Why You Can Trust the MarketWatch Guides Team
Here’s a breakdown of how we reviewed and rated top personal loan providers
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Providers RatedOur team researched more than two dozen of the country’s most popular personal lenders, including large online companies like SoFi, big banks like Wells Fargo, and peer-to-peer lenders like Upstart.
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Data Points AnalyzedTo create our rating system, we analyzed each personal loan company’s disclosures, licensing documents, marketing materials, sample loan agreements and websites to understand their loan offerings and terms.
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Loan Features TrackedOur team regularly collects data on each company’s loan offerings and terms, such as minimum and maximum loan amounts, origination fees and discounts.
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Professionals ConsultedBefore we began our research process, we consulted with financial advisors and industry experts to ensure our evaluations covered the banking product aspects that matter most to potential customers.
Our Take on SoFi
SoFi is one of the best lenders on the market, known as a customer-centric company offering personal loan rates as low as 8.99% – on the lower end of the industry. The loans also feature no origination or late fees, and funds can be approved within the same day. The 8.99% APR includes a 0.25% discount for using autopay.
SoFi calls its customers “members,” and offers them a wealth of benefits. For example, one exceptional benefit is its unemployment protection program, which lowers or pauses your payments while you’re looking for a new job. SoFi doesn’t advertise this benefit anymore, so we called to confirm if personal loans are eligible. We verified that SoFi’s unemployment protection program is active as of May 2024 for personal loans, and you can even qualify for it in different life hardship scenarios like a natural disaster. Eligibility approval varies by member.
- Minimum credit score: The minimum credit score to be approved for a SoFi loan is 680, according to a representative we spoke to.
- Loan amount range: SoFi personal loan amounts range between $5,000 to $100,000.
Loan Terms: SoFi personal loan repayment terms range between two to seven years.
>> Related: Read our SoFi Bank review
How We Rate SoFi Personal Loans
The MarketWatch Guides team scores SoFi’s personal loans 4.4 out of 5 stars (88 out of 100 points). The overall scoring was calculated from data in four main categories: affordability, loan features, customer experience and company reputation. We considered features like the ability to pick loan terms, autopay discounts, potential fees and rates.
- Affordability (30/35): A huge plus with SoFi, which offers low rates and no fees for applicants.
- Loan Features (29/35): SoFi allows large loan amounts with flexible loan repayment terms.
- Customer Experience (19/20): SoFi has the best customer service out of our loan provider roundups. There are many customer support options and an easy online application process.
- Company Reputation (10/10): SoFi earns the highest possible score from the BBB.
SoFi’s customer service stands out, especially when compared to other lenders. Discover, for instance, doesn’t have email or chat support, and no customer service option has 24/7 support. SoFi provides all these services.
Another standout feature is SoFi’s speedy funding. SoFi can deliver loan money within the same day of your loan application being approved. From Jan. 1, 2022 to Dec. 31, 2022, 82% of typical SoFi personal loan applications that were signed before 7 p.m. ET on a business day were funded the same day, the company reports. To compare, LendingClub and Axos take at least two business days to fund your loan.
Will I Qualify for a SoFi Personal Loan?
SoFi doesn’t advertise its minimum credit score, but we called and found out that you’ll need at least a 680 to get a loan. This falls on the upper end of the “fair” credit range, making it one of the more challenging loans to qualify for.
However, even a score of 680 won’t guarantee you a loan. The higher your credit score and stronger your financial history, the more likely you are to qualify, but there’s no set yes or no answer on if you’re going to get a loan. Acceptance varies, depending on your credit score, financial history, debt-to-income (DTI) ratio, reason for the loan and income.
Basic Qualifiers for a SoFi Personal Loan
- You must be the age of majority in your state. For most states, it’s 18 years old, but for states such as Alabama, it’s 19 years old.
- You are either a United States citizen, eligible permanent resident or non-permanent resident alien – including DACA recipients and asylum seekers.
- You reside in a state where SoFi is authorized to lend (see map below).
- You must have income.
Credit Score and Financial History
You need a minimum credit score of 680 to be approved for a SoFi personal loan, which we confirmed with customer service. SoFi will also review your credit history, payment history and flag any other potential liabilities. Generally, only borrowers with excellent credit scores will receive the lowest available rates.
However, even a great credit score doesn’t guarantee a personal loan acceptance. To get first-hand experience, one of our MarketWatch Guides researchers applied for a SoFi personal loan. Our applicant had a credit score of 759 and was still denied a $20,000 personal loan.
Below is a screenshot of the rejection letter from SoFi.
- Lack of sufficient relevant installment account information. This means our applicant didn’t currently have any personal, student, mortgage or auto loans. Lenders use your payment history on relevant loans to confirm your trustworthiness.
- Ratio of balance to limit on bank revolving or other revolving accounts is too high. This means the balance on one or more of our applicant’s credit cards was higher than the lender would like.
- Lack of recently reported mortgage loan information. Similar to the “relevant installment account” reason, this means the applicant hasn’t had an active mortgage loan reported to credit bureaus within the last few years. Again, lenders like to see a track record of on-time payments.
- The total of all balances on your bank card revolving accounts is too high or increased too fast recently. This means our applicant either opened up credit cards or increased spending limits too recently.
Remember, this is one sample applicant — you could have better luck with approval.
Helpful Tip:
If you have poor credit, you may have a better chance of qualifying for an Upstart personal loan. Upstart is known to accept borrowers with credit scores as low as 300 or with no credit history at all.
Income and Employment
To be approved for a SoFi loan, you must be employed or have sufficient income from other sources, or have an offer of employment to start within the next 90 days.
We contacted SoFi to verify if there’s a required income threshold to qualify for a personal loan and were told there’s no specific requirement for approval.
SoFi Personal Loans Reviews
To give you a better idea of how customers feel about personal loan companies, MarketWatch Guides reviewed thousands of reviews from popular, publicly available user-review sites including Trustpilot, the Better Business Bureau, Consumer Affairs and Best Company.
We categorized each review to determine whether it was positive or negative. With that data, we normalized scores against each other to create a fair standard. We generated numeral scores to gauge SoFi’s ease of use, responsiveness, transparency, reliability and customer service as it relates to other companies in the industry. Scores do not guarantee your experience and are only intended to convey general trends.
SoFi’s Overall Consumer Sentiment rating is 4.3 out of 5 stars, which is above average. SoFi’s scores are generally from positive reviews. In all categories, 3.5 is the average score.
- Overall: 4.3
- Ease of Use: 4.1
- Responsiveness: 4.0
- Transparency: 4.0
- Trust and Reliability: 4.4
- Customer Service: 3.8
Most Praised Features
- Ease of use: The user interface and streamlined application process were frequently commended — roughly 21% of positive reviews mentioned ease of use.
- Quick loan approval and funding: Many users praised the fast processing and ease of receiving funds. About 13% of positive reviews commended speedy loan approval and funding.
Most Common Complaints
- Customer service issues: Problems with service responsiveness and issue resolution were common complaints. Nearly 24% of negative reviews highlighted poor customer service.
- Policy and communication transparency: Some customers were dissatisfied with how policies were communicated and executed, especially during times of personal financial stress. About 10% of negative reviews mentioned poor transparency.
Who Are SoFi Personal Loans Best For?
SoFi personal loans are best for people with a credit score over 680 and looking for a loan between $5,000 to $100,000. If you’re looking for a loan with quick funding, SoFi can fund loans within the same day of the application being approved.
SoFi also offers a community and benefits with its membership model, which is best for individuals wanting to reap benefits beyond a traditional loan. With SoFi’s membership, you can get personalized financial advice, referral bonuses, member rate discounts and premium offers on flights, hotels and rental cars.
You can qualify for this membership at no cost if you’re approved for a SoFi personal loan.
Example Applicants
Aiden Clark needs $15,000 for a home improvement project
Aiden’s loan is within SoFi’s loan range and doesn’t risk his home as collateral as he would with a home equity line of credit (HELOC). SoFi’s low fixed rate and term of up to seven years will simplify paying off the loan.
Slyvia Gomez wants to get rid of $20,000 in outstanding credit card debt
Slyvia’s loan is within the range for SoFi, and no fees means she won’t pay any unnecessary costs. SoFi is well-known for successfully paying off credit card debt, with over $26 billion paid off, according to the company. SoFi can also include a 0.25% direct pay rate discount for personal loan payments toward credit card accounts, which can be combined with the 0.25% autopay discount.
How SoFi Compares to Other Lenders
SoFi has a slightly higher starting rate than some of its peers, but a fairly high loan amount range. Both SoFi and LightStream have no fees, while other lenders claim the same, but when reading the fine print there is indeed a late payment fee.
| SoFi | LightStream | PenFed | Discover | |
|---|---|---|---|---|
| Loan Amount Range | $5,000 to $100,000 | $5,000 to $100,000 | $600 to $50,000 | $2,500 to $40,000 |
| Minimum Credit Score for Approval | 680 | N/A | N/A | N/A |
| Loan Terms | 2 to 7 years | 2 to 20 years (varies by loan type) | Up to 5 years | 3 to 7 years |
| Rates | 8.99% to 29.49% APR | 6.99% to 25.49% APR | 7.99% to 17.99% APR | 7.99% to 24.99% APR |
| Fees | None | None | Late penalty fee of $29 | Late penalty fee of $39 |
| Funding Speed | Up to same-day | Up to same-day | Up to next day | Several days |
Pros and Cons of SoFi Personal Loans
There are many benefits and drawbacks to using a personal loan from SoFi. Here’s what to know before applying.
Pros
Speedy funding: You can receive money the same day you finalize the loan or funds can be sent directly to your credit card issuer.
High borrowing ability: SoFi allows you to borrow a large sum of money — up to $100,000.
No fees: SoFi does not charge late fees, origination fees or prepayment penalties.
Flexible term options: You can choose from a wide range of repayment terms, from two to seven years.
Provides alternative solutions: Even if your personal loan application is denied, SoFi may give you other options from different lenders.
Unemployment protection program: SoFi offers a 12-month forbearance program if you lose your job or face a natural disaster.
Cons
High minimum: The minimum loan amount is $5,000, which might be high for some borrowers.
Higher rates: SoFi’s starting interest rates are slightly higher than with some other lenders, with rates starting at 8.99%.
SoFi Personal Loans Usage Rules
You can use your personal loan for many reasons, with a few exceptions. SoFi considers the following expenses to be worthy of taking out a personal loan:
- Debt consolidation
- Medical bills
- Home repairs
- Funeral expenses
- Auto repairs
- Wedding expenses
- Financing a vehicle
You cannot use a SoFi personal loan for the following:
- Down payment on a home
- Postsecondary education expenses
- Business costs
- Investments
Frequently Asked Questions About SoFi Personal Loans
You need a minimum credit score of 680 to be approved for a SoFi loan.
Due to the high credit score requirement of 680, it can be harder to get a loan from SoFi than from other lenders. To compare, Upstart’s minimum credit score for approval is only 300.
You can receive a loan from SoFi within the same day of applying. From Jan. 1, 2022, to Dec. 31, 2022, 82% of typical SoFi personal loan applications signed before 7 p.m. ET on a business day were funded the same day.
You can apply for a SoFi loan on its website or through its mobile app.
Yes — you can pre-qualify for a SoFi loan. SoFi has a useful tool to provide sample rates and terms online. You’ll need to provide your income, email, birthdate, citizenship status, state residence, requested loan amount and reason you’re requesting the loan to use the tool.
SoFi doesn’t charge any fees with its loans. This includes standard fees such as origination fees, late fees or prepayment penalties.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Learn More About SoFi
See how SoFi stands out in our roundups of the best financial institutions and personal loans available today:
- #2 on Best Fast Personal Loans
- #2 on Best Personal Loans with No Origination Fees
- #2 on Best Unsecured Personal Loans
- #2 on Best Personal Loans
- #1 on Best Banks for Personal Loans
- #2 on Best Low-Interest Personal Loans
- #2 on Best Online Personal Loans
- #2 on Personal Loans for Good Credit
- #2 on Best Debt Consolidation Loans
- #2 on Emergency Loans
- #3 on Personal Loans for Veterans
- #2 on Best Joint Personal Loans
- #2 on Best Personal Loans With a Co-Signer
- #2 on Easiest Personal Loans to Get
Sources:
Better Business Bureau, SoFi.
Fitch Ratings, Fitch Rates SoFi Personal Loan Trust 2024-1.
SoFi, Compare Rates and Terms.
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
Zina KumokContributing Writer
Zina Kumok is a personal finance writer covering saving, retirement and loans. Her work has appeared in The Washington Post, Fox Business and Time. Zina is also a certified financial health counselor and student loan counselor.
David GregoryEditor
David Gregory is an editor with more than a decade of experience in the financial services industry. Before that, he worked as a child and family therapist until he made the decision to move abroad for several years to work and travel.
