Reader Edward M asked if I would review the State Farm Rewards Visa card so here we go.
Card Basics
- Card earns at the following rates:
- Earn 3 points for every $1 spent on insurance premium payments, up to $4,000 annually. Based on a calendar year
- Earn 1 State Farm Loyalty Rewards point for every $1 spent on eligible purchases
- No annual fee
- No sign up bonus
- 0% Introductory APR on purchases and balance transfers for first 12 months ($10 or 3% balance transfer fee, whichever is more) [cards with no balance transfer fees & 0% introductory APRs]
How Much Are Points Worth?
Whenever a card earns points the first thing I want to know is how much points are worth. According to this calculator (thanks Chris) points are worth 1¢ each. UYou can redeem points for the following: gift cards, e-certificates, catalog merchandise, travel, and eligible State Farm products. You can also get a premium redemption when redeeming points for qualifying State Farm Bank Checking/Interest Checking accounts and State Farm® Visa® Gift Cards. The redemption premium is as follows:
- 0-24,999 points — No Premium
- 25,000 – 49,999 — 25% Premium
- 50,000 – 99,999 — 35% Premium
- 100,000 – greater — 50% Premium
I think it’s safe to assume points are worth 1¢ or less.
Our Verdict
The only really interesting thing about this card is the 3x on the insurance premiums. It doesn’t look like that it is just restricted to state farm insurance products, but I could very well be wrong on that. Assuming you spent the full $4,000 on insurance products every year you’d earn 12,000 points. Not enough for any of the redemption bonus and probably worth a maximum of $120. Given that some cards earn up to 3% cash back on all purchases and everybody should have a card that earns at least 2% cash back I wouldn’t recommend this card to anybody.
Feel free to share your own thoughts in the comments below.
Just got their card and it’s worst now. No cash only gift cards but you can’t get info and gift cards offers unless you set up an account.
so there is no statement credit? what about amazon gift cards?
Looks like its fixed. can cash out to a State Farm bank account or statement credit
I’m super excited to find this! After significant poking, I found the rewards calculator. It seems the points are worth 1c.
https://www.statefarm.com/finances/banking/credit-cards/rewards-calculator
I emailed, asking about multiple cards. You can combine points from the business and personal to speed up redemption if you have that kind of spend:
“Thank you for contacting State Farm Bank®. We received your question regarding the 3% or 3 points for every $1 spent on insurance payments. You will earn 3% on the first $4000.00 spent on any net eligible insurance premium payments made annually. Any insurance payments made using the card after the $4,000.00 insurance cap has been reached will only earn 1 point for every $1 or 1%. The threshold is calculated on an annual basis from January-December. In order for insurance payments to be eligible they must have the correct merchant code. If they are charged through a 3rd party they may not be eligible for the 3%. If you have a personal credit card and a business credit card you are able to transfer your points from one account to the other and redeem them all at once.”
thanks for all you do DOC
My pleasure
Note: The California Bank and Trust’s AmaZing Business Cash Rewards (the one with $1000 signup bonus till tomorrow) includes insurance products in it’s 3% categories.
Interestingly I don’t see this included at any other AmaZing card (from Zions Bancorporation’s subsidies in other states), just the one at CB&T.
It’s 2% and not 3% on insurance
https://www.amegybank.com/app-links/amazing-cash-for-business
The $4k cap is really bad. I spend arround $13k a year on insurance (house, car, health, life) and I know people who spend a lot more. So 3x on insurance is not bad, but 4k cap is useless.
Nationwide has a card that offers 0% financing on auto repairs for 12 months, comes in handy for expensive repairs.
How about the Farmers credit card?
Link?
https://d.comenity.net/farmersrewardsvisa/pub/exclusives/benefits/Benefits.xhtml
I thought about this card before but idk I don’t like these type of banks lol. The card is good and heard so many stories on flyertalk and reddit lol…
This card also has a 0% BT fee and 0% intro APR. However, they are extremely stingy with credit limits.
I have a score of FICO score of 800 and usually get $20k+ credit limits, however State Farm only approved me for 2K.
Where does it say 0% BT fee?
My mailer says 3% fee
This was an old sock draw card that i have. I now use for insurance only. Wouldn’t recommend just to get for that but it is 1 c or greater. If you wait to cash out with 25,000 or more points then it is greater than 1 c.
State Farm’s app lets you pay premiums using Apple Pay, so you can also get 3x points with the USB AR.
Would you mind taking some screenshots of the redemption options?
Question for Edward M, why do you even need this review?