinancing option:

You must have graduated from a Title IV school

Repayment terms range from 5, 7, 10, 15, or 20 years

You can choose from a fixed or variable APR

Variable APRs range from 2.41% to 7.89%

You must have good credit

You can refinance both private and federal loans

You must show that you have a job or are going to start one within 90 days

There is a co-signer option

SoFi Personal Loans Vs. Other Personal Loans

SoFi personal loans stand out from other personal loans on several levels. First, there are no hidden fees. Other online lenders with good rates usually have at least a late payment fee. You may also have a one-time origination fee. SoFi doesn’t charge you if you make a late payment, but your balance may adjust based on the interest you owe. Late payments also affect your credit. For these reasons, you’ll want to make sure you always pay on time. SoFi will work with you if you need help making payments.

Your SoFi personal loan also offers unemployment protection. This means that you can pause your payments if you suddenly lose your job. You’ll be expected to start paying again once you get a new job. SoFi may ask to see documents that confirm your recent loss of job before they qualify you offer. Not many other lenders offer this feature. You’ll need to have good credit of 680 or higher to qualify for a SoFi loan, but you’ll benefit from lower fees and more perks. SoFi also offers live customer service seven days a week. You can always connect to someone when you need help.

Here is how SoFi compares to other online personal loans:

1. SoFi

$5,000 to $100,000 borrowing amount, fixed APR 5.99% to 18.38% with autopay, no fees, loan ter, 2 to 7 years, unemployment protection

2. Lending Club

$1,000 to $40,000 borrowing amount, APR range from 6.95% to 35.89%, fee ranges from 1% to 6%, loan term 3 to 5 years, no unemployment protection

3. Discover

$2,500 to $35,000 borrowing amount, APR ranges from 6.99% to 24.99%, no fees, loan term 3 to 7 years, no unemployment protection

4. Earnest

$5,000 to $75,000 borrowing amount, APR ranges from 5.99% to 17.24%, loan term 3 to 5 years, no unemployment protection

5. LightStream

$5,000 to $100,000 borrowing amount, APR ranges from 5.94% to 17.29%, loan term 2 to 7 years, no unemployment protection

SoFi also proves to be a better option than most credit cards, which can have high interest rates of 14.23% to 24.34%. Credit cards can also come with a transfer fee of up to 5% with rolling terms and no protection if you lose your job. A SoFi personal loan should be your go-to choice if you have good credit and need help funding a personal expense.

SoFi Personal Loan: Pros and Cons

Unsecured loans are ideal because you don’t have to put collateral down to obtain it. This means you won’t lose your house or car if you default on your loan. Most unsecured loans are met with high APRs to make up for the lack of collateral. However, SoFi personal loans feature some of the lowest interest rates for an online lender. They also don’t make you pay hidden fees like other companies do.

You’ll need to have good credit of at least 680 to qualify for a SoFi personal loan. Your credit score will also determine many of your terms and conditions, such as your APR, borrowing amount, and repayment terms. SoFi offers fixed APR fees, which means that they don’t go up or down with the prime rate. This can help you budget your money as your balance will be the same every month. You can also enroll in autopay so that you don’t have to worry about remembering your payments. We like the transparent features of the SoFi personal loan.

SoFi Loan PROS

  • Borrowing amounts range from $5,000 to $100,000
  • Fixed APR starts at 5.99% and does not change as prime rate does
  • Unemployment protection so that you can pause payments if you lose your job
  • You can save money by paying off your loan early
  • No prepayment, late, or origination fees
  • Loan terms range from 2 to 7 years
  • Can be used for medical expenses, debt consolidation, rent, auto or home loans, vacations, weddings, and more
  • You can check your rate for free online without affecting your credit score
  • You’ll join a network of other like-minded successful financial people
  • Customer service is available seven days a week
  • You can access your account online anytime
  • Variable rate is capped at 14.70% if you choose this option
  • You can get student loan refinancing on private and federal loans
  • You’ll receive a 0.25% reduction in your APR if you enroll in autopay

SoFi Loan CONS

  • You can’t borrow less than $5,000, which makes the SoFi personal loan ideal for major expenses. Look for a smaller loan if you need help with rent or a small one-time payment.
  • It may take up to seven business days to get your money. However, this is likely due to the larger than normal amounts they offer.
  • You need good credit of at least 680 to qualify. SoFi also looks at other personal information to approve you, such as your monthly income versus your expenses, years of experience, and financial history.

How To Apply SoFi Personal Loan

To qualify for a SoFi personal loan, you have to be a United States citizen. You can also be a visa holder or a permanent resident. You must be 18 years old and live in one of the eligible states where SoFi provides service. SoFi appears to provide service in 42 different states, but you’ll want to confirm this when you pre-qualify.

Your eligibility also depends on your credit score, financial history, monthly income versus your expenses, and professional experience. You can check your rate online for free by visiting the SoFi website. Doing so does not affect your credit score. However, SoFi will do a hard inquiry on your credit once you apply and this will show up on your report.

Here’s how to apply for a SoFi personal loan:

01.

Pre-qualify by checking your rate for free online (this does not impact your credit score)

02.

Complete your application once you’re pre-qualified to lock in your terms (you can request help from a consultant)

03.

Sign your documents and get your money deposited directly into your bank account within seven business days

APPLY NOW

You’ll want to make sure you have all of your documents and financial information handy when you fill out your application. Doing so will speed up the process to ensure you get your funds as quickly as possible. You can also check with SoFi to see if you can refinance your loans.

Disclaimer

CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.

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