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Credit cards generally have very high interest rates, which makes it harder for you to pay off your debt. Personal loans, which often have a lower APR, can therefore help you when refinancing existing debt or even when making a large purchase..
SoFi personal loans come at no cost other than interest, unlike many other lenders who charge setup and late fees. CNBC Select has ranked SoFi personal loans as the best for refinancing high interest debt, as eligible applicants can borrow up to $ 100,000, which comes in handy when your debt seems out of control.
SoFi accepts applicants with good to excellent credit, and a better score means more favorable terms. While it can be a useful option in a pinch, debt refinancing isn’t always a catch-all solution, so it’s best to do a little research beforehand.
To help you out, CNBC Select looked at the APR, benefits, fees, loan amounts, and length of SoFi terms. (Learn more about our methodology below.) Read on to find out if SoFi is the right lender for you.
Annual percentage rate (APR)
5.99% to 22.56% when you sign up for automatic payment
Purpose of the loan
Debt consolidation / refinancing, home renovation, relocation assistance or medical expenses
APRs range from 5.99% to 22.56% when you sign up for automatic payment. (There is a small 0.25% discount on automatic payment.)
Loan seekers can choose between a variable APR and a fixed APR. Fixed APRs give you a rate you pay for the life of your loan, and variable interest rates fluctuate, but they’re capped at 14.95%.
SoFi allows you to apply for a loan from a co-borrower (who would then be responsible for loan repayments). This is an added benefit, as it can be difficult to qualify on your own for good rates with damaged credit.
Another advantage is that of SoFi unemployment protection: if a borrower loses his job, he can ask to suspend his payments in installments of three months (if he has respected the terms of his agreement). To be eligible, you must prove that you lost your job through no fault of your own.
If approved, SoFi temporarily suspends your monthly bill while you search for a new job, while still giving you the option to pay interest. You will still incur interest, but your payment history will not be affected.
SoFi does not charge customers for setup or delay fees.
There are no prepayment penalties and customers are only responsible for interest on their principal balance during the term of the loan. If you pay off your loan sooner, you don’t have to pay the remaining interest.
Loan amounts range from $ 5,000 to $ 100,000. Once your loan is approved, you can expect to receive the funds in your bank account within days.
Find the best personal loans
To determine which personal loans are the best, CNBC Select has analyzed dozens of personal loans in the United States offered by online and physical banks, including major credit unions, that have no set-up or enrollment fees, fixed-rate APRs, and cash amounts. and flexible loan terms to suit a range of financings. Needs.
When selecting and ranking the best personal loans, we focused on the following features:
- No creation or registration fees: None of the lenders on our best-of list charge borrowers an upfront fee for processing your loan.
- Fixed rate APR: Variable rates can go up and down over the life of your loan. With a fixed rate APR, you lock in an interest rate for the life of the loan, which means your monthly payment stays the same, making it easier to plan your budget.
- Flexible minimum and maximum loan amounts / conditions: Each lender offers a variety of financing options that you can customize based on your monthly budget and the time you need to pay off your loan.
- No prepayment penalty: The lenders on our list do not charge borrowers for prepayment of loans.
- Simplified application process: We looked at whether lenders offer same-day approval decisions and a fast online application process.
- Customer service: Each loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders with an online resource center or advice center to help educate you about the personal loan process and your finances.
- Disbursement of funds: The loans on our list deliver the funds quickly by wire transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
- Autopay discounts: We have noted lenders who reward you for signing up for automatic payment by lowering your APR from 0.25% to 0.5%.
- Creditors payment limits and loan amounts: The above lenders provide loans in a range of sizes, from $ 500 to $ 100,000. Each lender advertises their respective payment limits and loan size, and a pre-approval process can give you an idea of ââyour interest rate and monthly payment for that amount.
After reviewing the features above, we sorted our recommendations based on overall financing needs, debt consolidation and refinancing, small loans, and next day financing.
Note that the advertised rates and fee structures for personal loans are subject to fluctuation based on the Fed rate. However, once you accept your loan agreement, a fixed rate APR will secure the interest rate and the monthly payment will remain constant for the life of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a rigorous credit investigation and request a complete application, which may require proof of income, identity verification, proof of address and more.
Editorial note: The opinions, analyzes, criticisms or recommendations expressed in this article are those of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.