For those who need credit lines, or at least would benefit tremendously from having them, a key issue they encounter has a good credit history.
When it comes to online lender SoFi, credit scores are very relevant as to whether you can get a loan or not, with different types of loans having other criteria for eligibility.
How Does Your Credit Score Impact Loan Eligibility?
Your credit score is one of the most important elements to keep in mind when you take out a loan. It tracks how many loans you’ve taken out, how often you access lines of credit, and how good you are at paying back debts.
Unsurprisingly, SoFi Invest takes credit scores seriously when deciding whether they’ll approve loans to potential clients. However, how relevant it is and similar factors to get a loan depends on the type of loan being considered.
Student Loans
There is a wide range of student loans that SoFi offers, primarily delineated by the type of education someone is interested in pursuing. SoFi’s student loans options include credit lines for undergraduate education, graduate education, and medical school, with separate loans between students and their parents.
As you can imagine, when it comes to student loans, credit scores aren’t the most important consideration as they fundamentally concern borrowers who haven’t had the opportunity to build up their credit.
That being said, there are still a few very important things to keep in mind. First, recipients must be U.S. citizens or permanent residents over 18 and cannot pursue associate’s degrees for all student loans. Additionally, it might be necessary to get a co-signer in some cases.
Personal Loans
Personal loans are a popular option for people who use SoFi, but they’re also a loan with many strings attached; the minimum requirements are pretty high.
SoFi prioritizes borrowers’ ultimate ability to pay off loans rather than the interest they’ll pay. This means that relatively modest credit history and high incomes are necessary, but most importantly, borrowers almost always have to possess a 680 credit score.
Mortgage Loans
Home loans are another common loan serviced by SoFi, which similarly has a high bar for eligibility. A good credit score is needed, and a decent income for loan dispensation to be considered in addition to other miscellaneous criteria, such as having a limited number of homes being owned already.
SoFi mortgage loans also only apply to residents of certain states. At the same time, SoFi services most states, Hawaii, Missouri, New Mexico, New York, and West Virginia residents cannot access SoFi home loans.
Do You Qualify?
In many instances, getting loans can play a crucial role in financial planning and going without may be problematic. Before considering a loan, though, look at whether you qualify.
