There are many life circumstances that could lead to you take out a personal loan.
You might need a loan to pay off credit card debt, make home improvements, pay the balance on your vehicle, take a dream vaca, or even buy an engagement ring.
When comparing options for a personal loan, you will want to take into account:
SoFi is a digital personal finance company with an impressive menu of financial products. The platform offers financial services, including borrowing, investing and saving.
Members can take advantage of personal loans, home loans, private student loans and student loan refinancing. They can also create portfolios and automate investments with SoFi Invest.
Taking a personal loan can be a smart way to consolidate high-interest rate balances on other credit cards under one monthly rate. In order to repay the loan, you make monthly payments of principal plus interest. A personal loan gives you the flexibility to make large purchases, then pay it off on a schedule you are financially able to swing.
However, keep in mind that SoFi personal loans are limited to personal, family, or household purposes.
They are not allowed to be used for:
With the SoFi personal loan, the minimum amount you can borrow is $5,000 in most states and the maximum is $100,000. Terms for repayment are 2 to 7 years.
SoFi personal loans are 100% fee-free. Therefore, there are no origination fees, pre-payment fees, and no late fees. Once approved, money is sent directly to your personal bank account under your name. You are responsible for making payments after that.
This personal loan is an unsecured loan. This means that you do not need to put up collateral for your loan.
To be eligible for a SoFi personal loan, you must:
SoFi will also look at a number of other factors, such as:
Your interest rate vary depending on the amount of the loan, whether you choose a fixed or variable rate, and the time span you use to make payments.
There is a 0.25% AutoPay interest rate reduction that requires you make monthly payments by an automatic monthly deduction from a savings or checking account.
Enrolling in autopay is not required to receive a personal loan from SoFi.
Any additional payments you can make will be paid first toward the accrued interest, then toward the principal balance on your account. You’re only responsible for the interest on the principal balance for the length of time that you have it. If you pay it off earlier, you have less interest charged.
Whether you choose a fixed or variable interest rate really depends on your specific financial situation. SoFi’s loan originators will walk you through this decision-making process.
Fixed rates are set at the time the loan is completed. Variable rates can change with market fluctuations.
Interest rates on SoFi’s variable rate personal loans only change by the amount that LIBOR changes. The London Interbank Offered Rate (LIBOR) is a benchmark interest rate that major global banks lend to one another in the international market for short-term loans.
SoFi personal loans vary vastly from traditional credit cards. They have a fixed repayment term. Credit cards often have high variable rates and no set repayment term.
Rest assured! When they check the rates and terms you qualify for, SoFi will do a soft credit pull that will not affect your credit score.
A great perk is its unemployment protection. If you lose your job, SoFi will pause your payments for up to three months, and even give you career counseling to find another job.
They provide have tools and resources to help you get back into a job, including an Unemployment Protection and Career Strategy.
This program includes:
SoFi personal loans are a solid choice for very specific expenses, usually involving home repairs or improvements.
However, if you credit score is less than perfect, it may not be an option for you.
