Review of State Farm Bank Good Neighbor Visa



The State Farm Bank Good Neighbor Visa was last reviewed on : 28th March 2005

Summary - The State Farm Bank is a basic low apr credit credit card. There is no annual fee and and the apr is prime rate plus 3.99%, with a minimum rate of 7.99%. You get a 0% introductory apr for six billing cycles for balance transfers. There is no balance transfer fee. The State Farm Bank Good Neighbor Visa uses the average daily balance method (including new purchases) for calculating balances. However, they also use a daily periodic rate rather than a monthly periodic rate. Your rates will increase to the default rate (or standard rate as State Farm calls it) when you miss either two consecutive minimum monthly payments or two payments within a six-month period.

You will also get travel benefits like $250,000 travel accident insurance and free auto rental insurance. State Farm Bank allows cardholders to enroll in automatic bill payments, which ensures your bills are paid on time.

The State Farm Bank Good Neighbor Visa is a basic low apr credit card that will appeal to those looking for a low interest credit card. However, the use of a daily periodic rate means your effective interest rate is higher than if a monthly periodic rate is used.

Positives

  • No annual fee.
  • Low apr
  • Allowed to miss two payments before default rate kicks in


Negatives
  • Use of daily periodic rate rather than monthly periodic rate


State Farm Bank Good Neighbor Visa
Credit Limits Up to $25,000
Travel and Insurance Benefits
$250,000 Automatic Travel Accident Insurance, Free auto rental insurance
Other Benefits
Online Account Access
Zero liability on unauthorized purchases
Warranty Manager
Cost/Fees/Interest rates
Introductory rate 0% for 6 billing cycles (balance transfer)
Annual Fee No annual fee
Purchase APR Prime Rate plus 3.99% (min 7.99%)
Balance Transfer APR Prime Rate plus 3.99% (min 7.99%)
Cash Advance APR Prime Rate plus 10.99%, (min is 15.99%)
Penalty/Default Rate APR Prime Rate plus 14.99% (min is 19.99%)
Minimum Monthly Payments Greater of 2% of balance plus new account fees or $10.00
Greater of 3% of balance plus new account fees or $10.00 in default mode
Min Finance Charge $0.50
Grace Period 20 days
Balance Calculation Method Average Daily Balance (including new purchases)
Balance Transfer Fee No balance transfer fee
Cash Advance fee 3% min $5.00
Over-the-credit-limit fee $29.00
Late Payment fee $29.00



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