SoFi Personal Loans & Active Investing Review 2024 2024 • Benzinga

Lending and investing are two elemental factors of financial well-being that can bring you that much closer to reaching your goals. Take a look at Benzinga’s review of SoFi’s online products to learn about the quality of their lending and investing services.

Personal loans through SoFi allow you to borrow funds for all sorts of uses such as consolidating credit card debt, paying for home renovations, assisting with relocating, helping with medical expenses, treating yourself to a vacation and much more. Like all SoFi loans, these loans come with no origination fees required, late payment or insufficient fund fees. Period. You pay back the loan monthly (plus interest) at a pace that makes sense for your needs.

SoFi Personal loans are offered for terms from 2 to 7 years, and the company offers unemployment protection for those eligible, which can allow you to temporarily suspend monthly payments if you lose your job through no fault of your own.

You can’t use SoFi’s personal loans for real estate, business purposes, investments, purchases of securities, post-secondary education and short-term bridge financing. Co-applicants are accepted on personal loans, which become co-borrowers who are equally responsible for the loan principal and monthly interest once the loan is officially approved, but they must live at the same address as the primary borrower to be accepted. SoFi doesn’t accept cosigners on personal loans. 

Lastly, only unsecured personal loans are offered through SoFi, which means though you don’t have to put down valuable property or bank accounts as collateral to get the loan, it might make it more difficult to obtain the loan if you don’t have a steady income and decent credit history. 

Disclaimer: Fixed rates from 8.99% APR to 25.81% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 10/10/23 and are subject to change without notice. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.

Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.

Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.

Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

Do you qualify for a SoFi personal loan?

To be eligible for a SoFi personal loan, you need to meet certain criteria. This includes:

• Must also be of legal age according to your state’s laws.
• Must be a U.S. citizen, permanent resident or visa holder.
• Must be employed, have a job offer within the next 90 days or sufficient income from other sources
• If you have a co-borrower, they must live at the same address as the primary borrower. Additionally, the application process might take longer, possibly an extra week or two.

It is important to note that meeting the eligibility requirements doesn’t guarantee approval for a personal loan from SoFi. They consider multiple factors to evaluate your creditworthiness and willingness to repay the loan. This typically includes having a good credit score, stable income and a low debt-to-income ratio. SoFi also considers factors such as your education, career prospects, and financial history. It is recommended to check SoFi’s specific eligibility criteria and initiate the pre-qualification process to get a clearer understanding of your chances of qualifying for a personal loan.

How to Apply for a SoFi Personal Loan

If you’re considering taking out a personal loan with SoFi, you can follow this step-by-step guide on how to apply.

1. Research and assess needs: Before you start the application process, it’s important to do your research and determine why you need the loan. Identify the amount you require and the purpose of the loan. SoFi offers personal loans for a variety of reasons, such as debt consolidation, home improvements, or major purchases.

2. Check eligibility: SoFi has specific eligibility requirements for their personal loans. To ensure you qualify, check their website or contact their customer service to find out about their criteria.

3. Gather necessary documentation: To successfully complete your application, you’ll need to have certain documents ready. These may include your identification (such as a driver’s license or passport), proof of income (recent pay stubs or tax returns), and bank statements. Make sure you have everything organized to streamline the process.

4. Apply online: SoFi offers a convenient online application process. Visit their website and find the personal loans section. Follow the prompts to start your application. You’ll need to provide personal information, financial details and the loan amount you’re seeking. Fill in the required fields accurately and be prepared to answer any additional questions. Once you’ve completed the application form, take a few moments to review it thoroughly.

5: Await approval and funding: After submitting your application, you’ll need to wait for SoFi to review it. They will assess your eligibility and creditworthiness. If approved, you’ll receive an offer outlining the loan terms and conditions. Carefully review this offer before accepting it. If you agree, you’ll be asked to electronically sign the loan agreement.

6: Receive funds: Expect to receive the funds in your bank account within a few days.

Remember, taking out a personal loan is a financial commitment, so it’s important to evaluate your ability to repay the loan. Make sure you understand the terms, interest rates, and any associated fees before finalizing your decision.

Once you received the loan funds, make sure to stay on top of your loan payments to avoid interest and charges. Payments can be made online by logging in to the Sofi website or via the mobile app. Loan payments via ACH or paper check are accepted. Payments via credit cards are not accepted.

How SoFi Personal Loans Compare

If you’re looking for the best personal loans, it is recommended to research and compare your options. Here are alternative lenders for your personal loans and how they compare to what SoFi offers.

SoFi Personal Loans vs. Upgrade Personal Loans

SoFi is designed for borrowers with strong credit. Upgrade, on the other hand, provides financing options for individuals with credit scores as low as 580. If you don’t meet SoFi’s minimum score requirement of 650, Upgrade may be a suitable choice. However, Upgrade only offers loans ranging from $1,000 to $50,000, which is significantly lower than SoFi’s maximum loan amount of $100,000.

SoFi Personal Loans vs. Upstart Personal Loans

Upstart supports borrowers with damaged or limited credit, unlike SoFi. SoFi requires a minimum credit score of 650, while Upstart only requires 600. If you qualify for Upstart, you can receive loan limits of up to $50,000 and terms of three or five years.

SoFi Personal Loans vs. LightStream Personal Loans

SoFi and LightStream offer personal loans from $5,000 to $100,000, based on the purpose of the loan. LightStream has slightly better interest rates and more term length options compared to SoFi. If you have a high credit score, you may qualify for a more cost-effective loan with LightStream.

SoFi Personal Loans Personal Loans vs. Avant

Avant is an online lender that offers personal loans with quick funding. It caters to borrowers who need smaller amounts, ranging from $2,000 to $35,000. Avant provides flexible loan terms, ranging from one to five years, and offers a wide range of interest rates, from 9.95% to 35.99% APR.

Automated investing through SoFi is known as “hands-off investing that’s always on.” SoFi can help you set goals whether you’re saving for retirement, saving for a down payment or simply investing for later.

You can start investing through SoFi with as little as $1 and make 1-time or recurring payments depending on what works best for your goals. Investing through SoFi also gives you access to member benefits and discounts on other SoFi products. Plus, you get:

• No management fees with automatic rebalancing, Automatically adjusting and rebalancing your portfolio.
• Goal planning. Whether you’re saving for retirement, a down payment or just investing for later, SoFi helps you make a plan to tackle multiple goals.
• Diversification, ensuring that your money is allocated across different kinds of financial instruments.
• Complimentary access to SoFi Financial Planners.

Active investing through SoFi is the 3rd option for your investing goals, through which you can actively trade on a do-it-yourself basis and learn the market your way. With active investing, you can be much more connected with other SoFi investors while you learn together from news updates and educational tools, all on the SoFi mobile app.

Start investing fractional shares of stocks and ETFs from your favorite companies with as little as $1 and enjoy the perk of $0 fees on every trade you make. Plus:

• Invest in stocks and ETFs or trade crypto, all in one app.
• Get up to $1,000 when you fund a new brokerage account, and earn up to $100 in Bitcoin with your first qualifying crypto trade (See terms).
• No commissions for stocks and ETFs.
• Complimentary access to SoFi Financial Planners.
• Purchase fractional shares of your favorite companies for as little as $5.
• Trade on margin at a competitive interest rate.
• Pre-built investment collections, so you can easily diversify your investments
• Disclosure: Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.

User-Friendly Options Trading With SoFi

User-friendly options trading with SoFi may allow you to increase returns or limit risk. The platform includes:

• User-friendly design
• Educational resources
• No contract fees
• One-click access to options data

Plus, SoFi’s options trading platform helps you understand what to do when a stock’s value is rising or falling, and you can even check out their FAQs to learn more about options trading before investing your hard-earned money.

SoFi IRAs

You can also try an IRA with SoFi, which makes it easy to:

• Take control and save for retirement with SoFi’s Traditional, Roth, and SEP IRAs.
• Get access to a broad range of investment options, member services, and SoFi’s robust suite of planning and investment tools.
• Get help setting your goals. Whether you’re just getting started or want to roll over another account, SoFi can help develop a plan that works for you.
• Get access to a broad range of investment options plus no commission with SoFi’s self-directed IRAs
• Gain complimentary access to SoFi Financial Planners.
• IRA 1% match on contributions
• Disclosure: Only offers made via ACH are eligible for the match. ACATs, wires, and rollovers are not included. Offer ends 12/31/23.

Customer service is elemental for every online service or company. Customer service at SoFi is accessible through the “About” and “Contact us” tabs made available on every page of its website. The customer service page is very organized and easy to read, including phone numbers for general support, home loans support, investing support and money support.

Available office hours are included for each phone number, as well as payment addresses for check writing on loans and company contributions. Various emails included are general customer service, press, investor relations, partnerships, SoFi Money, SoFi Invest and home loans. Locations for in-person help are in San Francisco and Healdsburg, California, and New York City. You can also tweet SoFi at its Twitter handle @SoFiSupport for short questions and concerns regarding all services. 

After our assessment and analysis, SoFi’s online lending and investing services are high-quality and hard to beat. With a user-friendly, highly-rated mobile app available to iPhone and Android users featuring its 100% fee-free lending and investing services, SoFi is an online financial platform to remember. 

Frequently Asked Questions