Yes, SoFi does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.
SoFi's hard inquiry will stay on your credit report for two years, but it won't affect your credit after one year, and the impact may subside before then. To see how your individual credit score may be affected by a hard inquiry, you can use the credit score simulator on WalletHub.
It's worth noting that some people may be uncertain about whether SoFi does a hard inquiry because there's only a soft inquiry during the pre-qualification process. Soft inquiries do not impact your credit score. But that's just the first step, and a hard inquiry is required when you officially apply.
If not having a hard inquiry is important to you, lenders that don't do a hard pull at all include NetCredit, Integra Credit and OppLoans.
SoFi requires a minimum credit score of 680 to qualify for a loan. That means the SoFi personal loan credit score requirement is in the fair credit range, which is on par with most other lenders' credit score requirements.
Keep in mind that just having a 680 credit score is not enough to qualify you for a SoFi personal loan. SoFi will consider your entire financial profile, including things like your income, existing debts and recent credit inquiries, when deciding whether to approve you. It's also worth noting that some applicants might be able to get a personal loan from SoFi with a slightly lower score if it's offset by other factors like an especially high income. But it's best to wait to apply until your score meets the threshold.… read full answer
If you're unsure of what your current credit score is, you can check it for free on WalletHub. You can also pre-qualify for a SoFi personal loan online to gauge your chances of getting approved with your current credit score.
Yes, a SoFi personal loan does affect your credit score, both when you apply and during the entire time that you are paying the loan off. Initially, a SoFi personal loan will affect your credit score in a negative way, but the long-term impact can be very positive, assuming you repay the loan on schedule.… read full answer
How a SoFi Personal Loan Affects Your Credit Score
Hard pull: When you apply 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.
To apply for a SoFi personal loan, first check for pre-qualification and then enter your personal and financial information on the online application. Next, verify the accuracy of the information, submit the application and wait to receive a decision.
How to Apply for a SoFi Personal Loan
Check for pre-qualification. … read full answerPre-qualification is a way to check your approval odds and potential rates before applying for a SoFi personal loan. It doesn't hurt your credit. You can check for pre-qualification on the SoFi website or WalletHub's pre-qualification tool.
Enter your personal information on the application. SoFi requires the following personal information on the application: your loan amount, loan purpose, date of birth, housing situation, citizenship and Social Security number.
Enter your financial information on the application. SoFi requires the following financial information on the application: your preferred monthly payment and annual income.
Double check the application for accuracy. To ensure that your SoFi personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.
Submit your application. SoFi will typically provide a decision on your application within 2 to 4 business days.
If you are approved for a SoFi personal loan, you will generally receive the funds within 4 to 11 days after approval. After that, it's your responsibility to make monthly payments until you have fully paid back your loan, including interest.
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