Personal loans are a great way to receive financing if you need a bit of extra help at some stage in your life. Whether you want to purchase an item, or consolidate your credit card debt, personal loans can be a hassle-free answer to your problem. In the past, you would need to head to a bank or credit union if you wanted a personal loan. But times have recently changed – there are now online lenders that offer fast access to personal loans. You won’t have to deal with long, confusing paper applications to receive financing from these sources.
One of the companies that has made a name for itself during this time is SoFi – there one of the largest online lenders available in the United States. In this review, we’ll be taking a deeper look at SoFi personal loans to help you understand if it’s the right company to work with if you need a personal loan. Choosing the right loan company to work with is vital in ensuring that you have a positive experience when you next choose to finance something. Make sure to take in all the information provided in this review – it’s the best way to make an educated decision.
SoFi: The Company
First, we’ll give you a bit of information on SoFi so you can better understand the company that you’re working with. The company actually began as a startup by a group of young Stanford graduates looking to improve the online lending industry. SoFi is a completely online lender – they don’t offer any brick-and-mortar services for their customers. This allows them to streamline the processes and reduce the costs of their financing.
SoFi has been around since 2011 – the company also offers mortgages and student debt refinancing. In fact, the original mission statement of the company was to offer student financing at lower rates than government lenders. The company headquarters is in San Francisco, California.
SoFi Personal Loan Features
In this section, we’ll take a deeper look at some of the features included in a SoFi personal loan. This will give you a true understanding of the type of financing you’ll be receiving when you work with SoFi.
SoFi Personal Loan APR: 6.325% to 15.615%
Minimum Loan Amount: $5,000
Maximum Loan Amount: $100,000
All SoFi personal loans are unsecured personal loans.
One of the best features that SoFi personal loans offers is no fees. A lot of lenders increase their revenue via sneaky or hidden fees that increase the cost of financing substantially. With SoFi, you get to avoid this issue entirely. The company charges no origination fees, no pre-payment fees, and no late fees – there are absolutely zero fees you have to worry about paying. This increases the value of the loan substantially.
SoFi can perform a soft credit check on your account to see if you pre-qualify for their financing prior to your full application. While this doesn’t guarantee approval, it does give you a much better idea of what type of interest rate you’ll be offered. This is a good way to avoid a hard credit check on your account if you’re not sure you’ll be approved. Keep in mind, a hard credit check will occur once you decide to proceed with the application.
If you decide to enroll in Autopay, you will receive a discount on the interest rate that you pay to SoFi. In fact, the Autopay discount is .25% of the interest rate that you pay – a considerable amount when you extend it over the full term of the loan, especially if you borrow a lot.
Because SoFi uses online loan applications and processes, you get your money much quicker than with traditional lenders. Once you verify your information and sign for your loan through a digital signature, you’ll get your money within a few days of your application.
What Are Personal Loans?
If you’re reading this review, there’s a high chance you already have a decent idea about what a personal loan is. Regardless, you might not truly understand this form of finance. If you’re looking to obtain a personal loan, you should make sure it’s the best financing option for you. Personal loans have experienced a resurgence with borrowers – they’re now seen as an effective way to borrow money for a variety of causes or refinancing issues.
Personal loans are either secured or unsecured. If they’re secured, they’re tied to the value of an asset that you’ve put forward for as collateral. If they’re not secured, they don’t have an asset tied to them. Unsecured loans are typically more expensive in terms of interest rates. All SoFi personal loans are unsecured.
In the past, people have found it hard to obtain financing for certain types of purchases, such as boats or small businesses. Using unsecured personal loans has become a convenient way to borrow the money – the lender doesn’t care what you use the money for, they just care that you can pay it back. Below we will explore some of the reasons that people use personal loans.
Reasons for Use
Credit Card Refinancing
If you owe a lot of money in credit card debt, you can use a personal loan to refinance the debt or consolidate the debt. Personal loans typically have interest rates that are much lower than traditional credit card interest rates. This means that if you obtain a personal loan, you can pay off your current credit card balances and pay the money back at a lower rate.
Student Debt Refinancing
If you borrowed money to go to college or study, you might owe a lot of money at a high interest rate. This can be a pain if you’re looking to pay back the money quickly. If you use a personal loan to refinance the debt, you can pay off your current loan balances and accrue lower interest payment over time. SoFi student loan refinance allows you to do this.
Cash Flow Issues
If you’re having temporary cash flow issues, a personal loan can be a great way to get some quick cash. Because many modern personal loan companies have online capabilities, you can have the money transferred to your account quickly. Personal loans also have much lower rates than payday loans and other forms of quick cash loans.
If you need to purchase an item like a car or furniture, you can use a personal loan if you’re not able to obtain other types of finance. It’s a good option for those who haven’t been successful with traditional forms of auto-finance and other types of financing.
Advantages and Disadvantages of SoFi Personal Loans
If you’re going to obtain a SoFi personal loan, it’s important to know what the advantages and disadvantages of the company are. In this section, we’ll help you better understand the benefits and cons of each company – some of these have been mentioned before. This section is a synopsis of the major talking points about SoFi. Check it out below:
SoFi Personal Loan Pros
- No Fees – You don’t pay any fees, including late fees and origination fees
- Low Interest Rates – Interest rates for SoFi loans can be very low, much lower than credit card rates or other forms of debt
- Quick Application – The entire process is managed quickly and efficiently, you can get money into your wallet fast using SoFi
- Flexible Amounts – You can borrow as little as $5,000 and as much as $10,000
- Other Forms of Finance – If you don’t think a personal loan is right for you, SoFi also offers other forms of finance that you might find appealing.
SoFi Personal Loan Cons
- No Locations – Because there are no brick-and-mortar locations, you won’t be able to speak to a lending official face-to-face.
- High Credit Requirements – Those who borrow from SoFi tend to be people with decent credit scores. If you want to obtain a loan with a low credit score, this might not be the best option for you.
Preparing for Your Application with SoFi
As with any financing application, it’s important to prepare your application with SoFi as soon as possible. As SoFi typically uses borrowers that have decent credit scores, you’ll want to be certain you have as high of a credit score as possible before you make any application decisions. In this section, we’ll take at a few quick ways you can prepare yourself for a SoFi application. Make sure to take all of this into consideration:
Check Credit Report
Plenty of people have items on their credit that can be removed very easily. If you’re someone who never checks the details of your credit report, you probably don’t realize that there could be issues on your report. If you get these items removed, you’ll be able to see a drastic increase in your credit score in as little as four weeks. This is one of the quickest ways to prepare yourself for a financing application. There are even credit repair companies that can help assist you with the process for a small fee.
Pay Down Debt
Another way to quickly improve your score is to pay down the current amount of debt that you have on credit cards or lines of credit. This might not be possible for some people, especially if you’re getting the loan to consolidate your credit card debt, but it’s a viable option if you can afford it. Around a third of your credit score is determined by your current credit utilization, so pay down as much as possible if you can afford to do so.
SoFi Personal Loan Reputation
One of the best ways to gauge the reputation of a company is to look at how previous customers rated their services. If most of a company’s previous customers hated working with the company, there’s a very high chance you will end up feeling the same. In this section of our review, we take a look at what a few of the top consumer watchdog groups say about SoFi personal loans. Check it out below:
Better Business Bureau (BBB)
The Better Business Bureau is one of the leading consumer watchdog groups in the country. They allow customers to review companies and make complaints about services. They also act as an intermediary for companies and customers. In some cases, the BBB does their own research on companies as well – to make sure that they’re operating ethically.
The BBB gives SoFi an A+ rating – this is the highest achievable rating for a company at BBB. While SoFi does have some consumer complaints on BBB, it appears many of them are to do with people who have been turned down for financing after being pre-approved. Overall, the BBB believes SoFi is a great company to work with. You can check out SoFi loans reviews on their website.
Consumer Affairs is another leading consumer watchdog group in the United States. They operate the same way that the BBB operates – by providing a platform for past customers to review businesses. SoFi is not accredited with Consumer Affairs, so they don’t have an official rating. There are still plenty of reviews on the site, which leaves SoFi with just under 2/5. While this rating may seem low, you need to consider that this forum is not moderated because the company is not accredited. It is likely that only negative experiences have been posted on the site, without any rebuttal. You can find plenty of SoFi loan reviews and SoFi student finance reviews on their website.
As you can tell, SoFi is a lending company that provides modern borrowers with a lot of options. A SoFi personal loan is a solid option – as you can probably tell from reading our SoFi loan review. They have high credit score and income requirements, but if you match these requirements you’ll be fine when it comes to obtaining a loan. The company offers decent interest rates and quick access to cash. They also have a good reputation in most parts of the internet – especially on the Better Business Bureau. If you’re looking for other forms of finance, you can also find SoFi home loans and SoFi student loan rates on their site.
If you don’t think this is the right lender for you, make sure to check out some of the other lender reviews that we have on our site. We have plenty of information available for those who need it!