SoFi Credit Card Review: 2% Back, When You Redeem the Right Way
The Bottom Line
4.7
The incentive to apply your rewards toward money goals is helpful, but other cash-back cards are potentially more flexible and valuable.
Rates, fees and offers
Annual fee
$0
Rewards rate
2%
Bonus offer
Earn a $200 statement credit welcome bonus after you spend $2,000 in purchases in the first 3 months of account opening.
Intro APR
10.99% intro APR on balance transfers for 6 months from date of first transfer, for transfers that post to your account by February 10, 2024. After the intro APR expires, your APR will be 28.24% Variable.
Ongoing APR
APR: 28.24%, Variable
Cash Advance APR: 29.99%, Variable
Balance transfer fee
The greater of $10 or 5% of each balance transfer
Foreign transaction fee
0%
More details from SoFi
- Earn a $200 statement credit welcome bonus after you spend $2,000 in purchases in the first 3 months of account opening.
- Earn unlimited 2% cash back rewards on every purchase.
- 10.99% intro APR on balance transfers for 6 months from date of first transfer, for transfers that post to your account by February 10, 2024. After the intro APR expires, your APR will be 28.24% Variable. 5% fee applies to all balance transfers (min $10).
- No annual fees and no foreign transaction fees.
- Cell phone protection (insurance coverage up to $1,000)**.
- Mastercard ID Theft Protection™**.
- $10 Lyft credit when you take 5 rides per month**.
- **Cell Phone Insurance Protection, Mastercard ID Theft Protection™, Lyft and Other Partner Rewards have additional terms and conditions, which can all be accessed through the World Elite Mastercard® Benefits portal. Please see your guide to benefits for details or call 1-800-MASTERCARD.
Pros and Cons
Pros
No annual fee
Cell phone insurance
Flexible rewards redemption
Cons
No intro APR
Best rewards limited to certain customers
Detailed Review
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Terms on the SoFi Unlimited 2% Credit Card have changed, so this page is out of date. We're working on updating this article.
At first glance, the $0-annual-fee SoFi Unlimited 2% Credit Card is a straightforward credit card that earns 2% cash back on all eligible purchases — among the best rates you can find on cards in its class.
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, saving or paying down an eligible loan with SoFi. Other redemption options aren't as valuable.
You don't have to be a SoFi customer to get the card, but it's certainly best suited for those who have other SoFi accounts, so they can redeem rewards at the highest value. If you're not interested in joining the SoFi ecosystem, there are other credit cards that earn 2% cash back on purchases, and with fewer hoops to jump through.
In addition to the SoFi Unlimited 2% Credit Card, SoFi also offers two other credit cards, although both are invite-only as of this writing.
SoFi Unlimited 2% Credit Card: Basics
Card type: Cash back.
Annual fee: $0.
Sign-up bonus: Earn a $200 statement credit welcome bonus after you spend $2,000 in purchases in the first 3 months of account opening.
Rewards: Earn 2 points per $1 spent on eligible purchases (3 points in the first year, if you set up direct deposit).
Redemption options:
Redeem at a value of 1 cent per point as cash deposited into your SoFi Checking and Savings account, as whole or fractional shares credited to a SoFi Invest account or as cash applied to the outstanding balance on a SoFi Student loans, SoFi Refinance or SoFi Personal Loan.
Redeem at a value of 0.5 cent per point toward a statement credit.
Interest rate: 10.99% intro APR on balance transfers for 6 months from date of first transfer, for transfers that post to your account by February 10, 2024. After the intro APR expires, your APR will be 28.24% Variable..
Foreign transaction fee: None.
Compare to Other Cards
Benefits and Perks
Rewards that incentivize working toward specific goals
The SoFi Unlimited 2% Credit Card gently nudges you toward financial actions that can help you meet money goals. Applying your cash back toward savings, investing or debt repayment is a way to make earned rewards work even harder for you. But as you use the card, keep in mind that it takes $1,250 of spending to rack up $25 in cash back, assuming you deposit that cash back in a way that yields the full penny-per-point value. Point being, the rewards are nice, but they’re not going to wipe out a large debt.
The card resembles the Fidelity® Rewards Visa Signature® Card, which also advertises a 2% cash-back rate on all purchases — as long as you deposit those rewards into an eligible Fidelity account.
For the first year, you can earn 3 points back instead of 2 points, as long as you set up direct deposit into a SoFi checking or savings account.
World Elite Mastercard benefits
As a World Elite Mastercard, the SoFi Unlimited 2% Credit Card comes with additional perks like cell phone protection up to $1,000 and discounts at participating merchants including Lyft, ShopRunner and DoorDash.
Drawbacks and Considerations
Lower rewards value for some redemptions
If a statement credit is what you crave, you’re not going to extract the biggest benefit out of this card. That’s because points are worth half as much, a paltry 0.5 cent each, when redeemed this way. For the ultimate flexibility of cash back with a high rewards rate, consider the Citi Double Cash® Card. It earns 2% cash back on all purchases: 1% as you spend, 1% as you pay it back. And you can redeem rewards for a statement credit, direct deposit to a bank account, or a check.
Mediocre sign-up bonus
There are some $0-annual-fee cards that earn a more modest 1.5% cash back, but with the welcome addition of a more generous sign-up bonus. Depending on your annual spending, the card earning 1.5% back may come out ahead. The Capital One Quicksilver Cash Rewards Credit Card, for example, offers this appealing sign-up bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening.
If you'd like to learn about alternative card options, you can consult NerdWallet's list of best credit cards to have.
How To Decide If It's Right For You
If you already have one or more eligible SoFi accounts and want to dedicate your cash-back rewards to financial goals like loan repayment or investing, the SoFi Unlimited 2% Credit Card can be a helpful addition to your wallet. But if your accounts are through other banks and you'd prefer to use your rewards in other ways, this card wouldn't be a good fit.
Earn 1.5% cash back on all purchases, plus a sign-up bonus: Earn a one-time $200 cash bonus after you spend $500 on purchases within 3 months from account opening. The annual fee is $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.
Frequently asked questions
Does SoFi have a credit card?
Yes, SoFi offers one credit card, the SoFi Unlimited 2% Credit Card. It’s a no-annual-fee card that earns cash-back rewards.
What is the SoFi Credit Card?
The SoFi Unlimited 2% Credit Card earns 2% cash back on all purchases. You can redeem rewards toward your balance on a SoFi student, refinance or personal loan. You can also deposit rewards into a SoFi Money or Invest account. If you opt to redeem for a statement credit, your points will be worth half as much.
How many credit cards should I have?
There is no “right” number, just the number that works for you. What’s important is that you can manage the cards you carry, which means you pay your credit card bills on time each month. Some people prefer the simplicity of just one card, while others prefer carrying multiple cards so they can earn additional rewards or have a backup payment method.
What credit card is best?
When shopping around for a credit card, look into what the card costs (annual fee, other fees, interest rate) compared with the value of any rewards the card earns, like cash back or points you can redeem toward travel. The cards you may qualify for can also depend on your credit score and other personal financial factors.
