About Lender
SoFi, short for Social Finance, Inc., is a financial giant serving over 7.5 million members. Based in San Francisco, SoFi offers a range of financial services from student loan refinancing and personal loans to home and auto loan refinancing to help members manage their finances with flexible, member-centric solutions.
In addition to loans, SoFi offers investing in active and automated investing, IPO access and cryptocurrency. Its banking services combines traditional features with modern technology to offer checking and savings accounts, credit score monitoring and budgeting tools in the SoFi app.
And more, SoFi has insurance and member benefits like financial planning and SoFi Stadium. Because we’re all about innovation, community and financial wellness.
Key Features
-
Student loan refinancing. SoFi student loan refinancing with competitive rates, flexible terms and no application or origination fees.
-
Personal loans. SoFi unsecured personal loans with low rates, flexible terms and no fees. Borrowers can use the funds for home improvement, debt consolidation, major purchases and more.
-
Mortgages. SoFi mortgages with competitive rates and multiple term options including fixed and adjustable rate. Digital pre-approval in minutes.
-
Investing. SoFi investing options including active and automated investing and retirement accounts. No fee ETFs and stock trades.
-
Banking. SoFi banking products including checking and savings accounts, debit cards and ATM fee reimbursements. Mobile app to manage accounts and access financial planning tools.
-
Career coaching. SoFi career coaching to help members achieve their professional goals including resume reviews, interview prep and salary negotiation.
-
Community. SoFi has a strong online community where members can connect with each other, share advice and resources and attend events and workshops.
-
Access on-the-go. Mobile app and desktop interfaces to access SoFi services wherever you are.
Pros and Cons
Pros
Member benefits. Refinancing with SoFi gives you member benefits to help you with your career such as career coaching and a referral program if you invite others to join SoFi.
Discounts on other SoFi loans. If you are a SoFi member with one loan you get 125% off another SoFi loan. Use it to get cheaper personal loans or private student loans.
AutoPay discount. One of the benefits you get as a SoFi client is a 0.25% AutoPay discount if you use automatic loan payments.
Unemployment protection. If a SoFi borrower loses their income they can pause their payments for a bit. SoFi also has a career services team that can help unemployed clients find new jobs.
No hidden fees. For personal loans SoFi has no origination fees, no prepayment penalties which is part of their appeal to consumers looking for simple and transparent lending.
Unsecured loans. For personal loans like SoFi, no collateral is required. These unsecured loans are based on creditworthiness, income and financial history.
Cons
Eligibility requirements can be tough. SoFi often goes after borrowers with good to excellent credit scores which means those with poor or average credit history may not qualify for some of their products.
Investment products risks. While SoFi offers a variety of investment options including stocks, ETFs and cryptocurrencies, these markets can be volatile. Investors may lose capital and the platform’s ease of use may encourage inexperienced users to make high risk investments without understanding.
High loan minimums. Some of SoFi’s loan products have higher minimum borrowing limits compared to other lenders. Not ideal for those who need smaller loans and don’t want to borrow more than they need.
Customer service issues. Like many big companies, SoFi gets mixed reviews on customer service. Some users report difficulty in getting support or resolving specific issues through their customer service channels.
Product variations by state. Not all SoFi products and services are available in every state. Potential customers may find certain offers or rates advertised by SoFi are not available to them based on state restrictions.
Reliability
Widespread acceptance. SoFi is widely accepted in the financial technology industry as a member of organizations like the Securities Investor Protection Corporation (SIPC) which protects customer assets.
Strong brand. SoFi has been around since 2011 and has a strong brand recognized by positive customer reviews and endorsements from reputable organizations like Nerdwallet.
Clear terms. SoFi is transparent in its operations and provides clear and understandable terms to its customers which builds trust and confidence.
Consumer protections. SoFi is affiliated with regulatory bodies like the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) which ensures consumer protections and compliance.
Positive reviews. SoFi gets positive reviews from its customers which reflects their satisfaction with the company’s products and services.
How to Apply for a SoFi Loan?
-
Go to SoFi website. Visit website and click on the “Products” menu. SoFi offers loans, investing, banking and insurance.
-
Choose your product. Select the product you are interested in. SoFi provides detailed information on each product including benefits, eligibility and rates.
-
Check your rates. For loan products SoFi often allows you to check your rates without affecting your credit score. This involves entering some basic information to get a quote.
-
Apply. If you decide to proceed, apply by providing the required information. This may include personal details, financial information and specific documents related to the product you’re applying for.
-
Upload documents. Depending on the product you may need to upload documents such as proof of income, ID and other relevant papers. The requirements will be listed during the application process.
-
Review and sign. Once you’ve completed the application and uploaded all required documents, review your offer. If everything is good, you’ll need to sign the agreement electronically.
-
Verification and approval. SoFi will verify the information and documents you provided. This process may take some time depending on the product and completeness of your application.
-
Funding or activation. Once approved the next steps will depend on the product. For loans SoFi will disburse the total amount to your account or pay off your existing loans directly according to the type of loan you took. For investment or banking products you may need to fund your new account to activate it. For insurance products your coverage will be finalized and you’ll get information on how to manage your policy.
Conditions and Requirements
Conditions
Eligibility. You must meet SoFi’s eligibility criteria which often includes age, residency and citizenship or legal residency in the United States.
Interest rates. SoFi Personal Loans have fixed rates from 8.99% APR to 29.49% APR including autopay and direct deposit discounts. Rates are subject to change and not all applicants qualify for the lowest rate. Average funded amount in 2022 was around $30,000. Actual rate depends on creditworthiness, income and other factors.
Payment terms. SoFi Personal Loans have flexible payment terms with loan amounts from $5,000 to $100,000. These loans are a versatile solution for various expenses including consolidating high interest credit card debt or financing major purchases. Repayment terms are 2 to 7 years so you can choose a term that fits your financial goals and budget.
Creditworthiness. For most lending products SoFi will check your credit score, credit history and other financial information to determine eligibility and interest rates.
Income verification. You may need to provide proof of income or employment status to qualify for some products especially loans and refinancing options.
Requirements
Credit score. SoFi typically requires a minimum credit score of 680 to qualify for a loan but may vary based on the type of loan you’re applying for.
Employment status. You must be employed or have a job offer with a start date within 90 days to qualify for a loan. Self-employed borrowers may also be eligible but will need to provide additional documentation.
Income. You will need to have a minimum income of $45,000 per year to qualify for a loan. The income requirements may vary based on the type of loan you’re applying for.
Citizenship. SoFi loans are only available to U.S. citizens, permanent residents and visa holders with valid U.S. Social Security numbers.
Application submission. Fill out an online application on the SoFi website and provide all required personal, financial and if applicable educational information.
Documentation. Submit required documents such as government-issued ID, proof of income, academic records for student-related products and investment history for investment accounts.
Account setup. For banking and investment services set up a SoFi account which may include linking external bank accounts, setting up direct deposits or transferring funds.
Credit check. Consent to a soft or hard credit inquiry as required depending on the product. A soft inquiry does not affect your credit score while a hard inquiry might.
Regulatory compliance. Ensure you comply with all financial regulations which may involve providing additional information for identity verification under KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations.
Ways to Receive the Money
These may include direct deposit into a checking or savings account which is a secure and fast way to get funds such as salaries, loan disbursements or investment returns. For loan products funds may be paid directly to creditors in the case of debt consolidation or refinancing loans or deposited into your bank account for personal loans. Investment returns or withdrawals would typically be transferred to a linked bank account. SoFi may also offer electronic transfers which allows you to move funds between SoFi accounts and accounts held at other financial institutions. For more information on how to get money from SoFi check out SoFi’s official resources or customer support.
Products
Personal loans. SoFi’s personal loans are designed to provide financial solutions without the hassle of high fees, making them a great option for big expenses or debt consolidation. No fees and competitive rates means borrowers can focus on repayment without worrying about unnecessary costs, making these loans a smart financial tool to achieve personal and financial milestones.
Student loan refinancing. SoFi’s refinancing options allow you to consolidate existing student loans into one loan with a potentially lower interest rate, making it a streamlined way to manage education debt. This can save you thousands over the life of the loan. You get customized loan terms that match your financial goals so you can manage your finances better.
Mortgages. With SoFi’s mortgages, buyers and those looking to refinance can find options that fit their long-term housing goals, from buying a first home to adjusting their current mortgage terms. The digital pre-approval process makes it easier to get a sense of how much you can afford and to act fast in competitive markets.
Investing. SoFi’s investing platform democratizes investing, offering tools and options for both seasoned and novice investors. Whether it’s setting up a retirement account, active trading, automated investing or stock quotes, SoFi has got you covered with comprehensive support and educational resources to help you make informed decisions and grow your wealth.
Banking. SoFi Money and its high-yield savings accounts revolutionizes banking with its user-friendly features, competitive rates and fee-free structure. The integration of these accounts with SoFi’s broader ecosystem of financial products makes it seamless to manage your daily finances and long-term savings goals.
Credit cards. The SoFi Credit Card and the SoFi Student Credit Card rewards you for your financial decisions with cash-back rewards that can be applied towards loans, savings or even invested directly through SoFi. These cards encourage responsible spending and provides financial benefits that align with your goals.
Insurance. Through its partnership with Lemonade, SoFi extends its commitment to provide comprehensive financial solutions by offering affordable and accessible insurance options. Whether it’s your home, your possessions or your family’s future, SoFi makes it easier to find the right coverage.
Other Personal Loans
Reasons for Loan Refusal
SoFi and other lenders may deny a loan application due to low credit score or credit history, indicating to the lender a higher risk of default. High debt-to-income ratio can also be a reason, as it means you may not be able to manage another loan payment. Incomplete application or missing documents can prevent the lender from fully assessing your financial situation and deny the application. Unstable employment or low income may not give the lender enough confidence that you can meet your repayment obligations.
How to Repay a SoFi?
To pay SoFi loan, log in to your member dashboard and select your loan. Then, choose “Make a 1-time payment” and select “payoff” as the payment type. Enter the payment date and the bank account where the funds will be withdrawn. You can also pay through ACH transfers or by mailing a check. Make sure to pay on time to avoid extra fees and negative credit scores.
Loans like SoFi
OppLoans
OppLoans is a notable financial service provider that offers consumer loans varying from $500 to $4,000. They expedite the funding process to ensure that approved applicants receive the necessary funds promptly, which is advantageous for those dealing with immediate financial concerns. OppLoans offers adaptable repayment conditions, giving customers the choice between 9, 12, and 18-month loan terms. This adaptability allows borrowers to opt for a repayment plan that matches their financial ability, ensuring a seamless and manageable loan journey.
Rise Credit
RISE Credit is a reliable online lender that provides loans up to $5,000. They have a streamlined application procedure, allowing borrowers to have funds transferred to their accounts as early as the next business day. They present the flexibility of choosing a payment schedule that fits with the financial preferences of the customers, although some state-based restrictions might apply. A notable feature of RISE Credit is its 5-Day Risk-Free Guarantee, which permits borrowers to revoke their loan and return the principal with zero fees or interest within the given period. Additionally, RISE Credit grants customers complimentary access to their credit score and credit monitoring alerts through Credit Score Plus, offering valuable financial insight.
OneMain Financial
OneMain Financial stands as a distinguished and enduring lender, offering personal loans that range between $1,500 to $20,000. Boasting a century’s worth of experience in the financial sector, they have garnered the trust of a vast customer base. Their loan terms include fixed rates and fixed payments, offering a predictable and manageable repayment scenario to borrowers. OneMain Financial emphasizes personalized service, ensuring that the distinct needs of each customer are addressed. With a widespread network of approximately 1,400 branches, they provide easy access and convenience for individuals in search of financial aid.
Universal Credit
Universal Credit requires applicants to have a minimum credit score of 560, thus excluding those with no credit history. It is appealing for its credit-enhancement features, making it suitable for individuals with fair or poor credit looking to better their scores. Providing larger loan amounts than Oportun and next-day funding upon approval, it emerges as a solid choice for significant, urgent financial needs. Universal Credit extends its loan services across all 50 states and Washington, D.C., offering a wide geographical coverage.
Editorial Opinion
Important
How to Choose a Lender
-
Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
-
Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
-
Carefully review all the terms and conditions of your payday loan contract.
-
Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
-
Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
-
Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- SoFi Account Review
- How to Apply for a SoFi Loan
- How to Repay a SoFi Loan
- SoFi Mobile Apps
- All SoFi Coupons and Promo for October 2024
- Loans SoFi October 2024
