Is the New SoFi Everyday Cash Rewards Credit Card Worth It? – Technologist

SoFi is going deeper into the rewards credit card game. Will you be joining them?

The fintech company that has financial products ranging from student loans to personal banking is growing its credit card presence in 2024.

Already known for the SoFi Unlimited 2% Credit Card, which offers 2% cash back on all purchases, SoFi recently announced it is diversifying its credit card offerings.

The two new credit cards SoFi is promoting are:

• SoFi Everyday Cash Rewards Credit Card
• SoFi Essential Credit Card

The Everyday Cash Rewards card offers a new spin on cash back rewards and is the card we’ll be focusing on in this article. The Essential card, which does not have a rewards structure, is geared toward consumers who are looking to “improve their credit.”

Quick Look: Details on the New SoFi Everyday Cash Rewards Credit Card

Unlike the 2% SoFi card that pays a flat cash back rate (if redeemed with SoFi), this new no-annual-fee card offers a variable rate of cash back depending on your spending categories.

At this moment, the card is only accepting applications from customers who have received an email invite. But we can still do our homework on the card before it opens up to the general public. Let’s look at the rewards and benefits structure.

Rewards Breakdown

• 3% unlimited cash back: on dining out at restaurants and dining in, including food delivery services like DoorDash, UberEats and Grubhub.
• 2% unlimited cash back: on grocery store and convenience store purchases, both in-store and online.
• 1% unlimited cash back: on all other eligible purchases.

You can also earn 3% back on trips that are booked through the SoFi Travel portal.

There are no caps on earnings or minimums to redeem rewards, which can be redeemed as a statement credit on the card or applied toward the balance of other SoFi products.

Benefits Breakdown

This card will be on the Mastercard World benefits platform. This will include the following perks:

• No foreign transaction fees
• Zero Fraud Liability
• ID Theft Protection
• $5 monthly credits for Lyft
• Free 2-day shipping via ShopRunner

Is the SoFi Everyday Cash Rewards Credit Card Worth It?

If you’ve read much of our credit card content, you likely know that money expert Clark Howard is a big proponent of having a rewards credit card in your wallet that offers unlimited 2% cash back with no annual fee.

And SoFi actually offers this with the credit card it launched a few years ago, as mentioned earlier in the story.

So, if you’re a SoFi customer who wants to follow Clark’s advice, where does this new Everyday Cash Rewards card fit into the equation? After all, it only has one spending category that exceeds 2% back and it has a flat rate of 1% back.

You’d need to spend some serious money dining to even consider it over the existing SoFi card.

As you can see, you’d need to be spending $1,000 per month on dining to reach a $10 per month benefit from this card over a 2% card.

Bottom Line

In my opinion, this card is going to be a “pass” for most potential applicants.

Clark recommends having a second cash back credit card that supplements your 2% card by leveraging one of your biggest spending categories. For example, Clark carries the Costco Anywhere Visa® Card by Citi in his wallet alongside his 2% card because he’s a Costco fanatic and the card also offers boosted cash back in popular spending categories like dining and gasoline.

If you’re looking for a card that pays 3% or more on a specific spending category, I have some recommendations here.

I’d also suggest checking out our cash back credit card tool to evaluate your spending habits to find the rewards credit card that will give you the highest return on your monthly spending.

Are you considering adding this card to your wallet? We’d love to hear your thoughts on it in the Clark.com community.

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