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State Farm Platinum Rewards Visa Card Review

Weak rewards, but some good features

About.com Rating 3.5 Star Rating

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"State Farm Dollars" can be used to pay insurance premiums, loan payments or to fund investments and savings accounts.

Who the State Farm Platinum Rewards Visa Card Is For

  • State Farm customers who want to earn rewards to increase their portfolios or pay insurance premiums.

Credit Rating Required

  • Fair to excellent (660+).

About the State Farm Platinum Rewards Visa Card

Pros

  • Low rate and no fee on balance transfers for limited time.
  • Opportunity to fix some balances at a low APR.
  • No limit on rewards earned.
  • Rewards can be used to finance insurance premiums, loans or investments.

Cons

  • Weak rewards.
  • Card will appeal to State Farm customers only.
  • High redemption thresholds.

Rewards

  • 0.5% back on first $3,500 of purchases annually, then one percent per dollar.
  • 2% back on State Farm insurance premiums charged to the card during first 30 days of account opening.

APRs

  • 13.24 to 20.24%, depending on your credit history.
  • 2.9% on balance transfers for first nine months, then the purchase rate.

Fees

  • Annual fee: none.
  • Balance transfer fee: No fee on balance transfers during first three months, then 3% percent of amount.
  • Late payment fee: Up to $35.
  • Returned payment fee: Up to $35.

State Farm Platinum Rewards Visa Card Review

State Farm Bank has two credit cards that pay rewards that you can use to pay for insurance premiums, loan payments, deposit in a bank account, or add to your investments. The rewards are payable only in "State Farm Dollars" and can't be used for anything else.

Although this card pays weaker rewards, I prefer it over the State Farm Platinum Rewards Visa because that card charges a $30 annual fee that's definitely not worth it.

The State Farm Platinum Rewards Visa pays 0.5% back on your first $3,500 of purchases and 1% percent on all purchases after that. You earn an additional 0.25% if you use the card to pay for a State Farm insurance premium, but only if you do it during the first 30 days after you open the account. You have to earn $50 in rewards before you can redeem them.

Like the Crystal Rewards Visa, you have the option to pay off large purchases at a low rate for a fixed period. The FixPay option lowers your APR to 5.99% for six months to 7.99% for 36 months. There are minimum purchase requirements: $500 for the six-month term to $2,000 for the 36-month loan. You can also charge insurance premiums for six months at 2.99%.

The State Farm Platinum Rewards Visa card also offers a 2.9% APR on balance transfers for the first nine months. Plus, there's no balance transfer fee during the first three months you have the card; after that, the balance transfer fee is 4%. By comparison, the intro balance transfer rate on the State Farm Crystal Rewards Visa is a point higher, at 3.9%.

Recommendation

I don't particularly like either State Farm rewards credit cards, although this is the better of the two because of the no annual fee. Both pay stingy rewards compared to the competition. You have to be a really dedicated State Farm customer to want either of these cards.

There are plenty of cash back rewards credit cards that offer much better cash rewards. Some carry no annual fee, such as the Bank of America Accelerated Cash Rewards American Express Card, the Bank of America Cash Rewards Visa Card or the Chase Freedom Card.

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