Applying for a SoFi personal loan can be a straightforward way to cover expenses such as debt consolidation, home improvements, or unexpected costs. In this guide, we’ll walk you through the key steps, eligibility requirements, and important considerations to help you understand the process and increase your chances of approval. Whether you’re a first-time borrower or looking for better loan terms, knowing what to expect can make the application smoother and faster.
Who is likely to be approved
Sofi evaluates more than just credit score. Approval and loan sizing reflect a combination of factors including credit history, payment history, debt to income ratio, amount and type of income, requested loan amount, and loan purpose. Sofi may also weigh the term length, any collateral, the applicant relationship with the company, and whether any discounts apply when determining the offered interest rate.
Co-borrower option
Sofi allows a co-borrower on personal loan applications. A co-borrower is equally responsible for repaying the loan and can strengthen an application most when they have a stronger credit profile or higher income. Sofi requires the co-borrower to reside at the same address as the primary applicant, which makes this option most suitable for spouses and domestic partners.
Timing: approval and funding
Most Sofi applications are completed within two days. Certain circumstances can extend that timeline: self-employed applicants, additional document requests, and inclusion of co-borrowers can delay approval and funding up to around 10 days. After approval, funding typically takes a couple of days. For smaller loan amounts, some lenders can complete the whole process faster, but Sofi’s timing is typical for larger personal loans.
What is a Sofi personal loan good for?
Sofi personal loans are best suited to larger one-time expenses and debt consolidation where a meaningful reduction in interest rate is available. Typical appropriate uses include:
- Debt consolidation and credit card payoff, especially when the Sofi APR is 2 to 3 percentage points lower than existing rates.
- Major financial emergencies, substantial car repairs, and medical expenses.
- Life events such as adoption, having a baby, weddings, funerals, and relocating for a job.
- Home renovations and other mid-size to large projects.
- Recreational vehicle purchases where a personal loan may be more appropriate than an auto loan.
- Taxes and legal bills.
Uses that are generally not a good fit for a Sofi personal loan include:
Higher education tuition generally better served by student loans or refinancing solutions.
Small monthly shortfalls, due to the $5,000 minimum.
Standard car purchases, which often qualify for better traditional auto loan rates.
Student loan consolidation or replacement of student loans. Sofi offers student-specific products that are usually preferable.
Small business financing and investment in ventures, which typically require specialized business lending products.
Step-by-Step: How to Apply for a SoFi Personal Loan
1️⃣ Check your eligibility
Make sure you meet SoFi’s minimum requirements, including credit score, income, and residency.
2️⃣ Gather your documents
Prepare personal identification, income proof (pay stubs, tax returns), and information on existing debts if you plan to consolidate.
3️⃣ Prequalify online
- Visit SoFi’s website and complete the prequalification form.
- This uses a soft credit check, so your credit score is not affected.
4️⃣ Compare loan options
- Review the offered loan amounts, APRs, and repayment terms.
- Choose the combination that fits your needs.
5️⃣ Complete the full application
- Fill out the complete application with personal and financial details.
- Decide if you want a co-borrower or direct payoff to creditors (if consolidating debt).
6️⃣ Review and submit
Double-check all information, agree to the terms, and submit your application.
7️⃣ Approval and funding
If approved, SoFi will notify you and fund your loan, often as soon as the next business day.
8️⃣ Manage your loan
Use the SoFi app or online account to track payments, set up autopay, and manage your loan efficiently.
How to shop around and get the best deal
Comparison shopping matters. Different lenders produce different approvals, loan amounts, and rates for the same borrower. Using a marketplace that performs soft credit checks with multiple lenders behind the scenes can be a fast way to see multiple prequalified offers without harming credit scores. Comparing up to several dozen lenders helps ensure the borrower selects the best combination of APR, fees, and features for their needs.
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