Money Analysed

Cashback Credit Card Showdown: SoFi vs Wells Fargo vs Citi

The SoFi Credit Card: A Comprehensive Overview

As one of the most reputable student loan refinancing companies in the world, SoFi has expanded its financial offerings to include various products such as loans, mortgages, and investment accounts. In 2018, the company launched its very own credit card, which has since gained popularity among SoFi members and the general public.

In this article, we will provide an in-depth analysis of the SoFi credit card. Well discuss its features and benefits, eligibility and suitability, benefits and perks, and drawbacks.

Features and Benefits of the SoFi Credit Card

One of the most appealing features of the SoFi credit card is its cashback rewards program. Cardholders earn 2% unlimited cashback on all eligible purchases.

Eligible purchases include travel, entertainment, groceries, and other day-to-day expenses. The cashback earned is deposited directly into the cardholder’s SoFi Money account, which could be used towards all SoFi products, including investments.

Additionally, SoFi credit card users can qualify for a 20% bonus on their cashback rewards when they use them to pay down their SoFi student loans or personal loans. Beyond the cashback program, the SoFi credit card offers several other incentives to cardholders.

New cardholders can earn up to a $200 welcome bonus when they use their card to make a minimum of $3,000 in purchases within the first three months of opening their account. Additionally, the SoFi credit card offers an annual subscription to DoorDash’s delivery services.

Cardholders can get up to $120 in DoorDash credits per year, which could be used for food delivery. The card also includes cell phone protection, where you can get reimbursed for damage to your phone.

Eligibility and Suitability

The SoFi credit card is only available to SoFi members, including those who have SoFi student loans, personal loans, or investment accounts. This requirement is because the SoFi credit card is designed to integrate seamlessly with other SoFi products and services.

Additionally, the cashback rewards are only redeemable through the SoFi platform towards investments and student loan payments. The SoFi credit card is particularly suitable for users who regularly spend money on travel, entertainment, groceries, and other day-to-day expenses.

2% cashback on all eligible purchases can significantly add up over time, giving users more money to invest in their futures.

Benefits and Perks

In addition to cashback, the SoFi credit card offers several other benefits and perks to users. Many of these benefits come standard with World Elite Mastercard benefits.

The SoFi credit card offers no annual fee and no foreign transaction fees. It also offers an APR reduction program, allowing you to lower your APR by 1% for every 12 on-time payments.

The SoFi credit card also provides a few unique benefits, such as the DoorDash subscription mentioned earlier. Additionally, the card comes with a complimentary ShopRunner membership, providing free two-day shipping and returns with several participating merchants.

Lastly, the SoFi credit card offers exclusive deals and discounts on select brands and experiences.

Drawbacks

While the SoFi credit card has its fair share of strengths, there are a few drawbacks to consider. The most significant disadvantage is that the cashback rewards can only be redeemed through SoFi products, including investments and student loan payments.

For users who have no current interest in these services, the cashback rewards may not be very useful. In addition, the card’s APR is high, and there is no introductory period for balance transfers or purchases.

Final Thoughts

Overall, the SoFi credit card offers several unique benefits that make it a great choice for cardholders who regularly use SoFi products. The cashback rewards program alone is enough to make this card worth considering.

Plus, the additional perks, such as the DoorDash subscription and the APR reduction program, add extra value to the card. While there are a few drawbacks, they are minimal compared to the card’s numerous benefits.

SoFi credit cardholders can enjoy remarkable rewards while using their card for everyday expenses.

Earning and Redeeming Cash Back with the SoFi Credit Card

The SoFi Credit Card has a rewarding cashback program that gives cardholders 2% cashback on all eligible purchases. In this article, we will delve deep into the potential earnings in years one and two of using the SoFi Credit Card, the best ways to earn cashback, and how to maximize your redemptions.

Potential Earnings in Years One and Two

To estimate the SoFi Credit Card’s potential earnings, we will use FinanceBuzz’s Credit Card Rewards Valuation Model. Assuming an average household spends $3,000 per month, the annual rewards potential for the SoFi Credit Card would be $720.

However, SoFi Credit Card users can get up to a 20% bonus when they redeem their cashback rewards towards SoFi student loan or personal loan payments. Therefore, the potential annual rewards could increase up to $840.

Best Ways to Earn

The SoFi Credit Card has a simple rewards structure that encourages users to use the card regularly. Cardholders earn 2% cashback on all eligible purchases, including travel, entertainment, groceries, and other everyday expenses.

To earn cashback, users just need to use their card for qualifying purchases. There is no limit to how much cashback can be earned, making it easy for users to accumulate rewards over time.

Maximizing Your Redemptions

One of the advantages of the SoFi Credit Card’s cashback program is the flexibility in how users can redeem their rewards. Cardholders could redeem their cashback for SoFi Invest accounts, including brokerage, robo-investing, and cryptocurrency.

Furthermore, users could also redeem their cashback rewards towards their SoFi student loans or personal loans, where they could take advantange of the 20% bonus. Additionally, SoFi Credit cardholders could redeem their rewards for cash or statement credits by logging into their accounts and selecting ‘redeem rewards’.

Cardholders could also take advantage of SoFi’s promotional offers. For example, SoFi runs a limited-time promotion where users can earn $50 when they sign up for SoFi Money.

Furthermore, new users could earn $300 signup bonus when they open a SoFi Invest account and deposit $1,000.

SoFi FAQs

Eligibility and Approval Odds

To be eligible for the SoFi Credit Card, applicants must be members of SoFi. To become a member, applicants must have a good to excellent credit score. Typically, a credit score of 700 or higher increases approval odds for the SoFi Credit Card.

The SoFi Credit Card is best suited for users with good to excellent credit looking for an easy-to-use credit card with appealing cashback rewards.

The Reality of the SoFi Credit Card

The SoFi Credit Card is a real credit card issued by The Bank of Missouri on behalf of SoFi Technologies Inc. Unlike other credit cards offered by neobanks that serve only as virtual cards, the SoFi Credit Card is a physical product that users could use for in-person and online transactions.

Credit Limit and Criteria

The SoFi Credit Card’s credit limit is determined based on various factors, including credit history, income, and expenses. Users with a strong credit history and high income can expect a higher credit limit than those with average credit.

However, users could apply for credit line increases later on if they meet the criteria.

Final Thoughts

Overall, the SoFi Credit Card offers a cashback rewards program that is easy to use and flexible with redemption options. The potential for earnings is high, and users could take advantage of the numerous benefits the card has to offer.

As long as users have a good to excellent credit score and are members of SoFi, they have high approval odds for the card. Whether you’re looking for easy cashback rewards or a way to pay off your loans, the SoFi Credit Card might be the right card for you.

Other Cards to Consider: Exploring the

Wells Fargo Active Cash Card and the

Citi Double Cash Card

While the SoFi Credit Card offers users a cashback rewards program, there are other credit cards available in the market worth considering. In this article, we will explore two credit cards that share similar features with the SoFi Credit Card: the

Wells Fargo Active Cash Card and the

Citi Double Cash Card.

Wells Fargo Active Cash Card

The

Wells Fargo Active Cash Card is a strong contender for users looking for a straightforward cashback card with no annual fee. The card offers unlimited 2% cash rewards on all eligible purchases, including purchases made on digital wallets.

Additionally, the

Wells Fargo Active Cash Card offers an introductory APR of 0% for 15 months on both new purchases and balance transfers (with a balance transfer fee of 3% introductory for 120 days; then up to 5% (min $5)). Another notable feature of the

Wells Fargo Active Cash Card is its cell phone protection insurance.

An eligible covered cell phone that was purchased on the

Wells Fargo Active Cash Card will be covered against damage or theft (subject to a $25 deductible) for up to $600 per claim and up to two claims per 12 month period. Furthermore, users could enjoy discounts, cashback deals, and other exclusive offers through the Wells Fargo Earn More Mall.

Like the SoFi Credit Card, the

Wells Fargo Active Cash Card provides a simple cashback reward program and an introductory APR for purchases and balance transfers. However, the card offers a slightly shorter introductory APR period and does not offer a student loan or personal loan redemption program.

Citi Double Cash Card

For users looking for a no-frills cashback rewards card, the

Citi Double Cash Card is worth considering. The card offers unlimited 2% cashback rewards, with no limits or categories to worry about.

Cashback rewards could be redeemed as statement credits, gift cards, checks, or direct deposit. In addition, the card offers an introductory APR of 0% for 18 months on balance transfers (with a balance transfer fee of 3% of each balance transfer; $5 minimum).

The

Citi Double Cash Card also offers several other features, including Citi Entertainment for exclusive access to special events, presale tickets, and VIP experiences. Users could also enjoy travel benefits, including worldwide travel accident insurance, trip interruption protection, and several other travel-related perks.

While the

Citi Double Cash Card offers no introductory APR for purchases, the card delivers a compelling cashback reward program with no annual fee. Moreover, the card’s travel-related benefits provide added value for users.

Final Thoughts

While the SoFi Credit Card offers an excellent cashback rewards program with numerous benefits and redemption options, the

Wells Fargo Active Cash Card and the

Citi Double Cash Card have their own benefits, as well. The

Wells Fargo Active Cash Card offers a cell phone protection program and discounts through the Wells Fargo Earn More Mall on top of its unlimited 2% cashback rewards.

Meanwhile, the

Citi Double Cash Card provides an excellent no-frills cashback rewards program with added travel benefits. Ultimately, choosing the right card comes down to your specific needs and priorities.

Consider what features are essential to you and your spending habits, and choose the card that best matches your preferences. In conclusion, choosing the right credit card is crucial for maximizing cashback rewards and financial benefits.

While the SoFi Credit Card offers an appealing cashback rewards program with many redemption options, other cards like the

Wells Fargo Active Cash Card and

Citi Double Cash Card provide unique features such as introductory APR periods, cell phone protection, and added travel benefits. When selecting a credit card, consider your spending habits, redemption preferences, and goals to determine which card is the best fit for you.

Whatever you choose, make sure to use your card responsibly and pay your balances in full each month to avoid costly interest charges.

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