SoFi Credit Card Limit 2023: How Much & How To Get It Higher?
SoFi is a fintech startup based in San Francisco, United States. The company provides student loan refinancing, mortgages, and personal loans to customers both directly through its website or via an application.
It's no secret that SoFi offers one of the best student loan refinancing processes by offering lower rates than any bank in the US. Besides saving you money, SoFi also offers a number of benefits that no other lenders offer.
SoFi is the only lender that provides career counseling services to their customers who are already refinancing their student loans with them (over $100 billion in financing has been refinanced). But they go beyond just student loan refinancing.
If you have a SoFi personal loan, the repayment amount is automatically deducted from your checking account every month. And if you join their network of lenders and borrowers, they help promote your business to other members as well as provide mentorship opportunities as you grow professionally (they recently launched their 1st Professional Circle).
As with all fintech, SoFi prides itself on offering a number of benefits and perks to its members. But one thing that really sets them apart from everyone else is their credit card. Yes, you heard me rightSoFi offers a 1% cashback credit card with no annual fee AND $0 foreign transaction fees!
What Is A SoFi Credit Card?
A credit card is a payment method that allows you to purchase goods and services based on the issuer's promise to pay for these expenses. It also allows the consumer to delay payment of the charged amount until a pre-determined date which helps in budgeting future expenses.
SoFi credit card is a cashback credit card that provides 1% cashback on all purchases with no annual fee and $0 foreign transaction fees. You can apply for it right from your SoFi dashboard or through the official SoFi website.
How To Apply For SoFi Credit Card?
- Login to your SoFi account and click "Apply."
- Fill out the application and click "Continue."
- Review and accept the agreement and click "Continue."
- Enter your social security number, select "I authorize SoFi to obtain my credit reports and scores," agree to terms and conditions, review your information and submit your application.
- You will receive a decision via e-mail within 24 hours of submitting the application.
What Are The Advantages Of SoFi Credit Card?
No Annual Fees:
With a starting limit of $1000 and no annual fees, SoFi is very generous in allowing you to use their credit cards without worrying about the additional charges. Plus, it comes with a generous late fee waiver that waives your first late payment penalty!
Cash Back Rewards:
Being cash back credit card, SoFi provides 2% cashback on all purchases made through SoFi or 1% cashback when you use your SoFi Credit Card for any other purchase. Have multiple cards? Then you can have a max of 5% cashback with the combined limit of $25000 spent in the year.
After you make your first 5 monthly payments on time, you will be eligible for a 0% APR until January 2020. With no annual fee and a starting limit of $1000, this is a great perk that allows members to complete small tasks without worrying about additional costs.
What Are The Disadvantages Of SoFi Credit Card?
High Transfer Fees:
For those who tend to carry a balance on their cards and need to transfer existing balances, SoFi is not the best option for you. With 3% of the amount transferred as a fee, you really have to ensure that there's no lower interest rate offer from another lender that can save you more money.
High-Interest Rat On Cash Advance:
If you do use SoFi for cash advances, then be prepared to pay an interest rate of 26.99%. This is double the highest APR that other lenders charge for similar services, so be wary not to jump into these transactions without proper research.
If I Miss A Payment, Do I Have The Option To Skip The Next Month?
Yes, you can choose to skip the next month only if you make a payment for the current month. You can't skip 2 months or more in a row, but you can always skip during the weekend and pay on Monday.
Is There An Annual Fee?
No, SoFi does not charge any annual fees, which means that after your first 5 monthly payments, you're able to enjoy 0% APR until January 2020.
Who Can Apply For SoFi Credit Card?
Anyone can apply for a SoFi Credit card as long as they are 18 years of age or have a social security number. You must also have an active checking account and be able to make electronic payments on time.
Applicants with no credit history will not be considered, which means that if you've never applied for any other credit cards before, you won't be able to apply for SoFi.
What Are The Credit Requirements?
The minimum credit score needed to qualify for SoFi is either 670 or 680; with no credit history, you can only get a Limit of $1000. Those with no credit history and bad credit, they'll automatically receive a limit of $0, so it's best to start building credit with other lenders before applying.
SoFi Credit Card Limit?
The credit limit for SoFi varies depending on your financial history. Those with no credit history will only get a starting limit of $1000, while those with excellent or good credit scores can receive up to $12,500.
How Can You Increase Your Credit Limit?
If you've already applied for a SoFi Credit Card and were approved, there are several ways to increase your credit limit:
Get A Co-signer:
If you have someone who is willing to co-sign with you by putting their salary on the line, this will give your score a much-needed boost. And because it's someone else who is guaranteeing the loan, your chances of being approved are higher.
Ask For A Credit Limit Increase:
If you're already an existing SoFi customer with a good track record who regularly pays on time, then you can ask them to increase your current credit limit. This may be subject to change depending on what they find, but if all goes well, then it shouldn't be a problem.
You can also opt to apply for a SoFi Credit Card with a co-signer, so you don't have to worry about your credit score. But regardless of whether or not you have a co-signer, here are some general guidelines for increasing your credit limit:
Consolidate All Your Credit Cards:
This is a good way to reduce your monthly expenses and free up enough space for a higher limit.
Pre-Pay Your Balance (if possible):
If you pre-pay at least 20% of what's left on your bill, lenders will be more likely to increase the offered amount because this shows that you're responsible for your money.
Avoid Any Unnecessary Expenses:
Avoid buying things that you don't need, especially if your bills are already piling up. This is because the higher your credit limit, the more liabilities you have, and that can affect your score in a negative way.
If you're looking for a SoFi Credit Card with a high limit, then it's best to follow these guidelines so you can have a better chance of being approved.
How Much Time Does It Take To Increase The Credit Limit?
There are no exact time limitations on when you can ask for a credit limit increase. Your account will be reviewed at least six months after it was opened, and if your request is approved, then this will take effect immediately.
Few Things To Keep In Mind Before Applying For Credit Limit Increase:
There are four basic steps that you can follow:
Check Your Credit Report:
This refers to the important document that will contain all of your credit history and payment records. You need to check this document at least once a year to make sure that none of your information is inaccurate.
Check Your Credit Score:
SoFi credit cards are ideal for those who have good FICO scores since the better your score, the more likely you are to be approved for one of their loans or credit cards.
Review Your Application:
This is important to make sure that you have filled out all of the necessary information and data on your application form correctly because even one wrong detail can affect your chances of getting approved. There are various websites that will help you check for grammar or spelling errors before submitting them.
Apply For An Account:
SoFi is a reputable company that will look at your credit report and decides whether to approve your application. As long as you have a good credit history, then there's no need to worry about being declined. You can apply online or in person.
Does SoFi Do A Soft Credit Pull Or Hard Credit Pull?
Soft Credit Pull:
This means that the SoFi does not directly access your credit score, but instead, they base their decisions on the personal information you provide when applying for this card.
With this in mind, it's ideal to have the most updated information in your credit report so that you don't waste time filling out an application that will not be approved.
Hard Credit Pull:
This means that the SoFi will directly access your credit score, so be sure to check out your credit report before applying for this card just in case there are some errors that need correction.
What Is SoFi's Credit Bureau?
SoFi reports to Equifax, TransUnion, and Experian. This means that by having a SoFi Credit Card, you'll be able to build your credit history and improve your credit score with these major lending institutions.
How To Improve Your Credit Score?
The first thing you need to do is check your credit report and make sure that all the information provided is accurate and up to date. For those with no credit history, it's best to start building a solid foundation now so that you can apply for SoFi Credit Card in the future.
Regularly checking your credit report will allow you to monitor your progress and keep track of any changes in your credit score.
Also, by paying your debts on time, you're establishing a positive credit history, even if it's with other lenders. This includes credit card bills and any other loans that you may have, like car loans or student loans.
Can I Check My Credit Score For Free?
There are several ways to get free access to your credit score:
Free Credit Score:
You can get free access to your credit score with Money when you apply for a SoFi credit card. This is only valid for those who will be approved, and they'll automatically receive their money back within 90 days, which means that if you do not like the service, this is an easy way to get your money back.
You can get free access to your credit score with Credit Karma which is a good alternative if you don't want to apply for a SoFi credit card. However, this is not valid if you're going to be applying for a loan or any other type of financing in the near future.
MyFICO offers a free credit score which you can view every month as long as there are no major changes in your credit history. This is ideal for those who want to check their scores on a regular basis but don't want to apply for a SoFi Credit Card.
Why Does SoFi Approve Some But Decline Others?
It's not enough to have a good credit score to be approved for a SoFi Card because there are other factors that they consider as well, such as how much you earn and what your monthly expenses are. Plus, if you have an existing relationship with SoFi or if you've applied for their loan before, then you're more likely to get approved.
Can I Get A SoFi Credit Card With Bad Credit?
Yes! While bad credit will lower your chances of getting approved, it is still possible to apply for this card. Of course, the requirements may be different depending on your financial background and your credit score.
So you may need to strengthen your credit history by regularly checking your credit report and paying all bills on time, even if it's with other lenders.
How Are FICO Scores Calculated?
FICO scores are the most popular scores used by lenders, so if you want to get approved for a loan, applying for one is the best option. This score will range from 300 to 850, and your creditors will see this number when making lending decisions.
The higher your FICO score is, the greater your chances of getting approved. Plus, these scores are also used as a guide when setting your credit limits. For example, those with a lower score will be limited to a smaller limit, while those with higher scores may have a higher limit.
What Factors Affect My FICO Score?
There are five major factors that affect your FICO score:
Payment History – 35%:
This is the most important factor when it comes to determining your credit score. Late or missed payments are recorded on your credit report, so if you don't pay off your bills on time, then expect a lower FICO score.
Amounts Owed – 30%:
SoFi Credit Card requires customers to have a good credit history but also limits what applicants can spend on their credit card to prevent any risks.
Length Of Credit History – 15%:
This is important with regards to your SoFi Credit Card because the longer you have a good credit history with positive payment records, the better it will be so that you can have access to higher limits in the future.
New Credit – 10%:
Opening new accounts may affect your FICO score, so you need to be careful about what new loans or credit cards you get applying for.
If you apply for a SoFi credit card and get declined, then there's no need to worry since this won't affect your score too much. However, opening multiple lines of credit in a short period of time can be a red flag for creditors.
Types Of Credit Used – 10%:
This refers to the various types of accounts that you have, such as revolving credit, installment loans, private student loans, and more. The thing with SoFi Credit Cards is that it's important to only apply for one type of loan at a time, so you don't get declined.
Now that you have an idea of how SoFi credit cards work, it's also important to know the factors that affect your FICO score so you can have a greater chance of getting approved.
Keep in mind that not all applicants with good FICO scores are guaranteed approval, so if you don't meet their requirements, then there's no point in applying.
It's also best to focus on improving your FICO score by paying off debts, staying under budget, and having good communication with lenders when looking for other loans in the future.