2023 SoFi Personal Loans Review
SoFi is an online lender that offers personal loans with many attractive features to prospective borrowers. Here’s what you need to know before filling out an application:
- Competitive rates: With APRs as low as 8.99%, SoFi is a worthy competitor if you’re shopping around the personal loan market.
- No required fees: SoFi doesn’t charge any required fees. However, if you want to qualify for lower rates, you can accept an origination fee of up to 6.00%.
- Wide range of loan amounts: SoFi offers one of the largest loan ranges among online lenders, from $5,000 to as much as $100,000.
- Fast funding: Borrowers may receive funding on the same business day they apply, if approved.
- Allows for co-applicants: For borrowers who want to qualify for a lower interest rate, SoFi offers joint personal loans, but you’ll have to live at the same address as your co-applicant. Keep in mind that adding a co-applicant can add an extra week or two to the approval timeline.
- Best for borrowers with good credit: Borrowers will need a credit score of at least 680 to be approved for a SoFi personal loan. This lender may also be a good fit for consumers looking for large loans or loans with a quick funding timeline.
SoFi pros and cons
There’s a lot to like about SoFi’s personal loan options, but there are also a few details you’ll want to keep in mind before submitting an application.
Same-day funding available
No required fees
Perk for setting up automatic payments
Origination fee may apply for lower rates
No physical branch locations
High minimum loan amount
Good credit required
SoFi doesn’t charge any required fees, including late fees or prepayment penalties. If you want to qualify for lower rates, you can accept a 0% to 6% origination fee, which will be taken out of your loan amount. Borrowers can also receive a 0.25% discount if they sign up for autopay, and may qualify for unemployment protection should they face financial challenges related to an eligible unemployment event.
On the other hand, because SoFi is an online lender, it has no physical branches to visit. Plus, its minimum loan amount of $5,000 is relatively high, so borrowers looking for a small personal loan should look elsewhere.
Further, with a minimum credit score of 680, it also may be difficult for those with less-polished credit to qualify. You can check your credit score before applying to see if you’ll meet this requirement, and you may also consider using a co-borrower with strong credit.
Other than being at least the age of majority in your state of residence, you’ll need to meet several other borrower criteria requirements in order to be eligible for a SoFi personal loan.
|Minimum credit score||680|
|Employment requirements|| |
|Citizenship requirements|| |
If you meet the basic requirements listed above, you may need to disclose how you plan to use your personal loan. While SoFi does allow borrowers to use its funding for a variety of purposes, there are certain expenses you cannot put the money toward.
|SoFi loans CAN be used for…||SoFi loans CANNOT be used for…|
Repaying credit card debt
Home improvement projects
Engagement and wedding expenses
Purchases of securities
Short-term bridge financing
If SoFi’s personal loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a loan with SoFi
Because SoFi is an online lender, you won’t need to visit a branch in person in order to apply for a loan. To find out whether you’ll be approved for a personal loan with SoFi, follow these steps:
Prequalify for a loan
If you prequalify for a personal loan, you can check the potential rates, terms and amounts you may be eligible for with no impact to your credit score. Aside from your personal information, you’ll need to supply SoFi with information about how much you want to borrow, how you plan to use the funds and what your monthly rent or mortgage payments are.
Verify your information
If you choose to move forward with a SoFi personal loan, you’ll then need to verify your information. You may need to provide the following documentation:
- A government-issued form of ID (such as a driver’s license or passport)
- Income verification (such as recent pay stubs or a W-2)
- Proof of address (such as a utility bill, lease agreement or mortgage statement)
Close on your loan
After you’ve verified your information with SoFi, you’ll have to submit to a hard credit pull (note that this can temporarily put a small dent in your credit score). If SoFi approves your personal loan application, you could receive your funds the same day you’re approved.
If your credit score is below 680, you might have some trouble qualifying for a SoFi personal loan unless you apply with a co-applicant. Before applying for a loan, you can boost your odds of personal loan approval by improving your credit score and lowering your debt-to-income ratio.
How SoFi compares to other personal loan companies
Even if you believe SoFi aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how SoFi stacks up against similar personal loan lenders.
|LendingTree’s rating||4.5/5||4.5/5 (Read review)||3.9/5 (Read review)|
|Minimum credit score||680||Good or excellent credit||Not specified|
|APRs||8.99% to 25.81% (includes autopay discount)||7.49% to 25.49% (includes autopay discount)||8.49% to 24.49% (includes relationship discount)|
|Loan amount||$5,000 to $100,000||$5,000 to $100,000||$3,000 to $100,000|
|Repayment term||24 to 84 months||24 to 144 months||12 to 84 months|
|Origination fee||0.00% to 6.00% (not required)||None||None|
|Funding timeline||Receive same-day funding||Receive same-day funding||Receive funds within one to three business days|
|Bottom line||SoFi customers can benefit from flexible terms and fast funding, but may pay an origination fee for lower rates.||LightStream has similar features to SoFi — but while it doesn’t charge any fees, it also doesn’t offer prequalification.||Wells Fargo Bank offers smaller starting loan amounts and shorter repayment terms, but funding takes longer than with SoFi.|
How we rated SoFi
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Fixed rates from 8.99% APR to 25.81% APR. APRs reflect the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi rate ranges are current as of 3/06/23 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your creditworthiness, income, and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.