2018 SoFi Review on Personal Loans & SoFi Alternatives

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Sofi review summary

SoFi is short for Social Finance and stands for a non-traditional lending institution. Historically speaking it focused first on student loan refinancing but has since extended to personal loans, mortgages, and other sectors.

Its target customers are clients with high-earners with excellent credit ratings for which the lender can grant up to $100,000 if the specific underwriting process proves that they are worthy. The great news is that such a loan comes with tempting interest rates, which can be as low as half of what you would pay for getting the money on a credit card. We’re talking single digits and a highly transparent process.

The value proposition of SoFi is their own underwriting process which takes into consideration more than your FICO. They prize education and career perspectives, not only the length of the credit history.

Fixed Rate Loans vs Variable Rate Loans

Pros

  1. Takes into consideration education and earning perspectives, so much more than just the score.
  2. Can grant up to $100,000 one of the largest amounts available on the market.
  3. No hidden fees, origination fees, prepayment or late payment fees.
  4. Some of the lowest rates available on the market and 0,25% discount on the interest rate for autopayment.
  5. Counseling and networking events to advance career perspectives.

Cons

  1. Looking for high-earners with very good (700+) FICO score.
  2. The application process can take weeks.

Ideal Borrower Profile (Requirements)

  • US citizen or visa holder (J-1, H-1B, E-2, O-1, or TN with at least two years of validity
  • are a major in your state where SoFi is an authorized to lend
  • employed or have an offer which starts in 90 days or less.
  • reliable, high-flyers who are ready to take their financial matters seriously
  • very good credit score (700+)
  • impressive education, preferred those with a diploma in IT or high-income sectors
  • around $100K per year

The company is looking for and have both the diligence and the background to repay the debt. The factors that go into the final mix for assessing creditworthiness include the FICO, with focus on impressive payment history. The income vs. expenses ratio is significant when granting the credit.

Loan Terms

You can take a personal loan to use it for an extensive range of needs, including household improvements, medical, family events or even holidays. You can’t use it for education or buy a car since for those purposes there are dedicated products which are more suitable.

The minimum loan amount is $5,000, while the maximum is capped at $100,000. Depending on your state of residence the minimum amount could be $10,001 (AZ, MA, NH), $15,001 (KY) or even $25,001 (PA). The lending period is a minim of three years and a maximum of seven.

The APR is computed for each applicant considering their unique situation, but you can expect anything between 5.95% and 12.99% if you choose the fixed rate with monthly autopay or between 6.2% and 13.24% if you take the responsibility.

SoFi allows you to choose a variable rate which is smaller, starting at 4.82% for autopay and 5.07% for not selecting that option. The variable rate can rise as much as 14.95%, but there is only a minimal chance of doing so.

There are no hidden taxes, pre-payments or origination fees. In fact, if you already have another loan with SoFi, you get a discounted rate.

Comparison between SoFi’s terms and other lenders.

Application Process

Everything is done online and you can pre-qualify by filling in all your data in a profile on their website. SoFi uses the latest 256-bit SSL encryption standard to keep your data safe during the application process.

Don’t worry about the level of detail that goes into the application. You will be asked for the regular identification details, address (necessary as described above to comply with state regulations) as well as other SoFi specific questions. Get ready to let them know more about your achievement in education and any track record of employment you have. This helps the proprietary algorithm to compute the best rate you can get.

It is not hard inquiry which could affect your credit score as you don’t have to enter your social security number. It is more like shopping around.

Once you have completed the profile, you are ready to choose from several options, with both fixed and variable rates. Our advice is to go for the autopayment method and get the lower rate.

Only after you make a selection, you will have to scan documents and give proof that everything you said is right. Beware that once you decide on a loan and upload the papers for verification a hard-pull will be performed and this will show on your credit report, together with the loan.

Next Steps

After your application is approved, you will receive an agreement. You’ll electronically sign this document and return it to SoFi. The money becomes available in a matter of days.

Depending on the type of interest you chose you will have your payment date, the first for a fixed rate and the 10th for the variable interest rate. There are no more late charge fees for Personal Loans.

The first payment comes no sooner than 15 days after the funds are released to you and no later than 45 days.

Perks

Working with SoFi is not only about the money, but the perks as well. You get unemployment protection which means you can benefit from a temporary suspension of your payment for a period ranging between three months and one year.

Also, get ready to receive excellent support in your career through coaching, networking, and access to financial advisors. SoFi supports career transitions, job searches, and personal branding. They take an interest in your economic well-being. This is because they understand that high-earners to pay their debts and even access new credit, making them return customers.

They treat the borrowers as a community and regularly have networking events where borrowers can connect with each other. At SoFi they recognize the value of excellent networking and acknowledge that connections are sometimes as important as know-how.

If you need one more good news, there is no prepayment fee.

Final verdict on Sofi review

The SoFi personal loan is more than money; it’s an experience and a way to make new connections, develop your business network and advance all your goals. You could even take a loan to start a small business and use their philosophy to get the right people on board.

The loan offers excellent flexibility, large amounts, and great interest rates because the target customer is part of an elite that would be granted a credit from any other lender.

SoFi alternatives

*Not all loan providers serve in all states.  Please use this personal loan search tool to find the providers serve in your state.

LendersReviewsLoan Amount Loan TermsFeesAPRCheck Rate
Avant Review $2,000 - $35,000 24 to 60 mo Up to 4.75% of the loan 9.95% - 35.99%
Upstart Review $1,000 - $50,000 36 to 60 mo 1% - 6% of the loan 8.92% - 29.99%

Compare rates from multiple lenders. Discover your lowest eligible rate.

It's free, quick and won’t hurt your credit score
NetCredit Review $1,000 - $10,000 6 to 48 mo Not disclosed 34% - 155%
SoFi Review $5,000 - $100,000 36 to 84 mo No fees 5.49% - 14.49%
Payoff Review $5,000 - $35,000 24 to 60 mo 2% - 5% of the loan 8% - 25%
Best Egg Review $2,000 - $35,000 36 to 60 mo 0.99% - 5.99% of the loan 5.99% - 29.99%
Freedomplus Review $10,000 - $35,000 24 to 60 mo Up to 5.99% of the loan 4.99% - 29.99%
Lendingpoint Review $3,500 - $20,000 24 to 36 mo Varies by state 15.49% - 34.99%
Prosper Review $2,000 - $40,000 36 to 60 mo 1% - 5% of the loan 6.73% - 35.36%

 

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