Reviews State Farm Good Neighbor Visa review

State Farm Good Neighbor Visa review

Published: April 21, 2017
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Ratings Policy
Balance Transfer Rating:
2.5 rating
2.5 rating
2.5 / 5
Introductory Offer: 2.2
Net Value: 4.4
Features: 2.0

In a nutshell:

This affordably priced balance transfer card offers a reasonable APR and modest balance transfer fee, but its 12-month promotional period doesn’t give you much time to pay off an interest-free balance.

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0% Introductory Period
12 billing cycles

Transfer Fee
$10 or 3% (whichever is higher)

Introductory Purchase APR
None

Regular APR
11.74-18.74%

Annual Fee
$0

Other Notable Features: Financial management tools, account fraud monitoring, identity-theft protection, travel and emergency assistance, shopping and travel discounts

Low Interest Rating:
1.4 rating
1.4 rating
1.4 / 5
Rates, Fees, Penalties: 1.4
Rewards: 0.0
Features: 2.0

In a nutshell:

The State Farm Good Neighbor Visa card’s 11.74 percent interest rate is competitive, but there are better cards with a single-digit APR and more useful features.

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Regular APR
11.74-18.74%

Introductory Purchase APR
None

Introductory Balance Transfer APR
0%

Fees

  • No annual fee
  • 3% or $10 balance transfer fee (whichever is smaller)
  • 3% foreign transaction fee
  • 20.24% cash advance APR
  • 4% or $10 cash advance fee (whichever is higher)

Penalties

  • Up to $38 late payment fee
  • No penalty APR
  • Up to $38 returned payment fee

Other Notable Features: Financial management tools, account fraud monitoring, identity-theft protection, travel and emergency assistance, shopping and travel discounts

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The appeal of the State Farm card’s relatively low APR is limited due to the lack of other features. The card does come with a zero percent introductory balance transfer interest rate, but it only lasts 12 months – a short period compared to other cards on the market.

Even worse, there is no zero percent introductory APR for purchases. Plus, the card requires you to pay off your entire balance – including balance transfers – in full by the due date to avoid accruing interest during the grace period (the 21-day period between your billing date and due date). This makes the idea of transferring a balance in combination with using the card for new purchases a nonstarter. Unless you pay off your balance transfer at the end of the month, you will accrue interest on your new purchases and undermine your zero percent introductory offer. You should use the card either for balance transfers or new purchases, but not both.

Balance transfer fee is capped

One of the benefits of the card is that the 3 percent balance transfer fee is capped at $250. If you have a very high balance on another high-APR card, it may pay to transfer it to the State Farm Good Neighbor Visa card, despite the short introductory period.

No penalty APR

The State Farm Good Neighbor Visa card doesn’t have a penalty APR. Your interest rate won’t go up just because you forget to make the minimum payment due. However, a late fee will be assessed.

Fees are a mixed bag

The State Farm Good Neighbor Visa card comes with some high fees. It has relatively high maximum penalty fees, a higher-than-usual cash-advance fee and a foreign transaction fee. However, there is no penalty APR, and the late fee cannot be higher than your minimum amount due. If your amount due is $27 or more, it increases to $27 and maxes out at $37 if you fail to pay on time six more times after your first missed payment.

Reasons to get it:

  • You have a high balance on another high-interest credit card that you would like to consolidate with an introductory zero percent APR and $250 cap on the balance transfer fee.
  • You want a simple card with no annual fee and a competitive interest rate.
  • You are not interested in a rewards program or other features.

How to use it:

  • If you use the introductory zero percent APR to transfer a balance, do not use the card for new purchases.
  • If you make a balance transfer, be sure to pay at least the minimum amount due each month. If you are more than 60 days late, you will lose your introductory APR.
  • Try to avoid using this card for cash advances and overseas transactions whenever possible.

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