Sofi Credit Card Review

Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.

If you’re already a SoFi account holder, you may want to consider the SoFi Credit Card. That’s because — along with offering a decent rewards rate, the $0-annual-fee card provides the opportunity to lower your APR with responsible usage. Additionally, you can apply for the card without impacting your credit score. The credit limit you’re granted when first approved for the card isn’t forever—the bank may offer you an increase later down the line based on how you manage your credit. You can also request one online or by calling your bank—just keep in mind that this will result in a hard inquiry, which will lower your credit scores by a few points. As with most credit cards, your ability to be approved for a SoFi card will be determined based on your creditworthiness.

For someone looking to pay down debt or boost their savings account, choosing the SoFi card might be a better option. Redeeming directly into your SoFi accounts can take away some of the temptations of constant spending compared to redeeming rewards into a PayPal account for online shopping. With the options to apply points to personal or student loan balances or to build savings, SoFi might give you that extra motivation to keep your finances on track. If you have bad or no credit, Tomo card’s crocheting kits for beginners alternative approval process can help you avoid any hard credit checks that can have a potentially negative impact on your credit score. But keep in mind there are other cards, such as the Petal® 2 “Cash Back, No Fees” Visa® Credit Card that offer similar options for people without great credit. The Petal card does still check your credit score, but it also may use similar financial information as Tomo to determine your approval, and offers pre-approval that won’t affect your credit score.

Crypto investors will also appreciate the ability to redeem rewards for crypto. Cardholders earn 2% cash back when they make purchases and redeem into an eligible SoFi account, but that falls to 1% cash back if it’s redeemed as a statement credit. Read our full SoFi Credit Card review to see what else the card has to offer. If you have bad credit or no credit history, the Tomo Credit Card offers a unique approach to improving your credit. And you don’t need a credit history to get approved; instead, your approval is based on banking information, income, and other details in your application.

If you prefer a card that has more expanded redemption options, consider one of the cards below. SoFi’s card is targeted to customers looking to build savings, pay down loans or start investing—that’s because rewards are worth half as much if not redeemed in an eligible SoFi account. The card earns 2% back per eligible dollar spent which is worth a half-cent each in cash back if you redeem as a statement credit. If you use your rewards to pay down loans held with SoFi or to deposit into SoFi Banking or investment accounts, then points are worth 1 cent each. This means the cash back rate drops to 1% if you use your rewards to pay off your credit card bill. Similarly, you’re stuck with the 1% cash back rate if you redeem credit card points towards a promotional offer on SoFi’s portal.

The cards you may qualify for can also depend on your credit score and other personal financial factors. But it’s designed a little differently from others promising similar rewards. Technically, you earn points worth 1 cent each, and to get to that 2% rate, you must redeem those points toward investing, cryptocurrency, saving or paying down an eligible loan with SoFi. One of the most popular cash back cards, the Citi® Double Cash Card also offers an 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off with no annual fee. I’ve been using SoFi as my primary bank and investing app for a couple years.

Similar Posts