State Farm was launched way back in 1922 by a retired farmer who wanted to provide automobile insurance to his 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. Among those financial services, it offers an array of credit cards to meet various needs. State Farm has grown to become one of the largest companies in the nation, ranking at 44th on the Fortune 500 list based on its massive $68.3 billion in revenue. It employs 18,000 insurance agents and 65,000 total employees. Most people are familiar with its advertising jingle, “Like a good neighbor, State Farm is there,” which was written by hit songwriter Barry Manilow in 1971.

 

Rank Chart
APR
Reward Options
Our Score
#1
8.24 - 18.0%
8.3
#2
11.24 - 23.24%
8.0
#3
11.24 - 23.24%
7.9
#8
state_farm
13.49 - 20.49%
7.6

The Good

APR Range

The introductory APR range for all credit cards from State Farm range from 0% introductory APR on purchases and balance transfers for the first 12 months. 13.49%–20.49% APR, based on creditworthiness. Compared to other companies, intro APRs tend to run for 15 months—slightly better than what State Farm offers. But we also found quite a few companies who also offer 12 month intro offers and even 6-8 month intro periods, making State Farm on par with the competitive industry range in this area. Also, State Farm supersedes the companies we found who did not offer introductory APRs at all for their cards.

State Farm’s Ongoing APRs range from 11.49% to 20.49%. This, in comparison to leading credit card companies, is slightly less. Typical ongoing APRs run around 13.24% to 23.24%, making State Farm’s rates more appealing to customers wanting to pay lower APRs.

Annual fee range

What’s great about State Farm’s credit cards is that there are no annual fees. When measured side by side with other credit cards, State Farm’s cards are one of the few that do not come with annual fees. Many companies typically offer cards with annual fees typically ranging anywhere from $79 to $450.

Customer support

With the famous customer service slogan, “Like a good neighbor, State Farm is there®”, State Farm representatives are available by phone 24/7 via their toll-free phone number for credit card customers. Offering 24/7 service is also found with the majority of credit card companies, making State Farm equally competitive in the customer support arena.

Foreign Transaction Fees

State Farm’s rates on all foreign transactions are in line with almost all credit card companies at 3% for each transaction made in other countries and currencies. This 3% foreign transaction fee is calculated in U.S. dollars. We found a small number of credit card companies that offered zero transaction fees for one or two of their cards and a select few who offer a range of 0-3% instead of a flat 3%. Ultimately, if you are going to shop around for better foreign transaction fees than 3%, you won’t find it.

Cards Offered

State Farm has several credit card options for customers, including:

  • State Farm® Rewards Visa®
  • State Farm® Good Neighbor Visa®
  • State Farm® Student Visa®
  • State Farm Bank® Business Visa®
Options for Rewards

State Farm offers customers rewards with their State Farm Loyalty Rewards® Program. The best rewards we found in this program were:

  • Ability to earn 3 points for every $1 spent on insurance premium payments, up to $4,000 annually
  • Able to redeem points for gift cards at popular retailers, e-certificates, catalog merchandise, travel, and eligible State Farm products.

More specifically, here are the cards with rewards we found to be noteworthy:

  • Their State Farm® Student Visa lets students earn 1 point for every $2 spent on purchases. This is unique for a student card, since most student cards do not offer rewards of any kind.
  • State Farm Bank® Business Visa® lets you earn 2 points for every $1 spent on eligible travel and office supplies.
  • State Farm® Rewards Visa®, State Farm® Student Visa and State Farm Bank® Business Visa® all offer 3 points for every $1 spent on insurance premium payments, up to $4,000 annually.
Security

Regarding Security Technology, State Farm has converted their cards to chip technology. This means their credit cards have an embedded microchip as well as the traditional magnetic stripe to help prevent identity theft. Most foreign countries have these chips, with the U.S. currently catching up. When you use your card at a chip-enabled terminal, the embedded chip generates a unique transaction code. The microchip will generate a single-use code that will validate the transaction.

In case of your card being stolen or lost with the chance of being stolen, State Farm offers Visa Zero Fraud Liability. This means you are not responsible for any reported fraudulent charges made on your card. To compliment this, State Farm offers Account Fraud Monitoring. They alert you if any suspicious activity is detected on your card.

Visa Personal Identity Theft Protection is not available on all cards, only on the State Farm® Good Neighbor Visa® card and State Farm Bank® Business Visa®.

These security measures and features are free, at no additional cost to the customer. These measures are on par with the majority of credit card companies. There were some that only offered an 800 number to report if your card is lost or stolen while others offered more extensive security measures for all of their cards. Citi, for example, offers identity theft protection for all of their cards.

Building Credit/Student Cards

State Farm offers students the opportunity to establish credit with their State Farm® Student Visa® card. This “starter” card is unique because they offer the chance to earn rewards points on purchases made. It also stands out because there is no annual fee. Typically, companies charge an annual fee for student cards due to it being a “starter” card for students without a credit history. The card offers a lower variable APR of 11.49%–18.49% for purchases and balance transfers (based on creditworthiness). Other student credit cards we found from other companies typically offer higher APRs going up to 23%.

The Bad

Late Payment

Penalty charges for late payments on State Farm’s credit cards go up to as much as $37. It should be noted that this fee range is typical for many popular credit card companies, so State Farm is following suit in this regard. They are no worse than major competitors. We have found several companies that offer a lower late fee that is more in line with the Credit Card Act of 2010, which stipulates that a credit card’s late fees should not be higher than the minimum balance.

Unique Features

We found that there wasn’t much that set State Farm credit cards apart from the competition that would give their customers an advantage over another company—except the ability to earn rewards points (up to $4000 annually) for money spent on insurance premium payments. However, this only applies if your insurance is with State Farm, so if you’re already a State Farm insurance policy customer, getting one of their cards makes sense.

The Bottom Line

In terms of annual fees and rewards, State Farm offers some of the best credit cards on the market. They don’t have the most extensive array of options, but they do give cardholders a good selection. For example, cardholders who would like more rewards and are willing to pay a slightly higher APR to get them can opt for the State Farm Rewards Visa. On the other hand, those who would gladly sacrifice rewards and perks for a lower APR can go with the State Farm Good Neighbor Visa. Either way, State Farm’s APR is pretty good. Their Visa cards have a large number of travel and shopping discounts. Students can also benefit with State Farm’s Student Card, which is rare in that it is a student card that lets you earn rewards points on purchases.

State Farm offers its own reward point system with points only accruing 1% of purchases, which is not all that impressive. However, one exception is the Business Visa, where 2% accrues for travel and office supply purchases. In fact, on top of the reward point system. The Student Visa has fewer of these discounts, but the ones it does have are focused on things that will benefit college students. Unique to State Farm is the opportunity to earn rewards points on insurance payments made on their insurance accounts. Overall, these are good cards, with respectable rates and fees-although their late fees are pretty high- offering an impressive array of discounts and rewards.

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