SoFi Smart Card basics
| Card type | Secured/Cash Back |
| Card issuer | SoFi Bank, N.A. |
| Credit card network | Mastercard |
| Annual fee | $0 |
| Welcome offer | Earn a $50 or $400 bonus with eligible direct deposit of at least $1,000 into your SoFi Checking and Savings Account |
| Reward rate | Unlimited 5% cash back rewards at grocery stores |
| Foreign transaction fee | 0.2% foreign conversion fee |
| Credit limit | Based on your SoFi Checking and Savings balance |
| Excellent for | SoFi Checking and Savings customers interested in building credit and earning cash back on eligible grocery store purchases |
SoFi Smart Card benefits and perks
The SoFi Smart Card has several notable perks that make it appealing to those who want to build credit, avoid extra costs, earn rewards, and access cash flexibly.
Straightforward, accessible criteria
If the SoFi Smart Card is available to you as an individual SoFi Checking and Savings account owner, the approval criteria are straightforward. SoFi doesn't run a hard credit check when you apply, though it does verify that you have enough income to cover your balances.
You don't need a special security deposit since your existing SoFi Checking and Savings balance determines your credit limit. I've found that secured credit cards often don't offer generous limits, so the SoFi Smart Card suits someone who keeps a large SoFi banking balance and wants more control.
No interest or annual fees
While many other secured cards don't have annual fees, the SoFi Smart Card is one of the few that also doesn't charge interest. Secured cards tend to carry high interest rates, and that interest adds up fast if you carry a balance. Since interest and annual fees can add up quickly, I like that the SoFi Smart Card avoids them.
Credit-building opportunities
SoFi reports monthly payments to all three credit bureaus (Experian, TransUnion, and Equifax). Paying on time could help raise your credit score over time, as your payment history makes up 35% of your FICO score.
This makes the card appealing if you need to improve your credit ahead of a future financing need. But remember that activities on other credit accounts also affect your score. If you pay your SoFi Smart Card on time but miss a payment elsewhere, your credit might not improve.
Cashback rewards
Unlike many secured credit cards, the SoFi Smart Card offers rewards. You earn unlimited 5% cash back rewards at grocery stores as SoFi Member Rewards points. This makes the card rival my Blue Cash Preferred® Card from American Express, except I pay a $0 intro annual fee for the first year, $95 per year thereafter annual fee and have a $6,000 spending cap on the elevated 6% U.S. Supermarket rewards.
To earn these rewards, you'll need to shop at the eligible retailers, which exclude Walmart, Sam's Club, Target, and Costco as well as convenience stores. Also, you can't earn rewards on grocery or meal kit delivery.
ATM cash withdrawals
With typical credit cards, withdrawing cash at an ATM involves an upfront cash advance fee and a higher APR on the amount. But the SoFi Smart Card doesn't carry these costs, and you can even avoid ATM-related fees at 55,000+ Allpoint ATMs.1 <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.</p>
The $2,000-per-day cash withdrawal limit also seems generous compared to the cash advance caps on my credit cards. I can see this flexibility being appealing if you suddenly need physical cash.
No foreign transaction fees
If you plan to use this card overseas, you'll avoid foreign transaction fees, which often cost 1% to 3% of your purchase. There is, however, a 0.2% foreign conversion fee.
This card might be a good fit if you occasionally travel abroad. However, I recommend considering more traditional travel credit cards for other perks, such as lounge access and travel credits, for those who travel frequently.
Earning and redeeming cash back
Potential earnings in years one and two
Here's a look at how your cash back can add up with the SoFi Smart Card.
Remember, this is an estimation. The actual value will be determined by how much you spend and in which categories you spend.
Year one earnings: $112
Year two earnings: $112
These values are based on the FinanceBuzz Credit Card Rewards Valuation Model, which takes a look at points earned via spending, the welcome bonus, and the annual fee.
Best ways to earn
Since the SoFi Smart Card targets those who are newer to using credit, I like its straightforward rewards. You earn a flat rate on eligible grocery store purchases and nothing on everything else.
Most people can benefit since we all need groceries. If you have a big family, your yearly grocery bill might top thousands of dollars, making it easy to maximize rewards by shopping at eligible grocery retailers.
| Categories | Rewards rate |
| Grocery Stores | 5% |
| All other purchases | 0% |
Maximizing your redemptions
The SoFi Smart Card's rewards are redeemable at 1 cent per point toward the following:
- Cash deposit into a SoFi Checking and Savings account
- Cash deposit into a SoFi Active and Automated Invest account (excluding IRAs)
- Extra payment toward a SoFi personal or student loan refinance
- SoFi credit card statement credit
- SoFi Travel purchases
I like that you don't have to choose a specific option to maximize your rewards. My American Express card's points, for example, are worth less if I take a statement credit than if I book travel. But the SoFi Smart Card is less flexible in that you can't transfer your points elsewhere.
Drawbacks
While the SoFi Smart Card is great for building credit and earning certain rewards, its drawbacks make it less suitable for some people, especially those prioritizing flexibility.
SoFi bank account requirement
If you already bank elsewhere, you might find it inconvenient to open a new SoFi Checking and Savings account to get the SoFi Smart Card. You'd also need to regularly deposit money into that account to back your monthly purchases.
This differs from a regular secured credit card, where you typically make a one-time security deposit. In that case, the credit card company often also refunds that deposit once you close or upgrade the card.
Inability to carry a balance
When you make card purchases, SoFi holds funds in your linked SoFi Checking and Savings account to cover those purchases. If you turn on autopay, those reserved funds pay your balance each month. You can also pay manually from your SoFi account or an external bank account. Either way, you must pay in full.
This may be ideal if you're worried about building up debt or paying interest. But if you want to borrow from a standard credit line and repay it over months, consider a regular secured card.
Limitations on cashback rewards
The value of the 5% back on grocery store purchases depends on where you shop. Since I mainly get groceries at Walmart and Target, I wouldn't earn much cash back with this card. So, consider your grocery shopping habits and preferences.
Also, you don't earn rewards on other purchases. Many traditional credit cards I've researched offer 1% to 2% back on non-bonus category purchases. So, it may be smart to pair the SoFi Smart Card with a more general rewards card if you qualify.
No new cardholder welcome offer
I prefer to receive some reward for spending a certain amount within the first few months after getting a new credit card. While this online bank has offered welcome bonuses for the SoFi Checking and Savings account, it doesn't currently offer one for the SoFi Smart Card.
I recommend the SoFi Smart Card more for those seeking ongoing 5% grocery purchase rewards than an upfront bonus, in which case a regular credit card for those with lower credit scores may be more appropriate.
SoFi Smart Card vs. Chime Card
| SoFi Smart Card | Secured Chime Visa® Credit Card | |
| Annual fee | $0 | $0 |
| Welcome offer | Earn a $50 or $400 bonus with eligible direct deposit of at least $1,000 into your SoFi Checking and Savings Account | No credit check to apply |
| Reward rate | Unlimited 5% cash back rewards at grocery stores | Earn 5% cash back as a Chime Prime member or 2% cash back as a Chime Plus member in the category of your choice on up to $1,500 of eligible purchases. |
| Min. security deposit | N/A | N/A |
Secured Chime Visa® Credit Card
Unlike the SoFi Smart Card, the Secured Chime Visa® Credit Card2 <p>Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The secured Chime Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A. pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your Card for its issuing bank.</p> has no credit check and requires a dedicated secured deposit account, which serves as the credit line. It's worth a look if you're not eligible for SoFi's card and want similar perks, such as the opportunity to earn rewards (based on Chime membership tier) and make cash withdrawals without cash advance charges. Plus, eligible members can use SpotMe to access up to $200 over their balance without overdraft charges.3 <p>SpotMe® on Credit is an optional, no interest / no fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Card Account. To qualify for the SpotMe on Chime Card service, you must receive $200 or more in qualifying direct deposits to your Chime® Checking Account each month and have activated your physical secured Chime Visa® Credit Card or Chime Visa® Debit Card.</p><br> <p>Qualifying members will be allowed to overdraw their Secured Deposit Account up to $20, but may later be eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe on Chime Card Limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s or its banking partners’ discretion. Although Chime does not charge any overdraft fees for SpotMe on Chime Card, there may be out-of-network or third-party fees associated with ATM transactions and fees associated with OTC cash withdrawals. SpotMe on Chime Card won’t cover non-card transactions. <a href="https://www.chime.com/policies/" style="background-color: rgb(255, 255, 255);">SpotMe on Chime Card Terms and Conditions</a>.</p>
Learn more about the Chime Card
FAQs
Is the SoFi Smart Card a credit card?
Yes, the SoFi Smart Card is a secured credit card that uses the funds in your SoFi Checking and Savings account as the spending limit. However, it differs from typical secured cards since you don't make a traditional security deposit, you can't carry a balance, and you don't pay interest. Plus, there's no hard credit check to apply.
Does the SoFi Smart Card help build credit?
Yes. Since SoFi reports account activity to the three credit bureaus, making on-time payments can help build your credit over time. However, late or missed payments can hurt your score, and SoFi charges late fees of up to $41.
How do you qualify for the SoFi Smart Card?
You'll need an individual SoFi Checking and Savings account with funds that serve as the card's credit limit, and SoFi will verify that you have enough income to pay your balances.
Bottom line
I think the SoFi Smart Card is a good choice if you'd like to build your credit and earn grocery store purchase rewards in the process. It's also ideal for avoiding common card costs, including interest and annual fees, and getting into the habit of paying off your balance each month.
But a different credit card may be a better fit if you prefer to draw from a traditional credit line and make monthly payments over time. Explore the best secured credit cards to see which fits your needs.
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