Recently we came across Social Finance (SoFi) as one of the best lenders in our ranking for the personal loan providers. We ranked SoFi personal loan as the second best lender in the market. To go along with the ranking, here’s the review of SoFi personal loan and why we think SoFi is a perfect place to search for your need. With the lowest interest rate among all lenders, SoFi should be your first place to shop for a personal loan.
Being entitled to a SoFi personal loan is definitely not as distinguished as being admitted to Stanford University; however, the truth is the firm’s approach of designating applicants that are highly qualified does not imply like you are trying to join an aristocratic club.
We believe that getting a low-interest personal loan to consolidate your high-interest debt is one steps towards being debt free. Especially with a credit card debt and an interest rate as high as 25%, you’ll spend your entire life to pay back your credit card debt. That’s why we recommend our readers to avail a personal loan to become debt free.
Social Finance, also termed as SoFi for short and was established by the alumni of Stanford in the year 2011. In addition, it is best recognized for its so-called student loan refinancing product which is actually intended for recent graduates that have high incomes.
It is worthy of note that this online lender bolstered into personal loans as well as mortgages in the year 2014 in order to advance its goal of becoming a well-developed fiscal services firm. Additionally, it boosted as high as one billion dollars in September toward that objective.
According to its co-founder Dan Macklin, a SoFi applicant’s credit score is not as valuable as other factors. He added that a history of settling payments for student loan applicants in a timely manner, the industry they work with and great earning potential is much more pivotal.
Exploring more on mortgages
The firm employs the same method when it comes to figuring out personal loan applicants- the approach is lending to people who comes with a solid credit history and adequate amount of cash flow in order to cover their living expenses and of course their loan payments.
In addition, SoFi does not come with income requirements or a minimum credit score; however, take in mind that its average borrower tends to come with a good credit- and according to the firm the scores should be 700 or above, not to mention, a high salary. It is highly advised that if that does not depict you, you may be more fortunate contemplating on these loan options.
Take into consideration that SoFi offers loans by up to one hundred thousand dollars to its well-eligible borrowers- this is more than most online lenders and variable and fixed interest rates.
What distinguishes SoFi from others?
It is worth mentioning that once you are already a part of the club, SoFi attempts to provide what they call as “community experience.” This form of loan organizes social events all around the country like happy hours wherein such gathering provides borrowers the opportunity to socialize and network with one another.
In the same way, borrowers are given the chance to have easy access to a broad array of career services like tips as well as one-on-one counseling in order to accomplish their professional goals.
It matters to note that SoFi’s chief offering is none other than its so-called “Unemployment Protection Program”. This simply conveys that if you happen to lose your occupation, SoFi will discontinue your loan payments even though interest still accumulates and assist you to search for a new job by means of its career counseling services. Indeed, the benefit of job search is available to borrowers for 3 months at a time- please be guided that this is for a total of one year or twelve months over the whole duration of the loan.
Essentially, these perks enable SoFi to draw the attention of high-quality borrowers who can effortlessly fit for personal loans elsewhere. This means that if someone gets approved for a SoFi loan, then, it is more than possible that they shall take it.
What are the things you need to consider prior applying for a SoFi personal loan?
- The credit standards of SoFi
- There is actually no required minimum credit score; however, it is commonly above 650.
- There is no required minimum gross income.
- The limitations comprise of good credit history as well as high income.
- There is no minimum credit history.
- There is no debt-to-income ratio.
What about the Lending Terms of SoFi?
Annual Percentage Rate
- With auto-pay: 5.95% by up to 12.99% for fixed-rate loan/ without auto-pay is 6.20% to 13.24%.
- With auto-pay: 4.74% by up to 11.34% for variable-rate loan/ without auto-pay is , 4.99% to 11.59%.
- Five thousand dollars for minimum loan amount
- One hundred thousand dollars for maximum loan amount
- Three years is the minimum loan duration
- Seven years is the maximum loan duration
- You only need a few business days to receive the funds.
Penalties and Fees
- There is no origination fee.
- There is no prepayment fee.
- Four percent of payment due or five dollars (whichever is lower) – this is for late fees
- There are no personal check processing fees.
The Benefits of SoFi Personal Loan
SoFi certainly offers very flexible repayment terms and the lowest interest rates on the market; however, the perks linked with it absolutely go beyond mere numbers. The biggest perk for this type of loan may be job placement program. The firm’s thinking appears to be that they shall earn more through investing in borrowers who lose their occupation instead of solely spending the funds on collections.
It is valuable to note that SoFi also operates their customer support through the aid of California call center. Note that this is the company’s way of finding the best solutions to provide the best possible service to customers although having customer support team in the USA does not surely guarantee a more exceptional service.
Common complaints about SoFi
Over the internet, there are numerous complaints about loan decline. On our interview with some of the applicants, we found that having a good credit score is not enough to get your loan approved. You’ll also need to have substantial income as well.
We found that having a credit score of 650+ and an income of $60,000+ (combined when you cosign for others) is the only way to obtain an approval. Even our study determined that at SoFi, you have the least chance of getting approved for a loan.
Some applicants complained about SoFi making a hard inquiry into credit history. Even though SoFi advertises a soft pull, before you’re approved for the loan, you’ll have a hard inquiry into your credit. So chances are that you’ll get rejected and also get your score down because of the hard inquiry.
SoFi career resources, as well as high loan limit, are advantages which are specially designed to attract people who can find personal loan somewhere else. Keep in mind that is you are a borrower who has a high income and good credit history, then, you have alternatives aside from personal loans like some credit cards with 0% introductory APR (but they are dangerous if not paid within the 0% offer period).
SoFi offers personal loan at the lowest interest rate, sometimes it’s even lower than mortgage rates. While other lenders offer only up to $35,000, SoFi offers up to $100,000 personal loan.
The most fundamental factor for borrowers to realize is that the forgiveness programs, as well as the repayment plans of federal loans, are significantly reduced upon private loan consolidation. The reason behind this is because there are no means to undo a consolidation. Bear in mind that it quite imperative to come up with a well-thought-of decision in terms of pointing out the federal benefits versus the lower interest rate on the private market.
It is of great help to refer to the federal student loan database if you are considering applying for consolidation with SoFi – this is if you wish to ensure that your federal loans aren’t included. This is a big aid as you shall be able to uncover a complete list of your federal loans. You can be guaranteed that your loan is a private loan if it is not included on the list.
Take into account that if you are really into irresistible perks, then, you may regard SoFi as the ideal option for you.
Real borrowers’ reviews (source Credit Karma)
- Why should I (or you) be paying 6 or 7% fixed interested rate with a well paying job and a high income co-signer? My interest rate was lowered 2% and now my private loans are less than my government loans, which is a sad statement in and of itself. SoFi has been nothing but professional through the entire process. I feel like they are on our side more than any other bank. Please, do yourself a favor and look into their rates. Do NOT let the banks, or the government for that matter, take you to the cleaners for wanting to better yourself and get a quality education.
- We needed to consolidate medical bills, car repair bills, and credit cards. We couldn’t get a home equity loan through our bank because our house isn’t worth what it was when we bought it in 2005. I received a piece of “junk mail” from SoFi in the mail and I almost threw it away, but I opened it instead. I did some research on the company and decided to apply for a personal loan. The application process was easy. They had to contact me once for additional information, but my loan was approved and funded within two weeks of applying. I now have everything consolidated and am making only one monthly payment. The interest rate is a bit higher than I was hoping (still lower than my credit cards though), but I had a few negative hits on my credit report, so I wasn’t even sure my loan would be approved. I would
- My refinancing was flawless. I had $60k balance left of consolidated subsidized loans with Sallie Mae (AKA Navient) at a ridiculous 8.5%. I was paying $1,000 a month to try and speed up that balance considering I was wasting nearly $5k a year in interest payments. So, I applied with SoFi. I followed all the instructions and send them any paperwork that was requested. It took about a week to get fully approved and another week for the funding to arrive at Navient. The two week process left $105 balance at Navient, which I promptly paid off. SoFi gave me 2.67% variable interest with a 10-year payoff — hopefully LIBOR will remain low.While at 8.5%, I was aggressive about paying off my balance. Now, at 2.67%, I am much less concerned. I’ll probably just stick with the 10-year repayment schedule as long as LIBOR stays low and use the difference increase my savings in my kids’ 529s (I don’t want them to leave school with the loans I did). The refinancing will probably save me $20k over the life of the loan.It couldn’t have been easier to go through the process. My good FICOs and income probably had a lot to do with my ease.