Review of State Farm Bank Credit Card



The State Farm Bank Platinum Rewards Visa was last reviewed on : 28th March 2005

Summary - The State Farm Bank Platinum Rewards Visa is a reward credit card which allows you to earn a 1% rebate in the form of "State Farm Dollars" for every dollar you spend on purchases. You can earn unlimited State Farm dollars and they are valid for five years. However, you can only redeem them for payments towards State Farm Financial Products (eg insurance or mortgage payments or checking account).

There is no annual fee and and the apr is prime rate plus 6.90%, with a minimum rate of 9.90%. You get a 2.90% introductory apr for six billing cycles for balance transfers. There is no balance transfer fee. The State Farm Bank Platinum Rewards 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.

The State Farm Platinum Rewards Visa will only appeal to those who have an account with State Farm Bank and who is also using another of their financial products. This is because reward dollars can only be used for payments towards other State Farm Bank products. Though there is no annual fee and the apr is low, one has to bear in mind that the apr cannot go lower than 9.90%. Furthermore, 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
  • Earn unlimited reward dollars
  • Allowed to miss two payments before default rate kicks in


Negatives
  • Rewards can only be redeemed for State Farm's own financial products
  • Use of daily periodic rate rather than monthly periodic rate


State Farm Bank Platinum Rewards Visa
Reward Benefits
State Farm $ Accumulation Earn 1% "rebate" for every dollar you spend on your credit card
Rebates can be redeemed only for payments on State Farm Bank financial products
Credit Limits Up to $25,000
Caps on Rewards Earn unlimited rewards
Expiration 5 years
Travel and Insurance Benefits
$250,000 Automatic Travel Accident Insurance
Other Benefits
Online Account Access
Zero liability on unauthorized purchases
Warranty Manager
Cost/Fees/Interest rates
Introductory rate 2.90% for 6 billing cycles (balance transfer)
Annual Fee No annual fee
Purchase APR Prime Rate plus 6.99% (min 9.99%)
Balance Transfer APR Prime Rate plus 6.99% (min 9.99%)
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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