Last Updated on May 8, 2016 by Tim
SoFi takes pride in being one of the top marketing platforms in the U.S. with seven branches across the country. It engages in various types of loans ranging from student, parent, MBA, to mortgage loans. It also deals with refinancing and consolidation schemes. Among the high earning aspects of the company are its referral and entrepreneurship programs.
The firm has about 125,000 members and has funded around 8 billion loans to date. Whether it is for refinancing, seek advice for careers, or buying a dream home, the company is there to lend an ear. It has the best products to match the dreams and ambitions of individuals, and guiding them to reach a new level of financial greatness is part of their vision.
However, there is a need to know more about SoFi so I have gathered some facts about how to go about requesting for loans and here’s what I found out.
Application Process:
• Applicants are required to create an account at the SoFi website
• Upon verification of information, the platform provides applicant with loan options
• Borrowers are required to sign an electronic loan agreement
• Funds should be good after a few days
The company performs a soft credit pull from in order to provide you with a firm interest rate offer. Once your loan is accepted, it will require a full credit check. Besides having excellent credit and high income, SoFi prefers borrowers who have graduated from a U.S. Department of Education accredited university.
Initially, it offered loans to new graduates who are looking to refinance their previous student loans. But in the recent years, it broadened its scope by offering personal installment loans as well as mortgages.
How SoFi Works
SoFi has only offers loans to people with high incomes and excellent credit. Therefore, if a customer has an average credit score of 780 with an average income amounting to $150,000, the company can offer low interest loans for unsecured personal loans.
SoFi provides loan consolidation and refinancing services to students. Once a borrower declares the loans he wants consolidated or refinanced, the company pays off those loans and, eventually, the borrower pays the company back. Consolidation and refinancing lowers monthly payments by means of qualifying for lower interest rate or paying out on a staggered basis for a longer duration. This can save borrowers money overtime.
Facts regarding interests:
• Interest rates may range from 5.95% – 12.49% APR – fixed rates
• Variable rates begins at 4.73% and can go up to 10.83% APR and capped at 12.49% APR
• Rates include 0.25% discount for autopay enrollees; opting out on autopay is charged an additional 0.25%
SoFi provides loan amounts from $5,000 – $100,000 on loan terms of 3 to 7 years. The company operates across the U.S. with the exception of Idaho, Mississippi, Louisiana, Tennessee and Nevada.
Advantages
• Large installment loans with tremendously low interest rates: This is made available to the company’s prime and super-prime customers. It does not charge for origination fees, prepayment penalties, or closing costs.
• Flexibility: Loan terms can extend up to a maximum of 7 years, which allows for flexibility when financing large purchases.
• Unemployment protection: Guarantees a pause for monthly loan payments if ever you lose your job. Another good thing is it helps you find another one.
• Student loan consolidation and refinancing: Consolidating federal loans with private loans is possible at SoFi and this is a welcome idea for high income earners who have a secure job tenure.
• Borrowers can opt for 5, 7, 10, 15, or 20 year repayment plans.
Disadvantages
• Not all can avail of loans from this platform as the opportunities are huge only for those with high credit scores and secure jobs.
• Private loan consolidation takes away possible federal loan forgiveness programs and repayment plans. Once loans are consolidated, it cannot be undone. You can get a full list of federal loans you have obtained from the federal student loan database. If you don’t see any of your loans there, then it should be a private loan.
• Customer support is serviced by a California call center so that explains why calls from customers take time to be served.
• The biggest concern is getting past the company’s credit check. VIP treatment awaits those who pass but once credit is denied, it surely affects the loan applicant’s credit report.
Conclusion
SoFi functions in a different way compared to a standard big bank approach when it comes to its student loan consolidation and refinancing schemes. Among its goals is to help former borrowers to become future lenders.
It looks to further the relationship between the company and its customers. But with some complaints regarding those who cannot pass the company’s credit rating standards and some security of tenure issues, it means that not all can actually take advantage of its perks.
However, if you are bent on getting the best loan deal, you may want to apply at various platforms at the same time. This action may just be considered by credit companies as shopping around, which will not provide a dent on your credit score or standing.
