One of the best things about SoFi is the clarity and transparency offered from start to finish. The result is that you know exactly where you stand throughout so you don’t need to worry about getting in over your head of suffering any unforeseen payments.
You can enjoy more peace of mind with features like a temporary forbearance, should you lose your job and find yourself unable to pay back the loan.
For high-income earners with a good credit score, this is one of the best personal online loans out there right now.
Cost: How much does SoFi charge?
- Minimum APR: 5.99%
- Maximum APR: 17.67%
SOFI PERSONAL LOANS: KEY FIGURES
APR variable: 5.99 – 17.67%
Loan range: $5,000 – $100,000
Min credit score: 680
Term: 2-7 years
SoFi offers a nice range of loan amounts, from $5,000 all the way up to $100,000 for personal finance. It does this with fixed rates of APR that vary between 5.99% and 17.67%, so you know exactly how much you will need to pay back in the long run.
There are also variable rate loans which have rates that range from 5.47% up too 14.70%.
Both of these rates are based on a repayment system setup using AutoPay. This AutoPay sign-up represents a saving of up to 0.25% as a discount off your interest rate.
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SoFi Personal Loans: Unemployment protection
- Defer payments up to a year
- Option for interest-only payments
One of the great features of the SoFi Personal Loan is its unemployment protection. This means that if you were to lose your job, rendering you unable to pay back your loan, then you won’t have to.
This worry-free feature means you’ll be able to place repayments of the loan on hold until you are earning again and can then begin repaying the loan once more.
This forbearance feature is something you will need to apply for, so it’s not guaranteed. Also it works for three months before you need to reapply. This runs for a total of 12 months before you have to start repaying the debt.
Also, while you’re not repaying, the interest will still accrue on the loan amount meaning you will have more to pay back once you start payments again. However, there is an option to make interest-only payments during the forbearance period so you don’t have a higher amount to face when you’re back to making full repayments again.
SoFi Personal Loans: Members benefits
- Savings on other loans
- Private event invites
Getting a SoFi Personal Loan has been compared to joining a private members club, since that is effectively what you’re doing. If you manage to meet the requirements for entry, AKA to get a loan, then you’re eligible for even more.
One perk for members is a reduced rate on any other loans you may wish to take out. You can get a 0.125% rate discount on an additional SoFi loan since you’re already a member.
A rather unique benefit is that as a loan user you’ll be invited to exclusive events where you have the opportunity to network with business owners, attend mentorship events and even get career counselling.
SoFi Personal Loans: Requirements to qualify
- At least a 680 credit score
- Median income is $106,000
The thing that SoFi is looking for is free-flowing cash, as opposed to just a good credit rating. While the official number it aims for is a credit score of 680, it’s your cash flow that it’s really looking at. This means the amount of money you have coming in after your expenses are deducted from that.
So, essentially, SoFi wants to lend to those that have a decent income with a good debt-to-income ratio. For those with a bad credit score or financial difficulties, this isn’t the loan best suited.
The median income of SoFi loan borrowers is $106,000. So a high income and good credit score are generally required if you want to get into the SoFi loan members club.
Since SoFi notifies all three credit bureaus when it reports your payments, it can actually really help your credit score, presuming you on time.
SoFi Personal Loans: Fees
- No fees
- Total transparency
In short there are no fees. Yup, that’s one of the great features of SoFi – you don’t need to worry about extra costs.
There are no origination fees, no closing fees and no prepayment penalties. As a result you can easily see exactly how much your loan will cost you. This level of transparency is something that SoFi prides itself on.
SoFi Personal Loans: Application process
- No initial hard pull
- Simple online process
Thanks to a pre-qualify assessment you can be offered exactly the loan options that are available to you in your situation. This also has the added benefit of not having a hard pull, which could affect your credit score.
Simply enter details like your name, state, email and a password before offering information about education and employment history. Then you’ll be given loan options, yup, without the need to put in your social security number yet.
Pick the loan you want, upload some ID and income evidence documents then you’ll have your hard check. If you qualify you’ll get a document to digitally sign and return. Then you’ll receive a phone call to confirm your address. Then simply wait for your funds with payments for fixed rate loans due on the first of the month and for variable on the tenth.
SoFi Personal Loans: What users say
- JD Power 3 star rating
- Total points of 856
JD Power carried out its independent study of the customer satisfaction for personal loan offerings across the US in 2019 and found that SoFi was one of the higher rated options with a total of a three-star rating. The number rating, on a 1,000 point scale, was 856.
Four stars were awarded for loan offerings and terms, while it was three stars across the board for the other categories that include interaction, billing and payment, plus application and approval process.
SoFi Personal Loans: Verdict
SoFi is an excellent online personal loan option for those with a good cash flow, decent credit score and healthy income. It offers great transparency with no fees, lots of membership benefits including guidance and events, low interest rates and good loan sizes and repayment periods.
While this isn’t ideal for those in less financially secure situations, it’s a great option for those that want to pay off credit cards or make a big purchase with the peace of mind that even if they lose their job there is a chance to defer payments until securely in work again.
