SoFi is an online lending organization offering borrowing opportunities for individuals with high credit scores. Because SoFi uses an exclusive process for screening applicants, it commonly offers superior rates to competitors for borrowers who qualify. If you’re currently shopping for a personal loan and have a high credit score, checking out SoFi personal loan reviews can help in your decision-making process.
What Can You Use SoFi Personal Loans For?
SoFi personal loans provide you with the funds you need for a variety of financial purposes. Reasons you might seek out a SoFi personal loan include:
- Debt consolidation: Having multiple open lines of credit at the same time can be stressful and might make it challenging to monitor all your monthly responsibilities effectively. A debt consolidation loan allows you to combine all your debts into a single monthly payment. In addition to simplifying the payment process, you might seek out a consolidation loan with improved interest rates to lower the amount of interest your debt accrues each month.
- Home improvement: Home maintenance and expansion can be valuable but also expensive. A SoFi personal home improvement loan allows you to apply for the financing you need for a home improvement project. This allows you to invest in your home, with a valuable expansion opportunity allowing you to improve your home’s value more than the cost of the loan, generating increased equity in your home.
- Family planning: There are few experiences more fulfilling than expanding your family; however, the cost of family planning can be expensive. From preparing for a new arrival to procedural costs such as adoption or fertility programs, if you have expenses related to your family plans, a SoFi personal loan might help you prepare for a new addition to your family.
- Travel expenses: Seeing the world can be an amazing, even once-in-a-lifetime opportunity, but can also come with significant costs, particularly for international travel. Using a personal financing loan for your travel plans allows you to spread the costs of your travel over a longer period to help you enjoy your vacation in a financially responsible way.
- Wedding costs: Planning a wedding can quickly become an expensive experience, and for couples or families looking to spread the costs out to make them more manageable, a SoFi personal loan might be beneficial. The loan provides the immediate cash you need to pay expenses such as location fees and vendor rates so you can focus on planning and enjoying the big day.
Potential Benefits of Using SoFi Personal Loans
If you’re interested in using SoFi for your personal loan needs, benefits you might receive include:
- Get prequalified without a hard credit check: When companies perform a hard credit check against your credit score, it has the potential to negatively impact your credit rating. With the SoFi pre-qualification process, the company only runs a soft credit check after you move into the final stages of securing your loan, allowing you to consider your options without any impact on your credit rating. You can check your rate in just 60 seconds.
- Fast fund delivery: Funding from SoFi loans is available in your bank account in as little as two business days. This means if you have an urgent need for increased funding, SoFi loans might be able to provide you with the fast payment you require.
- Large loan sizes: If you need a large personal financing loan, SoFi personal loans might be an ideal lender for you to work with. SoFi personal loan sizes range from $5,000 up to $100,000, allowing you to receive significant payments when needed.
- Extended terms available: SoFi loans might also be appealing if you are interested in a loan opportunity with an extended payment period. Term options on SoFi loans range from two to seven years, allowing you to spread the cost of your loan and related expenses over an extended period and significantly reduce your monthly costs.
- Autopay saving: If you are confident using an autopay system for your personal loan repayment, you can further improve the quality of your financing terms. SoFi loans offer a personal loan rate reduction of .25% for borrowers who set up and use autopayment for their monthly loan repayment costs.
- Unemployment protection: One area of concern when borrowers consider their loan options is the potential for repayment difficulties in the event one or more principles loses or changes jobs. With unemployment forbearance protection, you can temporarily reduce your monthly payments as you seek out a new career opportunity, helping ease the financial burden during a period of reduced income.
Potential Drawbacks of Using SoFi Personal Loans
In addition to considering a potential lender’s benefits, it’s helpful to consider possible drawbacks. Important considerations for SoFi personal loans include:
- High qualification standards: SoFi loans maintain higher standards than many other borrowers when considering an application. This means if you are working to rebuild your credit and currently have a low score, you might not qualify with SoFi.
- No secured loan options: Some borrowers use secured loans, where they place an item of value as collateral to secure the loan. This can be an excellent option for borrowers with low credit or valuable assets to leverage, but SoFi does not offer secured loan opportunities.
- High minimum loan size: The smallest loan currently available through SoFi is $5,000. If you are seeking a small short-term loan, you might need to seek alternate borrowing opportunities.
SoFi Personal Loan Reviews
Determining whether SoFi personal loans is likely to be the best landing option for you depends on the particulars of your borrowing situation. Although SoFi has a narrower pool of potential borrowers than many other lenders, for those with a high enough credit score to qualify and financial needs that align with the available term options, SoFi can often provide the best option. If you are seeking moderate- to long-term financing and have a high credit score, it might be beneficial to get prequalified with SoFi to explore your options.
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