State Farm Credit Card Review: Probably Best to Stick to Insurance

state farm

I’ll start by saying that I assume most people don’t even know State Farm issues credit cards.

After all, the company is better known for its insurance products than anything else.

But it does indeed issue credit cards, mortgages, and other types of loans, while also offering checking and savings accounts via its State Farm Bank entity.

The way State Farm sees it, why should they stop at insurance when they can provide/cross-promote related financial instruments to their millions of customers – and make a killing doing so?

So how do State Farm credit cards stack up?

Well, there are five State Farm credit cards currently offered by the company, including a couple rewards cards, a low rate credit card, a student credit card and a business credit card.

The rewards cards offer between 1-1.5% back in State Farm Dollars, which can be used for State Farm products, such as insurance, bank products and services, and so on.

Some of their credit cards also have a FixPay option, where you get to choose the number of payments and corresponding Annual Percentage Rate (APR) you’d like to pay related to a large purchase or unexpected expense.

Nothing groundbreaking really, just a payment plan to help people tackle their credit card debt if they can’t do so on their own.

State Farm credit cards don’t have any 0% APR promotional periods on purchases or balance transfers, but some come with promo APR as low as 2.9%.

Again, nothing to get too excited about given many credit card issuers offer 0% on both for as long as 24 months these days.

And none of their offers are fixed-rate credit cards, another negative if you’re after low APR.

The Verdict

In closing, a State Farm credit card isn’t really something I would seek out, as there are much better deals in basically every class of credit card they offer.

And who really wants their rewards to be stuck with the company when there are cash back credit cards out there that put money back in your wallet?

Or cards that allow you to transfer your points to leading frequent flyer programs, hotels, and more.

State Farm is smart (I suppose) to offer credit cards alongside their other product offerings, but you’re probably better off shopping elsewhere for your credit card needs.

Would you go to Chase or American Express for car insurance? Probably not, even though some of them actually offer primary coverage as a benefit.

Author: Colin Robertson

Colin created this blog after spending several years in a job that required him to scour credit reports on a daily basis. His goal is to help individuals better understand their credit and get the most out of credit cards.

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