State Farm Credit Card: What They Don't Tell You

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State Farm Credit Card: What They Don't Tell You

Postby CreditCardGuru » Wed Sep 25, 2013 6:54 pm

Should you apply for the State Farm credit card? Just because they’re good at insurance, it doesn’t necessarily mean they are with credit cards too. Here’s why:

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State Farm is an excellent insurance company. In fact, I’ve been with them ever since I’ve had a driver’s license! I now use them for homeowner’s and earthquake coverage (I’m in California). Contrary to popular belief, I have also found them to be cheaper than Geico, Progressive and other so called “discount” guys. They also have their own credit cards, which of course I was curious about…

State Farm Credit Card Review (Updated For 2013)
They currently have 4 different consumer credit card application options. Here's a look at the basics for each...
1. State Farm Student Visa Card (APR: 11.24-18.24%)
This is your basic no-thrills card for students that are looking to build and establish a credit history. In turn, there apparently are no rewards or rebates offered on purchases. As with all student credit cards, it’s safe to say that the limits on this are probably pretty low. There is no annual fee.
2. State Farm Good Neighbor Visa Card (APR:11.24-18.24%)
If there ever was a plain old credit card, this one is it. There are no bells and whistles, no rewards… it’s just a regular card. No annual fee.

3. Platinum Rewards Visa Credit Card (APR: 13.24-20.24%)
As the name implies, this is their rewards card. It has no annual fee and the rebate is paid in the form of “State Farm Dollars” which can be applied towards the cost of your insurance policy. When I heard this, I was intrigued. After all, I’m always looking for ways to lower the cost of my policy. Unfortunately, this State Farm credit card only gives “up to” 1% on spending. Being that most cards today give you that, this wasn’t anything to write home about.

4. State Farm Crystal Rewards Visa Card
(APR: 13.24-20.24%)
This is the newest State Farm credit card which looked good to me at first glance because it is peddled for its 1.5% cash back... but then I read the fine print about the rewards! On the first $10,000 spent each year the card only earns 1% in rewards. Only annual spending that exceeds that amount will earn 1.5%. For State Farm insurance premium payments there is an additional 0.25%. This card also charges a $30.00 annual fee.
Benefits? I looked over the benefits across all the cards and in a nutshell they are things you pretty much will find on any card nowadays. For example, they list free collision coverage on eligible auto rentals as a benefit for the Good Neighbor and Platinum Rewards card, but what you may not know is that almost every credit card nowadays includes that; it’s just such a common benefit now that no one advertises (in addition, your regular auto insurance policy most likely covers you driving rental cars anyway). The same can be said about zero fraud liability, not only does virtually every card give you that, but you’re also protected by federal law for fraud over $50 so they can’t hold you liable even if they wanted to.

Should You Get One Or Not?
Like I’ve said, I am a loyal customer of State Farm, but the truth of the matter is that the State Farm credit cards don’t really offer much. Only the Platinum has rewards and it’s a pitiful 1%. Even if you qualify for the lowest interest rate, it’s still just average. And their balance transfers offers are below-average in length. The State Farm Crystal Rewards credit card is a bad deal when you consider the high spending tier and annual fee. I love the company, but there’s no rhyme or reason to get any of these cards.

What are the best credit card offers in 2013?

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