SoFi Credit Card review: A good deal for SoFi customers

The SoFi card is a great option for any SoFi loan and account holders looking to earn solid rewards on their card. The Chase Freedom Unlimited, on the other hand, offers a much more expanded rewards program. For example, travelers will get much more value from this card since Chase Freedom Unlimited cardholders earn an elevated cash back on travel booked through Chase Travel (as well as cash back and on gift cards)and dining (including takeout and delivery). It also has a base of 1.5 percent cash back on other general purchases.

If you’re already a SoFi customer or have a SoFi loan you can redeem toward SoFi products, like loan payments, to help reduce your overall debt. However, if you want more general rewards and flexible redemption options, the Chase Freedom Unlimited is the better card.

If the SoFi card was your first choice because you’re looking to earn elevated rewards for your largest expenses, there are better card options. The Citi Double Cash® Card offers an unlimited 2 percent cash back — 1 percent cash back when you make your purchase and an additional 1 percent when you make credit card payments.

Keep in mind the SoFi card’s ongoing 2 percent cash back rate is only worth 2 percent when you redeem rewards toward your SoFi Checking and Savings account, loan accounts, investing account or as a statement credit. Your 2 percent cash back (1 percent when you make a purchase and 1 percent when you pay your bill) with the Double Cash Card is earned as you pay it off, which is both more accessible and builds a good credit habit.

The SoFi card’s 3 percent cash back for the first year and 2 percent ongoing rate are alluring offers if you're already a customer. Outside those parameters, the SoFi Credit Card falls short of other flat-rate cash back cards like the Citi Double Cash. 

The primary criteria for a rewards or cash back card’s rating is its rewards value. This includes the card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we first calculate its average rewards rate based on how much it earns in different bonus categories and how closely its categories align with the average person’s spending habits, according to data from the Bureau of Labor Statistics. 

Based on this data, we determine a “chargeable” spend (which purchases are likely to be put on a credit card and earn rewards). This includes the following spending by category:

• Groceries: $5,200
• Dining out: $3,000
• Entertainment: $2,500
• Gas: $2,100
• Apparel and services: $1,700

Using this data, we assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 23 percent weighting based on how much of the average person’s budget is spent on groceries. We also estimate the redemption value of points or miles from various issuer, airline and hotel rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases, as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

We also rate cards based on how much it costs to keep them in your wallet or carry a balance. 

To start, each rewards or cash back card is scored based on whether it offers an intro APR and how its ongoing APR compares to the rates available on other rewards or cash back cards. 

We also score each card based on how its annual fee influences its overall value. 

We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value, but if a card offers terrific value via its ongoing rewards and perks, it can earn a high score even if it carries a high annual fee. 

With this in mind, we rate a card based primarily on how its ongoing rewards value and ongoing perk value (such as annual credits or bonuses) stack up against other cards in the category when you subtract its annual fee.

We rate each card’s flexibility based on the restrictions it imposes on earning and redeeming rewards and factor this rating into a card’s overall score. 

Flexibility factors include whether a card only allows you to earn a high rewards rate on a small amount of spending or requires you to meet a certain earning threshold before you can redeem rewards. We also examine whether your points are worth less when you redeem for some options versus others and whether a card gives you the flexibility to transfer rewards to airline and hotel partners. 

We also score each card’s set of features – its perks and benefits — against five tiers of features to provide a rating. 

We break down these tiers as follows:

• Tier 1 has less than standard card features (an ultra-streamlined card that offers basic utility and next to nothing in the way of ancillary benefits. 
• Tier 2 includes the benefits you’d expect on standard Visa or Mastercard credit cards, such as free access to your credit score, car rental insurance and $0 liability for fraudulent charges. 
• Tier 3 includes “prime card” or better-than-average card features like cellphone insurance, lost luggage insurance, concierge services and purchase protection. 
• Tier 4 includes luxury features such as airport lounge access, elite status with an airline or hotel and credits for expedited security screening membership programs. 
• Tier 5 includes the sort of exemplary benefits you’ll find on top-tier luxury cards, such as high-value travel credits, cardholder memberships and other unique and valuable perks.