Is SoFi Legit?

FT Contributor  | 

SoFi is a financial lender that offers personal loans to consumers. They cater to borrowers who have high credit scores and need simple personal loans to pay off credit card debt, invest in home improvements, or to fund vacations and events.

If you need a loan, it’s important to review the SoFi personal loan terms and conditions to better understand how the organization lends money and the eligibility requirements for borrowers. By learning about the maximum loan amount for a personal loan and the qualifications you must meet as a borrower, you’ll find out if SoFi has a loan product to meet your needs.

Pros and Cons

As with any personal loan provider, there are pros and cons to applying for a personal loan with SoFi.

Pros Cons
  • No fees: The lender doesn’t charge prepayment, origination, or late payment fees.
  • High credit score to qualify: To be eligible for a SoFi loan, you must have a high credit score of at least 680.
  • Online maintenance: Once you apply for a loan with SoFi, you can sign into your online account to check its status and balance.
  • Delay to receive funds: After approval, it takes a few days for borrowers to receive their loan amount.
  • Co-applicant: You can apply for a personal loan with a joint applicant for better terms.
  • No refinancing: Borrowers who want better loan terms cannot refinance their SoFi loans.
  • High loan amount: SoFi offers personal loans from $5,000 up to $100,000, depending on what you need and qualify for.
  • No debt consolidation: SoFi doesn’t allow borrowers to consolidate debt and pay creditors directly with their loan amount.
  • Different options: You can choose a fixed or variable annual percentage rate (APR), depending on what you qualify for, and you can change your payment date, if needed.
  • Must create an online account: You can’t apply for a loan or view your potential loan rates without creating an account on the SoFi website.

SoFi Personal Loan Essentials

There are many important factors to consider about SoFi personal loans before deciding if it’s the right lender for your financial situation. Some essential facts to review include the following:

  • The personal loan fixed APR ranges from 5.99% to 17.53% with autopay, depending on your qualifications and the state you live in.
  • There are no origination fees or late payment fees but your interest continues to increase if you make late payments.
  • You can apply to temporarily pause your payments for up to one year if you lose your job but interest continues to accrue.
  • You may qualify for a loan term between three and seven years.
  • Your credit score must be at least 680 and you must meet other eligibility criteria, such as a specific debt-to-income ratio and employment status.
  • You must be at least 18 and a U.S. citizen, visa holder, or permanent resident with a valid permanent residency card to apply for a SoFi personal loan.
  • SoFi offers personal loans in all U.S. states except Mississippi.

The personal loan terms you’re offered depend on your financial situation, credit history, income, the loan amount you’re applying for, and your location. As with all financial lenders, SoFi must abide by the Truth in Lending Act (TILA) and disclose all costs and fees to borrowers to allow them to make an informed decision about a personal loan before agreeing to terms.

SoFi Review

If you’re reviewing your personal loan options, consider how SoFi compares to other lenders by learning more about the ideal borrower and the loan approval process.

Who Is SoFi for?

SoFi is best for borrowers with good credit. While a 680 credit score is required for a personal loan with SoFi, it’s not essential for borrowers to have a long credit history to qualify.

As a SoFi borrower, you can apply for and manage your personal loan entirely online. The financial organization is best for borrowers who enjoy the convenience of maintaining their loan through an online account.

If you meet the eligibility criteria, you can apply for a personal loan for a major purchase, such as a home improvement or new furniture. If SoFi offers you a competitive APR, you may also consider using it to pay off credit card debt. Additionally, you could use a SoFi personal loan to pay for a vacation, wedding, or other expensive event.

How Long Does It Take to Get Approved?

Once you’ve completed the application process, SoFi pulls your credit and reviews your history and other eligibility factors to determine if you qualify for a personal loan. If you’re self-employed, this process may take up to 15 days. You can check the status of your loan approval through your online account on the SoFi website.

If your loan application is approved, you’ll receive your funding a few days after approval. If your loan application is denied, you can request an explanation and investigate the reason you didn’t qualify.

How to Apply

You can apply for a SoFi personal loan online. To apply for a personal loan online, visit the SoFi personal loan page and click on “Find my Rate.” You’re prompted to create an online account and provide your personal information. The system provides you with an estimate on the rate you may qualify for in as little as two minutes.

If you want to proceed, you must complete the online loan application and submit it to the company for approval. If needed, SoFi loan consultants are available to help you complete the loan application process. You can check the status of your submitted application by signing into your online account.

Once your application is approved, you’ll receive documents you must sign and submit before the loan is processed. Your loan funds are deposited right into your bank account in a few days. If you have questions during the loan application process, you can contact customer service by calling 855-456-7634 Monday through Thursday from 4 a.m. to 9 p.m. Pacific Time or Friday through Sunday from 4 a.m. to 5 p.m.

If you have good credit and are looking for a personal loan provider that does business entirely online, SoFi may be the right financial organization for you. Review the eligibility criteria and your purpose for obtaining a personal loan before deciding on a lender.


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