Top 5 Essential Facts About the Best Buy Credit Card

Best Buy—the iconic electronic retailer in the States—is in partnership with Citi to offer not one but two co-branded store cards. The said cards are targeted probably at rewarding customers for purchases at Best Buy, so frequent shoppers could fit in well, mainly considering the high cost of such items as smartphones, HDTVs, and laptops.

However, redemption of rewards is allowed only at Best Buy. These cards offer deferred-interest financing on certain purchases; a legitimate 0% introductory APR from other credit cards is likely to be much safer. Many other rewards credit cards offer more versatile and flexible benefits and rewards.

1. Two types of Best Buy credit cards:

You can apply for a Best Buy credit card either in-store or online, although the application process is somewhat unclear, and there is no way for an applicant to specify which version of the card they want to be approved for. The two primary versions of the card are:

• My Best Buy Credit Card: No-annual-fee closed loop store card, only accepted at Best Buy and on BestBuy.com.

• My Best Buy Visa: This is an open-loop card accepted anywhere Visa is taken. It has two versions, differentiated by its annual fee:

-Gold: The annual feeassessed is $43 .

- Platinum: No annual fee assessed on this one.

In applying, Best Buy considers you first for the My Best Buy Visa Platinum. If that goes unsuccessful, they will look at creditworthiness for the My Best Buy Credit Card and end with the My Best Buy Visa Gold. Your creditworthiness will determine which card you get.

• Credit Score Requirements: Best Buy does not publicly disclose the credit score needed to be approved. In general, closed-loop store cards are more accessible than open-loop cards. In the case of cards offered with and without an annual fee, the one with a fee is generally more accessible to people with average credit.

2. Okay Rewards but Painful to Redeem

These credit cards will enroll you in the My Best Buy loyalty program and earn you points. The points convert to Best Buy rewards certificates at a rate of 250 points for a $5 certificate, so 2 cents per point. You need a minimum of 250 points to redeem.

For Best Buy purchases, both of the cards share the following in common:

• 5% back on all Best Buy purchases

• 2.5 points per $1 spent

• Flexible financing options.

The Visa card gives more rewards on purchases:

• 3% back at gas stations: 1.5 points for every $1 you spend

• 2% back on dining and grocery store purchases: 1 point for every $1 you spend

• 1% back on other purchases, where 1 point equals $2 spent

3. Deferred Interest: Risky Maybe

Best Buy credit cards have frequent "no interest if paid in full" offers, also known as deferred interest. They can be misleading sometimes.

Deferred interest means interest is not applied; interest is set aside that, if you pay off a purchase within the deferred-interest period, then interest will not have to be paid. However, if any originally small amount gets carried forward beyond this, then you will pay interest on the full amount of the purchase starting from the date it was purchased. Best Buy charges a very high rate of 31.49% as of September 2023.

Consider credit cards with an actual 0% APR offer for financing large purchases. These cards have introductory pricing of 0% APR for 21 months on purchases and balance transfers, after that, a regular APR ranging from 18.24%-29.99%.

4. Opening the card comes with an incentive

Best Buy offers a one-time incentive for new cardholders. A typical offer is 10% back in Best Buy points on your first day of purchases. For example, $2,000 spent on the first purchase would get you 10,000 points, the equivalent of $200 in Best Buy rewards certificates. Unlike many other cards, you don't have to spend a certain amount before earning the bonus.

5. Consider Other Options if You're Not a Frequent Best Buy Shopper

For regular Best Buy shoppers, the credit card might make sense. The My Best Buy Visa Gold does so at a steep price: its $43 annual fee. You'd have to charge around $1,200 at Best Buy before you offset this fee with rewards. If you were thinking of signing up for a Best Buy credit card, aim for the no-fee My Best Buy Credit Card or the $43-fee My Best Buy Visa Platinum.

For most consumers, a general rewards credit card not aligned with any particular retailer is far more flexible and rewarding.