Rick Bormin, Personal Loans Moderator
@rhandoo2020
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.
People also ask
What credit score do you need for a SoFi personal loan?
You need a minimum credit score of 680 to get a personal loan from SoFi®, according to multiple third-party sources. That means you can get a personal loan from SoFi with at least fair credit. Generally, a higher credit score will give you better approval odds for a SoFi loan and will also likely get you better loan terms.
SoFi Credit Score Requirement & Loan Terms
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What credit score is needed for a personal loan?
The minimum credit score for personal loan approval is 580, depending on the lender. That means it is possible to get an unsecured personal loan with a bad credit score, though such a loan will likely have an origination fee.
For your reference, WalletHub researched some of the most popular lenders to find out more about their specific loan requirements.
Credit Score for Personal Loan Approval by Lender
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Does SoFi hurt your credit?
A personal loan from SoFi will hurt your credit score temporarily because SoFi will do a hard pull on your credit report when you officially apply, which may drop your score by around 5 to 10 points. A new loan from SoFi will also add to your overall debt load, which hurts your credit score.
However, you can avoid risking credit score damage for no reason by pre-qualifying first. SoFi only uses a soft credit pull, which will not affect...
read full answer by Grace Enfield, Content WriterDid we answer your question?
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