rewrite this title New SoFi Charge Card Earns Unlimited 5% Back at Grocery Stores – NerdWallet

SoFi Bank’s latest card launch may be welcome news for those who make frequent supermarket sweeps.

The new $0-annual-fee SoFi Smart Card earns an uncapped 5% cash back at grocery stores, which is among the best rates on the market in one of the biggest spending categories for many shoppers. Technically, you earn 5 SoFi “reward points” per $1, but those points are worth 1 cent each. Redemption options include a deposit into a SoFi checking and savings account, a statement credit, or as payment toward any SoFi loans.

However, there are some caveats to be aware of:

On the plus side, there’s no hard credit pull required to apply for the SoFi Smart Card, which protects your credit scores from the temporary dip that can happen from a credit inquiry.

Another unique feature of the SoFi Smart Card is how it’s integrated with the cardholder’s checking and savings account to prevent overspending. When a purchase is made with the SoFi Smart Card, the amount of that purchase is “reserved,” meaning those funds are no longer accessible to make other purchases until the card balance is paid.

It’s similar, in some ways, to how a debit card works. But unlike a debit card, the SoFi Smart Card reports to all three major U.S. credit bureaus, so it can help you build your credit.