You may or may not have heard of SoFi, which stands for Social Finance -- an online personal finance company that offers a great deal of services, including a credit card.
The SoFi card is currently only available to SoFi customers by e-mail invitation only. However, if you have a SoFi student loan, personal loan, SoFi Money account, or a SoFi Investment account and did not receive an invitation for the credit card, go to their website and hit the “Apply” button. This action will direct you to be placed on a waiting list, and someone from SoFi will contact you.
The So-Fi credit card is a MasterCard financed by the Bank of Missouri and works like a regular credit card for making purchases. It’s the rewards program that is unique. The cash back rewards are attached to paying down a SoFi loan, saving in a SoFi Money account, or investing in a SoFi Investment account. Purchases earn 1% at the time of sale, and when you direct the reward to a SoFi account, the amount is doubled to 2%.
The SoFi MasterCard has no annual fee and no foreign transaction fee, making it free to use and earn rewards as long as you pay your full balance on time every month and not perform a balance transfer or get a cash advance. These transactions will cost $10 or 5%, whichever is larger.
You will need good to excellent credit to be considered for the SoFi MasterCard with a credit score of 670+. This particular credit card is for people who want to better their financial situation by paying down debt, saving, or investing rewards. Cardholders can choose to redeem rewards on promotional offers listed on the website’s ‘redeem points’ page. However, choosing this method of redemption will stifle the worth of your rewards to 1%. The extra 1% is only added when you delegate the rewards to a SoFi account.
Learning money management with the SoFi MasterCard
The SoFi Mastercard can be a useful tool for managing money by helping people use their rewards to pay off debt, save, or invest -- all smart allocations for extra cash. Sometimes the rewards from credit cards just get mixed with other money and spent on daily items. When this occurs, people never notice the ‘extra.’ Having a dedicated place for the money helps streamline your finances and teach excellent money management habits.
Because the SoFi card makes part of its purpose to assist with good money management choices, the rewards are only given if truly earned. To explain, if you do not make a minimum payment for a billing cycle by the due date, you will not earn points for purchases posted to your account during that payment period. This is SoFi’s way of reminding you of your priorities and not rewarding you for missing a payment. Likewise, SoFi rewards responsible behavior with a 1% reduction in purchase APR after 12 months of on-time payments.
Identity Theft Protection: The SoFi MasterCard has the same MasterCard Identity Theft Protection as all other MasterCard credit cards. If you experience identity theft issues related to your SoFi card, MasterCard will help you find answers and solve the problem.
Emergency Replacement Service: If your card is lost, damaged, or stolen, MasterCard’s emergency replacement service has you covered.
All-in-one Online App: SoFi has an all-in-one online app that helps you manage your credit card and all of your other SoFi accounts.
Concierge Services: If you travel, feel comforted knowing you can access free concierge services for assistance with reservations and other trip planning.
Cell Phone Coverage: If you pay your cell phone bill with your SoFi MasterCard, you will receive $1,000 per year in coverage if your phone is damaged, stolen, or needs to be replaced. You can file up to 2 claims per year if needed, and your cost will be a $50 deductible.
ShopRunner: Cardholders will enjoy a ShopRunner membership for unlimited free 2-day shipping and free return shipping at select online merchants.
Boxed: Receive 5% cash back on purchases at Boxed when using your SoFi MasterCard.
Lyft: Use your SoFi MasterCard for 5 Lyft rides per month and receive a $10 credit.
Postmates: Receive $5 off of a $25 purchase at Postmates.
Onefinestay: Receive discounts from Onefinestay when using your SoFi MasterCard.
The SoFi MasterCard is a credit card option for SoFi account holders. The rewards program is designed to help pay down debt on loans, save in a SoFi Money account, or invest in a SoFi Investment account.
Cardholders can purchase promotional items from a catalog with the accumulated rewards; however, SoFi doubles the 1% rewards when allocated for a SoFi account. For this reason, people serious about utilizing what the SoFi rewards program offers will be served well. If you would like more flexibility with your rewards, a different credit card would be a better choice.