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Consolidating debt, funding a significant purchase or dealing with an unforeseen expenditure might all necessitate access to huge sums of cash quickly. As long as you utilise your personal loan properly and choose your lender carefully, a personal loan may be able to assist you in this situation. A popular personal loan lender, SoFi offers loans with reasonable interest rates and no fees, as well as advantages like an “unemployment protection” programme if you’re looking for a personal loan. However, here’s the catch: To be eligible for a SoFi Personal Loan, you must have strong credit and a steady job.
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Benefits of SoFi Personal Loan
Unemployment Protection
If you lose your job for no fault of your own and have a SoFi personal loan, the lender will allow you to temporarily delay your payments. For a period of three months, you can request a forbearance on your loan. Up to four times over the life of your loan, SoFi allows you to temporarily halt payments (12 months of total forbearance).
Initial Credit Check Done Carefully
Only a soft credit check, which has no effect on your credit score, may be used to see what rates and terms you qualify for. A rigorous inquiry will be made into your credit history if you decide to apply for the loan.
Applications for Joint Ventures Are Accepted
A co-signer on your personal loan might be someone you care about. Borrowers who live at the same address can apply for SoFi loans together. The processing time for joint applications might be up to two weeks longer. Remember that co-signers share responsibility for the debts they sign on loan with you. So, if the worst happens and you are unable to make your payments, your credit and the credit of your co-borrower may be harmed.
App for Mobile Phones
Users of Apple and Android devices may access SoFi’s services through a mobile app. The app lets you apply for loans, pay them back, and check your account balances.
Membership in SoFi
Members of SoFi are those whose loan requests have been accepted. Benefits like free financial planning assistance, career services, and access to member events throughout the country are all included with membership.
Pros & Cons
Pros of SoFi Personal Loan
For well-qualified candidates, competitive interest rates are available: SoFi offers personal loans with rates as low as 4.99 per cent. Only a small percentage of those who apply will be eligible for the lowest interest rate, as with any lender. In order to be eligible for SoFi’s lowest rate, you must have a good credit history, years of experience, and a suitable income, among other things.
Borrow without incurring any costs thanks to SoFi’s no-fee policy, which includes late fees. You can get the same APR at another lender if you are prequalified. But the other lender charges costs, so SoFi is a better option.
Borrowers in need of huge loans have access to loans with high loan amounts. SoFi allows customers to borrow up to $100,000 in loan amounts. In addition, co-applicants are permitted on personal loans with the lender. If you’re seeking to get a larger loan, this might help your case: both you and your co-borrower face credit and financial risks when you co-borrow. In contrast, if you’re looking to finance a large home renovation project with a partner. And must verify both of your earnings to be eligible, SoFi might be a viable option.
Cons of SoFi Personal Loan
Applicants must have a credit score of at least 670 in order to be considered for a personal loan. It’s possible that if your credit score falls below a certain point, you’ll have to try to raise it. While still shopping around for a new lender.
Other lenders may provide cheaper rates for borrowers with good credit. When you borrow money, lower interest rates might help you save money. It’s only reasonable to want to take advantage of your good credit in order to get the best possible interest rates and conditions. Be sure to take in any fees that other lenders impose while looking for a cheaper interest rate. A lower interest rate from a lender with more fees may not be the best option in the long term.
Compared to other lenders, the funding procedure is more cumbersome with us. The money you borrow from some lenders might be yours as soon as the day after you apply. SoFi, on the other hand, necessitates more effort. Be aware of this aspect before applying if you want quick access to finances. After they accept you and you sign your loan paperwork electronically. You’ll get a call to double-check the information you provided on your application (like your address). After then, you’ll have to wait a few more days before you can get your money.
How to Apply for SoFi Personal Loan
With a mild initial credit check, you’ll learn whether or not you’re eligible for a SoFi personal loan, as well as your rate and conditions. To begin, visit the SoFi website or download the SoFi app. What to expect is as follows.
Start by entering some basic information online, such as your name, state, and e-mail. To register for an online account, create a password and agree to the permission forms on the SoFi website. Make sure you understand all conditions, including the arbitration agreement, before agreeing to anything.)
SoFi needs to know how much money you want to borrow, from $5,000 to $100,000, and what you intend to do with it. You may pay off credit cards, consolidate debt, make large purchases, renovate your house, or pay for relocation fees, among other things.
Decide on a monthly payment amount that works for you. Depending on how much you wish to borrow in Step 2, your payment options will range from the smallest to the largest.
You must also provide your date of birth and country of citizenship in these fields. To be eligible to borrow, you must be a U.S. citizen, green card holder, or visa holder.
Let SoFi know where you live so they can verify if your data matches that of a credit-reporting agency. Tell SoFi if you own or rent your house or if you share an apartment with roommates or relatives.
Tell us about your yearly earnings (total base income before taxes). Do not mention anything on your resume unless you can substantiate it is your actual income.
Ways to Apply
There are two ways to apply: individually or collectively. If you choose to have a co-signer, you will also have to provide that person’s details.
Make sure you know how much you’re earning. Your Social Security number may be required if SoFi is unable to locate your credit information during the soft credit check.
If you’re satisfied with the conditions of your loan, go ahead and submit an official application. It’s possible that SoFi will get in touch with you if it requires more information, such as a photocopy of your driver’s licence or evidence of your salary.
You can access your money within a few days once your loan is authorised and you e-sign your loan agreement.
Who Is a Good Candidate for a SoFi Personal Loan?
If your credit is excellent, there are many personal loan choices, but SoFi has low interest rates and promises no hidden costs, so it’s worth checking out.
If, on the other hand, your earnings are irregular or your credit history is less than stellar, you should proceed with caution.
You can use SoFi personal loans for a variety of reasons, including consolidating debt, making home modifications, paying for relocation, and paying for medical expenditures and large purchases. A SoFi personal loan with a lower interest rate may help you pay off high-interest credit card debt and save money.
FAQs
In what way do discount points work?
Fees paid at the end of the loan for a lower interest rate are called “discount points”. Discount points cost 1% of your home loan balance and can lower your interest rate by roughly 0.25%. As a result, your monthly payment will be reduced because you’ve already paid some of your interest.
The reduced interest rate will save you money in the long run; therefore, it’s possible that the discount point may pay for itself. Think about how long it will take to recoup the initial investment when deciding whether or not points are suitable for you.
What effect will it have on my credit if I apply for a mortgage or a refinance?
SoFi performs a soft credit pull to see what rates and conditions you qualify for. But this will have no effect on your credit score. This is known as a hard credit draw. If you want to proceed with your application after selecting a product. We will obtain a copy of your credit report from one or more consumer reporting agencies.
Is it harmful to my credit to compare rates and conditions to see if I qualify?
SoFi performs a soft credit pull to see what rates and conditions you qualify for, but this will have no effect on your credit score. This is known as a hard credit draw. If you want to proceed with your application after selecting a product, we will obtain a copy of your credit report from one or more consumer reporting agencies.
What kinds of properties may I buy with SoFi Personal Loan?
Owner-occupied primary houses and second homes both qualify for mortgages. Included in this category are single-family houses as well as condominiums with two units or less, planned unit complexes, and rental/investment property. Ineligible are Tenancies-in-Common (TICs).
Who is eligible to apply for a mortgage with SoFi Personal Loan?
Applicants must be U.S. citizens, permanent residents, or non-permanent resident aliens, and they must be of legal age to apply in the state where they now reside. Non-permanent resident foreigners with certain types of visas can also get loans through SoFi. Candidates must be citizens of one of the states listed below in order to be considered. As a result, mortgage eligibility is also determined by a variety of other criteria, including credit scores and other financial data like income and job status. For more information, see SoFi’s mortgage eligibility guidelines.
If you need a personal loan to get the process started, consider getting Loan Mart’s services here.