SoFI was established in 2011 by a group of Stanford graduates. It provides both personal loans and student loans. SoFi considers other factors outside of the credit score of an applicant when processing an application. One of the most important factors determining how much an applicant can borrow is their free income. Another important factor is how much income the borrower will have left after their expenses.
Getting a loan from SoFi is like being part of an elite club given that their lenders and members-only networking events are of a high-credit standard.
SoFi is the right lender for you if:
- Your credit score is 660 or higher. The average credit score of a SoFi borrower is 700+.
- You have a high income; the average salary of borrowers is $101,000
- You’re new to borrowing; SoFi doesn’t need your credit history
- You are at an early stage in your career and want networking and support opportunities. Sofi offers benefits like happy hours and career counselling services to borrowers.
- You live outside of Nevada and Mississippi as SoFi loans are not available for those states
If you’ve got a poor credit rating then this is a loan option you should consider.
Comparing SoFi Loans to Other Loans
Other online lenders such as Earnest and LightStream are similar to SoFi in that they provide great credit to borrowers with high incomes. Earnest is different in that they provide flexible payment alternatives for customers that have less credit and they don’t charge expenses. LightStream requirements can vary depending on the purpose of the loan, but borrowers will need to have some credit history to be approved for a loan.
SoFi on the other hand offers lower loan amounts with comparable starting rates.
Flexible Payment Options
SoFi offers customers flexibility when it comes to making payments such as allowing them to change their payment date. It’s possible for borrowers to waive their late fees if they miss a payment but have a history of making payments on time.
If you lose your job for reasons that aren’t your fault, then SoFi will give you the chance to apply for forbearance. This means that monthly loan payments are suspended for a set amount of time up to 12 months. Loans will gain interest even while you are part of the Unemployment Protection Program. Forbearance allows for you to only make interest payments and prevent this from becoming an issue while you look for a new job.
Applying for a SoFi Loan
If you live in California or Michigan then you can check your rate on the SoFi website by creating your account and entering the necessary information about your education and employment. If you live in another state then you can compare the rate SoFi would offer with other lenders by filling out the pre-qualification form. Keep in mind that pre-qualifying for a loan doesn’t affect your credit score.