SoFi Credit Card – 2% Cashback + Cell Phone Insurance + Reduced APR for On-Time Payments

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 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.

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. $50 deductible applies.

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. 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 relationships with SoFi. Rewards from the credit card can only be used for investing, saving, or paying off loans with SoFi.
  • The card offers 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

Citi Double Cash card 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 card

The Chase Freedom card offers 3% cashback on dining 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 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.

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