SoFi (Social Financing) is an American online personal finance company started in 2011 by four Stanford alumni. SoFi began with a mission of providing speedy and affordable student loans to its applicants. Over the years, SoFi has grown its portfolio and currently offers a range of reliable financial services, including student loans, home loans, personal loans, stock brokerage services, wealth management services, and credit cards.
SoFi provides unique and legitimate financial solutions to a wide variety of users. The eligibility requirements for SoFi loans vary depending on the loan type. SoFi considers an applicant's history and financial track record to determine the product best suited for each applicant.
SoFi personal loans range from $5,000 - $100,000 with APRs 5.24 - 19.78%. Their repayment terms are quite flexible, from 2 - 7 years.
SoFi Loan Types
SoFi has a variety of personal loan types available to clients, which include the following:
- Home Improvements: If you want to invest in landscaping, a new roof, a new patio, or just refurbish your home, SoFi personal loans could be a good alternative to traditional HELOCs, which often require an appraisal prior to getting approved.
- Credit Card Consolidation: You can consolidate credit card debt by transferring your balance from a higher-APR credit card. SoFi makes the payment upfront to your lender, and you repay the balance to them at a fixed rate.
- Family Planning: You can use this type of personal loan to plan for growing your family. SoFi has loans covering IVF funding, adoption funding, pregnancy funding, and surrogacy funding.
- Travel: SoFi personal loans can be used to finance your next holiday with lower repayments than with a high-APR credit card.
- Weddings: With SoFi’s personal loans, you can also help pay for your wedding or honeymoon.
You can apply for the following types of loans: home improvement loans, debt consolidation, family planning, travel, wedding.
|APR||5.24 - 19.78%
|Amount||$5,000 - $100,000
|Term||2 - 7 years
|Origination fee||No origination fee.
As you can see from the table the maximum loan amount is $100,000, and the APR starts at 5.24% for the best graded borrowers. The loan period varies from 2 to 7 years.
SoFi: Pros and Cons
|Zero fees: No transaction or service fee for all SoFi products and services, from account opening to loan requests and payments.
||High credit score: A minimum credit score of 680 is required to be considered for a personal loan (according to third-party sources).
|Entirely online: SoFi products and services are fully digital, allowing for quick and secure online business interactions. You can even download the SoFi app to apply for a personal loan and make payments from your mobile phone.
||High minimum loan amount: SoFi loans start at a minimum of $5,000, which isn't great for people who only need to borrow a small amount.
|Wide loan range: SoFi personal loans range from $5,000 - $100,000, which is great for clients with large projects.
||Long loan approval time: If you’re self-employed or applying for a loan with a co-borrower, funding time may take up to 15 days. Even without a co-applicant, the approval may take a few days, whereas some competitors offer same-day decisions or funding.
|No impact on credit score: When getting prequalified for a personal loan, you can check your loan rate without affecting your credit score.
|AutoPay discount: SoFi will give you a discount of 0.25% on your APR if you set up AutoPay.
|Co-applicant option: SoFi lets you apply with a co-borrower if you don’t meet their credit score requirements on your own.
|Unemployment protection: Personal loan holders are cushioned against sudden job losses or loss of income.
Applying for a SoFi personal loan
To be considered for a SoFi personal loan, you must satisfy some basic requirements, including the following:
- A FICO credit score of 680 and above.
- You must have attained the age of majority in your state.
- You should reside in a state where SoFi is authorized to operate (residents of Mississippi are ineligible).
- Must be an American citizen, permanent resident, or visa holder.
- Be employed, have sufficient income, or have a job offer in 90 days.
- No bankruptcy reports or delinquencies in the recent past.
- The debt to income ratio they require for applicants is undisclosed.
To apply for a SoFi loan, first, come up with a realistic figure that you want to borrow. After that, check your most current credit score. According to third-party sources, the minimum credit score needed for SoFi is 680, so you might have to choose a different provider if you’re below that.
From there, you go through the prequalification process by submitting relevant information such as an address, income, and social security number. SoFi will run a soft check to evaluate your suitability for the loan, which means you can check your rates without hurting your credit score.
Once you’ve been prequalified, submit your loan application with the relevant documents, including:
- Identification documents (passport, military ID, driver’s license, certificate of citizenship),
- Proof of address/residence (utility bills, lease agreement, voter registration, change of address from the US postal company, or insurance for your home, car, or business),
- Income or employment records (bank statements, pay stubs, W2 tax forms, 1099 tax forms, or copies of income tax forms).
Once you’ve applied, it can take anywhere from 2-15 days to get approved, depending on whether you’re self-employed or applying with a co-applicant. After the loan has been approved, it typically takes another couple of business days for you to receive funding.
You’ll receive the funds directly from SoFi, and the company will not transfer them to your creditors, except for the credit card consolidation loans.
SoFi is a reputable fintech provider that offers excellent services to students, businesses, and people with a good credit score who need to borrow funds at affordable rates. With its zero-fee services, large loan limits, competitive interest rates, and innovative products, it’s already a great financial services provider by itself.
SoFi, however, is elevated by its deep online and mobile integrations, with everything being accessible right from your smartphone. That’s convenience on another scale, which is unmatched by many traditional banks and financial institutions.
The main drawbacks of SoFi involve the barriers to entry, such as its high minimum credit score requirement. This certainly prevents it from being a platform for first-time loan applicants looking for an online lender. Additionally, the lack of secured loans and lengthy loan processing time may be problematic for some people.
Still, for applicants who qualify for it, SoFi is definitely a great choice with its wide array of features and low fees.
What is the SoFi customer number?
Is SoFi legit?
SoFi is not a scam. In fact, it recently received an excellent rating from the Better Business Bureau.
Does SoFi do a hard pull?
SoFi does a soft credit check on you to generate your loan rate when you’re going through the prequalification process, but when you go through the approval process, they will also do a hard pull on your credit.
What credit bureau does SoFi report to?
SoFi reports to the three major credit bureaus: Equifax, Experian, and TransUnion.
Is the SoFi app legit?
Yes, the SoFi app conforms to all statutory requirements and uses high-level processes to guarantee safety.