It's hard to do better than SoFi if you can qualify, as people with fair credit or worse may have difficulty getting approved. Here’s what to consider to decide if SoFi is right for you.
Best personal loans for excellent credit
While SoFi doesn’t disclose its minimum credit score, its loans are typically geared toward good- and excellent-credit borrowers. If you can get approved for a SoFi loan, you may enjoy some of the best benefits in the industry, like low rates, flexible terms, and no late fees. Just note that you could be approved for a loan with an origination fee up to 7%.
You can also change your due date once per year and access member benefits that may help keep you on track. For example, you can get financial planning help from credentialed advisors.
While it may be difficult to get approved for a SoFi loan with fair credit, you can check if you prequalify with no impact to your score. SoFi also allows co-borrowers, so if you apply with someone else who has good or excellent credit, that could raise your approval odds and potentially net you a lower annual percentage rate (APR).
A co-borrower also has equal access to the funds and can be equally responsible for making payments. However, keep in mind that adding a co-borrower can add additional time to the review process of your loan.
Related: Co-applicant vs. Cosigner
Great for: Fast funding
SoFi can provide same-day funding to personal loan borrowers in most cases. Apart from direct pay loans and refinancing applications, SoFi says it provides same-day funding for 82% of typical loans signed before 7 p.m. ET on a business day. So, if you’re approved, there’s a good chance you may get the cash you need right away.
Best overall
SoFi
4.9
Credible Rating
Est. APR
8.99 - 29.99%
Loan Amount
$5000 to $100000
Min. Credit Score
Does not disclose
Pros and cons
More details
SoFi pros and cons
Pros
- No late fees
- Fast funding, often the same business day
- Mobile app
- Allows refinancing
- Live chat support
- Up to $100,000 loans available
Cons
- $5,000 minimum loan amount
- Doesn’t allow cosigners
- Fair-credit borrowers may not be approved
- Doesn’t offer secured personal loans
SoFi is known for no-fee-required loans with flexible terms. The lender offers low starting rates, and you can even refinance if your credit improves. You can also ask SoFi to pay your creditors directly if you’re using the loan for credit card consolidation purposes, and you may even earn a rate discount for doing so.
The lender stands out for customer service, with excellent reviews on Trustpilot and live chat support available during extended hours. What’s more, SoFi membership comes with great financial resources, discounts, and other benefits. SoFi also offers a mobile app where you can keep track of your loan balance, monitor your credit score, and make payments from your phone.
SoFi may not be the best lender for people with fair or poor credit, however, and it doesn’t allow cosigners or offer secured personal loans. And a SoFi personal loan won’t be an option if you want to borrow an amount under $5,000 or use the money for business expenses.
Check Out:
What to consider before applying for a SoFi personal loan
To have a good shot at qualifying for SoFi’s best rates, you’ll need excellent credit. Also consider that SoFi has a $5,000 minimum loan amount, and may impose an even higher minimum in some states.
It’s not a good idea to borrow more than necessary, so if you need a smaller loan, you may consider looking for a local credit union or an online lender with a lower borrowing threshold.
Related: How Do Personal Loans Work?
Tip
When comparing other lenders with SoFi, pay attention to a loan’s APR, which includes the interest rate and any upfront fees the lender charges. It’s a better tool for measuring borrowing costs than interest rate alone.
Before applying for a SoFi loan, it’s a good idea to first prequalify, ideally with multiple lenders. After entering some personal information, such as your name, date of birth, and Social Security number, you’ll be able to see if you prequalify and, if so, what rates, terms, and amounts the lender estimates you may be eligible for.
Since prequalification only involves a soft credit check, you can save an unnecessary hit to your credit if it turns out you’re not likely to qualify. But once you formally apply for a loan, the lender will perform a hard credit pull, which can temporarily lower your score. Prequalification is also not an offer of credit, and your final rate may be different from the estimate.
Learn More: How to Pre-Qualify for a Loan
SoFi personal loan requirements
To qualify for a personal loan from SoFi, you must meet the lender’s underwriting criteria. The lender considers your credit score, debt-to-income ratio, financial history, and other factors to determine if you qualify. In addition, you must meet the following requirements:
- Be a U.S. citizen, eligible permanent resident, or non-permanent resident alien
- Be at least the age of majority in an eligible state
- Be employed or have an offer of employment beginning in 90 days or less, unless you have sufficient income from other sources
Check Out: Personal Loan Requirements
How to get a personal loan with SoFi
Here are the steps to get a personal loan:
- Check your credit: Check your score first to see if you might be eligible for a SoFi personal loan. You can often fix mistakes on your credit report by reporting them to the appropriate credit bureau.This can potentially help boost your score. Visit AnnualCreditReport.com for free credit reports.
- Prequalify: See if you prequalify for a loan with SoFi, either directly on the lender’s website or through a loan marketplace. Since the prequalification process only triggers a soft credit inquiry, it won’t impact your score. Proceeding to apply for a loan will trigger a hard pull, though.
- Submit the application: If you’re satisfied with a potential rate and term option, continue to the formal loan application. It is at this point that SoFi will perform a hard credit check, which can hurt your score temporarily.
- Required documentation: You’ll need to provide important documentation to support your application, such as proof of identity (like a driver’s license or passport), proof of address (a recent utility bill), proof of employment and income (pay stubs or bank statements), as well as information about your education history. You may also need to provide your bank account information.
- Review the loan offer: If approved, review your loan offer thoroughly. If you’re happy with the final rate and terms, sign your loan documents to accept the funds.
- Get your funds: Wait for the funds to appear in your bank account, which typically happens on the same or next business day, or for SoFi to make payments directly to your creditors in the case of consolidation.
Learn More: How To Get a Personal Loan
How to contact SoFi
SoFi offers live chat support for personal loan borrowers. You can get help from a virtual assistant at any time, or chat with a human between 5 a.m. to 7 p.m. PT Monday through Thursday, and 5 a.m. to 5 p.m. PT Friday through Sunday.
You can also get help with your personal loan by calling (855) 456-SOFI (7634).
How SoFi compares to other lenders
Credible rating
Credible rating
Credible rating
SoFi loans FAQ
What types of personal loans does SoFi offer?
SoFi offers unsecured personal loans up to $100,000 that can be used for any personal, family, or household purpose. SoFi loans can’t be used for business or college expenses, for real estate or investments, or for short-term bridge financing.
Check Out: Secured vs. Unsecured Loans
How does a SoFi personal loan affect my credit?
Prequalifying with SoFi only requires a soft credit check, which won’t affect your credit. If you proceed with your loan application, you may notice a slight dip in your credit score.
As you make on-time payments and reduce your debt balance, your credit score may improve. On the other hand, late or missed payments on a loan can negatively impact your credit.
Can I repay a personal loan from SoFi early?
Yes. SoFi doesn’t charge prepayment penalties, and paying off your loan early may help you save money on interest.
Methodology
Credible evaluated personal loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, and fees. Credible’s team of experts gathered information from each lender’s website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.
Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.
Related Articles:
