Yes, a SoFi personal loan will affect your credit score because account information is reported to the major credit bureaus. Initially, a SoFi personal loan will hurt your credit score because of the hard inquiry into your credit when you apply, but the long-term impact can be very positive if you repay the loan on schedule.
How a SoFi Personal Loan Affects Your Credit Score
Hard pull:When you get approved for a SoFi personal loan, SoFi will do a hard inquiry into your credit history, which will temporarily drop your credit score by about 5-10 points in most cases.
Increased debt level: Taking out a SoFi personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.
Account diversity: One positive way that getting a SoFi personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your "credit mix" is one of the components of your credit score, and the more types of accounts you have, the better - as long as you handle them responsibly.
Payments: The biggest factor in how a SoFi personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.
The bottom line is that while a SoFi personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you'd like to estimate how certain actions might affect your credit score, you can use WalletHub's free credit score simulator.
This answer was first published on 08/11/21 and it was last updated on 04/18/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Does applying with SoFi affect your credit score? During the personal loan application process, you'll have to submit to a hard credit check, which can temporarily bring your credit score down by up to five points. However, your credit score can increase over time as you continue to repay your loan.
Is SoFi good to use for personal loans? ›
SoFi is one of the best-rated personal loan companies on the market today, offering low interest rates, a variety of repayment term lengths and a broad loan amount range. One factor that makes SoFi stand out is its unemployment protection program, which lowers your payment while you are looking for a job.
Does getting a personal loan hurt my credit score? ›
Does a personal loan hurt your credit score? Your credit score can dip a few points when you formally apply for a personal loan, but missed payments can cause a more significant drop. Getting a personal loan will also increase the amount of debt you owe, which is one of the factors that make up your credit score.
Does SoFi Hard pull credit? ›
SoFi will perform a soft credit pull when you apply for a credit card. If you do not qualify, no hard pull will occur. If your application for a SoFi credit card is accepted, a hard pull will occur at the time of approval, which may impact your credit score.
Does SoFi report to credit bureaus? ›
The SoFi Credit Card reports the card's credit limit, account balance, payment history, and more to all three of the major credit bureaus: Experian, TransUnion, and Equifax. SoFi may use a specific credit bureau more than another, depending on the applicant's home state, and other factors.
What is the downside to using SoFi? ›
SoFi Bank cons
SoFi is an online bank with no physical branches for customers to visit for in-person banking needs. Fee for cash deposits.
What are the drawbacks to SoFi? ›
Though the SoFi Checking and Savings account offers numerous advantages, there are some disadvantages to consider, such as foreign transaction fees, limited overdraft protection and a lack of bank branches.
What credit score do you need to get a $30,000 loan? ›
In general, lenders extend $30,000 loans to borrowers with good to excellent credit, which is typically 670 and higher. But there may be lenders who lend to borrowers with bad credit. If you're having difficulty qualifying, you may consider getting a cosigner or co-borrower to help you get approved for the loan.
How many points does personal loan affect credit score? ›
A hard inquiry can reduce your credit score one to five points, even if you're not approved for the loan in the end. If you miss a payment on your loan, even just once, your score could drop up to 180 points.
Is SoFi a safe lender? ›
SoFi has an A+ rating with the Better Business Bureau, but it is not BBB-accredited. In 2021, the Consumer Financial Protection Bureau received 14 personal-loan-related complaints about SoFi. The most common issues were related to getting a loan.
SoFi Loan Products
(Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender. Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score.
What is SoFi minimum credit score? ›
Good-to-excellent credit required: SoFi requires a minimum credit score of 680 to be approved for a personal loan, which is higher than some other lenders.
Is SoFi a private or federal loan? ›
If you've exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes.
Is SoFi considered federal loan? ›
SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
How fast do SoFi loans go through? ›
How long does it take to get funds from a SoFi personal loan? Once you're approved for a SoFi personal loan, you can expect to receive your funds within a few days. Often, applicants receive their money the same day.
Is SoFi a legitimate lending company? ›
Yes, SoFi is a legitimate lending company that offers various financial products, including loans, investing, credit cards and more. It was founded in 2011 as Social Finance Inc.
Does SoFi charge fees for personal loans? ›
While we do not have any late fees or prepayment penalties, we do offer our members the option to customize their loans by offering loans without an origination fee or the option to pay a one-time fee for an even lower interest rate.
How reliable is SoFi? ›
SoFi has an A+ rating with the Better Business Bureau, but it is not BBB-accredited. In 2021, the Consumer Financial Protection Bureau received 14 personal-loan-related complaints about SoFi. The most common issues were related to getting a loan.
Is SoFi money trustworthy? ›
A truly robust bank, SoFi Bank offers a number of products. And while SoFi doesn't have any physical locations, customers can access their accounts at more than 55,000 fee-free ATMs across the U.S. via the Allpoint network. SoFi also offers competitive interest rates and doesn't charge any fees.
