State Farm was founded in 1922 by a retired farmer who wanted to provide automobile insurance to fellow farmers. It was so successful that the company began to offer other types of insurance and financial services. Although automobile insurance continues to be its main business, State Farm also offers homeowners and life insurance, as well as various banking and financial services.
- Competitive APRs
- Rewards program
- No annual fees
- Security features
For some of its cards, State Farm offers an introductory rate of 0 percent for the first 12 months. After that, variable APRs range from 11.74 to 18.74 percent*, depending on the card. These rates are very competitive among rates offered by other top credit card companies.
Through State Farm's Loyalty Rewards program, cardholders have the opportunity to earn points that can be redeemed for gift cards, e-certificates, catalog merchandise, travel, and eligible State Farm products.
No Annual Fees
State Farm does not charge an annual fee that must be paid in order to be a cardholder, which can save customers hundreds of dollars each year.
State Farm has put a number of security measures in place to protect its cardholders. For example, the company embeds all of its cards with microchip technology and offers zero fraud liability, meaning that customers are not held liable for unauthorized charges. Identity theft protection features are also provided with select cards.
Lack of Information
State Farm is not entirely transparent on its corporate website. The company has not disclosed whether or not it charges late payment or foreign transaction fees, which can be frustrating for potential customers who would like to have an idea of what kinds of fees they are going to be subject to before signing up.
The Bottom Line
State Farm offers competitive APRs, a rewards program, no annual fees, and a number of security features. However, the company has not disclosed whether or not it charges late payment or foreign transaction fees.