Reviews State Farm Bank Business Visa review

State Farm Bank Business Visa review

Published: April 24, 2017
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Ratings Policy
Business Rating:
2.1 rating
2.1 rating
2.1 / 5
Rewards Value 0.9
Annual Percentage Rate 3.2
Rewards Flexibility 2.9
Features 3.0

In a nutshell:

The State Farm Bank Business Visa card’s insurance-centric rewards program offers a unique way to earn points; however, cardholders are limited in how much they can earn.

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Rewards Rate

  • 3:1 on insurance payments
  • 2:1 on travel and office supplies
  • 1:1 on general purchases

Sign-up Bonus
None

Annual Fee
$0

Average Yearly Rewards Value ($4,000 monthly spend)
$528

APR
13.74-20.74%

Rewards Redemption
Pros

  • No blackout dates
  • Points don’t expire
  • Redeem for merchandise, travel or eligible State Farm products
  • Gift points to other State Farm loyalty members

Cons

  • $4,000 annual spending cap on insurance premium bonus
  • Must redeem travel through State Farm
  • At least 5,000 points are required to redeem

Other Notable Features: Free additional cards for employees, financial management tools, car rental insurance, identity-theft protection, purchase security, extended protection, travel and emergency assistance, shopping and travel discounts, EMV chip, zero fraud liability

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If you tend to spend a lot on insurance, the State Farm Bank Business Visa card can help you shave down some payments. It offers bonus points on any insurance bills you pay off with the card, up to a maximum of $4,000. It also lets you use points to pay down some State Farm balances. However, because State Farm limits the total number of points you can earn, you’re unlikely to earn enough per year to make a huge dent in monthly payments.

The State Farm card’s APR is also higher than the average business card, making it a risky choice for cardholders with less-than-perfect credit.

Fewer benefits
Like many of its competitors, the State Farm business card also offers a number of travel benefits that can help curb the stress of frequent travel. For example, State Farm offers car rental insurance on any car rentals paid for with the State Farm Visa, as well as travel and emergency assistance.

However, you won’t find many other premium travel benefits, such as baggage insurance or concierge service, commonly offered by competitors. You will, however, find a limited number of purchase benefits, such as purchase security and extended protection.

Limited promotions
State Farm also offers a zero percent APR on purchases for up to six months, which seems short when compared to many consumer credit cards, but is about par for a business card. Most business cards don’t offer extensive introductory periods.

The State Farm business card doesn’t offer a sign-up bonus, which is disappointing for a business card. Many business cards offer at least $100 or more in one-time promotions.

Higher-than-average APR
The most disappointing feature of the State Farm Business Visa card is its comparatively high interest rate. State Farm charges cardholders with the best credit scores a minimum APR of 13.74 percent, which is slightly above average for a business card. The typical business card charges a minimum APR of 13.41 percent. Meanwhile, cardholders with lower scores can be charged as much as 20.74 percent, which is on the high side for a credit card.

Reasons to get it:

  • You spend a lot on insurance and want to get rewarded for payments.
  • You’re already a State Farm customer, allowing you to maximize the card’s benefits.
  • You’d rather use points to trim bills than to purchase traditional card rewards, such as gift cards or merchandise.

How to use it:

  • Use your card to pay for up to $4,000 in insurance payments.
  • Use your card for any office supply or travel expenses to earn additional bonuses and qualify for the card’s travel insurance.
  • Do the math before redeeming points for merchandise or travel. You may find that you get more value out of the card by using it to pay down bills.

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