SoFi Reveals Details on Rewards Credit Card
Between 2019 and 2020, the FinTech SoFi has done an awful lot. In addition to rolling out a hybrid banking account and an investment platform, the company has also raised its profile by scoring naming rights to the Southern California stadium that’s now home to the Los Angeles Rams and Los Angeles Chargers. Now, the brand has unveiled details about its next venture: The SoFi Credit Card.
The SoFi Credit Card will offer users 2% back on their purchases — but only if they redeem their earnings in certain ways. When cardholders make a purchase, they’ll earn 1% back in the form of SoFi Rewards Points (with each point being worth 1¢. Then, if a customer redeems their points for a cash deposit made to their SoFi Money account, uses them to purchase stocks via SoFi Invest, or applies them to a SoFi Personal Loan or Student Loan payment, the points redeemed will be double. For example, if a cardholder wanted to transfer 100 SoFi Rewards points to their SoFi Money account, this amount will be increased to 200 points, resulting in a $2 deposit.
In terms of other benefits, the SoFi Credit Card won’t charge any foreign transaction fees. Additionally, cardholders will enjoy World Elite Mastercard benefits, including complimentary cell phone insurance up to $1,000 (with a $50 deductible), $5 off orders of $25 or more on Postmates, $10 Lyft credit when you take five rides in a month, and more. Most importantly, the card will carry no annual fee.
Given the structure of the SoFi Credit Card, the product is most likely to be compared to the Citi Double Cash card. That card also offers a total of 2% cashback regardless of spending cateogory, although 1% is earned when cardholders make a purchase and the other 1% is applied when they pay off said purchase. Notably, outside of these two cards, it’s difficult to find cashback cards that feature a flat 2% rate, with the nearest competitors being the 1.5% back that the Chase Freedom Unlimited and Capital One Quicksilver both offer — although the former recently added extra multiplier categories to the mix.
Overall, the SoFi Credit Card could be a good pick for current SoFi customers or those willing to open a SoFi Money (or SoFi Invest) account in order to maximize rewards. Thanks to its effective 2% earning rate if redeemed in select ways, the card makes for a hassle-free cashback set-up that doesn’t require cardholders to keep track of multiplier categories or bonuses. Of course, speaking of bonuses, the lack of an intro bonus for the SoFi Credit Card is likely to be a dealbreaker for some. That said, SoFi does offer bonuses on several of their other products — including a current offer where new SoFi Money customers can earn $50 when they deposit at least $500. In any case, the SoFi Credit Card is currently available to select customers and is expected to roll out as we head into 2021.