SoFi Review In 2022

If you are in need of a loan and are searching for the finest personal loan businesses, you are definitely questioning whether or not it is a smart idea to get a loan through SoFi. Alternatively, does it sound too good to be true? Check out our evaluation of SoFi if you are concerned that you may be a victim of a SoFi scam; it addresses all of the issues and concerns that you may have regarding this financial institution.

The following data will be presented to you throughout this article:

• What kinds of financial and personal loan services SoFi provides, and the kinds of borrowers that are the best candidates for those services
• How to get a loan from Social Finance
• The terms and conditions of SoFi’s loans
• Customer feedback on SoFi.com’s website
• The benefits and drawbacks of utilising SoFi
• The fees that are involved in making use of SoFi
• SoFi’s privacy policy
• Instructions on how to get in touch with SoFi’s customer support
• Questions that are frequently inquired about (FAQ) SoFi

What exactly is a SoFi?

In 2011, students studying business at Stanford University established a company known as SoFi (Social Finance, Inc.). At first, the company’s lending concept consisted of offering school loans that were funded by the company’s alumni. In 2015, the company began offering personal loans, and in subsequent years it expanded its offerings to include student debt refinancing and mortgages. It now provides a wide variety of products, some of which were introduced in 2019, such as SoFi Money and SoFi Invest. As a last point of interest, SoFi also runs a lending marketplace known as Lantern, which allows users to examine various possibilities for funding small businesses.

Who is the Best Candidate for SoFi?

People who are looking for an online personal loan of up to $100,000 and a few years to repay it will find that SoFi is an excellent lending alternative to consider. In addition to these wonderful terms, the organization also provides rates that are competitive for customers who do not wish to pay more than they have to for their loans. These fantastic loan offers come with a significant catch, however: stringent criteria for the prospective borrower. Therefore, before you apply, you should make certain that you have an outstanding credit score and sufficient money.

Beginning Your Experience with SoFi

Following this, we will walk you through the application procedure for SoFi.

• You may view your rate by going to the official SoFi website and clicking the button that says “View your rate.”
• Create an account with SoFi.
• Determine the amount of the loan, as well as the reason for taking it out.
• Please provide your date of birth as well as information regarding your citizenship (you can apply for a loan if you are a US citizen, green card holder, or non-permanent resident).
• Please provide your address and indicate if you are a tenant, a homeowner, or whether you are living with friends and relatives.
• Add a co-borrower (optional; they must live at the same address).
• At long last, you will get the opportunity to review your rates.

The following are some additional details that you need to be aware of:

• You have the option of borrowing anywhere from $5,000 to $100,000.
• SoFi, in contrast to other online marketplace platforms, gives you the option to select your preferred method of making monthly payments.
• Verifiable evidence of the annual revenue should be provided.

Terms & Requirements

The following criteria must be met before you may submit an application for a personal loan with SoFi:

• You are now of legal age to form legally enforceable contracts in your state (able to enter a binding contract).
• You are a US citizen, permanent resident, or visa holder (E-2, E-3, H-1B, J-1, L-1, or O-1).
• You are a resident of a state in which SoFi is permitted to provide loans.
• You are able to maintain a consistent flow of revenue.

You can check your loan eligibility here if you are interested in applying for other types of loans offered by SoFi, such as a refinancing of your student loans or a mortgage.

The Terms of a SoFi Personal Loan

• The annual percentage rates on SoFi loans range from 6.99% to 22.28%. (fixed rates with Autopay)
• The range for the amount of a SoFi loan is $5,000–100,000.
• Loan terms offered by SoFi: 2–7 years
• Unemployment Protection: The monthly payments on a SoFi loan can, in fact, be put on hold.
• No, the SoFi Personal Loan is not secured in any way; it is an unsecured loan.
• Minimum credit score required to apply for a SoFi loan is not disclosed; nonetheless, it is advised that applicants have a score of 680 or higher.
• SoFi does not specify a minimum income criterion, but the ratio of existing debt to available income is taken into consideration.

The annual percentage rate (APR) that SoFi charges for personal loans is only 6.99%. You can receive a discount of 0.25% on your monthly payment if you set up Autopay, which is the process of automatically deducting monthly payments from your bank account. You are able to view payment examples of fixed-rate loan payments here. These examples also include an estimated annual percentage rate of the total cost of the loan.

Your interest rates from SoFi will be determined by a number of criteria, including the loan amount and period, as well as your particular credit score. SoFi provides personal loans for a variety of uses, the specifics of which are determined by the borrower. Personal loans from SoFi can be put to use for a variety of different purposes, including home improvements, consolidating credit card debt, family planning, vacations, and even weddings.

In addition, SoFi provides access to an Unemployment Protection Program. It is possible that you will be granted a deferment on your SoFi personal loan if you find yourself unemployed through no fault of your own. Your regular loan payments will be put on hold for a period of three months if your request is granted. On the loan, you will solely be responsible for paying the interest.

Even if the prerequisites for a certain credit score are not listed on the SoFi website, a score of at least 680 (and preferably 700 or higher) is encouraged. As a final point of consideration, the eligibility criteria for SoFi loans do not include a minimum annual income criterion. However, the approval of the loan is contingent on a number of factors, including your monthly income and costs as well as your professional work experience.

Does using SoFi affect your credit score negatively?

If you use the ‘View your rate’ option on SoFi’s website to check the interest rates and terms for which you might qualify, the company will only conduct a mild inquiry into your credit history. Nevertheless, this won’t have a negative impact on your credit score.

After you have been pre-qualified for a personal loan through SoFi, if you decide to move through with your application for a personal loan through SoFi, SoFi will do a hard pull, also known as a hard inquiry. This could result in a few points being deducted from your credit score.

User Reviews

After doing an online search for customer evaluations of SoFi, we will now summarise what customers had to say about their experiences with the company’s loan services. Overall, customers on Trustpilot and BBB have a negative opinion of SoFi’s products and services. The majority of SoFi’s customers have reported having unfavourable experiences with:

• How long it takes the company to earn a profit
• Being denied a loan despite having excellent credit scores is a frustrating experience.
• Poor service to the customer(s)

On the other hand, we did find some favorable reviews from satisfied SoFi customers. These were tied to a variety of SoFi devices as well as the ease with which a loan might be issued quickly.

SoFi Rates & Fees

What differentiates the organisation from the other lenders in the market? Primarily due to the fact that, from what we understand, SoFi levies almost no costs (such as origination, prepayment, late payment, and closing fees).

So, what are the costs associated with using SoFi?

The annual percentage rate (APR) is the only price that SoFi levies. With autopay, the variable APRs range from 6.99% to 22.28% (a reduction of 0.25% is available).

Having said that, there are repercussions for missing your payments:

• You will amass a greater amount of interest.
• Your total obligation will be more expensive.
• Your credit score may suffer as a result of this.
• Do not let yourself be misled by the story that there are no costs, and make sure that you constantly read the fine print.

Privacy & Security

The following personal information about you may be collected by SoFi:

• Particulars about an individual (including your social security number and employment information)
• Data pertaining to demographics
• Reports for consumers (e.g., credit reports)
• Website use and login data (IP address, etc.)

Your information will be utilized in order to:

• Give you assistance and services.
• Process payments
• Please keep me updated on the latest product information.

Your information might be shared with the following parties:

• Partners in the servicing of loans
• The credit reporting companies
• Companies that provide marketing services
• Auditors
• Government bodies, etc.

The SoFi website employs a protocol known as Transport Layer Security (TLS) to encrypt all of the information that you send to it.

Support for Customers of SoFi

Customers who need assistance with their SoFi accounts can either give them a call, send them an email, or find them on Twitter.

SoFi Mobile App

By downloading the SoFi app to their mobile devices, customers are able to check rates, apply for loans, and make payments all from the convenience of their own cellphones (available on both Google Play and App Store). You can learn more about the terms associated with using the mobile app by clicking on this link.

SoFi Alternatives

How does SoFi stack up against other lending options?

Credible in contrast to Sofi

You are able to open an account with both SoFi and Credible, at which point you can examine and compare several loan offers. The highest amount of money that any of the lenders will let you loan you is $100,000.

It’s noteworthy to note that SoFi is included in the network of lenders provided by Credible. You have the option of going directly to SoFi to apply for a loan, or you can utilise Credible to look at offers from a number of different lenders. Check out our evaluation of Credible to learn more about this reputable organisation.

LendingClub Vs SoFi

The maximum loan amount that can be obtained through LendingClub is $40,000, which is approximately half of the maximum loan amount that can be obtained through SoFi. Additionally, they have more expensive prices.

On the other hand, LendingClub is more open and honest about the standards that applicants need to meet in order to be considered. Comparison of LendingTree and SoFi LendingTree, like SoFi, enables you to enter your information and compare loan offers and rates.

LendingTree, on the other hand, provides access to a greater variety of lending options. On the other side, some of its customers have lodged complaints about the company’s partners having access to their personally identifiable information. Check out our review if you’re interested in learning more about the different kinds of personal loans that are made available by LendingTree.

Final Verdict

What is our overall impression of the personal finance services provided by this internet company? The application procedure for personal loans offered by the organization is rather easy to understand, which was one of the aspects that drew our attention to the company. After providing some fundamental information, you will be able to view the rates for which you are pre-qualified.

In addition, SoFi exclusively levies fees for the APR; there are no origination fees or other fees of a similar nature. In conclusion, one thing that’s excellent about SoFi is that the company gives the people who are part of its club access to a wide variety of privileges that are only available to club members. You are able to receive financial guidance and participate in activities that are exclusive to members.

Unavoidably, there were components of SoFi that fell short of our expectations. One of them is the fact that the organization does not communicate its expectations in a very clear and open manner. For instance, the eligibility requirements for loans offered by SoFi do not specify the minimum credit score or annual income necessary to qualify for a loan. Additionally, it is common knowledge that the corporation would turn down candidates even if they have exceptional credit scores.

In conclusion, if you are able to fulfil the requirements and become a member of the company’s club, you will be able to take advantage of the discounts that the firm provides. In such case, there are other lenders on the market who have requirements that are less stringent.

STRENGTHS

• Application available for free online.
• To view online deals, one need only give a gentle pull on the mouse.
• Prices that are competitive
• No fees
• Between two and seven year terms
• Personal loans of up to one hundred thousand dollars
• A score given by the Better Business Bureau

WEAKNESSES

• High criteria placed on one’s credit score
• Before making a final decision regarding lending, a thorough credit check is required.
• Different states have different requirements and terms.

FAQ

What minimum credit score is required to apply for a loan through SoFi?

On the website that outlines eligibility criteria, SoFi does not disclose any minimum credit score requirements. According to the experiences of other SoFi customers, you need to have a credit score of at least 680. However, a number of clients have stated that they were turned down for a personal loan despite having a credit score that was at least 700.

Which credit bureau does SoFi utilize?

Before making a decision about your loan application, SoFi considers both your FICO score and your Vantage score. It makes use of information provided by the three most prominent credit reporting companies, namely TransUnion, Equifax, and Experian.

How much can a borrower get through SoFi?

The maximum amount of money that can be borrowed through SoFi is $100,000.

Is it possible to prepay a loan with SoFi?

Yes, and there are no fees associated with making payments early.

Is it worthwhile to use SoFi?

It would appear that SoFi offers more competitive rates and deals when compared to other lenders. However, due to the fact that its rivals have fewer prerequisites and deposit the money more quickly, we recommend that you check out those alternatives instead.

Is SoFi a bank?

Yes. SoFi was once an online personal finance company; but, after getting approval from federal regulators, the company transitioned into a national bank.

Is using SoFi a risk?

Investors receive protection of up to $500,000 with SoFi, which is regulated by the highest-tier financial authorities in the world. As a result, we are able to draw the reasonable and sound conclusion that SoFi is reasonably secure and safe.

Is SoFi a reliable lending option?

Our analysis of consumer feedback for SoFi reveals that people have a variety of perspectives regarding this issue. Others have noted that the procedure is actually very quick, in contrast to the many people who have stated that they had to wait for a very long time to get accepted for a loan or for the organization to remedy a problem.