SoFi Credit Card Review

In the ever-evolving world of credit cards, finding the optimal card to suit your needs can be a daunting task. Today, we’re diving deep into the SoFi Credit Card, a product offered by The Bank of Missouri. This card promises a compelling array of features, including a robust cashback program and no annual fee. Whether you’re a seasoned credit card user or a newbie, this review will provide you with detailed insights to help you make an informed decision.

SoFi Credit Card Key Takeaways

Before we delve into the specifics, let’s summarize the key takeaways of the SoFi Credit Card:
– Cashback Rewards: Earn 2% cash back per $1 spent on eligible purchases.
– Enhanced Cashback: Receive 3% cash back on your credit card for a year when you set up a direct deposit.
– Welcome Bonus: Earn $300 when you fund an Invest account as well as a Checking and Savings account after getting approved for the SoFi Credit Card.
– Annual Fee: $0
– APR: Variable APR ranging from 20.24% to 29.99% for purchases and balance transfers.
– Credit Score Requirement: Good to Excellent (670-799)
Now, let’s break down these aspects in greater detail.

SoFi Credit Card Pros and Cons

Pros:

1. No Annual Fee:
The SoFi Credit Card stands out with its $0 annual fee, making it an attractive option for budget-conscious consumers who want to maximize their rewards without incurring extra costs.
2. Generous Cashback Rewards:
With 2% cash back on eligible purchases and an enhanced 3% cash back for a year with direct deposit, this card offers one of the most competitive cashback programs in the market.
3. Substantial Welcome Bonus:
The $300 welcome bonus, earned by funding an Invest account and a Checking and Savings account, is a lucrative feature that can significantly offset initial expenses.
4. No Foreign Transaction Fees:
For those who frequently travel abroad, the absence of foreign transaction fees is a significant advantage, allowing you to save on additional charges while making international purchases.

Cons:

1. High Variable APR:
The APR for purchases and balance transfers ranges from 20.24% to 29.99%, which is relatively high. This could be a drawback for those who occasionally carry a balance on their card.
2. No Introductory APR Period:
Unlike some competitors, the SoFi Credit Card does not offer an introductory 0% APR period for purchases or balance transfers, which could be a disadvantage for those looking to finance larger purchases or consolidate debt.
3. Limited Premium Perks:
While the card offers excellent cashback rewards, it lacks some of the premium travel and purchase protection benefits that other cards in its category provide.

SoFi Credit Card Benefits

Cashback Rewards

The standout feature of the SoFi Credit Card is its robust cashback rewards program. Cardholders earn:
– 2% Cash Back: On all eligible purchases, which is automatically credited to your account.
– 3% Cash Back: For the first year, provided you set up a direct deposit. This enhanced rate is particularly appealing for those who can take advantage of direct deposit options.

Welcome Bonus

New cardholders can earn a $300 bonus by completing the following steps:
– Fund an Invest Account: Open and fund a SoFi Invest account.
– Set Up Checking and Savings Accounts: Open and fund a SoFi Checking and Savings account.
This bonus is a great way to kickstart your relationship with SoFi and take advantage of their broader financial ecosystem.

No Annual Fee

The absence of an annual fee means you can enjoy all the card’s benefits without worrying about a yearly charge. This is particularly beneficial for those who want to maximize their rewards without incurring extra costs.

No Foreign Transaction Fees

Travelers will appreciate that the SoFi Credit Card does not charge foreign transaction fees. This can result in significant savings when making purchases outside the United States.

Manageable Fees and Rates

Here’s a breakdown of the various fees and APRs associated with the SoFi Credit Card:
– Purchase APR: 20.24% – 29.99% Variable
– Balance Transfer APR: 20.24% – 29.99% Variable
– APR for Cash Advances: 32.24% Variable
– Balance Transfer Fee: The greater of $10 or 5% of the balance transfer amount.
– Cash Advance Fee: The greater of $10 or 5% of the cash advance amount.
– Late Payment Fee: Up to $41

Credit Score Requirement

The SoFi Credit Card is designed for individuals with good to excellent credit, typically ranging from 670 to 799. This makes it accessible to a broad range of consumers who have demonstrated responsible credit behavior.

Customer Support and Account Management

SoFi provides a comprehensive online platform for managing your credit card account. You can easily pay your bill, track your spending, and access customer support through their website or mobile app. Additionally, you can contact their customer service team via phone for any inquiries or assistance.

Conclusion

The SoFi Credit Card, issued by The Bank of Missouri, is a strong contender in the cashback credit card market. Its combination of generous cashback rewards, no annual fee, and substantial welcome bonus make it an attractive option for a wide range of consumers. While the high variable APR and lack of an introductory APR period may be drawbacks for some, the overall value proposition of this card remains compelling.

Summary of Strengths:

– 2% Cash Back: On eligible purchases.
– 3% Cash Back for a Year: With direct deposit.
– $300 Welcome Bonus: For funding Invest, Checking, and Savings accounts.
– No Annual Fee: Maximizes rewards without extra costs.
– No Foreign Transaction Fees: Ideal for international travelers.

Summary of Weaknesses:

– High Variable APR: Ranges from 20.24% to 29.99%, which can be costly for those who carry a balance.
– No Introductory APR Period: May not be suitable for those looking to finance larger purchases or consolidate debt.
– Limited Premium Perks: Lacks some of the travel and purchase protection benefits offered by other cards.
In conclusion, the SoFi Credit Card is a well-rounded product that offers significant value through its cashback program and welcome bonus. It’s particularly well-suited for consumers who can take advantage of the enhanced cashback rate with direct deposit and those who want to avoid annual fees and foreign transaction charges. If these features align with your financial goals and spending habits, the SoFi Credit Card could be an excellent addition to your wallet.