SoFi Personal Loans Review (March 2024)

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SoFi claims that you can use its loans for almost any type of domestic, family, or personal purpose, including debt relief, home remodeling, infertility treatment, and medical costs. Personal loans, however, are not eligible for use in the following areas: business purposes, post-secondary education, short-term bridge financing, real estate, or investment purchases.

Applications for personal loans on SoFi may now be submitted with a co-applicant as of April 2018. It is not necessary to add a co-applicant, but doing so might make you more eligible for a loan or a lower interest rate. Each applicant will bear equal responsibility for loan repayment. Note that co-signers are not the same as co-applicants; at this time, SoFi does not accept co-signers for personal loans.

The unemployment protection offered by SoFi is one of its most noteworthy features. You may apply for this benefit if you lose your job due to circumstances beyond your control. If accepted, SoFi will adjust your monthly payments for personal loans and help you find employment while the loan is in forbearance.

Your loan(s) must be in good standing when you apply for unemployment protection, and interest will keep accumulating and be added to your principal balance after each forbearance period. Benefits are provided in periods of three months, with a maximum total of twelve months during the loan’s term.

Pros and Cons of SoFi Personal Loans

There are a lot of advantages and disadvantages to taking out a personal loan from SoFi. Before applying, take note of these points.

Pros

  • Able to borrow a substantial amount of money up to $100,000
  • Can get money the same day the loan is completed, or money can go straight to the company that
  • Issues your credit card.
  • No origination fees, late fees, or penalties for early payments
  • Can be selected from a variety of repayment durations, ranging from two to seven years.
  • Provides a 12-month program for job loss forbearance.

Cons

  • For certain borrowers, the $5,000 minimum loan amount may be excessive.
  • Interest rates that begin at 8.99% are a little higher than those offered by some other lenders.

Who Are SoFi Personal Loans Best For?

If you need to borrow a significant amount of money but still want to pay a reasonable interest rate, SoFi personal loans are a good option. You can also personalize your monthly payment with SoFi by selecting your repayment plan.

In addition, according to SoFi, a significant number of its clients who obtained a personal loan to consolidate debt and paid it off on time saw an average 22-point increase in their credit score during the first year of the loan.

How To Get a SoFi Personal Loan

A SoFi personal loan may be of interest to you. The following details pertain to loan application, qualification, and disbursement.

Application Process

You can check your interest rate without obtaining a hard inquiry on your credit report by filling out the entire SoFi personal loan application. A formal credit application results in a hard inquiry, and if you have too many hard inquiries in a short amount of time, your credit score may suffer. But SoFi won’t harm your credit; instead, it will make you an offer based on a soft inquiry.

You need to supply a government-issued ID to finish the loan application. The SoFi mobile app, which works with both iPhone and Android smartphones, allows you to apply for a personal loan.

Approval and Funding

When you obtain a personal loan, certain lenders—like SoFi—will settle your credit card debt on your behalf. In other words, the funds will be transferred directly from SoFi to your credit card company. All you have to do is indicate on your application which creditors you want paid as well as the total amounts owed. This can assist you in avoiding the urge to pay off your debt with the loan money rather than using it for other purposes. If you select direct pay, the lender’s term for paying your creditors directly, SoFi even gives you a discount on your interest rate.

Although this may be slower than other lenders who can offer same-day or next-day financing, you should receive the loan funds in a few days. If you opt to receive the money directly into your bank account, it will be transferred to you through the nation’s safe and secure Automated Clearing House (ACH) network, which is used by banks and credit unions to transfer money.

SoFi personal loan: eligibility requirements

You have to fulfill these prerequisites to be qualified for a SoFi loan:

  • Be a resident of a state that qualifies for SoFi and be at least 18 years old.
  • Possess U.S. citizenship or permanent residency status.
  • If you meet the requirements for permanent residency, you must be able to present a copy of your card, which must be valid for an additional two years after the “resident since” date.
  • Be employed, have other sources of income that suffice, or have a job offer that will begin within the next ninety days.

Loan eligibility is determined by several additional criteria in addition to these prerequisites, including professional experience, credit score, and the ratio of monthly income to expenses.

To be eligible for an additional personal loan, applicants for personal loans who already have one or more SoFi personal loans must have made at least three payments, with the most recent three having been made on time. (Residents of Michigan are limited to one SoFi personal loan at a time.)

SoFi personal loan discounts

SoFi provides a few discounts that may help lower the cost of your monthly payments.

Discount for autopay: Your personal loan’s interest rate will be lowered by 0.25% if you consent to have your payments taken out of your savings or checking account automatically each month. If you choose not to have your payments deducted automatically, the benefit is not applicable during those times.

Direct deposit discount: If borrowers transfer at least $1,000 in payroll direct deposits to their SoFi bank account, they will also be eligible for a 0.25% interest rate reduction on their loan.

SoFi customer service

SoFi has received a rating of 4.7 stars on Trustpilot from over 7,000 reviews. Customers are happy with the speed and simplicity of the application and funding processes. The majority of negative reviews focus on problems unrelated to personal loans, like problems with bank accounts and student loan payments.

Furthermore, SoFi is not a BBB-accredited company, but it does have an A+ rating from the Better Business Bureau.

A personal loan representative can be contacted by phone at (855) 456-SOFI (7634), which is open Monday through Thursday from 5 a.m. to 7 p.m. PT and on Friday and Saturday from 5 a.m. to 5 p.m. PT. SoFi also provides chat assistance.

Who is a SoFi personal loan best for?

Because of their affordable fees and flexible terms, SoFi personal loans are popular with a broad spectrum of borrowers. But without collateral or a co-signer, the perfect borrower for a SoFi personal loan has good credit and can be eligible for the lender’s best rates, which are competitive for the industry.

How to apply for a SoFi personal loan

Applying for a personal loan is simple with SoFi:

  • Obtain prequalification: With SoFi, you can obtain an online rate quote without compromising your credit score. It only takes sixty seconds to complete.
  • Select the length of your loan: After receiving your quote, you can complete the online application and select the term of your loan (a hard credit pull is required for this part).
  • Get money: All you have to do is sign your paperwork once your loan has been approved, and the money will be deposited into your account. Your money can be transferred to you as soon as that same day.

Conclusion

SoFi might be a good option if you need to borrow a large amount of money or if you want to be able to choose the length of your loan repayment period. It differs from the majority of other lenders just by its unemployment protection program. In addition, there won’t be any origination, late, or prepayment fees.

Although SoFi offers a lower starting interest rate than lenders such as LightStream, Discover, and PenFed, this is a drawback to take into account. Check if SoFi is still the best option for you and your particular circumstances by weighing the benefits and drawbacks of each lender.

Therefore, Sofi is a great, all-around bank. It also made our list of the greatest savings accounts.

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