SoFi Loan Reviews 2023: In this comprehensive review, we delve into the world of SoFi Personal Loans, exploring their pros and cons, application process, and what sets them apart from the competition.
Whether you’re seeking a loan for debt consolidation, a major life event, or simply need some financial flexibility, SoFi could be the solution you’ve been searching for.
Pros and Cons
- Joint Loan Option: SoFi stands out by offering borrowers the opportunity to apply for a joint loan. This means that you can include a co-applicant on your loan application, potentially increasing your chances of approval and securing a lower interest rate. Joint applications may take a bit longer to process, but the benefits are worth the wait.
- Multiple Rate Discounts: SoFi provides borrowers with various avenues to reduce their interest rates. You can enjoy a 0.25% rate discount for enrolling in autopay. Additionally, if your loan is for debt consolidation, you can score another 0.25% discount when SoFi directly pays off your creditors. Moreover, setting up a monthly direct deposit of at least $1,000 into a SoFi checking account can net you another 0.25% discount, ultimately maximizing your savings.
- Hardship Program for Borrowers in Need: Life can throw unexpected challenges our way, and SoFi understands this. If you lose your job while repaying your loan, SoFi’s unemployment protection program can come to your aid. It places your loan in forbearance and adjusts your monthly payments, providing some financial relief during challenging times.
- Mobile App for Loan Management: In today’s digital age, convenience is key. SoFi recognizes this and offers a user-friendly mobile app that allows you to keep track of your loan, check available rates, monitor your credit score, and make payments, all from the palm of your hand.
- No Option to Choose Initial Payment Date: While SoFi offers numerous benefits, it does have its limitations. One notable drawback is the absence of an option to select your initial payment date. This may be inconvenient for those who prefer greater control over their payment schedules.
- High Minimum Loan Amount: SoFi sets its minimum loan amount at $5,000. While this suits borrowers with substantial financial needs, it may not be ideal for those seeking a smaller loan to cover minor expenses or projects.
- No Secured Loan Option: Unlike some other lenders, SoFi does not offer the option to secure a personal loan with collateral, such as a car or savings account. Secured loans often come with advantages like lower APRs and higher loan amounts, which may not be accessible through SoFi.
Full SoFi Loan Reviews 2023
SoFi personal loans encompass a range of features that position them as a top-tier lending option. Let’s take a closer look at what makes SoFi stand out in the world of personal loans.
Check this also: MyTPL Loan Reviews
SoFi Personal Loans at a Glance
- Minimum Credit Score: None.
- APR: 8.99% – 25.81%.
- Fees: No required fees.
- Loan Amount: $5,000 to $100,000.
- Repayment Terms: 2 to 7 years.
- Time to Fund After Approval: Same-day funding.
- Loan Availability: Loans are available in all states.
Where SoFi Personal Loans Stand Out
SoFi breaks the mold by offering joint loans, a unique feature not found with every lender. This means that you can apply for a loan with a co-applicant, such as a spouse or family member. Adding someone with a stronger credit profile or higher income can enhance your chances of approval and secure a more favorable interest rate.
It’s important to note that both co-borrowers are equally responsible for repaying the loan. While single-borrower applications are typically approved on the same day, joint applications may take up to 10 business days to process.
SoFi rewards responsible borrowers with multiple opportunities to reduce their interest rates. Enrolling in autopay can instantly shave 0.25% off your APR. If your loan is for debt consolidation, you can enjoy an additional 0.25% rate discount when SoFi directly settles your outstanding debts.
Going the extra mile by setting up a monthly direct deposit of at least $1,000 into a SoFi checking account can net you another 0.25% discount, ultimately maximizing your savings.
Life is unpredictable, and SoFi understands that. In the unfortunate event of job loss while repaying your loan, SoFi offers an unemployment protection program. Once approved, this program places your loan in forbearance and adjusts your monthly payments accordingly.
While interest continues to accrue during this period, you have the option to make interest-only payments, providing some financial relief during challenging times.
Check this also: Plain Green Loans Reviews
Career and Financial Advising
SoFi goes above and beyond by providing borrowers with invaluable resources such as one-on-one career coaching. Whether you’re embarking on a job search, navigating a career transition, or enhancing your personal branding, SoFi’s career coaching can be a game-changer.
Additionally, borrowers can access free financial advice and benefit from discounted estate planning services, setting you on the path to financial success.
Mobile App for Loan Management
In today’s digital age, convenience is key. SoFi recognizes this and offers a user-friendly mobile app to help you manage your loan effortlessly. With the app, you can keep a close eye on your loan, check for the best available rates, monitor your credit score, and make payments, all from the palm of your hand.
Where SoFi Personal Loans Fall Short
High Minimum Loan Amount
One of the potential downsides of SoFi personal loans is the relatively high minimum loan amount of $5,000. While this suits borrowers with substantial financial needs, it may not be ideal for those seeking a smaller loan to cover minor expenses or projects.
No Secured Loan Option
Unlike some other lenders, SoFi does not offer the option to secure a personal loan with collateral, such as a car or savings account. Secured loans often come with advantages like lower APRs and higher loan amounts, which may not be accessible through SoFi.
Do You Qualify for a SoFi Personal Loan?
SoFi aims to make personal loans accessible to a wide range of individuals. While they don’t specify strict credit score or income requirements, it’s essential to understand their general eligibility criteria.
To apply for a SoFi personal loan, you must:
- Be at least 18 years old in most states.
- Be a U.S. citizen, permanent or non-permanent resident, including DACA recipients and asylum seekers.
- Be employed, have sufficient income, or have an offer of employment to start within the next 90 days.
SoFi evaluates your overall cash flow, ability to pay, credit history, and other factors to determine your eligibility. It’s recommended that you check your credit score, calculate your monthly payments, and gather the necessary documents before applying.
How to Apply for a SoFi Personal Loan
Applying for a SoFi personal loan is a straightforward process designed with your convenience in mind:
- Pre-qualify on SoFi’s Website: Begin by providing basic personal information such as your name, email, state of residence, desired loan amount, and loan purpose. You’ll also need to input your birthdate, citizenship status, address, and income sources. The pre-qualification stage does not involve a hard credit check, ensuring it won’t impact your credit score.
- Preview Loan Offers: Once you’ve pre-qualified, you can view the loan offers available to you. Select the one that aligns with your financial goals and budget.
- Submit a Formal Application: After accepting a loan offer, you’ll move forward to submit a formal personal loan application. This step may require additional documents, including W-2s, pay stubs, and bank statements, to verify the information provided during pre-qualification. Be aware that SoFi will perform a hard credit check at this stage, which may have a temporary impact on your credit score.
- Stay on Top of Your Loan Payments: It’s crucial to make timely payments on your SoFi personal loan. SoFi reports your payment history to all three major credit bureaus—Equifax, Experian, and TransUnion. Timely payments can boost your credit score, while missed payments can have a negative effect. To ensure on-time payments, consider setting up automatic payments and regularly assess your budget.
Compare SoFi to Other Lenders
When choosing a personal loan, it’s essential to explore your options and select the one that best suits your needs. SoFi is undoubtedly a strong contender, but it’s always wise to make an informed decision.
SoFi vs. Upstart
|Funding Time After Approval||Same-day||Quick|
|Credit Evaluation Method||Traditional||Alternative|
|Customer Service Availability||7 days a week||7 days a week|
Upstart is another online lender that offers a variety of loan sizes and terms, similar to SoFi. However, there are distinctions between the two. Upstart provides quick funding after approval, but keep in mind that its loans come with a required origination fee and a late fee for missed payments.
Upstart employs alternative data, such as education and work experience, to evaluate applicants, making it accessible to borrowers with thin or no credit history. Customer service is available seven days a week. In contrast, SoFi offers a broader array of member benefits and a mobile app to streamline loan management.
SoFi vs. LightStream
|Funding Time After Approval||Same-day||Quick|
|Extended Repayment Period||No||Yes|
LightStream is another lender to consider when making your decision. It boasts a wide range of loan amounts and does not charge fees, aligning with SoFi’s strengths.
However, SoFi distinguishes itself by offering additional benefits such as unemployment protection and the option to pre-qualify. If you’re seeking an extended repayment period for financing a home improvement project, LightStream may be a suitable choice.
In conclusion, SoFi’s personal loans come packed with advantages, including joint loan options, multiple rate discounts, unemployment protection, career and financial advising, and a user-friendly mobile app.
While it has its limitations, such as a high minimum loan amount and the absence of secured loan options, SoFi remains a competitive choice for borrowers with various financial needs. To determine if you qualify and to apply for a SoFi personal loan, visit their website and embark on your journey to financial empowerment.
What is SoFi, and what do they offer?
SoFi, short for Social Finance, is a financial technology company that provides a wide range of financial products, including personal loans. They offer personal loans with competitive interest rates and unique features such as joint loan options, rate discounts, and career and financial advising.
What can I use a SoFi personal loan for?
SoFi personal loans can be used for various purposes, including debt consolidation, major life events, home improvement, travel, weddings, adoption, in vitro fertilization procedures, and more. The flexibility of use makes them suitable for a wide range of financial needs.
What are the benefits of applying for a joint loan with SoFi?
Applying for a joint loan with SoFi allows you to include a co-applicant, such as a spouse or family member, on your loan application. This can improve your chances of approval and may result in a lower interest rate. Both co-borrowers share responsibility for repaying the loan.
How can I qualify for rate discounts with SoFi?
SoFi offers multiple rate discounts to borrowers. You can qualify for a 0.25% rate discount by enrolling in autopay. If you’re consolidating debt, you can get an additional 0.25% discount when SoFi pays off your creditors directly.
Another 0.25% discount is available for borrowers who set up a monthly direct deposit of at least $1,000 to a SoFi checking account.
What is SoFi’s unemployment protection program?
SoFi’s unemployment protection program is designed to assist borrowers who lose their jobs while repaying their loans. If approved, SoFi will place the loan in forbearance and adjust the monthly payments, making them more manageable. During this period, interest continues to accrue, but borrowers have the option to make interest-only payments.
How do I apply for a SoFi personal loan?
Applying for a SoFi personal loan is a straightforward process. You can start by pre-qualifying on SoFi’s website by providing basic information. After selecting a loan offer, you’ll submit a formal application, which may require additional documents like W-2s and pay stubs.
SoFi will perform a hard credit check at this stage. Once approved, you’ll receive your funds, often on the same day.