They can also be helpful in long-term financial planning when they are used in combination with other types of financing like credit cards or home equity loans. Moreover, personal loans are usually used for short-term purposes such as paying off a credit card balance, medical bills, or debt consolidation. SoFi is one of the companies that offer personal loans with consumer-friendly features such as no origination fees and no prepayment penalties.
In addition, SoFi has been known for its innovative products and services that cater to the needs of borrowers with good to excellent credit. In fact, SoFi has been known for its “no credit check” policy which allows borrowers with no credit history to borrow money from the company.
But before jumping in and thinking about applying for a SoFi personal loan, it’s important to know how it works first and what are the terms & conditions of the lender. Because if being knowledgeable about this is skipped, one may be causing a lot of damages to their financial restriction instead of getting out of it. This article will talk about the SoFi Personal Loan and how borrowers can benefit more and apply for it.
Who is SoFi best for?
SoFi personal loan is best for people who are looking for a small loan of at least $5,000 and prefer to apply online. If you have bad credit, SoFi personal loans might not be your best option because they require borrowers with a good credit score of 690 FICO or even higher.
SoFi personal loan is also a good option for those who want to borrow money and pay it back over a period of time. They also offer flexible repayment options, which means that borrowers can defer payments or make them smaller.
What are the purposes of SoFi personal loans?
The purpose of personal loans consists of:
- Debt consolidation
- Home renovation or improvement
- Medical or wedding expenses
But just like any other online lenders, SoFi restricts borrowers from where they can use the money. These restrictions are:
- Real Estate Purchases
- Business Purposes
- Purchases of Securities
- Post-Secondary Education
- Short-Term Bridge Financing
Even if the restrictions are too many, SoFi personal loan is still considered perfect for those who need a short-term solution to pay off their debt and get back on track financially. This is because of the fact that SoFi offers flexible repayment options and no origination fees.
SoFi Personal Loan Details
Personal Loan Amount: SoFi personal loan allows people to borrow money for as low as $5,000 up to $100,000. But keep in mind that the loan amount can only be maximized depending on the requirement, eligibility, and credit score presented.
Loan Terms: SoFi loan terms in months can be up to 72 or 7 years. But this doesn’t mean that a borrower can borrow the lowest loan amount of $5,000 and pay it off within 6 years. So make sure to read all the terms & conditions before signing the contract. It’s also better if the applicant is one step ahead and knows their preferred amount or terms before applying.
Advantages and Features
Unlike other personal loans available, SoFi offers a lot of advantages and features to its borrowers. These features include:
Multiple Discounts: SoFi personal loan borrowers can avail of multiple discounts to lower their interest rates. For example, a discount of 25% points is available if the borrower sets up autopay. The same discount is offered if the borrower opened and maintained a SoFi Money account.
Co-signed loans: This feature is perfect for those who want to add a co-signer upon application. If the latter has a higher FICO credit score, the loan terms can lean upon lower interest rates or receiving a higher loan amount. Keep in mind that co-signers don’t have access to the loan amount but are responsible for any missed payment of the primary borrower.
Unemployment protection: Unemployment protection of SoFi means that employed borrowers upon application and then losing their jobs during the reimbursement period can suspend the monthly payments. However, the interest still accrues but borrowers can pay the loan’s interest only to prevent their principal amount from increasing.
Career and financial advising: Aside from personal loans, the career and financial advising of SoFi helps users make better financial decisions by providing job and monetary advice. They offer borrowers the opportunity to share their information with an advisor, who will then provide them personalized insights on how to live their life better.