If you’re tired of keeping track of which categories give you the best cash back results, then the SoFi Credit Card might be the perfect solution for you. With a consistent 2% cash back rate on all purchases and a chance to increase it to 3% for one year (up to $12,000 in purchases) if you’re a loyal SoFi customer, this flat-rate cash back card is hard to beat.
TIME’s Take
The SoFi Credit Card is an excellent choice for flat-rate cash back, matching some of the best cards in the industry. The best part? It comes with no annual fees. SoFi customers with direct deposit in a SoFi Bank account can enjoy 3% cash back on up to $12,000 in purchases during the first year.
Who is the SoFi credit card for?
The SoFi credit card is a great option for those who want to earn cash back on every purchase. It offers a respectable 2% cash back rate on all purchases, with no rotating or bonus categories to worry about. Unlike other cards with higher cash back rates, the SoFi card eliminates the hassle of activating your cash back and comes with no fees or limitations.
If you’re open to moving your checking account to SoFi, you can earn an impressive 3% cash back for the first year on up to $12,000 in purchases, making it even more lucrative for eligible new cardholders.
Rewards structure
The rewards structure of the SoFi Credit Card is straightforward. You’ll earn 2% cash back on all purchases, and if you have direct deposit in a SoFi account, you’ll enjoy 3% cash back. The rewards are redeemable for cash back in a linked bank account, to purchase stocks and other investments through a SoFi investment account, or to pay down a SoFi loan. Every cent of cash back is worth one cent, regardless of how you choose to redeem it.
There’s one exciting exception to the 2% and 3% cash back rate. If you make purchases at SoFi Stadium, you’ll earn an incredible 25% back on concessions and eligible merchandise (limits apply). Cardholders also get express entry and VIP access, and the bag check outside the stadium is free after reimbursement.
Additional hidden perks
While the SoFi Credit Card lacks some common purchase protections and travel insurance benefits, it does offer cellphone insurance. If your phone breaks, you’re covered for up to $1,000 in cell phone insurance.
One of the card’s added benefits is the absence of foreign transaction fees, making it a great choice for international travelers.
Card alternatives
If you’re looking for other credit card options, consider these alternatives:
- A card that offers 1% cash back on purchases and an additional 1% when you pay your bill, for an effective 2% cash back.
- A card that offers 5% back on travel booked through Chase, 3% at restaurants and eligible delivery services, 3% at drugstores, and 1.5% on all other purchases. This card includes purchase protection, extended warranty protection, trip cancellation/interruption insurance, and auto rental collision damage waiver.
- A card that offers 6% cash back on groceries up to $6,000 per year at U.S. supermarkets, 6% back on select streaming subscriptions, 3% back on transit and at U.S. gas stations, and 1% on general purchases. This card also provides statement credits for The Disney Bundle and Equinox, along with rental car loss and damage insurance and return protection.
Conclusion
The SoFi Credit Card is a solid choice for flat-rate cash back and an excellent option for SoFi customers with direct deposit at SoFi Bank. The elevated 3% cash back rate for the first year on up to $12,000 in purchases is worth up to $360 alone. With additional benefits like cellphone insurance and no foreign transaction fees, this card is a great way to maximize your cash back rewards on everyday purchases.
For more information, visit Personal Finances Blog.
*Note: The information presented here is created independently from the TIME editorial staff.