Social Finance Inc. or SoFi was established in 2011 to offer consumers niche loan services such as loans to help college graduates with short credit histories pay off their debt. Since then the company has expanded into many other financial sectors and it is now a major player in the personal loans department.
SoFi personal loans are known for their financial counselling and exclusive events that help borrowers make up their mind about which loan to apply for. Since most of their consumers are students or recent graduates the entire screening process for the unsecured loans is conducted online. There are not many underwriting costs so you can expect better interest rates than those offered by brick-and-mortar financial institutions.
Who Should Apply for SoFi Personal Loans?
Anyone who has a high credit score is recommended that they apply. The successful applicants have credit scores between 680 and 850. You can find out your credit score for free and without affecting it using their website.
Those who have a high income that is their annual income is around $114,000 can afford to apply for the SoFi personal loan. This is almost double the median U.S. household income therefore not everyone can avail this offer.
The saving grace is that someone who does not have a long credit history can also apply for the loan. A short but good credit history is enough to show the lender you are a responsible person.
There is no need to find a co-borrower for the SoFi personal loans and you can apply on your own. However, this is bad news for those who rely on another person’s good credit score and high income to take out a loan.
The SoFi personal loan experience is entirely online and it is a virtual financial institution. You have to fill out the application and then receive the decision online. The money is directly deposited into the bank account once your loan is approved.
SoFi Personal Loans Terms
You can apply for the fixed as well as variable interest rate personal loan within the range of $5,000 and $100,000. The loan can be repaid over a period of three, five or seven years. The APR for the fixed rate loan is in the range of 5.74% and 14.24%. For the variable rate loans the interest rate can vary from 4.78% to 10.88%
