SoFi Credit Card Review

The SoFi Credit Card is not a simple, standalone product, but a loyalty-based rewards card.

The SoFi Credit Card enters the competitive no-annual-fee credit card market with a compelling headline offer: an unlimited 2% cash back on all purchases. However, a critical analysis of the card reveals that this high rewards rate is contingent upon the cardholder’s participation in the broader SoFi financial ecosystem. 

This review will provide an objective examination of the SoFi Credit Card’s value proposition. We will dissect its conditional rewards structure, weigh its significant benefits (such as no foreign transaction fees and cell phone protection) against its notable drawbacks (such as the lack of a 0% introductory APR), and compare its net value to other leading flat-rate cash back cards available to U.S. consumers.

CREDIT CARD

SoFi Unlimited 2%

No annual fee Mastercard World Elite

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Analysis of Key Benefits

• The 2% Rate Requirement: The advertised unlimited 2% cash back is only achieved when the cardholder redeems their rewards points into a qualifying SoFi account. These include SoFi Checking and Savings, SoFi Invest, or as a payment to a SoFi loan.
• The 1% Rate Penalty: If a cardholder chooses the most direct redemption method—a statement credit to their card balance—the value of their rewards is cut in half, resulting in an effective cash back rate of only 1%.

• No Annual Fee: The card has a $0 annual fee, making it a cost-effective product to hold long-term.
• No Foreign Transaction Fees: This is a significant advantage over many U.S.-based cash back cards and makes it a viable option for international travel.
• World Elite Mastercard® Benefits: The card includes an exceptionally strong suite of benefits for a no-annual-fee card. The most valuable of these is the cell phone protection, which provides up to $1,000 in coverage. This is a high-value insurance benefit.
• Promotional 3% Rate: The introductory offer to boost the cash back rate to 3% for a year for members with direct deposit is a powerful, albeit temporary, incentive.

Who Can Apply: Eligibility Criteria

The card is intended for applicants in the U.S. with a solid credit profile.

• Credit Score: A good to excellent credit score is recommended (generally, a FICO score of 670 or higher).
• Age and Residency: Must be at least 18 years of age and a U.S. resident.
• Identification: A valid Social Security Number is required.

How to Apply: The Application Process

1. Visit the SoFi Website: The application is available on the official SoFi website or through their mobile app.
2. Check for Prequalification: SoFi’s application process often allows you to check for pre-qualified offers with a soft credit inquiry, which does not affect your credit score.
3. Complete the Full Application: The online form requires standard personal and financial information.
4. Submit for a Decision: A decision is often provided quickly.

Frequently Asked Questions

• Is this card a good choice if I am not a SoFi member and do not want to become one?
  No. If you are not willing to open a SoFi account to redeem your rewards, this card functions as a simple 1% cash back card (when redeemed as a statement credit). There are many no-annual-fee cards on the market that offer a higher base rate of 1.5% or 2%.
• How does the cell phone protection benefit work?
  You must pay your full monthly cell phone bill with the SoFi Credit Card. If your phone is stolen or is accidentally damaged in a way that affects its functionality, you can file a claim for reimbursement for the repair or replacement cost, up to the policy limit ($800 per claim) and after paying a $50 deductible.
• Which is a better card for a simple 2% cash back: this or a competitor like the Wells Fargo Active Cash Card?
  If your only goal is simple, flexible 2% cash back, the Wells Fargo Active Cash® Card is the superior choice. It offers the same 2% rate with no redemption requirements (you can get a simple statement credit), a comparable welcome bonus, and a long 0% intro APR on purchases and balance transfers, which the SoFi card lacks.
• Is the 3% cash back rate guaranteed for the first year?
  The 3% cash back rate is a promotional offer that is contingent on you opening a SoFi Credit Card and setting up a qualifying direct deposit to a SoFi Checking and Savings account. If you do not set up a direct deposit, you will not receive the 3% rate.

CREDIT CARD

SoFi Unlimited 2%

No annual fee Mastercard World Elite

APPLY NOW You will be redirected