Personal loan applications are approved or denied based on a number of factors. All lenders have their own underwriting requirements, but these usually include information from the applicant’s credit profile and other factors demonstrating the ability to repay the loan, such as income. Meeting the requirements below does not guarantee approval, but they can help you decide if a personal loan is right for you.
Credit score requirements
Personal loan applicants must have a minimum FICO credit score of 680 to be eligible for a SoFi personal loan. As with other popular lenders, not all applicants who meet the minimum credit score requirements will be approved for a SoFi personal loan, and most successful applicants have a score of 700 or higher.
SoFi requires personal loan applicants to have an annual income of at least $ 45,000 to be eligible. Even so, the average income of a SoFi borrower is over $ 100,000. SoFi also rates applicants based on their Debt-to-Income Ratio (DTI) and how much income they have left after covering other monthly expenses. Ideal candidates have at least $ 1,500 in free cash flow each month.
Co-signers and co-applicants
If your credit isn’t where you’d like it to be, SoFi also allows potential borrowers to apply with a co-applicant. Co-applicants, also known as co-borrowers once a loan is funded, are jointly responsible for repaying the loan and must reside at the same address as the principal applicant.
To apply with a co-applicant, the applicant must add the co-applicant’s employment, income and education information to the application. Keep in mind that adding a co-applicant can add one to two weeks to the loan application process, so plan ahead. A co-borrower cannot be removed from a loan, even if the principal applicant improves their credit rating or establishes a good payment history.
SoFi does not allow co-signers of personal loans. A co-signer is similar to a co-applicant, but does not have to live in the same household.