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SoFi Debt Consolidation Review

Home » Finance » SoFi Debt Consolidation Review
7.2

Table of Contents

SoFi Bank and Debt Consolidation Loan Review Summary:

  • SoFi bank reviews present a spectrum of experiences, with some customers praising the company’s competitive rates and exceptional customer service, while others have encountered negative experiences.
  • Similarly, SoFi personal loan reviews are also mixed. Reputable sources like NerdWallet, Forbes, US News, and Bankrate offer favorable ratings for SoFi personal loans, but the Better Business Bureau (BBB) paints a different picture.
  • SoFi has amassed over 1,370 BBB complaints. These complaints primarily revolve around issues with checking accounts, loan rejections, unexpected fees, and delayed customer service responses.

To provide a balanced perspective, we’ll explore both the positive and negative aspects of SoFi debt consolidation reviews, providing valuable insights for potential customers.

According to a 2023 paper by the Federal Reserve Board, personal loans, many of which are used to consolidate debt, account for $356 billion in borrowed money. Of that money, FinTech companies, including SoFi, claim a 14% share, or $49.9 billion in personal loans. SoFi was and is one of the forerunners driving a push toward online banking and lending.

 

sofi bank reviews feature image with logo

Is SoFi a good bank?

SoFi Bank is a well-established FinTech institution and a pioneer in online banking, starting in 2011 as a social lending platform. In early 2022, the company became a federally chartered bank and now offers full-service banking online with no brick-and-mortar locations. Customers can enjoy a full suite of banking and lending services with SoFi. Debt consolidation loans are a significant part of the services the bank offers. See more details below.

Sofi is a good online bank. However, there are higher-ranked online banks that offer personal loans and debt consolidation that we’d recommend over SoFi. We gave SoFi a rating of 7.2 out of 10, while LendingClub received a 7.8 out of 10.

Pros

  • Pre-qualifying won’t affect credit score

  • No origination fees

  • Available in all 50 states

  • No prepayment fees

  • Mobile app available

  • Other financial services available

Cons

  • Choice of payment date unavailable

  • Good to excellent credit required for approval

  • Best interest rate requires autopay and direct deposit discounts

  • Direct payments to creditors unavailable

SoFi Bank Review | Features and Benefits

As a full-service banking institution, SoFi has the ability to offer flexibility to its customers. Its debt consolidation loans are simply unsecured personal loans, useful for multiple purposes. However, SoFi’s relatively low top-end interest rate means many debt consolidation borrowers could save significant interest money by consolidating higher-interest debts.
  • Complete online banking organization
  • Consolidation loan amounts from $5,000 to $100,000
  • Pre-qualifying won’t affect credit score
  • Direct lender payments unavailable
  • Repayment terms from 24 to 84 months
  • Interest rates from 8.99% – 25.81%
  • Autopay and direct deposit discounts available
  • Mobile app available
  • Best for borrowers with good to excellent credit
  • Also offers other financial services
  • Joint borrowing available
  • Available in all 50 states

SoFi Bank Review | Editorial Rating

Trusted Company Reviews Rating Score for SoFi: 7.2
While our rating criteria sees SoFi ranking highly in a number of categories, the company is geared more towards working with debt consolidation borrowers with higher credit scores. SoFi doesn’t list a minimum credit score requirement, but reviews and experts agree that a good to excellent credit score of 680 or above is necessary for decent approval odds.
SoFi ranks highly across several reviews and ratings platforms from customers and experts alike. The company scores an average of 4.6 of 5 stars across numerous review sites. For those reasons, we consider SoFi a highly-rated option for debt consolidation customers. However, the company just misses a spot on our best debt consolidation companies review for the year.

SoFi Debt Consolidation Facts

SoFi Bank reviews sometimes mention discontent with the company’s move to become an official banking institution. However, the move allows SoFi to offer a greater number of services to its existing and future customers.
SoFi’s debt consolidation loan program operates much like other online lenders by offering a pre-qualification step so consumers can see what loan options they may qualify for without hurting their credit scores.
The primary difference between SoFi and other online lenders is that SoFi operates as its own broker and lender and can provide more substantial banking services than just meeting debt consolidation needs.
SoFi offers interest rates starting at 8.99% when customers take advantage of autopay and direct deposit discounts. 8.99% is slightly higher than many online lenders’ lowest interest rates. However, SoFi’s highest interest rate tops out at 25.81%, more than 10% less than many online lending companies. SoFi offers loan length terms from 24 to 84 months for loan amounts of $5,000 to $100,000 with no origination fees or early payoff penalties.
Interest Rates 8.99% – 25.81%
Origination Fee 0
Loan Terms 24 – 84 months
Minimum Credit Score 680
Loan Amounts $5,000 – $100,000
BBB Rating 1.74 / A+

SoFi Interest Rates

Interest rates SoFi offers start higher than many online lenders, but max out around 10% lower than much of the competition. The starting interest rate for SoFi debt consolidation is 9.49%. However, customers can opt for a 0.25% rate discount by choosing autopay for their loan and another 0.25% discount if they have a SoFi savings or checking account and set up direct deposit. With discounts, the lowest interest rate equals 8.99%
SoFi sets a relatively high bar for borrowers regarding credit scores. The company sets no minimum requirement. However, most approved debt consolidation loans go to borrowers with scores of 680 or higher. That fact is significant because it puts SoFi in direct competition with traditional bank debt consolidation loans that can often provide a lower interest rate for borrowers with excellent credit.

How to Get a SoFi Debt Consolidation Loan

Getting a SoFi debt consolidation loan starts by providing personal and financial information on the company’s website. After doing so, SoFi will return a pre-qualification or denial within 60 seconds. This pre-qualification step allows potential customers to determine their approval odds for debt consolidation through SoFi. If the customer pre-qualifies, SoFi will present one or more borrowing options.
After choosing a loan and its terms from those offered, the customer can formally apply for the product by providing documentation proving the statements made during the pre-qualification step. SoFi will take up to three days to verify the documents and information and return a final approval or denial.
Final approval is highly likely, provided the information submitted during pre-qualification is current and accurate.
If approved, the customer’s funds will appear in their specified checking or savings account within a few business days. However, the vast majority of loan approvals receive funding on the same day. The customer can then use the funds for any lawful purpose, including debt consolidation.

SoFi Credit Score Requirements

The average SoFi debt consolidation loan is for approximately $30,000, with an average interest rate of 15% to 16% for borrowers with good credit. Borrowers with excellent credit can see rates of under 10% with SoFi.
While SoFi doesn’t provide minimum credit score requirements for its debt consolidation loans, the general consensus among reviewers and experts is that a score of 680 or above is necessary for approval. However, SoFi does allow cosigners and joint applicants, which could increase the approval odds.

SoFi Debt Consolidation Loan Requirements

Debt consolidation customers at SoFi need at least a good credit score to expect loan approval. However, the company’s pre-qualification step only draws a soft credit inquiry that won’t affect a credit score—Meaning potential borrowers can check their approval odds without harming their scores. However, potential customers must at least meet the following criteria to apply.
  • Social Security number
  • 18 years of age or older in most states
  • Be a U.S. citizen or permanent or non-permanent resident
  • Employed or able to provide proof of sufficient income
  • Proof of residence
  • Possession of financial and personal documentation

Compare SoFi vs. Other Top-Rated Personal Loan Requirements

Lender Fixed (APR) Loan Amounts
Minimum Credit Score
Upstart Personal Loan 6.40% to 35.99% $1,000 to $50,000 620
LightStream Personal Loan 7.49% to 25.49% $5,000 to $100,000 700
Discover Personal Loan 7.99% to 24.99% $2,500 to $40,000 660
PenFed Credit Union Loan 8.49% to 17.99% $600 to $50,000 700
Upgrade Personal Loan 8.49% to $35.99% $1,000 to $50,000 600
Sofi Personal Loan 8.99% to 25.81% $50,000 to $100,000
Does Not Disclose
Best Egg Personal Loan 8.99% to 35.99% $20,000 to $50,000 600
LendingClub Personal Loan 9.57% to 35.99% $1,000 to $40,000 660
Avant Personal Loan 9.95% to 35.99% $20,000 to $35,000 550
Universal Credit Personal Loan 11.69% to 35.99% $1,000 to $50,000 560
OneMain Financial Personal Loan 18% to 35.99% $1,500 to $20,000
Does Not Disclose
Zable Personal Loans 8% to 30% $1,000 to $25,000 600
Happy Money Debt Consolidation Loan 11.72% to 24.67% $3,000 to $40,000 640

Source: Top 5 Best Personal Loans for Fair Credit, Good Credit and Excellent Credit

Approval and Acceptance

SoFi offers potential borrowers a pre-qualification step that can provide approval odds information as well as borrowing options if qualified. Pre-qualification and receipt of loan offers don’t equal final debt consolidation loan approval. Customers must first receive pre-qualified status and complete the application process before being accepted by SoFi for a personal loan to use as debt consolidation funding.

SoFi Bank Reviews and Complaints

SoFi bank reviews carry a 4.6 average rating from several online reviews and ratings sites. Trustpilot awards SoFi a 4.7-star rating, aligning with other highly-regarded platforms. The BBB gives the company an A+ grade for its responsiveness to customer complaints and concerns.
SoFi complaints generally stem from customer service issues and technical troubles regarding the company’s website and banking procedures. Trustpilot reports that SoFi has responded to 68% of negative reviews on the platform.

SoFi Bank Reviews Common Inquiries

Being a popular online banking company, several general consumer concerns come up often.

Is SoFi Legit?

SoFi is a legitimate online banking organization. The company started in 2011 as a social lending platform and has since transformed into a completely online banking institution. SoFi offers a full suite of banking services, including debt consolidation and personal loans, checking and savings accounts, credit cards, mortgages, and more.
SoFi provides services in all 50 states nationwide, is traded on the Nasdaq stock exchange, and is worth an estimated $6.43 billion as of November 2023.

Is SoFi Worth It?

Debt consolidation through SoFi may be worth it when trying to reduce high-interest costs associated with unsecured debt. However, SoFi’s relatively high entry interest rate is on par with traditional banks. Banking customers with solid credit and a good relationship with their brick-and-mortar lender may be able to score a better interest rate than with SoFi.
That said, SoFi offers a high level of banking and borrowing convenience as a strictly online entity. Those with good to excellent credit looking for a lower interest rate coupled with online convenience may find that SoFi meets their debt consolidation needs quite well.

Is SoFi Bank in trouble?

The recent collapse of Silicon Valley Bank and other banking industry concerns has been met with worries over the industry as a whole.
SoFi Bank is a federally chartered banking institution, publicly traded on the Nasdaq stock exchange. As a public company, SoFi and all other publicly traded entities are subject to stock fluctuations. As of November 2023, SoFi has an estimated net worth of nearly $6.5 billion and is not in financial trouble. In March, 2023 Yahoo Finance called the company “a solid investment opportunity.”

SoFi Vs. Our Top Picks

Our best debt consolidation companies review and best personal loan companies review showcase the best online lending institutions. Each has its own features and benefits worthy of inclusion on the list. Below are several examples and how they stack up against SoFi Bank reviews.

SoFi Vs. Credible

While SoFi and Credible structure themselves very differently, there are some similarities between the two. SoFi provides full banking services online that include debt consolidation and personal loans. Credible is an online lending marketplace that offers consolidation and loan services from multiple lending sources.
The similarities between them include high grades at the BBB but with unimpressive ratings. However, both carry excellent review scores on other platforms. And, while both offer wide ranges of interest rates, loan terms, and loan amounts, our Credible review reveals that it’s a few steps ahead of SoFi when it comes to offering the widest ranges of those items.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Credible 1.29 / A+ 4.6 4.60 – 35.99% 0 – 12% Varies by Lender 12 to 84 months No minimum stated $600 to $100,000

SoFi Vs. LendingTree

Our LendingTree review is included in our top picks for debt consolidation lenders. LendingTree works with over 500 lending institutions to provide consumers with a wide range of borrowing resources and options. SoFi is its own broker and lender. However, it competes well from the standpoint of providing customer options.
Both companies have stricter credit score requirements than many of their competitors. However, SoFi caters just a bit more to higher credit score holders than LendingTree. While both companies offer many loan term lengths, LendingTree borrowers are limited to loan amounts topping out at $50,000, compared to SoFi’s $100,000 limit.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Lending-

Tree

1.15 / A+ 4.3 5.20 – 35.99% 0% – 8% 12 to 144 months 600 $1,000 to $50,000

SoFi Vs. LendingClub

Both SoFi and LendingClub are full-service online banking organizations. However, the companies differ from one another quite a bit. SoFi caters to those with good to excellent credit scores, offers much higher loan amounts with potentially lower interest rates, and provides long-term payment options.
On the other hand, our LendingClub review details the company’s focus on borrowers with fair to good credit, lower potential interest rates for those with excellent credit only, limited loan terms, and the inclusion of origination fees.
While LendingClub made our list of the best debt consolidation companies, these two entities are in close competition regarding which has the better debt consolidation options.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Lending-

Club

4.56 / A+ 4.4 6.34 – 35.89% 3 – 8% 36 or 60 months 600 $1,000 to $40,000

SoFi Vs. Upstart

Upstart and SoFi have little in common with each other. As an online banking company, SoFi has a specific list of debt consolidation loan options, as opposed to Upstart’s long list of potential choices, due to its position as an online marketplace for borrowers.
According to our Upstart review, the company caters to debt consolidation customers with poor to fair credit scores and histories. SoFi aims for consumers with higher scores. Those who find success with using Upstart may not achieve the same results with SoFi, while those who opt to work with SoFi may not appreciate the benefits of borrowing through Upstart.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Upstart 1.24 / A+ 3.4 5.39 – 35.99% 0 – 12% Varies by Lender 36 to 60 months 300 $1,000 to $50,000

SoFi Bank Reviews Vs. the Others

Here’s how SoFi fares against other lenders that didn’t make our list of the best debt consolidation companies of the year.

SoFi Vs. Best Egg

SoFi reviews and our Best Egg review have little in common besides ratings and minimum credit score requirements. However, Best Egg scores slightly higher on most sites. While both companies operate almost strictly online and only offer funding from limited banking institutions, that’s where the similarities end.
SoFi’s list of debt consolidation specifics includes a wide range of loan terms and dollar amounts. Best Egg, on the other hand, offers limited loan terms and limited borrowing amounts.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Best Egg 4.87 / A+ 4.8 8.99 – 35.99% 0.99 – 8.99% 36 to 60 months 640 $2,000 to $50,000

SoFi Vs. Upgrade

SoFi and Upgrade both function as online lenders. However, SoFi offers many more services than Upgrade. However, by focusing on providing debt consolidation and personal loan services from Cross River Bank, Upgrade’s high consumer rating, low interest rate potential, and ability to serve borrowers with lower credit scores put it out front. Our Upgrade review highlights one of our top personal loan company picks this year.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Upgrade 4.48 / A+ 4.6 6.55 – 35.97% 1.85 – 9.99% 12 to 84 months 600 $1,000 to $50,000

SoFi Vs. Prosper

SoFi and Prosper both offer debt consolidation lending and carry A+ grades from the BBB. Both companies also have lackluster review scores at the Bureau. While these companies offer flexible terms and multiple borrowing options, SoFi operates as an online bank, and Prosper functions as a peer-to-peer lending platform. This difference renders a comparison between the two challenging to establish.
Debt consolidation customers with higher credit scores who perhaps need to borrow more money may be best served by SoFi. For others wishing to borrow a smaller amount and who may lack a stellar credit score, Prosper may offer an acceptable solution.
BBB Grade / Rating Average Reviews Rating Interest Rates Origination Fee Loan Terms Minimum Credit Score Loan Amount
SoFi 1.74 / A+ 4.6 8.99 – 25.81% $0 24 – 84 months 680 $5,000 to $100,000
Prosper 1.05 / A+ 4.3 6.99 – 35.99% 1 – 7.99% 24 to 60 months 600 $2,000 to $40,000

Frequently Asked Questions

How long does SoFi take to review an application?

Is SoFi a good bank?

Is SoFi safe?

Are SoFi loans good?

What bank does Sofi use?

Where is SoFi Bank located?

Does SoFi work with Zelle?

Source

Image Sources: sofi.com – bbb.org – trustpilot.com

About Author

Dr. Ali
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Deane Biermeier

Last Updated: February 26, 2024