Sofi: A New Kind of Lender
Social Finance Inc., known as SoFi, is an online private financing service. It offers student loans, mortgages, and personal loans. The company, which HQed in San Francisco, was founded in 2011 and has established itself as a major player in the online wealth management arena. It has become a household name for audiences below a certain age and prides itself on offering affordable borrowing.
Below we have analyzed the Good, Bad, and Bottom Line of the SoFi model. This breakdown should help you decide whether or not the SoFi financial services is the right choice for your circumstances.
Sofi: The Good
- Various products available
- Easy applications
- Quick decisions
- Competitive rates
- No hidden fees.
SoFi originally provided funded by connecting students to recent graduates that were willing to lend them money at a low rate. While the model has evolved over the past six years, those vibes of genuinely trying to help people out are visible.
Areas where SoFi Excels
Various Products Available
Student loans arent the only product on offer. Nowadays, SoFi provides personal loans, parent loans, mortgages and refinancing packages too.
As an online financing vendor, applications can be completed from the comfort of your home. They require less information than some competitors too.
Likewise, the online service can usually confirm their decisions within minutes. This includes confirming the available rates.
The company prides itself on offering affordable lending, and their rates are a lot better than some of their competitors.
No Hidden Fees
What you see is what you pay.
Summary of the Good
SoFi is a fair lender that places emphasis on speed, easy access, and transparency. Moreover, the community vibe can be very useful for students. The company doesnt only help you take positive steps on a financial front, they help you get ahead in general life.
Sofi: The Bad
- No set rates
- Lack of human interaction
- Not great for low income
- Unfavorable for low credit scores
- Not quite nationwide
While SoFi has many positive elements to shout about, there are some negative factors that need to be considered. Most of those stem from issues relating to inclusiveness. Meanwhile, the online platform isnt a winner for everyone especially those in debt.
Areas where SoFi could improve
No Set Rates
The figures shown on screen and in adverts arent necessarily what youll be offered. As such, your application could be a waste of time.
Lack Of Human Interaction
Online interactions can make the process difficult if you encounter an issue that you dont quite understand.
Not Great For Low Income
Students aside, borrowers tend to earn upwards of $100k annually. The service is tailored for the upper bracket of earners and can penalize those that dont fit the bill.
Unfavorable For Low Credit Scores
While there is no lower limit on credit history, its worth noting that most people have good to medium credit scores.
Not Quite Nationwide
Live in Mississippi or Nevada? Unlucky.
Summary of the Bad
Being an online company does pose a few limitations while the focus of their lending means SoFi isnt as inclusive as some. Therefore, people in some situations will want to look elsewhere.
Sofi: The Bottom Line
SoFi is a modern lender, and its pioneering ways are perfect for many people, especially lenders. For a quick process that often offers great rates and flexibility, this is a brilliant option.