SoFi Invest Reviews: A Valuable Personal Loan Option for Beginners

What you need to know about SoFi Personal Loan

SoFi is a short form for Social Finance. SoFi started way back in 2011 by offering students loans. The company has since reached national heights and now offers personal loans, mortgage refinancing, investing advice, and many more. It provides personal loans of up to $100,000 to borrowers that have a great credit score.

The two main criteria you should meet before being considered for a SoFi loan are; first, you must have a responsible financial history, and secondly, you must have strong monthly cash flows. In this SoFi review, we will take a closer look at how it operates and if it is an ideal investment option for you.

Best Features: Why Choose SoFi?

Below are some of the reasons why you should choose to work with SoFi

1.      No Fees

The first advantage that comes with using SoFi is that it does not charge any origination fee, late repayment fees, or prepayment fees. In a world where zero-fee lenders are rare, SoFi has established itself as a unique lender. Zero-fee is a good thing because it lowers the cost of borrowing.

2.      Term Availability

Another benefit of using SoFi is that it has an extended repayment term. The repayment terms usually range from between two to seven years. This is a long time when compared to what SoFi peers offer as their repayment terms. The long period will give you enough time to have enough returns from the borrowed funds while giving you the financial muscles to cover for the principal amount as well as the interests. You also have multiple choices at your disposal, and hence you can prioritize less overall interest with a shorter term, or you can work with lower monthly payments with a longer-term.

3.      SoFi Offers Co-signed loans

SoFi allows its borrowers to add a co-signer to their loan applications. Co-signers improve the borrowers' chances of getting a larger loan amount or a lower rate. Please note that the co-signers are not entitled to receive any amount from your borrowed funds. However, they will become liable in case you fail to honor your responsibility of paying up the loan.

4.      Unemployment Protection

SoFi has an employment protection program to which borrowers can apply whenever they lose their employment. If you are approved for the unemployment protection program, all your pending repayments will be considered forbearance, and your monthly payments will be suspended. However, the interest will still accrue during the time which your loans are put into forbearance. However, borrowers have the option of making an interest-only payment to prevent the principal amount from increasing.

5.      SoFi Offers a Free Career and Financial Advising

Another great advantage of borrowing from SoFi is that you get access to one-on-one career and investment coaching to help you choose the best career ideas, personal branding, and investment options. Members are also eligible to receive free advice from a certified financial advisor. The financial advisor will help you build a budget, create a perfect investment strategy, choose insurance and save for the future.

6.      SoFi offers a Mobile App to Help Manage your Finances

SoFi borrowers can have the SoFi's mobile application, which makes it convenient for them to apply and pay for loans, track the interest rates,

Cons of SoFi- Where Does SoFi Fall Short?

The following are some of the challenges that borrowers will face with SoFi:

1.      SoFi Does Not Allow for Collateral or Joint Loan Option

The first disadvantage of using SoFi is that borrowers cannot secure a Sofi loan using collateral such as a car, apartment, savings account, or other assets. Additionally, borrowers cannot successfully submit a joint application with another borrower or borrowers. Joint applications are usually important because they help the borrowers to share the burdens of the loan.

2.      High Minimum Loan Amount

SoFi is also known for having high minimum loan amounts. Loans start at $5000. The high minimums make it difficult for borrowers who want less amount to fund small projects.

What You Need to Qualify for a SoFi Loan

SoFi does not publicly elaborate on the requirements that successful borrowers should meet. However, according to their customer service representatives, borrowers with an excellent debt repayment record are likely to qualify for the SoFi loans.

The following are some of the things that you will need to qualify for a SoFi loan:

  • You must legally be an adult in your state.
  • You must be a permanent resident of the United States, or you be a Visa holder.
  • You must be employed, and the employer must remunerate you with sufficient income. Alternatively, you must have an employment offer which must start in not more than the next 90 days.

What are Some of the Personal Loan Options that SoFi Offers

You can acquire a SoFi personal loan to use for personal needs, family needs, or household reasons. Common personal loan uses include the following;

  • Home refurbishments or improvements
  • Relocation
  • Medical bills or expenses
  • Debts consolidation
  • Auto refinancing

The following are some of the ways in which you cannot use the SoFi loan;

  • Investment in real estate
  • Stock purchases or investments
  • Purchase of securities
  • Post-secondary education

Large Loan Amounts from SoFi

If you need to borrow large amounts, then SoFi will be the best option for you. Many lenders have capped personal loans up to $40,000 or less. However, SoFi will lend up to $100,000 to all those who qualify for such amounts.

Factors To Consider Before Applying for a SoFi Loan

Here are some of the factors you should consider when applying for a SoFi loan;

1.      Co-Applicants Allowed- One of the advantages of borrowing from SoFi is that it lets the borrowers apply with co-applicants. Using Co-applicants will significantly your chances of qualifying for a loan. However, you must ensure that your co-applicant lives at the same address as you.

2.      No-Next Day Funding- If you want money as soon as possible, SoFi might not be the right lender for you. This is because SoFi does not do next-day financing. The application will take time to go through, and you will most probably get money in your account within a few days or weeks from the date when your loan application is approved.

3.      Mobile App- SoFi offers a mobile application that users can use to borrow and pay for their loans.

What Kind of Borrowers is SoFi Good For?

SoFi is suitable for all those who need a loan over $5000 and have a good credit score. Its competitive interest rates and promise of no additional fees make it one of the best lending destinations you can consider working with. On the other hand, if you have an inconsistent income or your credit score is not top-notch, then you should look somewhere else.

Wrapping It Up

SoFi is one of the few best lending options that you can consider working with. This Sofi Review has explained everything you would wish to know about SoFi. It has also explained the advantages and disadvantages of SoFi and given you some of the factors you need to consider before resolving to borrow from SoFi. I hope the article will help you make the right borrowing decision.