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![DataDInvesting Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1527430369183531008.png) Data Driven Investing [@DataDInvesting](/creator/twitter/DataDInvesting) on x 42.9K followers
Created: 2025-07-07 13:43:31 UTC

$SoFi is fixing their biggest operational mistake of the past few years. Credit cards were supposed to be a growth driver in 2023 but they got the underwriting wrong. Defaults spiked all the way up to XXXX% in Q1 2023 and the credit card business has cost them hundreds of millions of dollars of cumulative losses over the past several years.

2024 was a year where credit card balances stayed basically flat and charge-offs began to trend downward. Q1 2025 was the first quarter in over a year where credit card balances saw a meaningful increase, and it was accompanied by even lower defaults.

If they have truly solved their underwriting issues, over the next couple years, this should go from a business that was losing them $100M/yr to one that is making them well in excess of $100M/yr.

![](https://pbs.twimg.com/media/GvQkeYSXEAATtPe.png)

XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1942217921230770303/c:line.svg)

**Related Topics**
[losses](/topic/losses)
[mergers and acquisitions](/topic/mergers-and-acquisitions)
[credit cards](/topic/credit-cards)
[$sofi](/topic/$sofi)
[investment](/topic/investment)
[sofi technologies](/topic/sofi-technologies)
[stocks financial services](/topic/stocks-financial-services)

[Post Link](https://x.com/DataDInvesting/status/1942217921230770303)