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SoFi Smart Card Review: Highly Accessible, With Stellar Grocery Rewards
The Bottom Line
The card is unique in that it doesn't allow holders to carry a balance and, as a result, doesn't charge interest. This can make it easier to manage than traditional secured options. But such features can also become a crutch for cardholders later on.
Rates, fees and offers
Rates, fees and offers
Annual fee
$0
Rewards rate
5%
Bonus offer
Earn $50 or $400 with eligible direct deposit: Open a SoFi Checking and Savings account and set up eligible direct deposit of $1,000 or more. Terms apply.
Intro APR
N/A
Ongoing APR
APR: N/A
Foreign transaction fee
N/A
More details from SoFi
More details from SoFi
- SoFi Smart Card is the secured credit card backed by your SoFi Checking and Savings balance.
- Earn unlimited 5% cash back rewards at grocery stores.
- Grow your credit score with on-time payments.
- You control your spending power. Your Smart Card spending limit is set by your SoFi Checking and Savings balance.
- No annual fee and no hard credit pull to apply.
Detailed Review
The SoFi Smart Card is the latest addition to the digital financial company’s lineup of credit card offerings. The $0-annual-fee card is geared toward credit newbies, and it boasts useful features for that purpose: It doesn't require a credit check, doesn’t have a minimum security deposit and reports to the three major credit bureaus. On top of all that, among competitors at its price point, the SoFi Smart Card also happens to offer market-leading rewards at grocery stores.
Plus, there's no APR to worry about. Comparable to alternative options like the Secured Chime Visa® Credit Card, the Current Build Card and the Varo Believe Secured Credit Card, the SoFi Smart Card doesn't allow holders to carry a balance and therefore doesn't charge any interest.
These features make the card highly accessible and can prevent credit beginners from overspending, but there are some caveats: You'll need to have (or open) an eligible SoFi account to get the card, and keep in mind that all those guardrails can leave you ill-equipped to handle more traditional credit cards in the future.
And as with other products that work like the SoFi Smart Card, there's no clearly defined upgrade path to a better card from SoFi when you're ready.
SoFi Smart Card: Basics
Card type: Secured.
Annual fee: $0.
Security deposit: No minimum security deposit is required. The amount you put into your SoFi Checking and Savings account determines your credit limit and how much you can spend with the card. To have the card, you must open a SoFi Checking and Savings account and your account must be funded, in any amount, before you can make purchases with the card.
(Most traditional secured credit cards require an upfront cash security deposit that serves as your credit line.)
Welcome bonus: Earn $50 or $400 with eligible direct deposit: Open a SoFi Checking and Savings account and set up eligible direct deposit of $1,000 or more. Terms apply.
Rewards:
Unlimited 5% cash back at grocery stores (excluding purchases made at Walmart, Target and warehouse clubs like Costco).
APR: N/A.
Foreign transaction fee: None.
Other perks:
No credit check to apply.
Payments reported to the three main credit bureaus.
Occasional promotions for members with SoFi Checking and Savings accounts.
Compare to Other Cards
Benefits and Perks
Useful credit-building features
SoFi doesn't perform a hard credit pull when you apply for the SoFi Smart Card, which means your credit scores won’t suffer from the temporary dip that can happen from a credit inquiry.
Additionally, the card reports your activity to all three major credit bureaus, which is crucial for those seeking to help their credit. These bureaus compile the information that informs your credit scores, and — because you don't know which bureau a future lender might use when considering you for a loan — you want a card that reports your activity to all three (Experian, TransUnion and Equifax).
No interest charges
The amount you deposit into your SoFi Checking and Savings account acts as your collateral, but it also determines your credit limit.
When you make a purchase with the SoFi Smart Card, the amount you spend is “reserved” and no longer accessible to make other purchases with until you pay off your card balance. So unlike traditional credit cards that allow you to roll over your debt each month and pay off your balance over time, the SoFi Smart Card doesn't let you carry a balance. And because you can’t carry a balance, you won’t be charged interest as you would with a typical credit card.
Outstanding rewards on groceries
The SoFi Smart Card is a great option for big grocery spenders. Cardholders earn an unlimited 5% cash back at grocery stores (excluding purchases made at Walmart, Target and warehouse clubs like Costco). That's a best-in-class rate among no-annual-fee cards, particularly because they’re uncapped, meaning there’s no limit to the amount of rewards you can earn in the category.
Technically, cash back is issued as “SoFi member rewards points" (5 points per $1 spent), but those points are worth 1 cent each.
Rewards can be redeemed as a deposit into a SoFi checking and savings account, as payment toward any SoFi loans, and for statement credit.
Drawbacks and Considerations
SoFi account required
To be eligible for the SoFi Smart Card, applicants must open a SoFi Checking and Savings account — which is one combined, online-only account. Opening an account is free, but it's an extra step that many traditional secured cards don’t require.
No upgrade path
SoFi doesn't offer an eventual upgrade path to other cards within its portfolio, as many major issuers do. But the company notes that eligible SoFi Smart Cardmembers may receive prequalified offers to apply for its other credit cards — such as the SoFi Unlimited 2% Credit Card or the SoFi Everyday Cash Rewards Credit Card — as their credit journeys develop.
Training wheels can become a crutch over the long term
The SoFi Smart Card’s guardrails — namely, the fact that you aren't able to carry a balance and thus incur interest charges — can help you avoid over-spending and accumulating expensive debt. But those features won’t prepare you for the way traditional credit cards work and won’t help you build responsible card-holding habits, like paying off your balance on time and in full every month. If you never intend to work your way up to such a credit card (one that may offer better rewards and perks), maybe that's fine.
But if you want to start with a more traditional credit-building option that doesn't feature as much handholding, consider a card like the $0-annual-fee Capital One Quicksilver Secured Cash Rewards Credit Card (see rates and fees). Because it's a secured credit card, it requires an upfront refundable security deposit (of at least $200) that acts as your credit limit. But unlike the SoFi Smart Card, it doesn't require that you open up a specific kind of checking or savings account with Capital One.
The Capital One Quicksilver Secured Cash Rewards Credit Card reports payments to the three major credit bureaus, and cardholders are automatically considered for a higher credit line in as little as six months. Notably, the card also earns rewards: 1.5% cash back on purchases, and 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel. Terms apply.
Limited rewards
Yes, you can earn excellent grocery rewards with the SoFi Smart Card. But it doesn't reward holders for any other kinds of purchases; there's not even a 1% rate on "everything else." So if your spending tends to be more mixed — if, say, you dine out for most meals — the SoFi Smart Card isn't ideal.
Of course, when your goal is to help your credit scores, earning rewards might not be at the forefront of your mind anyway. But there are some credit-building options, like the aforementioned Capital One Quicksilver Secured Cash Rewards Credit Card, that earn a solid rewards rate on all spending, even as you work to improve your credit.
How To Decide If It's Right For You
The SoFi Smart Card is an accessible option for those who are new to credit or want to improve their scores. Its atypical features — the inability to carry a balance and the lack of interest charges — make it easy on beginners, and that's before even considering the card's excellent rewards on groceries.
But if you want a more conventional credit-building card — or just one that can reward you on purchases beyond the supermarket aisles — take the time to investigate other options.
1.5% cash back on purchases
The Capital One Quicksilver Secured Cash Rewards Credit Card (see rates and fees) reports payments to the major credit bureaus, and cardholders are automatically considered for a higher credit line in as little as six months. The card also earns 1.5% cash back on purchases and 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel. Terms apply. There's an annual fee of $0.
Looking For Something Else?
Methodology
NerdWallet reviews credit cards with an eye toward both the quantitative and qualitative features of a card. Quantitative features are those that boil down to dollars and cents, such as fees, interest rates, rewards (including earning rates and redemption values) and the cash value of benefits and perks. Qualitative factors are those that affect how easy or difficult it is for a typical cardholder to get good value from the card. They include such things as the ease of application, simplicity of the rewards structure, the likelihood of using certain features, and whether a card is well-suited to everyday use or is best reserved for specific purchases. Our star ratings serve as a general gauge of how each card compares with others in its class, but star ratings are intended to be just one consideration when a consumer is choosing a credit card. Learn how NerdWallet rates credit cards.
About the author
Funto Omojola
Lead Writer & Content Strategist
