SoFi Personal Loan Review

Competitive Rates and No Fees – But Only if You Have Good Credit

You may need immediate access to large amounts of money to consolidate your debts, finance a major purchase, or deal with unexpected expenses. A personal loan may be a good option if that is the case. However, it must be used responsibly and chosen wisely by your lender.

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SoFi, a well-known personal loan lender, offers personal loans at competitive interest rates with no fees. It also has perks such as an “unemployment protection program.” But there’s a catch. To be eligible for SoFi loans, you must have stable employment and good credit.

SoFi also offers personal loans. The company also has a mobile app that allows for an easy, digital experience with all of their products.

How to Get a Personal Loan?

Rates are dependent on your credit score, income, loan value, terms, and other factors. You may be able to pre-qualify for loans or get a rate check with a soft credit inquiry. This won’t impact your credit score. Some lenders might require you to complete a hard credit inquiry. This could cause your credit score to drop a few points. All lenders require that you complete a hard credit inquiry before you apply for a loan. Check to see if there are any fees (prepayment penalties, origination fees or late fees) that could increase the loan’s cost.

Alternatives to Personal Loans

Home equity loans, home equity lines of credit (HELOC) and cash-out refinances are all options. These options allow homeowners to access their home equity immediately for cash. These financing options are secured by your home, so you might be able get lower rates than an unsecured personal loans. Each one comes with its own pros and cons.

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A balance transfer credit card. Some credit cards offer 0% APR for an initial period, typically 15-18 months. One strategy to consolidate your debt is to transfer all of your existing debt onto one card. You can pay off the balance in full before the introductory period ends and you will not be charged interest. You should have a plan for paying off your balance by the end of the introductory period if you are using a balance transfer creditcard. Otherwise, you could be subject to high credit card APRs. You should also be aware that balance transfer credit cards are usually only available to people with excellent credit.

How to Qualify For a SoFi Loan?

You must be at least 18 years old to qualify for a personal loan. Residents of Mississippi are not eligible for SoFi loans.

To be eligible for a loan, you will also need to have a credit score of 680 or higher (experian considers this to be within the “good” range). Remember that even if your score meets the minimum requirements, a lower score could result in higher interest rates.

Apart from your credit score, SoFi requires that you are currently employed and have an offer of employment within the next 90 days. Or, you have another source of sufficient income. Although there is no minimum income requirement, expenses and monthly income will be taken into consideration when evaluating your loan application. SoFi will also consider your professional and financial experience when determining your eligibility for a loan.

How to apply for a SoFi loan?

1. Calculate your loan amount and terms

Before you apply for a loan, you should decide how much money you wish to borrow and how long you will need to repay it. A longer loan term with the same amount of loan will result in lower monthly payments but higher interest rates over the course of the loan’s life. There may be different loan terms and loan amounts available from different lenders. SoFi offers loans amounts from $5,000 to $100,000, and loan terms from 2 to 7 Years.

2. Online rate check

Fill out the online form to check your rate on SoFi’s site. This isn’t an application for credit and will not affect your credit score. To find the best rate, we recommend shopping around and getting quotes at multiple lenders.

3. Submit your application

Once you have checked your rate, you will need to complete a formal application. Many lenders will ask you to submit documentation such as a photo ID, proof that you are residing in the same area, and proof that your income is proof. Lenders will also conduct a hard credit check at this stage, which could lower your credit score. This stage is where you can add a coborrower to your loan application.