SoFi Blog

How It Works is an ongoing series here on our blog, exploring and demystifying topics about which we hear often from our members and the public. Today, we’re taking a look at how credit scores play into our lending decisions.

The S&P 500 has fallen more than 10%. The Dow drops more than 1,000 points.

I’m sure you’ve seen the headlines about the market movements over the past few days and might be worried. That’s not surprising. If you own stocks, they may have lost some value, which doesn’t feel great.
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But, let’s put this dip into perspective. In Wall Street terms, we’ve been in what’s called a “bull market” since 2009. A decline of 10% or more in a bull market—which we’ve sseen in the past few days—is called a “correction.” Bull markets in the past have averaged about one correction a year. The last one we had was February of 2016, so we’ve been overdue.

But here’s something else you should know: While Wall Street traders might be panicking a bit, for the average investor, like you, there’s no cause for alarm. The economy still appears to be on solid footing if you look at things like unemployment and company earnings. And in many ways, this market dip was expected.

by Bea Bischoff

It’s that time again: SoFi’s “No BS” Return on Education 2018 MBA rankings are here. Each year, we mine the data from student loan refinancing applications to figure out which MBA programs offer the best return on investment.

If you’re in the process of applying for an MBA or think that an MBA might be in your future, read on. This data tells you more than which school has the best marketing department; it shows you which MBA programs are most likely to lead to a high salary—or a future with a great salary-to-debt ratio.

By John Foley, CFP®

As you’ve no doubt read in the news, the Tax Cuts and Jobs Act of 2017 is about to become law. And while the bill contains over 500 pages of changes to the tax rules for corporations, privately held businesses, and individuals, what you’re probably wondering most is: How will the tax plan affect me?

There are three big changes in the Tax Cuts and Jobs Act that will impact most individual taxpayers:

1) New income tax brackets with lower rates for most taxpayers

2) A higher standard deduction—$12,000 for single filers, $24,000 for married filing joint

3) A $10,000 limit on the combined deduction for state and local income and property tax (and that’s the same whether you’re single or married)

While you can’t change the rules, there are things you might be able to do to potentially lower your overall tax burden this year and next, namely, shifting certain deductions into 2017 and certain income into 2018. But the clock is ticking: These provisions are expected to go into effect on January 1, 2018, so December 31 is the last day you can do anything that impacts your 2017 taxes.

Here are a few important actions you could take before the new tax bill kicks in. Ask your tax preparer if they are right for you.

Interest in cryptocurrency, specifically Bitcoin, has taken off like a rocket in the last 30 days, spurred largely by the precipitous spike in Bitcoin’s price. While the interest is driving conversation, we feel there hasn’t been enough advice offered to individual investors of how to both make sense of the cryptocurrency boom and to make a decision on whether buying any is a good idea.

Bitcoin is network software that facilitates the secure exchange of digital tokens–called Bitcoins–among anonymous users of the network, anywhere in the world. This New York Times article explains how it works. Other cryptocurrencies work much the same way.

Cryptocurrencies act in some ways like actual currency and can be used to buy a limited number of things, but they are not created by or backed by any government. The full faith and credit of the US government stands behind the dollar. Bitcoin is not backed by anyone. It is hard to create more of most cryptocurrencies, so the interest in them has created demand that is difficult to match, and this has driven up their prices.