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If you’re looking for a simple, flat-rate card, the SoFi Credit Card might be worth considering. This card offers unlimited 2% cash back without the hassle of tracking rotating categories or spending limits.
But the SoFi Credit Card really shines if you’re already a regular SoFi user. If you have a SoFi checking or savings account, investment account, or loan, you’ll be able to unlock the full potential of this card’s features. But if you’re not currently a SoFi user, you might find the redemption flexibility a bit lacking compared to other cards.
In this review, we’ll dive into the card’s rewards, perks, and potential drawbacks to help you figure out if this card is a good match for you.
| Key takeaway: The SoFi Credit Card is an excellent choice for existing SoFi members who want to simplify their cash back earnings and take advantage of SoFi’s financial ecosystem, but it only makes sense if you’re a SoFi user. |
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How the SoFi credit card works
The SoFi Credit Card is all about simplicity. Unlike other cash back cards that offer rewards tailored to specific categories, this card earns 2% cash back on every purchase. You’ll also earn a boosted 3% cash back when you book via SoFi Travel. Plus, there’s no annual fee, making it a hassle-free addition to your wallet.
The card does fall short in several categories. There is no welcome bonus or introductory APR, unlike many other cash back cards. Plus, you’re pretty restricted in how you can redeem cash back.
Earning rewards
With the SoFi Credit Card, you’ll earn:
- 2% unlimited cash back on every purchase
- Earn 3% cash back on travel purchases made through SoFi’s travel platform (including flights, hotels, rental cars, and vacation packages)
This simplicity makes it easy for you to track your rewards, since you don’t need to worry about categories. As a SoFi member, you’ll also have access to exclusive discounts on travel reservations made through the SoFi travel platform.
Redeeming rewards
Redemption options with this card are more limited compared to other cash back credit cards. You can:
- Redeem cash back as a statement credit on your account
- Deposit cash back into your SoFi Checking & Savings account
- Deposit cash back into a SoFi Invest account
- Use cash back to pay down a SoFi loan, whether it be a personal loan or student loan
The ability to apply your rewards to SoFi investment accounts or loans can be a great way to reach your financial goals if you already bank with SoFi.
There’s no minimum redemption threshold, so you can cash out whatever you have accumulated. Rewards also don’t expire.
Other benefits
Beyond giving you the ability to earn cash back, the SoFi credit card boasts some added perks:
- Cell phone insurance coverage up to $1,000
- Mastercard ID Theft Protection and Zero Fraud Liability
- Complimentary 2-day shipping via ShopRunner
But some of the best features come with SoFi Membership, which automatically comes with your card. As a member, you’ll get exclusive benefits, including discounts, personalized financial advice, and more. SoFi also offers an insights tool that offers visibility on where your money is going and how your credit score is progressing over time.
This is not all, though. You also get access to exclusive networking events and join a members-only online community. Plus, you’ll get expedited entry to the SoFi Stadium in Los Angeles and access to the SoFi Member Lounge.
Drawbacks and limitations
While the SoFi Credit Card has a lot to offer, there are a few considerations to keep in mind. The biggest drawbacks are its lack of a welcome bonus and introductory 0% APR offer, which many comparable cards offer.
Plus, the card’s variable APR ranges from 20.24%-29.99%, which is on the higher end compared to some other credit cards. If you tend to carry a balance from month to month, this could end up costing you more in interest charges over time.
While the 2% unlimited cash back on all purchases is attractive, other cards offer higher rewards in specific categories like dining, travel, or groceries. If you tend to spend heavily in certain areas, you may be able to earn more rewards with a different cash back card.
To get the most value out of the SoFi Credit Card, you’ll need to be using other SoFi products like checking and savings accounts, investment accounts, or loans. If you’re not already a SoFi customer or don’t plan to use their other services, you can’t really take advantage of the card’s rewards program.
Fees and interest
The SoFi credit card doesn’t have an annual fee or foreign transaction fees. This card charges a variable APR between 20.24%-29.99% based on your creditworthiness. Other fees include:
- Balance transfer fee: Either $10 or 5%, whichever is greater.
- Cash advance fee: Either $10 or 5%, whichever is greater.
- Late payment fee: Up to $41
Who is the SoFi Credit Card right for?
If you’re already a SoFi customer or want to use their services, the SoFi Credit Card could be a great way to maximize your cash back and streamline your finances.
The 2% unlimited cash back on all purchases is a solid rewards rate, especially when you consider that there’s no annual fee. The cash back rewards you earn can either help you pay down your debt or boost your savings and investments. Plus, you’ll be able to enjoy the enticing SoFi member perks.
This card is best for:
- Existing SoFi members: If you already have a SoFi loan or invest with them, this card seamlessly integrates with your existing financial setup.
- Cash back enthusiasts: The unlimited 2% cash back on all purchases is hard to beat, especially with no annual fee.
If you want to maximize cash back without paying an annual fee, you could use the SoFi credit card as an everyday card in combination with other cards that give you bonus rewards in certain categories.
It’s also important to consider your spending habits and whether the SoFi Credit Card’s rewards program aligns with them. If you tend to spend more in specific categories like dining or travel, you may be able to earn more rewards with a card that offers bonus points or cash back in those areas.
Alternatives to the SoFi credit card
SoFi isn’t the only company offering a solid cash back card. Here are some alternatives to keep in mind.
SoFi Credit Card vs PayPal Cashback Mastercard
If you’re looking for a flat-rate cash back credit card with no annual fee, the PayPal Cashback Mastercard is definitely worth a look. This card offers an impressive 3% cash back on all purchases, higher than the SoFi Card’s 2% rewards rate.
Plus, you can redeem your rewards as a statement credit, direct deposit, or on PayPal purchases, giving you more flexibility. It’s important to note that the PayPal card charges foreign transaction fees, so if you travel frequently, it’s not a good option.
SoFi Credit Card vs Capital One SavorOne Cash Rewards Card
If you’re someone who enjoys dining out and entertainment, the Capital One SavorOne Cash Rewards Credit Card could be for you.
This card offers an impressive 3% cash back on dining, entertainment, popular streaming services, and grocery stores, plus 1% cash back on all other purchases. That means you could potentially earn even more rewards than with the SoFi Card, depending on your spending habits.
The Capital One SavorOne Cash Rewards also has a welcome bonus, which the SoFi credit card lacks. You can earn $200 after spending $500 in the first three months. Plus, unlike the SoFi card, the SavorOne card offers a generous intro APR offer.
The bottom line
With its unlimited 2% cash back rewards, no annual fee, and integration with SoFi products, the SoFi card offers a lot of value for the right type of user.
It’s important to consider your financial situation before applying for any credit card, including the SoFi card. While the rewards program is attractive, the lack of a 0% APR offer and redemption restrictions may not make it the best fit for everyone.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.