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State Farm Bank Business Visa – Good Neighbor Card?

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Most of us are familiar with State Farm homeowner and auto insurance commercials, where, ‘like a good neighbor, State Farm is there’. The State Farm Bank Visa card claims to help manage business endeavors while at the same time helping you earn rewards. However, does the State Farm Bank Business Visa deliver?

State Farm Bank Business Visa Benefits

The State Farm Bank Business Visa card is designed for business owners, large or small.  According to user feedback, customer service, value, convenience, ease of account opening and safety and security measures  rate in the fours and fives, with five being the highest.

The State Farm Bank Business Visa card comes with a variety of benefits, including a low introductory APR on your purchases, no annual fee, and opportunities to earn State Farm Dollar rewards on office supplies, other purchases, and eligible travel. However, it always pays to read the fine print, whether you’re reviewing an insurance policy or the terms and conditions of this credit card offer.

The State Farm Bank Business Visa card offers an introductory 0% APR on your purchases for the first six billing cycles. After that, you can expect a variable APR rate of approximately 13.24% to 20.24%, based on your credit history and perceived credit worthiness.

When it comes to earning State Farm Dollars for their rewards program, you’re able to earn 1% in State Farm Dollars for all your purchases, and 2% in State Farm Dollars for purchases you make at office supply stores and on eligible travel options. What classifies as an eligible travel purchase? Such purchases include car rental, railway travel, bus travel, and airline travel. You can also earn State Farm Dollars with hotel stays, and when booking travel through a travel agency.

When it comes to eligible office supply store purchases, these include stationary stores, computer software and stationary stores, and commercial office furniture stores and purchases you make there.

You can also obtain travel and shopping discounts when purchasing such items online from about 15 nationally known vendors including go airport shuttle, Office Depot, target, and Super Shuttle vendors and services.

Let’s talk a little more about the key features and benefits of the State Farm Bank Business Visa card. In addition to no annual fee, you can get cards for your employees, access to cash advances at ATMs around the world, and of course, acceptance by numerous vendors around the world who accept Visa cards. This is nothing unusual, so nothing to get excited about so far. You also get to zero dollar liability and account fraud monitoring, and, of course, State Farm’s “24 Hour Good Neighbor Service.” If you’re not a State Far, policy holder, you may want to take the time to check out exactly what that good neighbor service entails.

In addition to the above, cardholders can also benefit from travel and emergency assistance services, an auto rental collision damage waiver, security and extended protection on your card, as well as personal identity theft protection. Again, though, these services are offered by many other credit card vendors.

State Farm Dollars Reward Program

The State Farm Bank Business Visa offers the State Farm Dollars Reward Program, enabling users to earn between 1% and 2% in State Farm Dollars on qualifying office supply store and travel purchases, and there is no limit to the number of State Farm Dollars you can earn.

State Farm Bank makes it easy to track your State Farm Dollars by keeping tab of your earnings in your monthly statement. The statement will show how many State Farm Dollars you’ve earned to date as well as how many you earn in your current billing cycle. They’ll also specify how many State Farm Dollars are available for redemption, or how many you have redeemed in a current billing cycle.

Redeeming your State Farm Dollars is easy after you’ve earned a minimum of 50, which can then be redeemed by calling State Farm Bank Visa Business card telephone number or online. State Farm specifies that card holders can apply their State Farm Dollars toward numerous products and services including:

  •  Insurance premiums (auto, life, health, homeowner/renter)
  • Mutual funds (stock, combined, fixed income, cash equivalent funds)
  • Bank accounts (checking, interest checking, savings, money market, health      savings, Certificates of Deposit and Individual Retirement Accounts)
  • Lending products (home mortgage, home equity lines and loans)

In this aspect, the State Farm Dollars Reward Program offered by State Farm Bank Business Visa card is certainly different in that it allows you to redeem your rewards on home and business expenses rather than on products.

Let’s Talk Terms and Conditions

While the benefits and rewards program attached to the State Farm Bank Business Visa may be attractive to business owners, take the time to review interest rates and other fees attached to this card. As mentioned earlier, cardholders benefit from a six-month 0% APR, and afterward, the APR ranges between 13.24% and 20.24%, based on your credit history. The same applies for balance transfers. When it comes to cash advances, you can expect to pay 20.24% APR. Penalty APR will raise to 24.24% if you make a late payment or a payment is returned. In order to get that APR back down, you have to make six minimum payments consecutively, as well as not going over your credit limit during that period.

There is no annual fee attached to the card, but you will pay transaction fees. A balance transfer transaction fee amounts to $10 or 3% of the amount of your transfer, whichever is larger, with a maximum fee of $250.  A cash advance transaction fee amounts to $10 or 4% of the amount of the advance, whichever is larger. You can expect to pay 1% international transaction fees for transactions made in other countries, converted to US dollars.

If you make a late payment, you can expect a $15 fee if your balance is under $500, and up to $39 if your balance is over $500. You’ll get charged $39 for being over your credit limit as well as for returned payments. Visit the website for more information on this card.

Bottom Line

The State Farm Bank Business Visa card is certainly attractive to business owners who are more interested in applying their rewards toward their business or home bills and obligations rather than for materialistic items. Check it out and determine whether State Farm is your good neighbor.

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