SoFi, a leading online financing company, first announced plans for a credit card this past summer. That card, the Sofi Credit Card, is now open for new applicants. Here’s what you need to know about the new SoFi Credit Card launch – and if you should consider applying.
New SoFi Credit Card Features
The SoFi Credit Card is a no-annual-fee World Elite Mastercard. World Elite Mastercard is the top end of the Mastercard lineup, offering various benefits – including up to $1,000 in cell phone protection. The card also features 2% cash back earned on all purchases and boasts no foreign transaction fees.
2% Cash Back
The 2% cash back structure from SoFi is similar to the Double Cash Card from Citi. Cardholders get an unlimited 1% cash back on purchases automatically – and another 1% back bonus when they apply their cash back to an eligible SoFi account.
While the card has no signup bonuses to speak of, it does come with one rather tempting offer. Cardholders that make 12 on-time payments with their SoFi Card will receive a 1% APR reduction. The typical APR with the SoFi Card varies from 12.99% to 24.99% based on creditworthiness, so this 1% APR deduction can make a real impact on those looking to pay off debt.
Is the SoFi Card Worth It?
So, is the SoFi Credit Card worth considering? If you are already a SoFi customer – either with savings, investment, or loan accounts – the answer is probably yes. The 2% cash back is redeemable towards paying down SoFi loan balances, investing, or applying it to savings accounts.
For those without a SoFi account, the card has no real value. 1% cash back just isn’t worth it – especially when there are plenty of debit accounts from other banks that offer similar savings (like Discover’s Cashback Checking). Of course, SoFi isn’t targeting these individuals – as the initial launch is only available to current SoFi customers.
Related Article: Citi Double Cash Will Now Be a World Elite Mastercard