SoFi Credit Card Review – A New Concept for Cash Back
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It’s no secret there are more credit cards than ever to choose from. While it is great for us consumers to have such a variety, it makes choosing one a little daunting. So when we heard SoFi — rooted in the student loan refinancing business - is now offering a credit card, we had to know what sets this card apart from the hundreds of other choices.
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What is the SoFi Credit Card?
The SoFi company has long been associated with student loan refinancing. It was founded in 2011 by several Stanford Business School graduates to stay connected as alumni. Eventually, the company offered both federal and private student loan refinancing options — the first company of this kind.
Fast forward 13 years later, SoFi has expanded with a complete portfolio of financial products, including mortgages and home loan refinancing, auto loans, small business, and personal loan products. The SoFi credit card is now the latest offering from this financial giant.
Similar to many other credit cards, the SoFi card is designed to give you 2% unlimited cashback on all purchases. But where SoFi sets itself apart is how you choose to redeem the 2% earnings—which could be an advantage for someone with savings or investment goals.
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How Does the SoFi Credit Card Work?
The SoFi credit card uses a point system for the cashback feature. For every dollar you spend on this credit card, you earn 2 points as part of the SoFi Rewards Program. You don’t have to worry about keeping track of anything because your points are automatically added, and then you decide where to apply your rewards redemption.
The cash rewards have the following redemption options:
- Cash applied to the outstanding balance of your SoFi Student Loan Refinance
- SoFi travel purchases
- Shares credited to an existing SoFi Invest Account
- Statement credit to your SoFi Credit Card Account (1% redemption value)
- SoFi Personal Loan
- Or, any other promotional rewards offered under the SoFi Rewards Program
It’s important to note although this is considered a cashback card, you do not have the option to earn actual cash, nor can you transfer your points to a third-party service for cash.
Terms and Conditions
Like all credit cards, SoFi has terms and conditions you should know before applying. Based on your credit score, the Annual Percentage Rate (APR) for purchases is 20.24% to 29.99%.
Balance transfer rates are also 20.24% to 29.99%, but you will be subject to a balance transfer fee of $10 or 5% of each balance transfer.
If you need a cash advance, the APR is 32.24%, and the cash advance fee is also from $10 to 5% of each cash advance.
Features
The SoFi card offers several benefits and perks for cardholders. This credit card is part of the World Elite Mastercard series, which has extra benefits.
2% unlimited cashback rewards
Earn 2%, or two points, for every dollar spent on the credit card, which is one of the more substantial offers in the market. The 2% applies when you pay down eligible debt from a SoFi loan, save, or invest with a SoFi Invest account.
No annual fee
Owning this credit card doesn’t cost anything. Other credit cards may charge up to several hundred dollars per year to enjoy the perks, but the SoFi annual fee is $0.
No foreign transaction fees
This card makes it easier to travel abroad with $0 in foreign transaction fees if you like to travel. Some credit cards charge anywhere from 1% to 3% to use your card overseas, which can add up to an enormous amount of charges.
Cell phone insurance
All credit card holders receive complimentary cell phone insurance, up to $1,000.
Lyft program rewards
If you use Lyft, you’ll appreciate the $5 Lyft credit per month for every three rides taken in a month.
Shoprunner membership
Cardholders receive a free membership to Shoprunner, worth $79 annually. This service offers free two-day shipping on qualifying purchases made online with participating retailers.
DoorDash discounts
If you have never used DoorDash before, this card comes with a free three-month trial of the DashPass or a $5 discount on two orders each month if you are already a DashPass subscriber. DashPass is a subscription service with $0 delivery fees and lower fees for a monthly membership.
Concierge service
Another perk is the use of the concierge service through the rewards program. This is run through Mastercard, and you receive access to numerous personal services. Assistance with items such as trip planning services or getting access to local dining and entertainment venues.
Start with a custom credit evaluation (free for a limited time)
- Expert evaluation of your credit
- Your score
- Recommendations tailored for you
- Summary sent to you -- yours to keep!
Who is the SoFi Best For?
Current SoFi account holders. For example, if you are a current SoFi account holder (or planning to be), whether it ’s a SoFi money account or SoFi student loan, some of these redemption options may be too good to pass up. If you know you need a credit card for travel or other budgeting purposes, these reward options could be great for helping chip away at student loan debt.
You have targeted financial goals. The multiple options for redeeming the 2% cashback can help you achieve specific financial goals, such as paying down student loan debt.
Who Shouldn’t Use the SoFi Credit Card?
If you want a true cashback card. There may be more competitive offers if you are looking for a truly cashback-style credit card, where you can redeem offers and receive statement credits or a check in the mail. While you can use the rewards for statement credits, you will only receive 1% versus 2%, making it less attractive.
If you need a credit card exclusively for travel. Although the $0 in foreign transaction fees is a real bonus, and you get a 3% cash back on trips booked through SoFi Travel, other stronger travel credit cards are out there.
You are trying to pay down credit card debt quickly. Many consumers use introductory 0% APR balance transfer offers to pay as much credit card debt as possible while paying 0% interest for a designated period. Although you can use your rewards options towards student loan debt, this card may not be the best choice if this is your ultimate goal.
Pros and Cons
Pros
- No annual fee
- No foreign transaction fees
- Unique redemption programs
- Fun perks including extras with Lyft, Shoprunner, and DoorDash
Cons
- No first-year introductory APR
- Less value for statement credits (1% versus 2%unlimited cashback)
- Must be a SoFi account holder for other products to receive the highest cashback benefit
- No welcome bonus or sign-up bonus currently available
Start with a custom credit evaluation (free for a limited time)
- Expert evaluation of your credit
- Your score
- Recommendations tailored for you
- Summary sent to you -- yours to keep!
SoFi Credit Card vs. competitors
The credit card market is crowded. How does the SoFi version stack up to other popular options?
Issuer | Rewards | Annual Fee | APR |
SoFi | 2% unlimited cashback | $0 | 20.24% to 29.99% |
Citi Double Cash® Card | Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24. | $0 | 19.24% - 29.24% |
Chase Freedom Unlimited® | Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases | $0 | 20.49% - 29.24% |
Citi Double Cash® Card
Citi Double Cash® Card
Card Name
Citi Double Cash® Card
APR
19.24% - 29.24%
Recommended Credit Score
Excellent, Good, Fair
Annual Fee
$0
Special Offer
Earn $200 cash back
Special Offer Terms
after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
Rewards Rate
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, for a limited time, earn 5% total cash back on hotel, car rentals and attractions booked on the Citi Travel℠ portal through 12/31/24.
Terms
Why We Like It
- Unlimited cash back earned on every dollar spent.
- Earn cash back when paying your bills on time.
- Intro 0% on balance transfers for 18 months (after which is an ongoing APR of 19.24% - 29.24%)
Chase Freedom Unlimited®
Chase Freedom Unlimited®
Card Name
Chase Freedom Unlimited®
APR
20.49% - 29.24%
Recommended Credit Score
Excellent, Good
Annual Fee
$0
Special Offer
Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year)
Special Offer Terms
— worth up to $300 cash back. That's 6.5% on travel purchased through Chase Travel℠, 4.5% on dining and drugstores, and 3% on all other purchases.
Rewards Rate
Enjoy 5% cash back on travel purchased through Chase Travel℠, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Terms
Why We Like It
- Higher cash back on travel purchased through Chase Ultimate Rewards®.
- No minimum to redeem for cash back.
- No annual fee.
- Monitor your credit for free access using Chase Credit Journey.
FAQs
Do I have to be a SoFi account holder to apply for this credit card?
No, you do not. Anyone can apply for a card. However, the most valuable redemption rewards are tied to existing customers, such as with a SoFi money account or a loan product.
How do I redeem reward points for cryptocurrency?
SoFi has exited from the cryptocurrency business in 2023 and offers other redemption options including redemption towards a statement credit, or paying down debt or investing.
Does it affect my credit to apply for a SoFi credit card?
Yes and no. When you submit your application, SoFi conducts a soft credit pull that will not affect your credit score. However, an approved application will use a hard credit pull, which could impact your credit score. As long as you aren’t applying for too many credit cards or loans at once, the overall impact should be minor.
Start with a custom credit evaluation (free for a limited time)
- Expert evaluation of your credit
- Your score
- Recommendations tailored for you
- Summary sent to you -- yours to keep!
The bottom line
The 2% cashback is a generous reward rate, but as you dig a little deeper, the highest redemption value seems to apply to those who open other SoFi accounts. However, this card may be worth considering if you are looking for creative ways to chip away at an existing SoFi loan balance or perhaps a little investing on the side.
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JoyWallet has partnered with CardRatings for our coverage of credit card products. JoyWallet and CardRatings may receive a commission from card issuers.
Writer
Sara Coleman is a former corporate gal turned creative entrepreneur. She began writing professionally several years ago and now contributes to multiple websites, blogs, and magazines. She’s also an avid reader and can’t resist a great historical fiction novel. Sara holds a BA in journalism from the University of Georgia and can be found supporting her Bulldogs every chance she has. She resides in Charlotte, North Carolina, with her wonderfully supportive husband and three children. When she’s not ushering her kids to sports and dance lessons, she can be found creating content for her own website, TheProperPen.com.
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