SAN FRANCISCO, Aug. 28, 2017 /PRNewswire/ -- Today SoFi announced its members have cumulatively paid off over $5 billion dollars in credit card debt using SoFi Personal Loans, getting them out of debt faster and at lower interest rates.
Members who used SoFi Personal Loans to pay off credit cards reduced their effective interest rate by 42% on average.1 They also saw their credit scores rise by 17 points on average due to reduced credit utilization, a key component of credit scores.2
"Credit cards offer great convenience and rewards, but there are better forms of financing for longer-term debt," said Meron Colbeci, SVP of Product at SoFi. "If you're carrying a balance, you owe it to yourself to look at a Personal Loan to pay off those cards."
Credit card utilization has been steadily rising since the 2008 financial crisis. Americans' credit card debt eclipsed $1 trillion this year, according to Federal Reserve data, and the average credit card APR inched up to an all-time high of 16.14 percent, according to CreditCards.com.3 4
SoFi offers an array of options for Personal Loans, letting members find their rate, choose their loan amount (up to $100,000), and choose their term (three, five, or seven years) through a simple, fully-online application process. Loans are funded in less than a week on average. Though SoFi Personal Loans can be used for lots of purposes, more than 70 percent of SoFi members report using them for credit card refinancing and loan consolidation.
Like all SoFi members, SoFi Personal Loan borrowers gain access to an array of benefits and services, including career counseling, invites to SoFi member events in over 60 cities around the Unites States, and rate discounts5 on other SoFi products.
About SoFi SoFi is a new kind of finance company taking a radical approach to lending, wealth management and insurance. From unprecedented products and tools to faster service and open conversations, we're all about helping our members get ahead and find success. Whether they're looking to buy a home, save money on student loans, ascend in their careers, or invest in the future, the SoFi community works to empower our members to accomplish the goals they set and achieve financial greatness as a result. For more information, visit SoFi.com.