SoFi

What Is SoFi?

SoFi (short for Social Finance) is a financial technology company that started with student loan refinancing and has expanded into a full-service financial platform. Today it offers personal loans, banking, investing, insurance, and a set of free financial tools — all accessible through one app.

For people paying off debt, SoFi is most relevant as a lender. Its personal loans can be used for debt consolidation, and its terms are competitive: no origination fees, no prepayment penalties, and rates starting at 8.99% APR for well-qualified borrowers. Loan amounts range from $5,000 to $100,000 with terms of 2-7 years.

SoFi also offers a free budgeting tool called Relay, credit score monitoring, and various member perks. But the lending products are the main draw for anyone looking to consolidate or refinance debt.

How SoFi Helps with Debt Payoff

Debt consolidation loans. This is SoFi’s strongest offering for debt payoff. If you have multiple credit cards with rates of 18-25%, consolidating them into a single SoFi personal loan at 9-15% can save you thousands in interest. The fixed monthly payment gives you a clear payoff date, and the no-origination-fee policy means more of your money goes toward actually reducing your debt.

Soft credit pull to check rates. You can see your estimated rate without affecting your credit score. This makes it easy to shop around and compare SoFi’s offer against other lenders before committing.

Student loan refinancing. If student loans are part of your debt picture, SoFi was one of the first companies to offer private student loan refinancing. Rates can be competitive for borrowers with strong credit and income. Note: refinancing federal student loans into a private loan means losing access to federal protections like income-driven repayment and loan forgiveness programs. Make sure you’ve thought this through.

Relay budgeting dashboard. SoFi’s Relay tool connects to your bank accounts and shows your spending by category, tracks your bills, and monitors your credit score. It’s free and functional, though it’s fairly basic compared to dedicated budgeting apps.

Member benefits. SoFi members get access to rate discounts on loans (typically 0.25% off with autopay), career coaching, and financial planning resources. If you’re already using SoFi for a loan, these extras are a nice bonus.

Limitations for Debt Payoff

No payoff strategy tools. SoFi doesn’t offer snowball or avalanche calculators. It won’t help you build a payoff plan, prioritize your debts, or track your progress toward becoming debt-free. If you take out a SoFi loan, you’ll still want a separate tool to manage your overall payoff strategy.

The lending mindset. SoFi’s business model is built on lending. The app will suggest loan products, credit cards, and other borrowing options. When you’re trying to get out of debt, an app that encourages you to borrow more isn’t always helpful. Stay focused on your goal.

Best rates require strong qualifications. The advertised starting rates of 8.99% APR go to borrowers with excellent credit scores (typically 740+) and high incomes. If your credit is fair or your income is moderate, your actual rate could be significantly higher. Always check your personalized rate before assuming you’ll get the advertised one.

Basic budgeting. The Relay dashboard is fine for a quick overview of your spending, but it lacks the depth and customization of dedicated budgeting apps. If you need serious budget tracking to support your debt payoff, you’ll want a more robust tool.

Our Take

SoFi is a strong option if you’re specifically looking for a debt consolidation or refinancing loan. The terms are competitive, the lack of origination fees is genuinely helpful, and the soft credit pull makes it easy to check your rate without commitment. If you qualify for a rate that’s significantly lower than what you’re paying on your current debts, SoFi is worth considering.

But SoFi is not a debt payoff app. It won’t build your plan, track your snowball or avalanche progress, or help you stay motivated through the payoff process. Think of it as one tool in your toolkit — the lender — not the whole system.

Use SoFi to get the best possible loan terms, then pair it with a dedicated debt payoff tracker to manage the strategy, monitor your progress, and stay on course until you’re debt-free.