SoFi Personal Loans: 2022 Review




SoFi’s personal loans have all the standard features of a five-star lender: zero fees, a wide variety of loan amounts and flexible repayment terms.

But this lender outshines the competition with a slew of special perks. SoFi members have access to free career and financial advising, referral bonuses, networking events and even complimentary estate planning, among others.

SoFi is best for borrowers who:

  • Have good or excellent credit (690 FICO or higher).

  • Are looking for a loan of at least $5,000.

  • Prefer to apply for and manage a loan online.

  • Want extra help with career and financial decisions.

SoFi at a glance

Time to fund after approval

Loans available in all states.

Key terms to know about personal loans

Annual percentage rate is the interest rate on your loan plus all fees, calculated on an annual basis and expressed as a percentage. Use the APR to compare loan costs from multiple lenders.

An origination fee is a one-time, upfront fee that some lenders charge for processing a loan. The fee can range from 1% to 10% of the loan amount, and lenders typically deduct it from your loan proceeds.

The debt-to-income ratio divides your total monthly debt payments by your gross monthly income, giving you a percentage. Lenders use DTI — along with credit history and other factors — to evaluate a borrower’s financial ability to repay a loan.

Lenders that offer pre-qualification typically do so using a soft credit check, which allows you to see rates and terms you qualify for without affecting your credit score. If you accept the loan offer, the lender will perform a hard check to confirm your information. Hard checks knock a few points off your credit score.

Where SoFi stands out

No fees: SoFi doesn’t charge an origination fee, late fee or prepayment fee. Among online lenders, true zero-fee loans are rare.

Term availability: Repayment terms range from two to seven years, which is more options than most online lenders offer. With more choices, you can prioritize less overall interest with a shorter term or lower monthly payments with a longer term.

Multiple discounts: Borrowers can qualify for multiple discounts that can lower interest costs. A rate discount of 0.25 percentage points is available for setting up autopay. An additional rate discount of 0.25 percentage points is available for setting up and maintaining a SoFi money account.

Offers co-signed loans: Borrowers can add a co-signer to their application. Adding someone with better credit or higher income than you can improve your chances of getting a lower rate or receiving a higher loan amount. Unlike co-borrowers, co-signers don’t have access to the loan proceeds but are responsible for any missed payments.

Unemployment protection: If you lose your job while paying off your loan, you can apply for SoFi’s unemployment protection program. Once approved, SoFi will put your loans into forbearance and suspend your monthly payments. Interest still accrues during that time, but borrowers can make interest-only payments to avoid increasing their principal.

Free career and financial advising: SoFi gives borrowers access to one-on-one career coaching to help with job searches, career transitions and personal branding. Members can also receive free advice from a certified financial planner who can help them build a budget, create an investment strategy, choose insurance and save for the future.

Offers mobile app to manage loan: Borrowers can use SoFi’s mobile app to check available rates, apply for a loan and make payments.

Compare SoFi with other loan companies:

Where SoFi falls short

No secured or joint loan option: Borrowers can’t secure a SoFi loan with collateral such as a car or savings account or submit a joint application with a co-borrower. A secured loan or joint loan can help you get a lower annual percentage rate.

High minimum loan amount: SoFi loans start at $5,000, which could be too high for borrowers looking to fund a small project or other minor expense.

How to qualify for a SoFi loan

SoFi doesn’t publicly disclose many of its borrower requirements, but according to customer service representatives, borrowers with good to excellent credit are the most likely to qualify.

  • Must legally be an adult in your state.

  • Must be a U.S. citizen, permanent resident or visa holder.

  • Must be employed, have sufficient income or have an offer of employment to start within the next 90 days.

Loan example: A five-year, $30,000 loan with an 11.2% APR would cost $655 in monthly payments. You’d pay $9,316 in total interest on that loan.

How to get a SoFi loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify on NerdWallet. You may receive personalized rates from multiple lenders that partner with us, including SoFi. Pre-qualifying won’t impact your credit.

Apply on SoFi

You can apply on SoFi’s website by entering your email address, personal information and details about the loan you want. Then, you’ll be shown loan offers you qualify for.

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