Credit Cards » Credit Card Reviews » SoFi Credit Card Review 2023 – Low Fees, Nice Cashback
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SoFi Credit Card Review 2023 – Low Fees, Nice Cashback

The SoFi credit card is a simple card offering 2% cash back on purchases and low fees. You don’t need to be a Sofi customer to get the card.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

SoFi Credit Card

SoFi credit card

Rewards Plan

1-3% 3% cash back rewards for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi

Sign up Bonus

Up to $200 up to $200 when you fund an invest account as well as a checking and savings account

Credit Rating

Good – Excellent Credit

0% Intro

None

Annual Fee

$0

APR

17.74% – 29.74% Variable
SoFi Credit Card

SoFi credit card

Rewards Plan

1-3% 3% cash back rewards for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi

Sign up Bonus

Up to $200 up to $200 when you fund an invest account as well as a checking and savings account

0% Intro

None

PROS

CONS

APR

17.74% - 29.74% Variable

Annual Fee

$0

Balance Transfer Fee

$10 or 5% (whichever is higher)

Credit Requirements

Good – Excellent Credit

The SoFi credit card is a simple card offering 3% cash back rewards for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi, but it is designed a little differently compared to other cards with similar rewards. The card has no foreign transaction fee and no annual fee.

You can accumulate your cash back and redeem the rewards towards saving, investing or paying down a SoFi loan. While you don’t need to be a Sofi customer, this makes the card an attractive option for those with existing SoFi accounts to get the highest value rewards. 

The SoFi credit card is a Mastercard and so it comes with some additional benefits such as discounts from participating merchants and up to $1,000 in cell phone protection.

  • Encourage Savings
  • APR Reduction
  • No Foreign Transaction Fee
  • No Foreign Transaction Fee
  • Innovative App
  • Designed for SoFi Loans
  • Average Cashback Rate
  • Balance Transfer Fee

My Application Was Denied. Why? What Can I Do?

As with most credit card companies, Sofi is unlikely to give you a specific reason if your application is declined. Sofi will make a credit decision based on your credit report and the details on your application.

So, if you are declined, it could relate to your income, credit score or other factors. Fortunately, you can continue to use your Sofi checking and savings account to boost your credit report and get your finances under control. You can then consider reapplying in six months or more.

How Does The Sofi Card Integrate With Sofi Money?

One of the great things about Sofi is that all the products do integrate. In fact, you can use the cash back you earn on your credit card to save in your Sofi savings account, invest with Sofi Invest or pay down your Sofi loan.

When Should You Consider It?

The Sofi credit card and associated Sofi banking products are a great option if you want to simplify your finances.

While the card does not offer the best possible rewards, it is weighted towards helping you to save, invest or pay down debt. This can help you on your journey to financial independence.

In This Review..

Benefits

Let’s take a look at the benefits of the SoFi card and see if it’s the right one for your wallet or not.

You can redeem your card rewards into your SoFi Invest account, SoFi Money account or into your personal or student loan accounts. These redemption options can help you to improve your finances rather than just getting a little extra cash to spend.

SoFi offers an APR reduction of 1% if you make at least the minimum payment on time every month for a year. 

You will need to continue making payments on time to maintain the new rate, but this is a nice benefit that not only rewards you for building good financial habits, but also lowers your costs.

If you enjoy traveling, you can use your SoFi Mastercard  without worrying about getting hit with exorbitant foreign transaction fees.

This card offers 3% cash back rewards for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi. This means that when you redeem towards saving, investing or paying down a SoFi loan, you there is no cap. 

This higher redemption rate even matches some of the popular no annual fee reward cards currently available.

The SoFi app allows you to not only manage your card, but you can redeem cash back towards your SoFi accounts each month quickly and easily.

Get Credit Score Updates: SoFi makes it easy to get credit score updates and keep an eye on how your score is doing. So, you can see the progress you’re making by using your SoFi credit card optimally.

Drawbacks

Here are the most important cons you should consider before apply to the SoFi card:

As touched on above, this credit card is better for those with SoFi products. 

So, if you have federal student loans or loans from another private lender, there is no real reward incentive. You may prefer a card that allows you to redeem your rewards towards any student loan, such as the Sallie Mae Accelerate.

There are no higher earning categories or one time bonuses with this card. The card is only really favorable for those with SoFi loans, savings or investment accounts. 

So, unless you already use these products or are planning to in the future, you may find the rewards structure frustrating.

If you want to transfer a balance to your SoFi credit card, you can expect to pay a fee of $10 or 5% (whichever is higher). Additionally, there are times when SoFi does not permit balance transfers.

How To Apply For SoFi Credit Card?

You can start the application form for the SoFi Credit Card on the company website.

sofi card application 1

After you click “Apply Now”, you’ll be redirected to a basic information form. You’ll need to provide your name, state, email and set a password. At this point, if you already have a SoFi account, you can simply opt to log in.

sofi card application 2

You will then need to provide some more detailed information, starting with your address.

At this point, SoFi requires a cell phone number, so the team can send you a verification code. Once you enter the code, you will be able to continue with your application.

sofi card application 3

You’ll need to provide financial details, such as your income, current finance obligations and expenses, so the SoFi team can assess whether you qualify for the card.

You will have the opportunity to review all your details, before you submit your application. SoFi will also perform a hard credit check before making a decision.

Is the SoFi Credit Card Right for You?

If you already have SoFi savings, investment or loan accounts, the SoFi credit card could be a good option for you. You can accumulate 3% cash back rewards for a year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi that can be redeemed into your account.

While this may not seem a massive amount, you could be able to chip away at your existing debt or increase your investment fund, simply with your day to day spending.

Compare The Alternatives

If you have good – excellent credit and you're looking for a cash back rewards credit card – the SoFi card is definitely a good option, but there are some good alternatives:

American express everyday card review 2021

Chase Freedom Flex

citi double cash

American Express EveryDay® Card
Chase Freedom Flex℠ Card
Citi® Double Cash Card
Annual Fee
$0 . See Fees & Rates
$0
$0
Rewards
1X – 2X 2X at U.S. supermarkets (up to $6,000 each year), then 1x on all purchases
1-5% 5% cash back on up to $1,500 in combined purchases on selected categories each quarter and 5% cash back on travel purchased through Chase Ultimate Rewards®. Also, you can earn 3% cash back on dining at restaurants (including takeout and eligible delivery services), drugstore purchases , and 1% on all other purchases
2% (1% when purchase and another 1% upon payment) 2% cash back rewards rate – 1% every time you swipe and another 1% upon payment.
Welcome bonus
10,000 points 10,000 points after you spend $1,000 in purchases on your new card within the first 3 months
$200 $200 bonus after you spend $500 on purchases in the first 3 months from account opening
None None
Foreign Transaction Fee
2.7%
3%
3%
Purchase APR
17.49% – 28.49% variable
20.24%–28.99% variable
19.24% – 29.24% (Variable)

FAQ

Sofi allows you to earn unlimited cash back on your purchases with very few restrictions. These exceptions are similar to other credit card brands. This means interest fees, gift cards and other cash related purchases are not likely to earn you any cash back.

You can apply online for a Sofi card and the company states that you’ll need to wait up to 30 days to process your application. This means that you may need to wait several business days to get an official approval, but this is not as quick as some other credit card providers.

Sofi does not publish the typical initial credit limits, but previous and current customers have reported starting limits of $1,000 up to as high as $25,000. Your specific credit limit will be assessed as part of the application approval process according to your income, employment status and other factors.

Sofi states on its website that applying for this card will not affect your credit score. When you apply, Sofi will only initiate a soft credit pull that does not affect your score. There will only be a hard credit pull if your application is approved and you decide to proceed.

However, Sofi does state that after evaluating your completed application and your credit report, the company may decline to offer credit. 

Review Cash Back Credit Cards

Disclaimers:

See offer detailswww.sofi.com/card/rewards
See terms and conditions: www.sofi.com/card/terms
*Cell Phone Insurance Protection, Mastercard ID Theft Protection™ , Lyft and Other Partner Rewards have additional terms and conditions, which can all be accessed through the World Elite Mastercard® Benefits portal. Please see the guide to benefits for details or call 1-800-MASTERCARD.

Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.

Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.

Credit Card Reviews Methodology

In order to determine the best possible credit cards, we look at things like fees, interest rates and rewards. We do this with companies that are associated with us as partners as well as other offerings. From there, we make a decision about what the best card is related to different categories and needs. We focus on interest rate cost & fees, especially the cost of carrying a balance, rewards – cards accumulate rewards in different currencies—points, miles, cash back—and their values vary widely usability – cards that accept a wide range of credit profiles and offer simple solutions for things like checking your credit score or contacting. We also consider customer reviews.

We look at cards related to good or excellent credit ratings that will then provide a range of different benefits and improvements for someone who has these scores. We also look at low fees when it comes to those who have lower credit scores.