With SoFi personal loans, the experience can be right for the right customer. SoFi makes a convenient borrowing experience because of its straightforward application process and competitive rate.
However, SoFi is not perfect. Delays in approvals and unstated credit scores required for personal loans can be discouraging.
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About SoFi Personal Loans
SoFi was an acronym in 2011 by a group of students at Stanford—business school. The headquarters are in San Francisco. The company went public in 2021 and now has over 2,500,000 members.
The company initially offered student loan refinancing but has since added other endeavors such as products and services like mortgages, personal loans, and crypto-trading.
How SoFi Works
SoFi is an online-only lending platform that offers unsecured loans in all states except Mississippi. SoFi gives loans between $5000 and $100,000 ranging from two to seven years.
The minimum credit score requirement is 680, but highly qualified applicants can get large loans at the lowest rate. Loans can be used for personal, family, or household purposes, and borrowers typically receive funds within a few days of approval.
- Supported Use
- Home improvements
- Relocation assistance
- Medical procedures
- Prohibited use
- Real Estate
- Business purposes
- Investment
- Purchases of Security
- Short term bridge finance
- Post-secondary education
You can apply with a co-borrower, but this process may take up to two weeks before the loan is approved. Self-employed individuals borrowing over $20,000 can expect approval delays as well. Everyone should note that SoFi doesn’t state a credit requirement for it’s a personal loan; anyone with a poor or even fair credit score may need to search for a loan elsewhere.
Read more: 15 Ways To Get A Loan With A Bad Credit.
Below is a list of things to expect with the SoFi personal loan
- Fixed-rate
- Unsecured loans only
- Co-borrowing not co-signing
How To Apply For SoFi Personal Loan
You can apply for SoFi online through its IOS or Android mobile app. You can begin the application process by applying to pre-qualify. Pre-qualifying only takes minutes but doesn’t guarantee loan approval.
To apply, you must be 18 years or above, be a U.S. citizen, permanent resident or visa holder, and live in an eligible state. Likely requested information is listed below;
- Social security number
- Proof of address and personal identification
- Proof of income, including W-2s, tax returns, bank statement,s and pay stub
- Documentation of monthly debt
- Employer contact info
- Address and phone number
- Career experience and amount to borrow
Pre-qualify – To get pre-qualified, you’ll need to visit the SoFi website or download the mobile app. Provide necessary information about loan type, such as amount, the purpose of the loan, or if you have a co-applicant.
Complete your online Application – To do this, a loan consultant will guide you through the process and address any questions. At this stage, SoFi will request a full credit report from one or more consumer reporting agencies resulting in a hard credit pull.
Approval – Approval takes two to four days. However, it has been reported that a decision can take much longer, up to 15 days, for self-employed persons.
Sign Loan Agreement – After signing, you’ll receive funds in a few days, but larger loans may take longer.
Get Funds – Loan funds are sent directly to the borrower’s account.
Make Payment – Borrowers can find their due date in the final disclosure and first billing statement after disbursing loan funds. People can make loan payments on the mobile app or by logging into the website. Individuals can make payments via ACH, online bill pay, or paper check. Credit card payments are not allowed
SoFi Personal Loan Features
#1. Over One Loan– Borrowers can take out over one SoFi personal loan at a time. One of the eligibility requirements includes making your last three payments on time. If you borrow a second loan of a different type, you may be up for a membership discount of 0.125% interest.
#2. Unemployment Coverup – SoFi offers forbearance to those who need help due to job loss and even assists with job placement. Unemployment protection is available in three months increment for 12 months overall. Note that interest will continue to increase during that time, and you can choose to make interest-only payments.
#3. Referral Bonus – SoFi offers a welcome bonus of a $250 deposit. You must be a new customer and receiver of a referral link from a friend to be eligible. Once you take out your loan using your referral code and you make three on-time payments, they will send the bonus to your active SoFi money account, or you can receive an ACH transfer.
#4. Member Benefits – Once you become a SoFi member, either by taking up a loan or setting up an account, you are welcome with many benefits such as financial planning, discounted estate planning, and free one-on-one career coaching. Benefits vary depending on which product you are using.
Advantages of SoFi Personal Loans
If you’re interested in getting a SoFi personal loan, here are some advantages that can strengthen your decision. They include;
No Fees – SoFi personal loan might be right for you because of the absence of origination fees, prepayment penalties, or late fees.
Quick Funding – Same-day funding is available if your application is approved.
Co-applicants are allowed – SoFi lets borrowers apply with co-applicants which is uncommon for most money lenders. The only thing is co-applicants must reside at the same address.
Change your due date — SoFi will let you change the date your monthly payment is due, as long as your account is in good standing. For example, after your loan has been funded and the first payment has been processed, you can log in to your account and change the due date to any date between the 1st and 25th of the month.
Disadvantages of SoFi
SoFi is a fantastic platform that offers you outstanding loans. However, there are certain disadvantages to this personal loan application provides. They include:
Undisclosed Credit Score – SoFi does not disclose credit score requirements for its loans. But research sources say the minimum to qualify is 680
Delayed Process for Large Sum – SoFi takes two days to approve the processed loan application. But it may take longer depending on the loan’s size, such as $20,000.
Approval may take two weeks longer with a Co-borrower – If you apply with a co-borrower, you may need to wait for one or two weeks longer for loan approval than if used alone.
About The App
SoFi is available on Apple Store and Google Play. SoFi requires a minimum version of IOS 13.0 or Android 8.0. After that, it is free to download.
App size is 255.1MB. It is compatible with iPhone, IPad, and iPod touch. Unfortunately, it comes with only one language option, which is English. SoFi has a 4.8-star rating on Apple Store.
Customer Service
For free consultation before applying for SoFi loans, put a call through to 855-456-7634. For SoFi personal loan support, you can log into your SoFi account to use chat or speak with a live agent by calling (855)-456-SoFi(7634). Live agents can be reached from Monday to Thursday from 5 am to 7 pm PT and Friday to Sunday from 5 am to 5 pm PT.
Consumer Satisfaction
The customer rating for SoFi is average. On Creditkarma, SoFi has a 3.5 rating out of 5. On TrustPilot, SoFi receives a 3 out of 5-star rating and 3.7 on consumer affairs. Forbes has a 4.0-star rating.
The customer leans more towards average. Some customers say it is accessible to us, and help from customer service is excellent. However, other customers are unsatisfied; there are complaints about non-existing customer service, qualification requirements, approval process, and available APRs.
“Quick and easy. Rate was as advertised and much better than my credit union.”
“Extremely disorganized company. They said they couldn’t verify my identity – phone number, so they declined my loan – yet they called me on my cell phone and got me. What? Every time I called for an explanation, each person gave a different answer – almost like they were guessing. I was never able to get a straight answer. They’re hiring people right out of high school with little training. Not impressed with the professionalism of the company overall.”
Frequently Asked Questions
SoFi offers fixed-rate personal loans of $5,000 to $100,000. Repayment terms range from two to seven years, and you can expect to receive your funds within about seven days after approval.
SoFi doesn’t charge fees, which means no origination, late fees, or prepayment penalty. In addition, you can receive a 0.25% discount on your interest rate if you sign up for automatic payments. However, a no-fee loan may mean you’ll pay a higher interest rate, so compare the annual percentage rate before applying.
Conclusion
The soFi loan app is excellent but far from perfect. So you might want to look at other loan apps before deciding. And if you choose to stick to SoFi, make sure you read and know everything about how the personal loan works.
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