The latest statistics show that the of people taking out personal loans in America is on the rise. With the amount of personal loan debt all across the country inching closer to $1.5 trillion, the size of the personal loans sector has grown by 269% in the last half decade. As a result, more and more people are taking out SoFi personal loans, but it’s vital to consider your options when you do so.
Between banks and private lenders, you have a lot of different choices to think about when searching for a personal loan. You have to look at the fees, interest rates, terms, and other details when assessing the quality of the loan provider. That’s what we’ll be doing , for SoFi. Getting a SoFi personal loan can be quite a challenge, but the competitive rates and lack of fees help to make SoFi an appealing prospect.
What is SoFi Personal Loans?
Founded in August of 2011, SoFi is short for Social Finance, an exclusively online personal finance . SoFi has made a name for itself through student loans and refinancing services, like those offered by FutureFuel to reduce student loan interest rates, but it offers mortgages and personal loans as well. The has shown rapid growth in recent years, becoming the industry leader for student loans. It has also developed a reputation for catering to quality borrowers with high credit scores and strong financial situations.
Whether you’re looking for home improvements, medical bills, relocation assistance, credit card consolidation, or something else, SoFi’s personal loans could help. These are unsecured loans, meaning that no collateral needs to be provided. SoFi aims to stand out ahead of the competition by not charging any fees and providing competitive rates and other unique borrower benefits too.
How to Apply for Sofi Personal Loans
The application process is very simple, and that simplicity is a major advantage that draws a lot of people to this . The whole thing can be summed in just three simple steps:
- Pre-Qualification – The first step for getting SoFi personal loans is to go through the pre-qualification process. Just like with everything else offered by SoFi, this can all be done online. It’s quick and easy. In fact, the whole process can be completed in just two minutes, with SoFi immediately letting you know whether or not you qualify for a personal loan.
- Apply – Once you’ve been confirmed to qualify for a SoFi personal loan, you can fill out the rest of the application. SoFi’s loan consultants are always available through live chat to help you out, and the process is once again speedy and simple. You’ll need to provide screenshots or scans of some documents such as pay stubs and proof of income, but you won’t need to mail anything in.
- Receive Your Money – Once the application has been sent off and scanned by the SoFi team for approval, you’ll just need to sit back and wait to receive your money. You can digitally sign the necessary paperwork and then get the cash straight into your account.
This application process will appeal to those who get frustrated with lengthy processes for personal loan applications in traditional brick and mortar banks, involving lots of form-filling and paperwork. With SoFi, applying for your loan is easy.
Keep in mind that SoFi will conduct a soft pull on your credit report when you apply, and it may conduct a hard pull to verify your identity once your loan has been finalized. This may affect your credit history.
The Details of their Loan Process
If you’re thinking of applying for a SoFi personal loan, ’s all you need to know:
- Amounts – SoFi can provide personal loans from a minimum of $5,000 up to a maximum amount of $100,000.
- Uses – These personal loans are generally used for home improvement, special events like weddings, special purchases like vehicles, debt consolidation, medical bills, and similar uses. SoFi is very flexible in terms of what its personal loans be used for, not putting any strict rules or requirements in place regarding the ways in which you spend the money.
- Terms – The terms of SoFi personal loans range from 24 up to 84 months (2 years to 7 years).
- Fixed or Variable – SoFi is able to offer both fixed rate and variable rate personal loans, letting you choose the option that works best for you.
- Eligibility – Anyone applying for a SoFi loan must be a US citizen, permanent resident, or visa holder aged 18 and above. These loans are offered in 49 states and the District of Columbia. Various eligibility factors come into play when applying for a SoFi personal loan including financial history, professional status, credit score, and net monthly income.
Pros of SoFi Personal Loans
SoFi has established itself as one of the leading personal loan providers available today by offering a lot of interesting advantages to borrowers:
- Competitive Rates – The one factor most people think about when applying for any kind of loan is the interest rate. The lower the rate, the better the deal often is for the borrower, resulting in smaller repayments and making it easier to pay off your debt. SoFi’s fixed personal loan rates range from 5.99% APR to 17.67% APR. These are some of the most competitive and attractive rates around in the personal loans sector right now.
- Rate Discounts – If you choose to make your repayments with autopay, letting the money be taken out of your account automatically each month, SoFi offers you a unique discount. You’ll get 0.25% cut off your interest rate, resulting in an even better value loan.
- No Fees – One of the biggest and best advantages of SoFi personal loans that simply can’t be overlooked is the fact that this doesn’t charge any fees. With application fees, origination fees, closing fees, and other hidden charges, taking out a personal loan can often add up and become way more expensive than you initially planned. SoFi doesn’t charge any fees at all, with no prepayment fees or late fees either. This means that if you decide to make a payment ahead of time, you won’t be charged a prepayment penalty. The only thing you have to worry about is paying your interest.
- Flexibility – SoFi also stands out for its flexibility. This lets you choose between fixed rate and variable rate personal loans. In general, fixed rate is usually the better option due to the stability and reliability it provides, but if you’re just taking out a short-term loan, variable might be a better option. SoFi also gives you several term options and lets you borrow small and large amounts to suit your needs.
- Ease of Use – As mentioned previously, SoFi is an online-only financial services provider, so everything is done online. The pre-qualification, application, and even signing your loan agreement can all be done from the comfort of your own home, on your computer. The intuitive and convenient nature of SoFi’s platform gives it an edge over traditional banks and other providers who require you to spend much more of your time filling in paperwork.
- Unique Benefits – SoFi can sometimes feel more like an exclusive club than a simple financial , and this is best evidenced by the unique member benefits you’ll get access to if you become a borrower with SoFi. This actually provides things like careers guidance and financial advice to its borrowers, helping them take their professional lives to the next level, aspire to greater things, and manage their finances more effectively too. SoFi also runs regular members-only networking and social events like dinners and happy hours. There’s a SoFi referral program too, in which you can get free money just be referring your friends to SoFi.
- No Collateral Needed – Since SoFi’s personal loans are unsecured, you don’t have to worry about putting up any collateral like property or assets. This gives you more protection in the long term, ensuring that you won’t run the risk of having your home repossessed or assets seized if you can’t keep up with repayments.
- Unemployment Protection – Arguably one of the best benefits of taking out a loan with SoFi is its unemployment protection. When getting a personal loan, the one thing many people worry about is how they’ll make the loan payments if they lose their job. SoFi understands that unforeseen professional situations can occur and jobs can be lost when we don’t expect it. If you lose your job and it’s not your fault, the unemployment protection of SoFi will let you place your loans into forbearance, suspending your loan payments for up to 12 months, giving you time to get back on your feet.
Cons of SoFi Personal Loans
Despite all of those impressive positive points, SoFi personal loans aren’t flawless. There are a couple of issues that bring down the overall score for this loan provider:
- Waiting Times – The application process for a SoFi personal loan is very speedy and easy, but the actual waiting times to get your money can take a little longer than some competitors. With some online lenders, you can get your money in just a couple of days, but with SoFi, you’ll need to wait up to a week. This won’t be a major problem for many people, but if time is of the essence and you need your loan money to arrive without delay, the wait could prove to be a problem for you.
- Strict Requirements – As stated earlier, SoFi has a reputation for prioritizing ‘quality borrowers’, and this can be seen in the ’s strict eligibility requirements for personal loans. To get a SoFi personal loan, you need to have a strong credit score. The minimum score is 680, but most borrowers have excellent credits over 700, and you’ll also need a minimum annual income of $45,000, with the average being in excess of $100,000. You’ll also need to demonstrate a strong financial situation in general, with more than sufficient income each month to cover the cost of your repayments. These requirements mean that many applicants who aren’t in such strong positions will struggle to get approved.
SoFi Personal Loans Review: Is it Worth It?
Overall, our impression of SoFi personal loans is a positive one. The convenient, all-digital of SoFi is ideal for many people in the modern era, particularly young people. The incredibly low rates and absence of any charges help to set SoFi apart from the competition.
SoFi has some of the best interest rates around, and the exclusive member benefits like loan rate discounts and unemployment protection are very useful. It’s one of the best loan providers in the business right now, but it’s always wise to look around and consider your options. If you plan to apply for a loan, read reviews and compare rates and fees from multiple providers to ensure you’re getting the best deal.
There are other fee-free lenders out there and plenty of lenders offering competitive rates and unique benefits of their own as well. Be sure to consider all of your options before committing to any loan provider, as once you sign on that dotted line, you’re locked in until the loan is paid off. It’s a big decision and always needs to be approached with due and consideration.
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