SoFi is a web-based lending platform that allows you to apply for and receive financing through an entirely online process. SoFi specializes in working with borrowers with a responsible financial history. If you have a record of borrowing within your means and need a loan for your home or car, a loan from SoFi may be worth considering. Read more about SoFi loan reviews to see the pros and cons to help you decide whether a SoFi loan is right for you.
What Type of Loans Does SoFi Provide?
SoFi offers a range of loan products for different potential financial situations. Types of loans available from SoFi currently include:
Auto Loan Refinancing
If you have a current auto loan financing agreement for a new or used vehicle, you may benefit from contacting SoFi to apply for an auto refinancing loan. Refinancing may allow you to secure more favorable terms for your loan, such as lowering your current payments, reducing the interest rate, or shortening the overall term to pay off your auto loan more quickly.
A mortgage is a loan used in order to purchase a property, and SoFi offers competitive rates on its mortgages for qualifying borrowers. SoFi also offers flexible financial options, such as an equity cash-out or refinancing to improve the terms of your loan, granting you more control over your property’s equity and expenses.
When you have an unexpected expense, you may consider taking out a personal loan to gain the funds you need now and pay them off over a longer period. You can use SoFi’s personal loans for expenses such as debt consolidation, travel, or wedding costs, among others.
When applying to school, many students choose to take out student loans to help with the cost of tuition and living expenses while getting an education. Student loans can be a versatile financing option to help a student cover the broad range of costs associated with studying at a college or university.
Student Loan Refinancing
If you already have student loans from your undergraduate degree, medical school, law school, MBA, or parent-plus borrowing, SoFi offers refinancing opportunities. Choosing a SoFi refinancing plan may allow you to secure better terms and save money over the course of your loan repayment plan.
Potential Benefits of Using SoFi Loans
There are many positive reasons you may consider using SoFi for your next loan. Key benefits of choosing SoFi loans include:
- Get paid fast: If you need a large cash injection in a short period of time, then SoFi loans may be the right solution for you. Their online process makes it quick to receive approval for a loan, with funds available in as little as two business days. With such a quick turnaround time, you can apply your money where you need it, when you need it.
- Minimal credit impact: The SoFi pre-qualification process uses a soft credit check, but SoFi doesn’t run a hard check until you finalize your loan request. This allows you to examine your options and determine the loan opportunities available to you through SoFi without the need for a hard credit inquiry, which can have a negative impact on your credit score.
- Zero added fees: While many lenders include fees when offering financial agreements, such as transfer or early cancellation fees, SoFi is upfront with all costs when applying for a loan. This allows you to know exactly what your expenses and obligations are before committing to moving forward with a borrowing agreement.
- Diverse borrowing options: SoFi offers a range of loan products to help you find the right loan for you. In addition to the many types of loans available from SoFi, available credit lines range from $5,000 to $100,000 on loans, allowing you to secure the exact amount of funding you need.
- Unemployment protection: SoFi loans include unemployment protection to help you manage your financial obligations in the event you lose your job or are temporarily furloughed. When entering into an unemployment forbearance, you lower your monthly loan payment, allowing you to better manage your reduced finances as you look for a new job opportunity.
- Financial guidance: SoFi also offers financial guidance to its borrowers. This program can help you make more informed and intelligent financial decisions so you can grow your savings over the course of your loan and finish your loan in a stronger financial position than you began it in.
If you’re shopping for a loan, compare these benefits against those available with alternative financing options to find the loan opportunity that best fits your financial needs and capabilities. You can also explore some SoFi loan reviews online to see what actual customers thought of their loans.
Potential Drawbacks of Using SoFi Loans
When considering your loan options, it’s also important to understand any potential drawbacks of the agreement. Considerations to keep in mind include:
- Register to check rates: Checking your eligibility for SoFi loans requires you to first register for an account. Although this is minimally inconvenient, it does add an additional layer of difficulty before providing your results when just browsing your options.
- High eligibility requirements: SoFi has higher standards for applicants than many other lending institutions. In order to begin the qualification process, you must have a responsible financial history and a strong monthly cash flow. A high credit score may help you qualify.
- No small-loan options: If you only require a small loan for your financial needs, SoFi may not be the best option, as their minimum loan amount of $5,000 rules out the potential for smaller short-term loans.
- Cannot use collateral security: SoFi does not offer the option to request a secured loan, in which you use property you own as collateral to improve the terms of a loan application.
Assessing the potential downsides to choosing SoFi loans for your next borrowing arrangement can help you make a more balanced assessment of its value.
Due to the restrictive nature of SoFi’s loan programs, it may not be the ideal solution for all borrowing applicants. For qualified borrowers, however, SoFi is likely to be a strong contender for your best borrowing option. If you have a high credit score and need between $5,000 and $100,000, consider filling out a pre-qualification application with SoFi to review your options.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.