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Advertiser Disclosure

Advertiser Disclosure: Some of the card offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products.

Disclaimer: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone. For a full list of our advertisers, see our disclosure page.

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the issuer. We may be compensated through the issuer’s Affiliate Program. For a full list of our advertisers see our disclosure page.

Farmers® Rewards Visa®: A Must Have Credit Card for Homeowners

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"The card provides good rewards for both existing Farmers Insurance customers, and individuals with big home improvement projects"

Contents

The Farmers® Rewards Visa® is an impressive rewards credit card for both existing Farmers customers, and individuals simply looking to fund various home improvement projects. Even if you don’t plan on using the card day to day, simply putting all your Farmers bills onto the card can cut your costs by as much as 3%. Since the card has no annual fee, and provides decent rewards, we highly recommend this card to most homeowners.

Pros

  • Fantastic 3% rewards rate on Farmers insurance, home improvement, and gas purchases
  • No annual fee

Cons

  • Low welcome bonus, worth approximately $30

Review: Is the Farmers® Rewards Visa® A Good Value?

The Farmers® Rewards Visa® is one of the best credit cards you can use to pay for your next major home improvement project, or a Farmers® Insurance product. Thanks to the way points are earned using the card, users can get a 3% rewards rate on purchases at stores such as Home Depot, Lowes, and Sears. Furthermore shopping at gas stations, and paying for Farmers products will yield the same 3% rate. Some other top-tier cards, such as the Discover it® ­- Cashback Match™ card, typically cap home improvement rewards at $1,500 in spending, and limit it to one quarter out of the year. For home improvement projects which cost $3,000+, we recommend the Farmers® Rewards Visa® above all else.

Those consumers who are Farmers customers can also gain some benefit from this card. If you pay your Farmers Insurance bills using this credit card, you will essentially be getting a 3% discount. For those of you who have both auto and home insurance policies, this can be a sizeable overall discount. Few other rewards credit cards will provide you with rates this high on property insurance expenses.

The rewards from gas purchases on the Farmers® Rewards Visa® are decent, but not the best. Just like the other bonus categories, purchases of gas will net you a 3% rewards rate. Other cards, such as the Fort Knox Visa Platinum Card or the Sallie Mae MasterCard, can go as high as 5%. Therefore, if you are considering this card purely for its gas rewards, we think you may be able to do better elsewhere.

Finally, it’s worth pointing out that the Farmers® Rewards Visa® doesn’t offer the best short-term value, due to an unimpressive welcome bonus. If you meet the minimum qualifications, you can get an extra 3,000 rewards points, which carry a value of $30. We’ve seen other credit cards of this type carry bonuses as high as $100 and $200.

Farmers® Rewards Visa® Benefits & Features

Annual Fee No Annual Fee
Purchase APR 13.24%, 17.24% or 20.24% Variable
Card Details
  • Earn 3,000 points, after making $500 in purchases, outside of Farmers®, within 90 days of account opening
  • Earn 3x points on Farmers Products, plus 3x points for gas purchases, 3x points for home improvement purchases, and 1x point everywhere else Visa is accepted
  • 0% introductory APR on all purchases in the first 12 months. After that the APR is 13.24% to 20.24% based on Prime Rate and creditworthiness
  • No annual fee
  • Points never expire

Points earned with the Farmers® Rewards Visa® card can be grouped into two categories – 3x rewards and 1x. Whenever the card is used to pay for Farmers® products, gas and home improvement purchases, the user will earn 3 points for every $1 spent. Purchases in other categories earn just 1 point per $1.

In addition to earning points through everyday purchases, new cardholders have the chance to earn 3,000 bonus points. To qualify, you must make $500 in purchases within the first 90 days of the account being opened. Purchases of Farmers products do not count towards the point requirement. If you hope to score the bonus, while maximizing your rewards, that $500 in spending should come from gas and home improvement purchases. Additionally, note that the $500 must come from purchases – balance transfers, cash advances, and similar transactions will not count.

Depending on how you use your Farmers® Rewards Visa®, you can expect your rewards rate to be somewhere between 1% and 3%. If you can qualify for a decent cash back credit card, we recommend using one for all purchases which do not net you 3 points per $1. Your net rewards will almost certainly be better if you offset non-3x purchases to another card, so long as it provides you a general rewards rate greater than 1%. Below, we have graphed how the Farmers® Rewards Visa® credit cards rewards rates stack up against other leading credit cards.

This graph compares the reward rate you can earn with the new Farmers credit card vs. the Capital One Quicksilver and the Citi Double Cash

Redeeming Points Earned With The Farmers® Rewards Visa® Card

You can redeem your rewards points on a number of various options and prizes, ranging from statement credit to 3-night Bahamas cruises. Users need a minimum of 2,500 points before they can start redeeming. The simplest way you use your points is as statement credit – which effectively turns the Farmers® Rewards Visa® into a cash back credit card.

You need 2,500 points to offset $25 of charges. To obtain the value per point, we divide the two values and obtain $25 / 2,500 = $0.01 – a fairly standard point value.

The above point value allows us to estimate the bonus on the Farmers® Rewards Visa® to be worth just $30 (3,000 x $0.01). As far as welcome bonuses on ‘no annual fee’ credit cards, consumers can probably do a lot better. Some of the best bonus offers we’ve seen on similar credit cards can be valued as high as $200. Therefore, if you are looking to maximize short-term savings, we recommend shopping around.

How Does the Farmers® Rewards Visa® Compare to Other Credit Cards?

It is near impossible to judge the value of a credit card in a vacuum, which is why we decided to match up the Farmers® Rewards Visa® credit card against some of its competitors. We analyzed how the card performs in a number of different areas, to help you decide which use-case fits your needs.

Farmers® Rewards Visa® vs Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express is one of our favorite credit cards when it comes to both gas and supermarket purchases. In terms of gas, it provides the same rewards as the Farmers® credit card. However, instead of giving rewards from home improvement stores, the Blue Cash Preferred® Card from American Express gives 6% cash back at US supermarkets, on up to $6,000 per year in purchases (1% cash back after that) – that is a potential $360 savings year-to-year. If you do a lot more shopping at Home Depot than you do at your local supermarket, the Farmers® Rewards card will interest you more. You should get the AMEX card only if you plan on taking advantage of the full 6% offer – otherwise, the annual fee of $95 makes it a tough sell.

Farmers® Rewards Visa® vs Chase Freedom® Credit Card

The Chase Freedom® Credit Card is a rotating category cash back credit card. It provides users with 5% cash back, on up to $1,500 in combined purchases in bonus categories each quarter – these change every 3 months and include things like gas stations, restaurants, select grocery stores, and wholesale clubs. Occasionally, one of the categories will include home improvement. Because of the $1,500 spending cap on 5% bonus categories, projects which exceed $3,000 will be better off being charged to the Farmers® Rewards Visa® card. Since both have no annual fee, you have the option of using the two cards in conjunction with one another – this will optimize your value. Use the Chase Freedom® Credit Card on all purchases which fall into the bonus categories, and the Farmers® Rewards Visa® elsewhere.

Farmers® Rewards Visa® vs Sallie Mae Mastercard

Image of Sallie Mae Mastercard

If your idea of home improvement includes outfitting your house with items ordered through Amazon.com, then we submit the Sallie Mae Rewards Credit Card for your consideration. The card provides users with 5% cash back on the first $750 you spend per month on eligible book purchases (which includes non-digital Amazon purchases). This card also provides 5% cash back on gas and grocery purchases (the first $250 every month in each category). If your idea of home improvement is more traditional – involving lots of power tools and WD-40 – then the Farmers® Rewards Visa® is what we recommend for you. If you’re thinking of either card for gas, the Sallie Mae card takes the cake, as long as you spend less than $500 per month on gas.

Comparison Tool

If you are unsure of which card is best given your specific spending habits, feel free to use our tool below. It will calculate, for you, the rewards rates of the Farmers® Rewards Visa® and some of its competitors.

Assumptions Based On Monthly Spend of: $1,430 Edit
General:
U.S. Gas Stations:
U.S. Supermarkets:
Airlines:
Hotel:
U.S. Restaurants:
Office:
Utilities:
Computing:
Card Annual Fee 2-yr Net Rewards Rate

The Net Rewards Rate is equal to the Rewards Value over two years divided by the total spending. The total spending is equal to the values entered into the tool and multiplied by 24 months. See the rewards Value note to see details on how it is calculated.

The estimates here are ValuePenguin's alone. They are not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. All estimates are based on the spend assumptions entered above (which you can edit).

Bonus Value

The bonus field shows our estimate for the value of the card’s welcome bonus. If the bonus is point or mile based, we multiply the total bonus points/miles by our estimate for their value to arrive at a dollar equivalent. We display $0 if there is no bonus or if the user doesn’t qualify for the bonus based on the current spending entered into the tool. All estimates are based on the spend assumptions entered above (which you can edit).

The estimates here are ValuePenguin's alone. They are not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

2-yr Rewards Value

The Rewards value is calculated by adding together the rewards earned from charging purchases to the card over two years and any welcome bonuses (if applicable). They are then multiplied by our estimated point/mile value, with any annual fees (if applicable) subtracted. All values are based on our own estimates for the dollar value of any points, miles or bonuses earned using a card and on the spend assumptions entered above (which you can edit).

The estimates here are ValuePenguin's alone. They are not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Chase Freedom®
$0 1.44%
$150
Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
$493
Graph Card Read Review More Details and Value Calculation

Estimated Rewards Through 24 Months

Card Rewards Estimated Rewards Value Dollars*
Spending Rewards 343 x $1 = $343
Bonuses
0 x $1 = $150
Total Net Estimated Rewards Through 24 Months 493

*The value estimate is calculated using ValuePenguin.com rewards point value.

Annual Fee $0
APR 16.24% - 24.99% Variable

Card Details

  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate
  • Enjoy new 5% categories each quarter
  • Unlimited 1% cash back on all other purchases - it's automatic
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.24-24.99%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • No minimum to redeem for cash back
  • Cash Back rewards do not expire as long as your account is open
  • No annual fee
Farmers® Rewards Visa®
No Annual Fee 1.37%
$30
Earn 3,000 points, after making $500 in purchases, outside of Farmers®, within 90 days of account opening
$469
Graph Card Read Review More Details and Value Calculation

Estimated Rewards Through 24 Months

Card Rewards Estimated Rewards Value Dollars*
Spending Rewards 43,920 x $0.01 = $439
Bonuses
3,000 x $0.01 = $30
Total Net Estimated Rewards Through 24 Months 469

*The value estimate is calculated using ValuePenguin.com rewards point value.

Annual Fee No Annual Fee
APR 13.24%, 17.24% or 20.24% Variable

Card Details

  • Earn 3,000 points, after making $500 in purchases, outside of Farmers®, within 90 days of account opening
  • Earn 3x points on Farmers Products, plus 3x points for gas purchases, 3x points for home improvement purchases, and 1x point everywhere else Visa is accepted
  • 0% introductory APR on all purchases in the first 12 months. After that the APR is 13.24% to 20.24% based on Prime Rate and creditworthiness
  • No annual fee
  • Points never expire
Blue Cash Preferred® Card from American Express
$95 2.46%
$200
Get $200 back after you spend $1,000 in purchases on your new Card in your first 3 months. You will receive $200 back in the form of a statement credit.
$845
Graph Card Read Review More Details and Value Calculation

Terms and Limitations Apply

Estimated Rewards Through 24 Months

Card Rewards Point Value Rewards Value
Spending Rewards 835 x $1 = $835
Bonuses
0 x $1 = $200
Less Annual Fees -$190
Total Net Estimated Rewards Through 24 Months 845

*The value estimate is calculated using ValuePenguin.com rewards point value.

Annual Fee $95
APR 14.24%-25.24% Variable
*Rates and Fees

Card Details

  • $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
  • 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%) - that means spending $60 a week at U.S. supermarkets could earn over $180 back per year.
  • 3% cash back at U.S. gas stations and at select U.S. department stores, 1% back on other purchases.
  • Low intro APR: 0% for 12 months on purchases and balance transfers, then a variable rate, currently 14.24% to 25.24%.
  • Expanding merchant acceptance: Over 1 million more places in the U.S. started accepting American Express® Cards in the last year.
  • $95 annual fee.
  • Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
  • Terms Apply.
  • See Rates & Fees

Comments and Questions

* See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Now" button, you can review the credit card terms and conditions on the issuer's website.

Info about the following cards: American Express® Gold Card, Delta Reserve® Credit Card from American Express, Platinum Delta SkyMiles® Credit Card, Hilton Honors™ Card from American Express, Hilton Honors Surpass® Credit Card, American Express® Blue Sky, American Express® Green Card, The Amex EveryDay® Preferred Credit Card from American Express, The Plenti® Credit Card from Amex, Blue from American Express®, Platinum Card® from American Express Exclusively for Mercedes-Benz, Bluebird, Centurion® Card from American Express, Hilton Honors American Express Aspire Card, and Delta Reserve for Business Credit Card from American Express has been collected independently by ValuePenguin. The issuer did not provide the details, nor is it responsible for their accuracy.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program. 

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Advertiser Disclosure: Some of the offers that appear on this website are from companies which ValuePenguin receives compensation. This compensation may impact how and where offers appear on this site (including, for example, the order in which they appear). The site does not review or include all companies or all available products. For more information please see our Advertiser Disclosure.