Who is This Credit Card Best For?
Takes improving their finances seriously and wants recognition for using credit responsibly
Looks for deals that make a limited budget go further
Considering this card is available to consumers with limited credit histories, the State Farm Student Visa is a good option for college students who are building credit for the first time. If you’re a State Farm customer with a hefty insurance bill, and you’re looking to build credit while also earning rewards, this card is a good choice.
Easy qualification requirements
Rewards with no annual fee
Limited rewards program
You need to be a State Farm customer
- Easy qualification requirements: You can get approved for this card with a limited credit history, which makes it a good fit for people trying to build credit from scratch.
- Rewards with no annual fee: The State Farm Student Visa lets you earn rewards as you spend, plus bonus rewards on State Farm insurance premiums. Some rewards cards charge an annual fee, but this one does not.
- Limited rewards program: Earning rewards with no annual fee is a good thing, but the State Farm Student Visa’s rewards program leaves a lot to be desired. You only earn 1 point for every $2 you spend on regular purchases, which puts this card at a real disadvantage when compared to other student credit cards with rewards programs.
- You need to be a State Farm Customer: You can only apply for this credit card online if you’re a current State Farm insurance or banking customer. If you’re not, you’ll have to call or visit a State Farm agent to talk over your options.
Earning Points & Rewards
The State Farm Student Visa gives you the opportunity to earn rewards on all your credit card spending. You’ll earn 1 point for every $2 you spend on regular purchases with this card. You’ll also earn 3 points per $1 on up to $4,000 spent on State Farm insurance premiums each year.
Your points will never expire provided your account is in good standing, which is a net positive. However, this card’s earning scheme is underwhelming when you compare to other student credit cards that offer rewards.
Other student credit cards with rewards offer at least 1 point per $1 (or 1% cash back) on regular purchases. The State Farm Student Visa only gives you half as much.
You can redeem rewards earned with this card using the State Farm mobile app or website, or over the phone. When it comes time to cash in your points, you can choose among the following options insurance premiums, State Farm Visa gift cards, merchant gift cards, merchandise, and travel.
You also have the option to gift your State Farm Loyalty points to other rewards account holders, or to transfer points between different State Farm rewards accounts you own.
How to Get the Most Out of This Card
With the State Farm Student Visa giving out 3 points per $1 when you pay for insurance premiums with your card, it makes sense to maximize this benefit up to the $4,000 annual limit. From there, use this card for all your regular purchases to earn as much in rewards as you can.
State Farm values its points at 1 cent each. If you were to spend $4,000 on State Farm insurance and another $4,000 on everything else, you’d earn 14,000 points or $140 to use toward the program’s redemption options. When you redeem points for State Farm insurance, your points can be worth more if you meet certain thresholds. For example, if you redeem at least 25,000 points for State Farm insurance, your points are worth 25% more.
Once you have an established credit history and higher score, you may want to consider pairing this card with another rewards credit card that offers higher rewards on regular purchases.
State Farm Student Visa Credit Card’s Other Features
- Rental car collision insurance (secondary to your personal policy)
While State Farm is known as an insurance company, it also offers its own banking products, including credit cards. State Farm Bank offers a mobile app that lets you monitor your credit card purchases, pay bills, and keep track of rewards.
State Farm provides multiple ways to contact them for credit card customer service, including online, over the phone, or through regular mail. Unfortunately, the bank has mixed reviews and only 1.5 out of 5 stars from real customers on Consumer Affairs. There are some positive reviews, but the low average rating should cause concern.
The State Farm Student Visa Credit Card comes with standard security features for the industry, including zero fraud liability and account monitoring for fraud.
This card’s fees are aligned with industry norms. If you plan to use your credit card outside the United States, you’ll want to watch out for this card’s foreign transaction fee. It will tack on 3% to every credit card purchase you make abroad.