The SoFi Credit Card is a straightforward card for everyday purchases. There are zero fees, and you can get 2.2% cash back on everything, which makes it an attractive general-use card.
In early 2023, they added an extra 1% back for certain travel-related purchases. And as of 4/1/24, customers can get a 10% bonus on points earned, giving 2.2% or 3.3% cash back on everything (previously 2% or 3%). Note that Direct Deposit is required for the best rates.
FEATURES AT A GLANCE
- No annual fee
- No foreign transaction fees
- 3x points for trips booked through SoFi Travel (powered by Expedia)
- 2x points on everything else
- 10% points bonus with Direct Deposit enabled
SIGN UP BONUS
As of early 2024, there isn’t a public sign up bonus (SUB) for this card. You may want to wait until something comes around. In early 2022, you could get $200 after spending $1500 within 90 days, if signing up through Credit Karma. There was also a $100 SUB before that.
Other previous offers gave bonus cash back for up to 12 months, up to 3% or 4% back on everything, instead of the standard 2% rate.
SoFi usually has some type of bonus if you’re new to them, so keep an eye out. For example, $150 for signing up for SoFi Invest through the Swagbucks website. Or through SoFi’s site, you can get up to $300 for opening a bank account with them. Sometimes you can get a small bonus for signing up with other SoFi services, such as cryptocurrency investing (going away) or SoFi Credit Relay. YMMV. If you’re interested in this credit card, you may want to check out other SoFi services before applying.
OTHER BENEFITS OF THE SOFI CARD
- World Elite Mastercard benefits
- Cell Phone Protection ($1000)
- Instant virtual card number for digital wallets
- Free credit score monitoring
RESTRICTIONS AND CREDIT SCORE
Recommended credit score: 670+
Credit bureau used: Experian
There are no known restrictions for getting this card, other than the most basic of basics. SoFi states: “You don’t need a bank account to apply for the SoFi credit card. You are only required to be at least 18 years old and possess both a physical U.S. mailing address and Social Security number.” For the best rewards, however, you do need a SoFi Checking/Savings account.
MAXIMIZING REWARDS WITH THE SOFI CARD
Points are worth $0.01 each (1 CPP) when redeemed into a SoFi account. Previously, points were only worth $0.005 each (0.5 CPP) when redeemed as a statement credit, but SoFi now awards full value for basically everything. This including redeeming points into a SoFi checking or savings account, using them toward SoFi investments, or applying points to a SoFi loan.
Banking with SoFi, even if it’s just a fraction of your money, can be worthwhile. The accounts don’t have minimum balance requirements or monthly fees. They offer up to 4.6% APY (savings account with direct deposit) as of April 2024, and 0.5% APY on checking accounts. No maximum on interest earned. Their debit card sometimes has cash back offers too.
To get the “10% bonus” to points earned with the credit card, you must have at least one Direct Deposit every 30 days into a SoFi Checking and/or Savings account. No minimum deposit as long as it qualifies as a Direct Deposit to SoFi (see their site for full details). Most people get paid every two weeks, so this is fine. SoFi’s rates are competitive and getting at least 2.2% cash back on everything is great.
ALTERNATIVES TO THE SOFI MASTERCARD
This is solid for non-category purchases. Most of the everyday cards will work as an alternative. It’s very easy these days to earn at least 2% cash back on all purchases.
Alliant has the most obvious alternative with up to 2.5% cash back on everything. It’s only slightly more convoluted to get those earnings.
The Signature Federal Credit Union Visa has some of the best benefits anywhere, and is another strong contender as an everyday no-fee card, even if it earns 2% cash back instead of 2.2-2.5%. It may be worthwhile for their non-cashback perks. SoFi’s only real perk is cell phone protection, whereas the Signature FCU card has a very long list of benefits.
SoFi having 3x points for travel booked through SoFi Travel isn’t significant. Several no-fee cards have 5% back for similar programs, such as the Capital One SavorOne and Chase Freedom Flex. The Citi Custom Cash may have even more flexibility for people, as another example. Therefore, given the alternatives, SoFi having 3% or 3.3% back isn’t a real draw. Especially considering how the card doesn’t have travel benefits like trip insurance.
Premium cards are another consideration for anyone who wants cash back on travel. As one example, the Capital One Venture X gets 2x points on everything and up to 10x points on travel, plus other elevated benefits. It’s effectively fee-free if you spend at least $400 per year on airfare or hotels. The Chase Sapphire Reserve can get even more cash back, although its value may not be as straightforward as the Venture X. The Reserve also combines with the Chase Freedom Unlimited to get at least 2.25% cash back on everything (also see: the Chase Trifecta). Bank of America customers enrolled in Preferred Rewards can get 2.25% cash back on everything (Platinum) or 2.625% back (higher tiers). Premium metal cards don’t work for everyone, but when they do work, they can be great options.
CONCLUSION
SoFi’s credit card is a great general-use card for everyday purchases. It has free cell phone insurance and straightforward earnings to help its case. Getting an unlimited 2.2% cash back on everything, with only one hoop to jump through, is a rare perk—especially for lower spenders. It isn’t the best rate, yet it’s still among the best.
There are three main downsides: (1) rare sign up bonuses; (2) no return protection, extended warranty, travel insurance, or other perks; (3) you can’t “just” have this credit card, you need to have another account with SoFi too. Whether that’s banking, investment, or a loan, you’re pushed into using most or all of their available services. Some people will like this all-in-one functionality, and some people won’t. Not everyone wants to switch their direct deposits to a new bank.
We rate the SoFi card 4 out of 5 stars. ⭐⭐⭐⭐
Note: This review was last updated in April 2024. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!