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2019 Sofi Loans Review: Personal, Student, & Consolidation Rates

Updated: October 2019
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Sofi Loans ReviewIn search of a personal loan? If you have a high annual income and an excellent credit score, SoFI is one of the better choices available to you. SoFI offers personal loans upwards of $100,000 and with very low APRs.

Table of Contents

Overview

With SoFI, expect interest rates between 5.99% and 16.34A% and the option of choosing variable or fixed rates. With terms of up to seven years, borrowers can request the maximum loan amount of $100,000. SoFi members and borrowers also have access to the free career counseling provided by the lender, as well as opportunities to network and attend social events.

The following guide is a full review of SoFi and will help you determine if this lender is the right choice for you.

A Closer Look at SoFi Personal Loans

SoFi loans are designed for borrowers that have a credit score of 660 or more, though most borrowers that are approved have a credit score of 700 or more. Additionally, borrowers tend to have higher incomes of about 100,000. For this reason, borrowers can take advantage of the low SoFi APRs between 5.99% to 16.34%.

Since SoFi targets creditworthy borrowers, this company offers very few fees and interest discounts that borrowers can take advantage of after a history of properly managed loans. With SoFi, there aren’t any prepayment penalties and no origination fees.

However, there are late fees involved (lesser of 4% each month that is past due if $5), though this late fee is less than the industry average.**** Moreover, borrowers that take advantage of SoFi AutoPay will enjoy a reduced APR by 0.25%.

Sofi Loans Review

Borrowers looking for more benefits from their lender will be pleased to know that SoFi gives borrowers unemployment protection in addition to other resources like career services. In the event a borrower loses their job, SoFi suspends their monthly payments and offers their career services during a period of forbearance.

Even as borrowers are still gainfully employed, they can take advantage of SoFi’s free career services. These services include interview and negotiation training, career coaching, advancement advice, and cover letter and resume reviews. Borrowers can take advantage of the networking resources as SoFi hosts happy hours, networking events, and mixers for members and borrowers.

In addition to being an ideal lender for high earning individuals, SOFI is a one-stop lender for a student in need of financial support and homeowners looking for a great deal on their mortgage. While SoFi is a great option for personal loans, borrows in Mississippi won’t be able to use SoFi. As SoFi offers loans for personal purposes, borrowers that qualify can use their loans for family, personal, or household purchases. However, it can’t be used for educational expenses other than student loan refinancing.

Understanding SoFi Personal Loans

Borrowers turn to SoFi to gain access to hassle-free personal loans. Interested borrowers can learn their rates quickly and get preapproved easily through the online application process. At this point, SoFi will finalize the borrower’s application and the borrower will select the type of plan that will best meet their financial needs. After getting approved, borrowers will speak with an agent on the phone and sign the agreement electronically. Once everything is finalized, the funds will then be wired to the borrower’s account in a few days.

After enrolling in the SoFi AutoPay program, borrowers will qualify to receive the discounted APR. At this point, the principal payment and monthly interest will be deducted automatically from the checking or savings account. Borrowers that don’t want automatic deduction through their bank account can mail paper checks or us their bank’s bill pay system.

Why Borrowers Choose SoFi Loans

Borrowers turn to SoFi loans for many reasons, but the most popular one is their high loan maximum. Consider the following benefits of borrowing through SoFi:

  •  High Loan Maximum Many other lenders cap their loans at several thousand dollars, but borrowers in need of substantial financial support can apply for as much as $100,000 with SoFI.
  •  No Fees Additionally, borrowers that want to avoid unnecessary fees that are common with other lenders will find that SoFi loans have virtually no additional fees.
  • Welcomes Co-Applicants Additionally, while SoFi previously didn’t allow co-applicants, as of 2018, SoFi allows borrowers to apply jointly with other members of their household to increase their chances of having their application approved at a competitive rate. With co-applicants and SoFi loans, both borrowers will share their responsibility and must pay back the loan together.
  • Online Calculator Applicants can use SoFi’s online calculator to determine how different rates will affect their monthly payment.
  •  State Availability SoFi offers services for 48 U.S. states, as well as Washington D.C.
Sofi Loans Review

Eligibility Criteria for SoFi

Wondering if you’ll qualify for a Sofi loan? It is recommended that borrowers consider the following criteria:

  •  Borrowers must be a permanent resident or U.S. citizen
  •  Borrowers must be of the majority age in their state of residence
  •  Borrowers must have sufficient income or a viable employment offer that begins within 90 days

If borrowers meet the eligibility criteria, SoFi will then evaluate the borrower’s credit history, their planned use of the funds, their ability to repay, and their application information.

SoFi Loan Requirements and Terms

SoFi offers personal loans of up to $100,000. As the APRs start at 5.99%, SoFi’s interest rates are often more competitive than similar lenders, in addition to no other fees apart from a late fee.

The following information lists the terms for SoFi Loans:

  • Loan Amount Range $5,00 – 100,000
  • APR Range 5.99% – 16.34% with AutoPay (with variable rates available)
  • Fees No origination fee, no prepayment penalty, no check processing fee. Late fee may apply.
  • Loan Terms 2 – 7 years
  • Repayment Options Monthly
  • Direct Payment to Creditors No

 Application Process with SoFi

Borrowers hoping to qualify for SoFi loans must begin the application process by creating an account. During the application process, borrowers will be prompted to provide their personal information, in addition to more details about their income and education. During this process, SoFi will also pull the borrower’s credit report, though it won’t impact their credit score.

The following information reveals the details of the application process for SoFi loans:

  • Application Process Online
  •  Time to Get Funds 3+ Days
  • Credit Check Soft credit check during the rate check, then hard credit check during the application
  •  Credit Reporting Yes
  • Co-Borrowers or Cosigners Allowed? Co-applicants are allowed.

After SoFi conducts their soft pull of the borrower’s credit report, they will be presented with several different loan offers. After choosing one of the many offers, borrowers will be required to upload certain documentation in order to verify their identity, then submit their application.

Upon approval, borrowers must sign their loan agreement, then add their bank account information in order to receive the loan. SoFi will also run an additional hard credit check once the loan application is being processed and this check might affect the borrower’s credit score.

    Sofi Loans Review

    Is SoFi Safe?

    Borrowers that are just learning about SoFi may inquire about the legitimacy of the platform. SoFi is a legitimate platform that offers competitive borrower perks and is a valid option for individuals that have an excellent credit history and a stellar credit score.

    With SoFi, borrowers also have access to other kinds of loans and have a range of options that are most similar to a traditional lender like a credit union or bank.

    Borrowers that are concerned about the safety of their information with SoFi will learn that SoFi safeguards their financial and personal information using advanced Transport Layer Security encryption. While SoFi may share this information with third parties like marketing companies, borrowers can opt out and prevent SoFi from sharing this information by calling the SoFi customer service line.

    While SoFi is safe to use, borrowers should know that it isn’t currently accredited through the Better Business Bureau. Additionally, borrowers transactions aren’t insured through the FDIC or the Federal Deposit Insurance Corporation. However, FDIC insurance is mostly a safeguard put in place for investors, so this shouldn’t affect borrowers.

    Despite this lack of accreditation, the BBB awards SoFi an A+ rating based on their transparent business practices.

    A Look at SoFi in Comparison to Other Lenders

    SoFi’s competitive rates make it one of the leading lenders for borrowers today. However, when shopping around for a personal loan, it makes sense to review the competition. Take a look at the following information to see how other lenders compare to SoFi when it comes to borrowing personal loans:

    SoFi vs. LendingClub

    >While SoFi’s terms are competitive, many people may find that they don’t qualify for this loan. If that is the case for certain borrowers, LendingClub is likely the next best option. LendingClub requires borrowers have a score of at least 600, though most borrowers have a 700 credit score with an annual income averaging $76,000

    SoFi vs. Earnest

    Looking to consolidate your debt? SoFi is probably the best option for these types of borrowers. However, creditworthy borrowers that need loans for new projects or endeavors can turn to Earnest for these personal loans. Earnest provides loans for everything from weddings, vacations, and home improvement. Offering APRs between 6.99% – 18.24%, Earnest borrowers allows borrowers to request up to $75,000 that have shorter terms of 3 – 5 years.

    SoFi vs. Prosper

    Prosper is another good loan alternative for borrowers that do not qualify for SoFi loans. In order to qualify for Prosper personal loans, borrowers need to have a credit score of at least 640, an income hight than $0, a debt-to-income ratio that is under 50%, and have three open trades listed on their credit report. Additionally, borrowers can’t have bankruptcies in the past 12 months or six or more credit inquiries that have been pulled in the past six months. With Prosper, borrowers can take out loans of up to $40,000 and APRs between 6.95% to 35.99%, with terms of 3 or 5 years.

    Borrowers that are creditworthy and are okay with SoFi taking a harder look at their finances will likely benefit the most from this platform. Keep this information in mind as you determine whether or not SoFi is the right choice for you.

    FAQ

    General SoFi Loan Questions

    In this section, we’ll explore some general questions that consumers often ask about SoFi loans. Check them out.

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    How Does SoFi loans work?

    SoFi loans work by providing low interest loans to people with strong credit backgrounds. The company also takes other factors into account — such as education and debt-to-income ratio.

    Are SoFi loans safe?

    SoFi loans are a reputable company with years of experience and prevalence. While you should always check customer reviews, this is certainly a legitimate lender that has lent to thousands of people around America.

    What credit score do you need for a SoFi loan?

    SoFi requires high credit scores when compared to the rest of the market. You’ll need to have a minimum of 680, but most people will have over 700. You also need to consider other factors such as debt-to-income ratio. If your score is too low you can also use prepaid credit cards to build credit.

    Does SoFi do auto loans?

    At present, it does not appear that SoFi loans are offering auto loans to consumers. You’ll need to continue to check back to see if they begin to offer this type of loan.

    How Does SoFi student loan refinancing work?

    In some cases, SoFi will use different types of credit checks to consider you for refinancing. They’ll look at debt-to-income, credit scores, and more. They feel their unique approach allows them to offer lower rates.

    How hard is it to get a SoFi loan?

    It can be hard to get a SoFi loan if you currently have a lot of debt or if you have a low credit score. They have a 680-minimum credit score, but you’ll find that the majority of people have a credit score of over 700.

    How long Does it take SoFi to approve a loan?

    The time it takes for a loan to be approved can vary, but the amount of time that it takes to dispatch the loan can be quite long. You may not receive your financing for 30 days.

    Who owns SoFi loans?

    SoFi Loans is a privately-owned company so its ownership is not entirely clear. The founders of SoFi Loans are Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady.

    Are loans like SoFi worth it to consolidate debt?

    If you can get a lower interest rate on consolidation loans, it could definitely be worth consolidating. If you want to pay back less interest over the next few years, consolidation can sometimes work.

    Are SoFi loans secured?

    Most personal loans at SoFi are unsecured. You can always ask about the exact specifications of your loan if you want more information about its details.

    Does SoFi do business loans?

    At present, you won’t find any business loans at SoFi loans. Currently they’re sticking to student refinancing, mortgages, and personal loans. They are growing their service lines so make sure to check back in the future.

    Does SoFi do construction loans?

    No, SoFi does not currently offer traditional construction loans to consumers. This being said, they are constantly expanding the types of loans that they offer to customers, so make sure to check back in the future.

    Does SoFi do federal loans?

    SoFi does not currently offer federal loans to its clients. If you want to get a SoFi Loan, you’ll most likely have to apply for a personal loan, mortgage, or student refinancing loan.

    Does SoFi do home equity loans?

    While SoFi offers information on home equity loans, it appears that the company doesn’t actually offer this form of lending. Check back in the future to see if they begin offering this type of financing.

    Does SoFi do home loans?

    Yes, you will find that SoFi loans do offer mortgages to their customers. This is one of the three primary forms of financing that the company now offers. They’re relatively new to the mortgage market.

    How to get a SoFi loan?

    To get a SoFi loan you can head online and apply for a loan directly through via the internet. SoFi doesn’t have any physical locations, which helps ensure it can keep financing costs low.

    Does SoFi offer student loans?

    At present, SoFi offers student loan refinancing instead of traditional student loans. This can help you refinance your current student loans at a much lower rate.

    Is SoFi loan interest tax deductible?

    This will depend on the type of loan — in most (or all) cases, no. You should speak to an accountant to get more details on this specific topic.

    What is SoFi personal loans?

    SoFi personal loans are personal loans provided by SoFi Loan — an online based lender that is known for its creative credit approval process. They use education and a range of other indicators in addition to your credit score.

    SoFi Refinance Questions

    If you have questions about refinancing at SoFi, this section might be what you’re looking for. Let’s take a look at some of the common questions we receive.

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    Should I refinance my student loans with SoFi?

    This depends if you’re able to get a loan that has a lower interest rate. You should also consider the fees associated with the loan. If you can save money, it can be a good idea to refinance and stop wasting money on high interest rates.

    Does SoFi refinance private loans?

    Technically you could refinance a private loan with a SoFi personal loan, but you’ll want to make sure that it’s good value before you do it.

    Can I refinance my SoFi loan?

    You can refinance almost any loan by paying the loan off with a new loan. You should always make sure that you’re saving money if you’re planning on refinancing. Don’t sign up for a larger interest rate.

    Can SoFi refinance Sallie Mae loans?

    SoFi loans should be able to help you refinance your Sallie Mae loans, but you need to speak to them directly to provide the details of your particular loan situation. Make sure that you’ll save money before you commit to refinancing.

    Can I use SoFi to refinance my wife's loans?

    This depends on the type of loans your wife has and her credit score. You should get your wife to check if she is eligible for a SoFi loan.

    Other SoFi Loan Questions

    If you have any other questions about SoFi loans, make sure to check out the various answers in this section.

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    Does a SoFi personal loan have a prepayment penalty?

    No. There’s no prepayment penalty at SoFi loans. This is a great bonus that can help you save time and money when you’re trying to pay your loan off early.

    Does SoFi approve loans on weekends?

    There’s no publicly available information on this. Regardless, SoFi does sometimes take days or weeks to get funding into your account, so it might not be a good idea if you need money quickly.

    Does SoFi do loans if I'm retired?

    SoFi doesn’t offer any direct evidence that they exclude retirees from their financing options, but you should still make sure to check if you’re eligible by contacting their team. There’s no point applying if you can’t get a loan.

    Does SoFi do multifamily loans?

    SoFi doesn’t offer information on multifamily loans, but they do offer mortgages. You should speak directly with their team to see if multifamily loans are possible.

    Does SoFi give loan based on appraised value of home?

    SoFi has a unique way of lending money for mortgages. You should consult with their team about the different ways they appraise homes and offer finance — it’s the best way to make sure you’re getting the right type of finance.

    Does SoFi offer co-signer for student loan consolidation loans?

    You can co-sign for SoFi personal loans, so it might be worth checking if they offer the same service for people who are trying to refinance student loans.

    Does SoFi offer loan on condo?

    SoFi offers mortgages, so they are most likely able to offer loans on condos. If you want more information about the exact conditions of their loans, it’s a good idea to get in contact with their team.

    Does SoFi student loans cover international schooling?

    SoFi mainly focuses on refinancing current student debt, so they’re most likely not able to cover international schooling. But you can always check with them directly to see if they’re willing to offer financing.

    How do I cosign for my son's SoFi loan?

    You need to speak with SoFi directly about cosigning loans. The company has recently begun to allow people to co-sign for loans — it’s not possible to co-sign for personal loans.

    How does SoFi buy my loan?

    This will depend on the type of loan that SoFi is buying. The company does not offer direct information on how it buys loans, so you should contact the firm about how they purchase specific loans.

    Can a combine two SoFi loans?

    You can refinance or consolidate any type of loan if you pay the original amount of the loan back to the original lender. Just make sure that you’re able to get financing that is affordable for this form of consolidation.

    Can I buy into SoFi loans stocks?

    SoFi is a privately-owned company, so you can’t directly purchase SoFi loan stocks. If you want to invest in SoFi, you need to speak directly with the company about your options. We do talk about other investment options in other articles including the best jumbo CD rates.

    Can I pay extra on my SoFi personal loan?

    Yes, you can pay extra or you can decide to pay off the entire loan. There is no penalty for paying your loan off early — SoFi doesn’t punish those who want to pay off their loans quickly.

    Can I pay SoFi student loan with credit card?

    SoFi doesn’t provide information on its payment options. If you want to find out if you can use a credit card, make sure to speak to a member of their team.

    Can you pay SoFi loan early?

    Yes, you can pay back your SoFi loan whenever you want. You don’t even have to pay a pre-payment fee. This means that you don’t have to suffer for paying your back early.

    How long does it take to fund a SoFi loan?

    It can take a while to receive the funding from your SoFi loan. In fact, depending on the type of loan that you apply for, it can even take up to 30 days to receive funding from your loan. It’s not a good ‘quick loan’ option.

    Is SoFi loan legitimate?

    Yes, SoFi Loan is a legitimate company with years of experience providing low interest unsecured personal loan options. They typically aim for borrowers who have strong credit profiles and low debt.

    Does a SoFi loan hurt your credit?

    If you have a hard credit check on your credit report it can hurt your credit — that’s why it’s always important to ensure you’re approved for a particular lender before you apply for financing.

    Are there early pay off penalties for SoFi loans?

    No. You can choose to pay your loan off at SoFi loan whenever it suits you. You won’t find any penalty rates at SoFi for paying your loan off early. This is much better than other lenders that charge you for early payment.

    Can SoFi consolidate private student loans?

    You can consolidate most types of student loans with SoFi — but it’s always a good idea to check with them first to see if you are eligible. Use student loan calculator payoff estimates to see if this is the best method for you.

    Can you add a grad school loan to SoFi?

    SoFi offers a broad range of student loan refinancing. You should speak with their team directly to discuss if this is an option — just make sure that you’re able to get a good interest rate that saves you money.

    Can you defer SoFi loans?

    This will depend on your individual circumstances and the reason that you must defer your loan — there also may be a limit to how long you can defer your SoFi loan. Speak to the company directly for more details.

    Can you show 140 approval notice for SoFi loan?

    If you have specific questions about 140 approval, it’s best to consult with SoFi directly. The company does not offer clear information about this type of notice.

    Do I need a purpose for a SoFi loan?

    Not necessarily. SoFi doe offer unsecured personal loans which means you can access personal loans at the company without the need of a direct reason or purpose. But you should always consult with SoFi about these arrangements.

    Do I pay off interest first with SoFi loan?

    You have to pay off your interest with a SoFi loan, but this doesn’t mean you can’t reduce your interest burden by paying the loan off early. SoFi offers no penalty early payment options that allow you to avoid problems.

    Jordan Beaumont

    Jordan Beaumont

    Financial Guru

    Jordan's work focuses on helping people reach their financial goals so they can spend more time with family and friends and less time worrying about their budget. After finishing college with a degree in Accounting and Communication, he realized that these are the most important things in life and that people shouldn’t miss out because of money.