State Farm Credit Card Offer
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| State Farm Credit Card- It's a Good Offer Image Source: Dr. Penny Pincher |
I get several credit card offers per week in the mail- sometimes even more than one per day. Today I received a credit card offer that is a really a good deal. It is a Visa State Farm Credit Card. The offer was 2 years at 0.9% interest on balance transfers AND there is no balance transfer fee AND there is no annual fee. Almost all of the credit card offers I get have a 3% balance transfer fee. This would mean that if you transferred a $10,000 balance the fee would be $300. I recycle any offers that charge a balance transfer fee.
The rate on purchases is 12.9% and the 0% introductory rate goes up to 12.9% after 2 years.
The State Farm Credit Card also has a benefit that you can get cash back if you use the State Farm Credit card to pay your State Farm Insurance bill. The offer I received was a "pre-screened" offer that came in the mail.
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| Save Money on Your Insurance Bill- Use a State Farm Visa Image Source: Dr. Penny Pincher |
Of course, 0% interest would be even better than 0.9%, but you wouldn't pay much for interest compared with a $300 balance transfer fee. The interest on a $10,000 balance transfer would be about $90 for 2 years if you pay it off. If you check my math, it might not look like this adds up, but if you steadily pay down the balance over 2 years, the average balance would be $5,000 for 2 years.
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| This Is What a Good Credit Card Offer Looks Like... Image Source: Dr. Penny Pincher |
Seeing this credit card offer reminded me of a good way to save money on high interest credit cards- transfer balances with high interest rates to cards with low- or zero- interest and get them paid off. Watch out for the transfer fee, which is typically 3% of the balance. Also watch out for annual fees- some cards charge an annual fee of $50 or more, which I try to avoid unless the card has a really good points or travel miles program that offsets that cost.
If you have a credit card balance with a high interest rate, look for a deal like the State Farm Credit Card with $0 balance transfer fee, no annual fee, and a low interest rate.
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