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There aren't many credit cards that get you 2% cash back on all your purchases. The new SoFi Credit Card is part of that select group, but it has one interesting condition. To unlock the full 2% back, you need to use your rewards to save, invest, or pay down an eligible loan with SoFi.
In case you haven't heard of SoFi, it's a personal finance company that promotes good financial habits. It offers several financial products, including loans, refinancing, investment accounts, and a hybrid checking-savings account called SoFi Money®.
Its first credit card fits right in, with valuable perks and an emphasis on smart money management. Here are all the details on its features.
How cash back works with the SoFi Credit Card
The highlight of the SoFi Credit Card is its cash back. This card defaults to 1 point per $1 on every purchase, and each point is worth $0.01. But you can double your points if you redeem them with SoFi in one of the following ways:
- Deposit them to a SoFi Money® account.
- Use them to purchase shares with a SoFi Invest® account.
- Apply them in a payment on a SoFi personal loan or other SoFi loan.
Let's say you've earned 500 points (worth $5) with your SoFi Credit Card. If you redeem those as cash to a SoFi Money® account, SoFi will double them. That means you'd get $10 deposited to your account.
It's easy enough to get the full 2% back. You could simply open a SoFi Money® account, which doesn't have any account fees or minimum balances.
No annual or foreign transaction fees
You won't need to pay anything extra for the SoFi Credit Card. This is a no-annual-fee credit card. It also doesn't charge foreign transaction fees, so you could bring it along on international trips.
The only fees this card does charge are avoidable. You will be charged fees for balance transfers, cash advances, late payments, and returned payments. If you pay your bill on time and don't do any balance transfers or cash advances, then you won't get dinged with any fees.
Additional benefits
Since the SoFi Credit Card is a World Elite Mastercard®, it has several complimentary extras. These include:
- Cell phone protection for damage or theft
- Unlimited free two-day shipping and free return shipping on purchases through ShopRunner
- $5 off all Postmates orders over $25
- A $10 Lyft credit when you take five rides in a month
SoFi will also lower your card's APR by 1% when you make 12 on-time payments. This is a perk, but hopefully, you won't need it. The best way to save on credit card interest is to pay your bill in full each month.
No introductory offers
If there's an area where the SoFi Credit Card is lacking, it's introductory offers. It doesn't have a sign-up bonus for new cardholders. Not every card offers these, but sign-up bonuses are one of the more valuable credit card perks. You also won't get a 0% intro APR on purchases or balance transfers.
Applying for the SoFi Credit Card
Right now, the SoFi Credit Card is only available to SoFi members who were notified by email. If you haven't gotten an email and you have a SoFi account, you can join the card's waitlist via SoFi's site. The card will be available to the general public in early 2021.
So, should you apply (or join the waitlist)? Based on its benefits and the fact it doesn't have an annual fee, the SoFi Credit Card stacks up well against the competition. Among flat-rate cash back credit cards, 2% is the highest rate you'll find.
Keep in mind that this credit card is designed for consumers who either already have SoFi accounts or are willing to open one. You'll need that to double your cash back and get the most out of the SoFi Credit Card.
