My Money Planet has partnered with CardRatings for our coverage of credit card products. My Money Planet and CardRatings may receive a commission from card issuers. The recommendations are the author’s alone and have not been reviewed, endorsed or approved by any of these entities.
SoFi is a fintech company that offers investing, saving, and loans. If you are a SoFi customer, a Sofi Credit Card is a great addition to your wallet. You can earn excellent cash back (3% in the first year with direct deposit and 2% thereafter). You can use the rewards to pay for investing with SoFi or paying off SoFi loans. In addition, the card offers cell phone insurance for up to $1000 per year. The credit card is a World Mastercard, so you will get Mastercard benefits such as Lyft discounts and concierge services, and ShopRunner membership.
Learn more about the Sofi Credit Card
SoFi Credit Card Review
Rewards
- 3% cashback for a year (requires direct deposit with SoFi). 2% unlimited cashback thereafter.
- Cell phone insurance for up to $1000 per year. $800 per claim. A $50 deductible applies.
Sign up bonus
You can earn a signup bonus of $200 when you fund an investment account and savings and checking account after getting approved for a credit card.
Fees
- No annual fee
- No foreign transaction fees
On-time payments reduce your APR by 1%
You should pay your bill in full every month. But if you carry balances, SoFi will reduce your APR by 1% if you make at least the minimum payment on-time for 12 months
Redemption
You can redeem your rewards towards investing, saving or paying off eligible loans with SoFi. You can also redeem your rewards directly into crypto.
You can also use your rewards to directly pay your monthly credit card bill. But this will cut the value of your rewards to just 1%. So redeeming rewards to pay your credit card bills is not a good idea.
Cell phone insurance
The SoFi credit card offers cell phone insurance for up to $1000 to repair or replace your phone. Maximum reimbursement per claim is $800. The maximum insurance payout per year is $1,000. You will need to pay a $50 deductible for every claim and you are limited to 2 claims in a year.
Cons
- You must have a relationship with SoFi. Rewards from the credit card can only be used for investing, saving, or paying off loans with SoFi.
- The card offers a 2% flat on all purchases. There are no bonus categories
- Must be a SoFi customer to apply
Other credit cards to consider
Citi® Double Cash Card – 18 month BT offer
Citi® Double Cash Card – 18 month BT offer gives you 2% cashback – 1% when you purchase and 1% when you pay the bills. You have the option to get the rewards as cash or in Citi ThankYou points. Though the 2% cashback is the same as the SoFi card, you don’t need a relationship with Citi to get the Citi Double Cash card. You redeem your rewards as a statement credit, get it as a check, or direct deposit. Note that Citi Double Cash does have a 3% foreign transaction fee but no annual fee.
Chase Freedom Unlimited®
Chase Freedom Unlimited® credit card offers 3% cashback on dining at restaurants (including takeout and eligible delivery services) and drugstore purchases and 1.5% unlimited cashback everywhere else. There are no limits to how much cashback you can earn. In addition, you can earn 5% on purchases made through the Chase Ultimate Rewards portal. If you spend a lot of money on restaurants, this card is a great card to have. The card has no annual fee but has 3% foreign transaction fees. You can redeem your cash back for a statement credit or use it for travel at the Chase Ultimate Rewards Portal. You can also use your cashback to buy gift cards or shop at Amazon.
Bottom Line
The SoFi credit card is an excellent addition to your wallet if you have an existing relationship with SoFi. The rewards can only be used to invest, save, or pay eligible loans with SoFi. The card gives you cell phone insurance for up to $1,000 per year. The card has no annual fees and no foreign transaction fees. The downside of the SoFi credit card is that you must be a SoFi customer to apply for the card and there are no bonus categories.
My Money Planet has partnered with CardRatings for our coverage of credit card products. My Money Planet and CardRatings may receive a commission from card issuers.