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Anyone with a State Farm Visa


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State Farm bank sort of did what Hooters Mastercard did. They approved a lot of people to establish a big customer base when they first decided to be a credit card issueer. They are both decent cards for rebuilding credit without being too obviously predatory, but that's still what they are.

Now SF are changing all their terms for their Visa card.

The notice I got in the mail says that the 2% of balance minimum payment is being lowered to 1%, and their Universal default scam is changing from late twice in 60 days or over limit twice in 60 days to one day late or over limit.

They have a deceitful new words for Universal Default, too: "Default Pricing" or "Standard Pricing." You'd think they would pay attention to what Citi and Providian are doing, getting rid of UD (for now.)

They also changed their late fees to consumers benefit a little. $15 for balances under $500, $29 for over $500. It used to be $29 no matter what. Aren't they sweet?

They also changed a few calculations on stuff like balance transfer, but I didn't really bother to read it.

Cards like this for people in the low to mid 600's, who have been rebuilding for a couple of years, need to be kept under scrutiny.

I think the best way to handle them is to never run up much of a balance and PIF most months, but maybe let a small balance slide one month, once or twice a year, to keep them from closing it on you. "Account closed by credit granter" hurts your score, and some creditors have gotten wise to the "sock drawer" maneuver these days.

FYI

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  • 5 months later...

My DH applied for the state farm good neighbor visa and was approved for $4500. His APR is 14% and theres 0 % BT for 9 months with no balance transfer fee if done within 90 days of opening account. Wer'e interested in using up the BT. Anyone have anything positive to say about them? The universal default worries me a little since I haven't read the fine print. I'd hate to do a BT and have them jack the rate.

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  • 1 year later...
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