State Farm® Premier Cash Rewards Visa Signature® Credit Card Review

When it comes to selecting a credit card, finding one that aligns with your financial habits and lifestyle can make a significant difference. The State Farm® Premier Cash Rewards Visa Signature® Credit Card offers a compelling mix of benefits, especially for those who have regular expenses in specific categories such as insurance premiums, gas, groceries, and dining. As a financial expert, I have meticulously analyzed the features, benefits, and potential drawbacks of this card to provide you with an in-depth review. Whether you are a seasoned credit card user or someone looking to get their first card, this review will help you make an informed decision.

State Farm® Premier Cash Rewards Visa Signature® Credit Card Key Takeaways

Before we dive into the nitty-gritty details, let’s highlight some of the key takeaways that make the State Farm® Premier Cash Rewards Visa Signature® Credit Card stand out:
1. Cash Back Rewards:
– 3% Cash Back on insurance premium payments, up to $4,000 spent annually.
– 2% Cash Back at gas stations, electric vehicle charging stations, drugstores, grocery stores, and on dining.
– 1% Cash Back on all other eligible purchases.
2. Sign-Up Bonus:
– Earn $150 Cash Back by spending $500 in the first 90 days of being approved.
3. No Annual Fee:
– The card does not charge an annual fee, making it a cost-effective option for those looking to maximize rewards without additional costs.
4. Variable APR:
– The purchase APR ranges from 19.99% to 29.99% variable, depending on your creditworthiness.
5. Additional Fees:
– Balance Transfer Fee: Either 3% of the amount of each transfer or $5 minimum, whichever is greater.
– Cash Advance Fee: Either 5% of the amount of each advance or $10 minimum, whichever is greater.
– Late Payment Fee: Up to $41.
– Return Payment Fee: Up to $41.
6. Credit Score Requirement:
– Generally requires an excellent credit score (740-799).

State Farm® Premier Cash Rewards Visa Signature® Credit Card Pros and Cons

Pros

1. No Annual Fee:
– One of the most appealing aspects of this card is the absence of an annual fee. This feature makes it accessible and cost-effective for a wide range of users.
2. High Cash Back Rates:
– The card offers an impressive 3% Cash Back on insurance premium payments (up to $4,000 annually) and 2% Cash Back on gas, electric vehicle charging stations, drugstores, grocery stores, and dining. These categories cover a broad spectrum of everyday expenses, allowing you to maximize your rewards.
3. Sign-Up Bonus:
– The $150 Cash Back bonus for spending $500 within the first 90 days is a generous offer, especially considering the low spending requirement.
4. Purchase Protection:
– The card includes purchase protection, which can be valuable for safeguarding your purchases against damage or theft.
5. Flexible Rewards Redemption:
– Rewards can be redeemed in various ways, including statement credits, direct deposits, or purchases, providing flexibility in how you use your cash back.

Cons

1. High Variable APR:
– With a variable APR ranging from 19.99% to 29.99%, this card can become expensive if you carry a balance from month to month. It is best suited for those who can pay off their balance in full each billing cycle.
2. Foreign Transaction Fee:
– The card charges a fee for foreign transactions, making it less ideal for international travel.
3. Limited 3% Cash Back Category:
– The 3% Cash Back on insurance premium payments is limited to $4,000 annually, which may not be sufficient for some users.
4. Credit Score Requirement:
– The card generally requires an excellent credit score, which may not be attainable for everyone.

State Farm® Premier Cash Rewards Visa Signature® Credit Card Benefits

1. Cash Back Rewards

The State Farm® Premier Cash Rewards Visa Signature® Credit Card is primarily a cash back card, and its rewards structure is designed to cater to common spending categories:
– 3% Cash Back on Insurance Premium Payments:
– This is a unique offering, especially beneficial for those who have significant insurance expenses. However, it is capped at $4,000 annually, translating to a maximum of $120 in cash back per year from this category.
– 2% Cash Back on Gas, Electric Vehicle Charging Stations, Drugstores, Grocery Stores, and Dining:
– These are everyday spending categories for most households. Whether you are refueling your car, buying groceries, or dining out, you can earn 2% cash back, making it relatively easy to accumulate rewards.
– 1% Cash Back on All Other Eligible Purchases:
– While not as high as the other categories, the 1% cash back on all other purchases ensures that you are still earning rewards on every dollar spent.

2. Sign-Up Bonus

– $150 Cash Back:
– New cardholders can earn a $150 cash back bonus by spending $500 in the first 90 days of account opening. This is a significant incentive, especially given the low spending requirement. It effectively gives you a 30% return on the first $500 spent.

3. No Annual Fee

– Cost-Effective:
– The absence of an annual fee makes this card a cost-effective option for those who want to earn rewards without the pressure of an additional yearly cost. This feature is particularly advantageous for those who may not spend enough to justify a high annual fee.

4. Purchase Protection

– Safety and Security:
– The card offers purchase protection, which can cover your purchases against damage or theft. This benefit adds a layer of security, particularly for high-value items.

5. Flexible Rewards Redemption

– Versatile Redemption Options:
– The rewards earned can be redeemed in several ways, such as statement credits, direct deposits into your bank account, or for purchases. This flexibility ensures that you can use your rewards in a manner that best suits your needs.

6. Customer Service

– Reliable Support:
– The card is issued by US Bank, which is known for its reliable customer service. You can manage your account and pay your bills online, and customer service representatives are available to assist with any issues or inquiries.

7. Additional Benefits

– Visa Signature Perks:
– As a Visa Signature card, it comes with additional perks such as travel and emergency assistance, auto rental collision damage waiver, and extended warranty protection.

Conclusion

The State Farm® Premier Cash Rewards Visa Signature® Credit Card offers a robust set of features that can be highly beneficial for the right user. Its strong cash back rewards in specific categories, coupled with the absence of an annual fee, make it an attractive option for those who spend regularly on insurance premiums, gas, groceries, and dining. The $150 sign-up bonus is an added advantage that provides immediate value.
However, the high variable APR and foreign transaction fees are potential drawbacks, particularly for those who may carry a balance or travel internationally. Additionally, the requirement for an excellent credit score could be a barrier for some applicants.
In summary, if you have excellent credit, can pay your balance in full each month, and have spending habits that align with the card’s reward categories, the State Farm® Premier Cash Rewards Visa Signature® Credit Card can be a valuable addition to your wallet. It offers a unique blend of benefits that can help you maximize your cash back earnings while enjoying the security and perks associated with a Visa Signature card.
For those who can leverage the 3% cash back on insurance premium payments and the 2% cash back on everyday purchases, this card offers substantial rewards without the burden of an annual fee. However, always consider your financial habits and needs before applying to ensure that this card is the best fit for you.