The idea of a social lending company may seem oxymoronic. Modern banks have strayed far from their traditional lending roots – but SoFi is the future! And this review of SoFi financial company will assure you of this.
SoFi, which stands for Social Finance, is an independent online marketplace for personal loans with surprisingly low rates. SoFi offers student loan refinancing, auto loans, mortgages, and many other products. The company works with individuals and families to help them get out of debt faster than traditional lenders because they don’t rely on credit scores as much as other companies.
We compiled this SoFi review for our readers considering SoFi for their finances. You will learn about its online application process, terms, and how it works. Read on our SoFi app review and learn more about the company!
Pros and Cons of SoFi
SoFi has several advantages that make the company stand out from other lenders. One of the main benefits is the ease of the application process; you don’t need to fill out any forms and wait for two weeks for approval, as usually happens with most lenders. Other benefits include:
- Competitive rates;
- Lower rates for students (refinancing);
- A wide variety of products to choose from (loans, savings, money, insurance);
- Simple online application process
The cons of SoFi are not the worst ones; there are no hidden fees and questionable loan policies, but if you want to make the most out of your loan, you have to keep a few things in mind: The credit score is everything with SoFi, so if you want a lower rate, make sure your score is high enough before applying. If you have less than perfect credit, your rate will be higher; there is no way around it. The same goes for older applicants and those who don’t have a job.
What is SoFi?
SoFi is an online financial company for the future. It is a social lending company that doesn’t judge you by your credit history but by your likelihood of repaying the loan. The company was founded in 2011 and made its mark in 2013 when it started offering student loans to students struggling with college loans.
SoFi provides a variety of personal loans and refinancing products to help consumers get out of debt in minutes, while other lenders make you wait weeks or months. The company has an impressive experience for over a decade within the financial industry, and many professional investors are involved in the organization.
How does SoFi Work?
A competitive SoFi review will reveal a lot about how the company works. To understand which SoFi option is best for you, it’s essential to know how your account will be monitored and managed and how easy it is to make payments. We’ll start with the technology which allows the company to keep track of all your accounts.
First, there is the online direct deposit form. Each payment into your account at SoFi must be made through this form by either electronically transferring money from a linked bank account or making a purchase using a debit card. You must also link an existing bank account or checking account to pay the loan. You must transfer the funds each month into a SoFi bank account to avoid additional or costly overdraft fees.
As you can see, linking your other accounts is simple and can be done quickly online. Without doing this, it means that each time you make a payment (through direct deposits or debit cards), you will be charged fees (interest charges). To make it simple and easy, here are all the steps that you need to follow:
- Open an account with the SoFi service provider using the application form on their website or by calling one of their customer service representatives.
- Link your existing bank accounts by completing the online deposit form or calling customer service.
- You can directly deposit your paycheck into the account. If you decide to make payments without a minimum deposit, then you will be charged $4 for each payment made with a debit card or online transfer.
- If you are not using an existing bank account, then it is mandatory to transfer money from your account into the SoFi bank account each month to avoid fees and penalties.
Your payment schedule will depend on your loan term; it can be daily, weekly, bi-weekly, monthly, or bi-monthly. Your payment cycle should always begin the following day after your last payment.
Features & Services of SoFi
SoFi offers various products and services to satisfy different needs and financial solutions. They are available in loans, mortgages, savings, money, and insurance. You can receive funds in the form of a personal loan, a short-term loan designed to meet your short-term needs and expenses.
If you are trying to refinance your student loans, SoFi is a good option for you because it offers meager interest rates for borrowers with excellent credit scores. Here are the main features of the company:
- Refinancing Student Loan: It has the lowest rates for people with excellent credit; professionals with high praise will pay up to 9%. New graduates without perfect credit can only get a loan from 6% to 7%. It doesn’t make sense why students who graduated years before they even started college would be offered such low rates. It’s tough to keep your student credit under control. SoFi loans are 21-25 years, and the interest rates range from 3.49% to 7.99%.
- Home Loans: To take out a SoFi home loan, you should have excellent credit; otherwise, be prepared to pay up to 22.23% interest.
- Personal Loans: They offer personal loan terms for $5,000 to $100,000 with interest rates starting at 6.99% but can go up significantly depending on the borrower’s credit score.
- Investing: It has a money market account with free transfers and low rates.
- Insurance: It is among the banks offering homeowners, cars, and motorcycle insurance. You pay for it monthly but get coverage for all your assets.
- Mortgage advance feature: It is a great option to get a mortgage at the best rate. It only works for those who have excellent credit.
- Insights: It offers budgeting and spending features, giving you an insight into your net worth and all possible ways to track money savings.
The best thing about SoFi is that they are flexible enough to help you find the most cost-effective option to meet your needs with their financial products. With that said, we need to pay close attention to the interest rates offered; they might be lower than those offered by other lenders, but they are higher than what you would expect from traditional loans. Be sure to check terms and conditions carefully because certain conditions can deny your request if it is not what’s offered in the fine print.
SoFi Fees & Rates
There are several fees that you need to know about when considering SoFi. The fees can vary based on the account you hold with them and how you choose to make payments.
Here are some of the most common fees you encounter:
1) They charge $15 if your employer or bank rejects your direct deposit.
2) If you pay via telephone, the cost will be $30 per transaction, much more than other lenders.
3) There is a monthly fee of $6 if your balance exceeds $1,000.
4) You need to pay $3 for each debit card transaction made outside the country.
5) If you want to get a loan or line of credit, you will be charged for the preparation and processing fees. The monthly expenses will fluctuate significantly depending on your loan type, amount, and repayment frequency.
Below are some of the introductory rates offered:
- Personal Loan: 6.99% – 8.99% is the range of interest rates.
- Mortgage: They offer loans at up to 15% interest rate for those with poor credit scores. Meanwhile, those with excellent credit can receive loans from 4.49% to 15%.
- Home Equity: The interest rate is around 22% depending on your credit rating and the loan features you choose. Most of the borrowers claim to offer zero-interest loans.
- Additional fees: The best rate is offered for mortgages that are five years in duration, and you can get up to 7.99% annual percentage on them. Larger loans can go 10% with a low down payment.
The overdraft fees and membership fees are a bit confusing. If you go over your budget, they will charge you $35 if it is under $100 and $40 if it is over $100. The membership fee cannot be used to make payments, so it’s just a fee for using their services.
Safety and Security of SoFi
SoFi is one of the most secure and stable companies in the world. As a result, it has received an A+ rating from FICO, the highest possible score you can receive. SoFi uses SSL (Secure Socket Layer) and TLS (Transport Layer Security) tools to encrypt all data transfers over their network.
The security protocols they use are the most advanced on the market. You don’t need to worry about getting your data stolen or hacked because SoFi has a team of experts and people who will take care of your information 24/7. The company even offers identity theft protection and fraud protection services, where they will alert you if someone tries to make any change in your account.
The business is not BBB accredited but has a solid reputation among its customers. They have recently received almost 50 reviews on their Yelp page, and the company has received 4.5 stars overall. Your money is protected by the company’s insurance, so if you experience a loss, they will help you get your money back.
Is SoFi Legit?
One way you can check any company’s legitimacy is by looking at what other people are saying about them. This way, you can get a more objective source of information, and it will be easier for you to assess whether or not they are credible.
SoFi has had a lot of complaints made against it lately, and it even got downgraded by several online dating websites such as the Better Business Bureau (BBB). So, if you are willing to work with SoFi, make sure that you approach it with a cautious attitude. You should also check their website at least once a week to ensure no new updates about new rates or fees for your account (which may come out of nowhere).
SoFi Platform Supported
SoFi is a bit different regarding how its service is accessed. You can use the following platforms (Windows, Apple, and macOS) to access their internet banking platform:
- It has three mobile app versions for iPhone, Android, and tablet.
- It has four desktop versions you can use on Windows, macOS, Linux, or Chrome OS.
- The website supports mobile and tablet devices and desktops with browsers such as Firefox or Chrome.
The accessibility tools offered by SoFi are compatible with most platforms and operating systems. So, it is easy to open an account with them, and you can be sure that their software/apps will work with your existing devices. You can connect to your account using the app and manage your loan even with a smartphone. If you have any questions about their apps or services, the support team is always ready to help you fix any issue in a secure environment.
Customer Service at SoFi
Customer service is available via phone, email, or mail. You can contact them through the support page on their website or through the following channels:
➢ Phones: (855) 456-SOFI (7634), (844) 763-4466, (855) 525-SOFI (7634). If called, they are available from Monday till Thursday, 5 am–7 pm PT, and from Friday till Sunday, 5 am–5 pm PT.
➢ Email: [email protected]
➢ Tweet @SoFiSupport You can also send them a letter per regular post mail. All the addresses are available at https://www.sofi.com/contact-us/. The representatives will always be able to answer your questions within a few minutes of chatting with them manually because of their well-trained staff with years of experience.
For which Needs SoFi Fits the Best?
SoFi is a perfect option for your needs if you are looking to refinance a mortgage, pay some bills, or if you need to consolidate your credit cards. The company can help you build your credit score and even help you get rid of some high-interest loans by refinancing them to lower rates. A short-term loan can also be a good option if you need to make some payments until your paycheck comes.
Your income and expenses can also be connected to a loan, and you can get approved if you want to make regular payments. Considering rent and utility bills, most people have already heard about SoFi because it can help them reduce the cost of their utilities by connecting it to their loan and making sure they pay their bills on time.
What are Apps like SoFi?
Similar apps are available in the market, but because of their substantial brand value, their popularity is overgrowing, making it impossible to explore all its features. However, SoFi has some benefits over other alternatives you can use for your needs. Check the table below on differences in personal loans.
|APR Range||6.99% – 22.23% (includes .25% autopay discount)||7.04% – 35.89%||5.99% to 29.99%||3.22% to 35.99%|
|Loan Amounts||$5,000 – $100,000||$1,000 – $40,000||$4,000 to $25,000||$1,000 to $50,000|
|Loan Terms||2 – 7 years||3 or 5 years||3 years for personal loans 3 or 5 years for consolidation loans||3 or 5 years|
|Average Origination Fee||$0||3% – 6%||0% to 5%||0% to 8%|
Thus, you can see SoFi has a few same features, but it is unique as well and has a lot of characteristics that you can use when refinancing debt or getting some credit. You can also use it for other purposes such as paying bills, getting approved for a loan, and many other things.
The Review Process
This section of our review looks at the technical side of SoFi by analyzing the app: how intuitive it is, its features, reliability, and any potential flaws we could find.
- SoFi is one of the best-rated apps in the market. It has 4,000+ reviews with an average rating of 4.9 stars (out of 5). The dating sites like Trustpilot give it a rating of 4.5 out of 5+.
- Another aspect we check up on is whether or not the app works on our device. SoFi does have an app for iPhone and Android, which you can use to manage your loans and make payments.
- It is also compatible with Windows, macOS, or Linux. You can also use your Chrome to connect to the internet banking platform.
- The app works very well with most browsers too. It supports both Firefox and Chrome, so accessing it from any device is no problem.
- The only negative aspect we find is that SoFi isn’t free. However, when you sign up for their services, they offer you 1.50% interest rates and no account fees.
This review process has just been completed, so if you want to check out the app from SoFi.com, you can do that now. SoFi is one of the best ways to refinance your debt, consolidate credit cards and manage your accounts easily.
Is SoFi Worth it?
We have studied the issue and still find SoFi one of the best companies for refinancing your debts. It can help you manage everything from your bills to loans. It is also a popular app for many users because it has unique features such as lower interest rates, no hidden fees, and other benefits.
All of that is available in an intuitive environment where you can use the service without complications. SoFi can also be used for your everyday life, but only if you are confident that it will be there to help you out when needed. The company has been around for over ten years, so they know what they are doing and have gained a lot of experience with their services during this period.
Does SoFi work with chime?
Yes, SoFi is supported by the Chime App. You need to have an account with them, and you can manage multiple loans at once. The good news is that their website offers some great features which can help you manage your account in case you lose your credit card.
Does SoFi report to the credit bureau?
Well, that depends. If you want to report your payment history to the credit bureau, you need to request that they do so. They will then report your loan as a regular payment if you use their service on time. If you have an account with them, the answers would be clear, but if you are looking for a loan, then it is more complicated.
How many loans can you have with SoFi at once?
If you are looking for a loan, you can only have one at a time. However, if you have a private loan, there is no limit to the number of accounts you can open with them.
Does SoFi run your credit?
No, SoFi does not run your credit. It is a FICO score-based company, so you can use it to improve your credit. You can also pay down high-interest debt with them and get rid of someone.
Does SoFi affect your credit?
SoFi will help you clear your credit, but it will not change your credit score. If that is what you are looking for, you should go with a secured loan or a payday loan. You can have no fees when you are using their service. They don’t charge any hidden costs, and that is why we love them.
Who is the Founder of SoFi?
SoFi is a company co-founded by Mike Cagney and Max Levchin. The two worked together in funding Facebook’s launch in 2004. They have had no problem with the money they have been making, as they created 28 billion dollars worth of value in that period.
What banks does SoFi work with?
SoFi works with all banks in the United States, except for some credit unions. However, they can offer you other services if you want to borrow money from them. They are a completely flexible company when it comes to financing solutions.
Can I borrow again after I pay SoFi back?
Yes, you can do that. You don’t have to worry if the company has your credit. They are a reliable company offering many benefits, but some people might be concerned about their loans. However, it is always possible to repay the loan, and you can get another if needed.
How fast does SoFi deposit money?
They usually deposit money for you within two business days. If you need to contact them about your payment, then call their 24/7 customer service number. They will notify you when the payment is made and when it is ready to be withdrawn from your account.
How long does it take SoFi to verify my documents?
That can take up to 24 hours, but it usually takes less than 24 hours for them to verify your documents and get you the loan request.
Does the SoFi app give you money instantly?
No, it does not. That is because SoFi has created a secure solution for each customer. They have developed an algorithm to ensure your money will never fall into the wrong hands. SoFi takes all measures to ensure your money is safe and sound.
What is the max amount of money SoFi lets you borrow?
The maximum amount of money you can borrow from them is $100,000. That is why SoFi is popular among young adults and college goers, as they are the ones who need money the most.
What happens if you don’t pay SoFi?
Some people succeed using their services, but it is hard if you ignore your finances. If you fail to pay SoFi back, you will be blocked from accessing their platform. You will not be able to borrow money or get a loan, even if you have a fantastic credit score.
What are SoFi working hours?
They work the whole week according to this schedule: Monday – Thursday 5 am-7 pm PT; Friday – Sunday 5 am-5 pm PT. You can access the website from any part of the world, and you will find a great user experience that can help you get the most out of your money, debt clearing, and relationship with them.