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SoFi is one of the bigger players in the loan comparison market. It was originally founded by Stanford Business School graduates as a way to help connect recent graduates to past alumni. 

SoFi Review

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The alumni would lend money to new graduates for various purposes, creating a sense of community lending.&nbsp; SoFi has kept its student roots and now specializes in private student loans and student loan refinancing. It has also expanded operations to cover general personal loans, mortgages, small business financing, and a number of investment options. SoFi is a better option for young professionals and those who already have a history of good credit. The minimum credit score stated is 680, but many will only be accepted with scores of 700 or higher. So it’s definitely not the option for you if you have bad credit.SoFi is a direct lender, meaning you’ll be borrowing directly for personal loans, mortgages, and student loans. However, it has a small pool of partner lenders when applying for small business loans.Being a direct lender, you won’t be able to compare rates to competitors, and it can sometimes be a lengthy process to get the money into your account.It should also be noted that SoFi was subject to a Federal Trade Commission ruling in 2018, under accusations it misrepresented savings students could make with its refinancing options. While this is now settled, SoFi’s reputation did take a hit.<h2>Loans and policies breakdown</h2><ul><li>Student loans and student refinancing</li></ul>SoFi provides both private student loans and refinancing options on your existing student loan. If you feel you’re paying too much interest on your current loan, there’s a good chance SoFi can help you out. Terms are very similar across both new loans and refinanced ones, and features include:<ul><li>Minimum loan amounts of $5,000 with no maximum.&nbsp;</li><li>SoFi will fund the full value of your tuition and accommodation costs</li><li>Fixed interest rates between 4.73% and 11.46%</li><li>Variable rates from 1.57% to 10.23%</li><li>Better rates available with a cosigner</li><li>No origination fees and no late fees</li><li>The online application form can be completed in just a few minutes</li><li>Repayment terms of 5, 7, 10, 15, and 20 years</li><li>You must be able to evidence satisfactory academic progress (SAP) in order to continue receiving a private student loan</li></ul>SoFi has some of the lowest variable student loan rates on the market and dedicated customer support, making it a good choice for your student financing needs.<ul><li>General personal loans</li></ul>SoFi has some great personal loan options with low rates available. However, you’ll need a good credit rating, evidence of a responsible financial history, evidence of professional experience, and proof of income.&nbsp;These loans aren't for you if you need the money quickly. The approvals process can take anywhere between 7 to 30 days, and even longer for the money to arrive in your account.Features to expect include:<ul><li>Borrow between $5,000 and $100,000</li><li>Interest rates between 5.99% and 19.96%</li><li>No origination or early repayment fees</li><li>Repayment terms between 2 to 7 years</li><li>A minimum annual income of $45,000 is needed. However, most borrower’s annual income exceeds $100,000</li><li>Long approval times. The average is 7 days but this can be as long as 30 days</li><li>Unemployment protection is included. This means if you lose your job, your loan will be suspended for three months and you won’t need to make any repayments.&nbsp;</li><li>Mortgages and home loans</li></ul>SoFi offers mortgages on new homes as well as refinancing options on your current mortgage. However, SoFi’s mortgage offerings are relatively new, and as such they’re a little limited. Also, interest rates can be a little higher than competitors, but you’ll get good dedicated customer service. Features include:<ul><li>15 or 30-year mortgages available</li><li>Interest rates between 3.63% and 4.63%</li><li>The online application is simple to follow</li><li>SoFi only offers mortgages in 42 states</li><li>Loan-to-value of 90% or less</li></ul>There are better mortgage broker options out there at the moment, as well as a growing number of mortgage comparison sites. Once SoFi’s mortgage option becomes more mature, though, it’ll likely be able to offer better value.<ul><li>Small business loans</li></ul>These work a little differently to SoFi’s other loans as you don’t borrow the money directly from SoFi. Instead, you’ll be referred to ‘Lantern Credit’, a company owned and operated by SoFi. It’s a comparison site that offers other services beyond business loans.No details are available via the SoFi website, and all links follow through to the Lantern site. Despite being owned by SoFi, you’ll legally be taking your business loan from a different company.<ul><li>Investment options</li></ul>SoFi also offers a number of investment account options. This is for those interested in investing in the stock market. Options include:<ul><li>Active investing accounts - Pick and choose your investments and pay no trading fees on stock purchases</li><li>Automated investments - Simply set a goal, such as a retirement fund or downpayment on a house, and SoFi will auto-invest your money. You don’t have to do anything and your stocks will be assessed every quarter by SoFi</li><li>Retirement accounts - As these are a new product at SoFi we don’t yet have any data to look at</li><li>Bitcoin investment options - Open a bitcoin account with SoFi and choose to buy or sell the cryptocurrency at your leisure</li><li>Stock bits - SoFi lets you invest even if you have very little money to invest with. Stock bits allow you to buy fractions of shares instead of full ones. Accounts start from just $1</li></ul><h2>Key advantages of using SoFi</h2>SoFi is great for those who want to borrow large amounts of money to cover big purchases. SoFi aims its products to people with some understanding of financial services and targets the young professional market. If you’re in this group you’ll benefit from low interest rates.It’s a sensible choice for those looking for student loans too. SoFi’s variable rates are very low and you’ll have the benefit of a student help center and great customer support throughout your loan term.If you have some disposable income it might be worth signing up to one of SoFi’s investment account options.<h2>Key Disadvantages of using SoFi</h2>SoFi definitely isn’t for you if you have bad credit. The credit score requirements are quite high and anyone with a rating below good is going to be rejected.As a direct lender, your options here are rather limited. Trying a loan comparison site might be a better route to take as you’ll be offered a greater variety of rates and repayment terms.SoFi’s target market is for those who use their loans for planned expenses since approvals alone can take up to 30 days.<h2>Summary&nbsp;&nbsp;</h2>If you’re financially stable, on a decent income, and have a good credit rating, then SoFi is a good choice for you. It’s likely you’ll be able to access very favorable interest rates and even dabble in some investment options if you have the spare cash.However, if you need money to cover emergencies or suffer from a poor credit rating, we’d recommend trying elsewhere. Start with some of the larger loan comparison sites to increase your range of options.