How Does SoFi Work? 
Social Finance's loans 

How does SoFi work for personal loans?

Getting a loan through SoFi can be smooth sailing if you are the right borrower. Their convenient online processing, and soft credit pulls offer a hassle-free application process and very competitive rates.

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SoFi does have relatively high minimum credit requirements, so if you have poor or even fair credit, other lenders we will talk about below may be better suited for your application to be approved. Keep reading the following SoFi personal loans review to find out more.

Who is SoFi? Company Profile

Social Finance, Inc (SoFi) was founded in 2011 by Stanford Business School students. The San Francisco-based company initially offered student loan refinancing. Other products and services were subsequently added, including mortgages, personal loans, and cryptocurrency trading.

SoFi is a full-fledged, FDIC insured online bank. The company went public in 2021 and serves over 2,500,000 members.

How Does SoFi Work For Personal Loans?

First, it’s a good idea to see if you prequalify. Prequalifying for a SoFi personal loan does not affect your credit score.

This tells you whether you meet the requirements to get a loan. You can then apply for the loan in earnest. The online application process only takes minutes to complete.

Having said that, upon submitting your application, SoFi will do a hard pull on your credit which may slightly affect your FICO score according to the strength of your credit.

If the loan is approved, a loan agreement will be executed via electronic signatures and funds will be made available to you within 2 to 4 days (sometimes even the same day). SoFi offers repayment terms of up to 7 years (84 months!).

How to Qualify for a SoFi Personal Loan

For starters, you must have a FICO credit score of 650 or higher to be considered. The minimum credit score requirements do not guarantee approval. Most successful applicants have a FICO score of around 700 or higher.

Minimum annual income of $45,000 is required to be eligible. Most SoFi successful applicants earn $100,000 and above. Borrowers’ debt-to-income ratio (DTI) and income remaining after monthly expenses are also determining factors in the approval process. An estimated $1,500 remaining cash each month is a positive factor in SoFi’s application.

Eligible applicants are welcome to open multiple loans. A second loan of a different type entitles borrowers to a 0.125% interest rate rebate. Three consecutive on time payments is one way to set this feature in motion.

SoFi Member Benefits

Membership is an integral part of opening your SoFi loan account. SoFi’s customers are referred to as Members. Borrowing from SoFi gives you more than a loan.

Membership gives you access to exclusive benefits such as career coaching and financial planning, as well as discounts on estate planning services at no additional cost.

Some member benefits remain accessible even after the loan is paid in full. SoFi is also setting up a Member Experience at the unparalleled SoFi Stadium in Inglewood (Los Angeles) California, with access to the Member Lounge.

How to Apply for a Loan with SoFi

Go to and create an account to be able to check your prequalification status.

The online application process is straightforward and a customer service number is available if you need assistance: 1 (855) 456-7634.

SoFi Personal Loan Features

Loan Amounts

Loans range from $5,000 to $100,000 making this the largest maximum loan amounts  by far compared to SoFi competitors.

Low Lending Rates

SoFi aims to be faithful to its SOcial FInance policy of low interest rates ranging from 7.99% to 23.43% at time of writing.

No Fee Lending

In that same vein, SoFi does not charge processing fees, late fees or any fees. There are no prepayment or early termination penalties either.

Autopay/Direct Deposit

You get a discount of 0.25% if your account is set up on autopay or direct deposit for your loan installment payments.

Paid Unemployment Benefits

Unlike most other lenders, SoFi offers unemployment insurance if you lose your job. Your loan payments can be temporarily suspended with no negative impact to your credit score. You can stop making payments for a duration of up to 12 months - although interest on your loan balance will continue to accrue.

SoFi's Career Strategy Services will even assist you in finding a new job. You must also show proof of unemployment benefits to request loan payment suspension.

Noteworthy Alternatives to SoFi

SoFi is undoubtedly a lender with outstanding characteristics. Individuals with stable, substantial income and a strong credit profile will find a lot of advantages to opening a SoFi loan/membership account. However, this may be over certain applicants’ head.

Avant is an alternative lender for individuals with credit scores as low as 550, with their average approval range around 600 and 700 FICO scores. Loan amounts start at $2000, sometimes less than that.

Upstart is another solid option that will lend to applicants with a lower credit score (even below 500) and thinner credit history. Upstart starts with a minimum loan amount of $1,000 and can lend up to $50, 000.

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