SoFi Personal Loans Review
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Read more about how we rated SoFi.
SoFi offers personal loans online 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 pay an origination fee.
- 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.
| Pros | Cons |
|---|---|
Same-day funding available No required fees Perk for setting up automatic payments Can borrow as much as $100,000 | May need to pay origination fee for lowest rates No physical branch locations High minimum loan amount Good credit required |
SoFi doesn’t charge any required fees, including late fees or fees for making early payments. If you want to qualify for lower rates, you can accept a 0.00% - 7.00% 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 get same-day funding for their loan.
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.
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.
SoFi requirements
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 |
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| Citizenship requirements |
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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 Vacations Engagement and wedding expenses Debt consolidation | Real estate Business expenses Investments Purchases of securities Post-secondary education 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 personal loan with SoFi
To learn whether you may be approved for an online loan with SoFi, follow these steps:
Prequalify for a loan
SoFi allows you to prequalify for a personal loan, which means you can see your potential loan rates, terms and amounts with no impact on your credit score. To do this, you’ll need to supply SoFi with information such as how much you want to borrow, how you plan to use the money and what your monthly rent or mortgage payments are.
Verify your information
If you 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)
Accept and 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) before they can officially approve your request. 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.
| SoFi | LightStream | Wells Fargo | |
|---|---|---|---|
| LendingTree’s rating | 4.5/5 | 4.3/5 | 4/5 |
| Minimum credit score | 680 | Not specified | Not specified |
| APRs | 8.99% to 29.99% (includes discounts) | 7.49% to 25.29% (with autopay) | 6.99% to 24.49% (with relationship discount) |
| Loan amount | $5,000 - $100,000 | $5,000 - $100,000 | $3,000 - $100,000 |
| Repayment term | 24 to 84 months | 24 to 84 months | 12 to 84 months |
| Origination fee | 0.00% - 7.00% (optional) | None | None |
| Funding timeline | May receive same-day funding | May receive same-day funding | May receive funds in 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 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.
Frequently asked questions
Yes, you can pay off a SoFi loan early because this lender doesn’t charge prepayment penalties.
With a minimum credit requirement of 680, it may be difficult for consumers who don’t have a good credit score to qualify for a SoFi personal loan. However, SoFi does give borrowers the opportunity to apply with a co-applicant, which can increase your chances of getting approved.
During the personal loan application process, you’ll have to submit to a hard credit check, which can temporarily bring your credit score down. However, your credit score can increase over time as you continue to repay your loan.