Sofi loan is suitable for refinancing an old personal loan because of the relatively low-interest fee. The interest fee for the Sofi personal loans is from 5.49% – 13.49%. The average interest fee of a 3-year loans at Sofi is 8.9%. Choosing the shortest repayment term enables you to get a lower interest fee.
Having a good credit score also play a role in helping you to enjoy a lower interest fee. You have the option to choose a fixed or variable interest rate. Fixed rate means you the same installment fee every month. Variable rate is low at first but it is likely to increase during the lifetime of the loan. It is wise to choose a variable rate loan if you take out a short-term personal loan to consolidate your debt.
Sofi debt consolidation personal loan is ideal for people who are tired of having to make multiple payments every month. The lower interest rate makes it possible for you to pay off the loan in a shorter period with more excess cash for you to spend on other things. Besides, they do not charge any origination, prepayment and personal check processing fees. There is a 4% or $5 whichever is lower late fee as a penalty for waiting until after the 15 days grace period to make payment.
With Sofi, you can borrow an amount from $5,000 up to $100,000 to consolidate your old debts. The amount that you get approved will depend on your disposable income, debt to income ratio. The disposable income is calculated by deducting your monthly expenses from your gross monthly income. Credit score is not the main factor that is being taken into account by Sofi when determining whether to approve the loan.
Residents of California and Michigan can check their rate by filling in a loan request form at the official site. If you live in other states, you will have to compare the rates at other loan comparison sites. Filling in the form to check if you will get prequalified for the personal loan. To get qualified, you need to have a good credit score that is above 660. You can easily get approved if you have a credit score of 700 or higher and a median income 101,000.
Getting a debt consolidation at Sofi does not reduce the amount of your actual debt. It simply makes it easier for you to repay it by lowering the interest and fees. After you get approved, make sure you focus on repaying the due amount promptly. Sofi does report to the credit bureau so your repayment will affect your credit score. You will see more points add to your credit score within a few months of making prompt repayments.