US Bank State Farm Premier Cash Rewards Credit Card Review

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Full review

U.S. Bank State Farm Premier Cash Rewards Credit Card

$321 cash back, doubled in the first year; no annual fee!

  • Welcome bonus: First-year cash back doubled, up to $300
  • Rewards: 3% on insurance premium payments, on up to $4,000 in spending; 2% at supermarkets, gas stations, dining, and takeout; 1% on all other purchases
  • Redemption: Direct cash back redemption
  • Annual fee: $0
  • Apply now>>

Benefits Analysis

  • First-year cash back match: All cash back earned in the first year will be matched at the end of the first year, and then posted to your account in 8-10 weeks. You need to keep the card open.
  • Insurance premium payments: You can earn 3% cash back only if the insurer’s MCC (merchant category code) is coded as insurance by US Bank. The cap is $4,000 in spending per calendar year. Since first cardmember-year cash back is matched, it may make sense to prepay insurance in the second calendar year so you can earn $120*2 in cash back.

My Take

The 3% category on insurance premiums is a pretty creative feature. If you live in the U.S. and pay for auto insurance, homeowners insurance, or other types of insurance, 3% back on up to $4,000 per year is quite worthwhile. This card also has no annual fee, so it can be a solid long-term card to keep. The other cash back categories are decent as well, but there are plenty of 2% cash back alternatives these days, so this card is probably not worth a dedicated application just for that 2% return.

Besides this card, US Bank has also launched one personal card and one business card in the State Farm lineup. Here’s a quick overview:

  • STATE FARM GOOD NEIGHBOR: Low APR; not very useful for most people.
  • State Farm Business Cash Rewards: Also has a 3-2-1 cash back structure, with no annual fee; 3% cash back on insurance, gas, office supplies, cell phone purchases, dining, and takeout; 1% on other purchases; plus a $100 annual software subscription credit, which is a pretty nice perk.

Application

  • US Bank application status check link. Or call: 800-947-1444
  • When you apply, US Bank may check the two smaller credit bureaus SageStream & ARS credit reports, so you may consider freezing them before applying
  • You can only earn the welcome bonus on the same US Bank credit card once
  • You can call the reconsideration line (800-947-1444) to speed up the credit card approval process or to have a denied application reviewed again.
  • US Bank is relatively sensitive to HPs and new accounts. Having a US Bank Checking account can help with getting approved for a credit card
  • More about applying for US Bank credit cards

Application Link