CreditDonkey is a credit card comparison and reviews website. This website is made possible through financial relationships with card issuers and some of the products and services mentioned on this site. Advertiser Disclosure†

Updated August 30, 2017

Best Buy Credit Card Review: Worth the Annual Fee?

Read more about Gift Giving Statistics
Editorial Note: This content is not provided by the card issuer. Opinions expressed here are author's alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer.
This article contains references to products from our partners. We receive compensation if you apply through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

Before you apply for a Best Buy credit card, read this review to see the pros and cons. The expiring rewards, retroactive interest, and high APR are just a few of the hidden surprises we uncovered.

Thinking about indulging in a new TV or laptop? Need to upgrade your home appliances? If Best Buy, one of the most common destinations for big-ticket home electronics, is on your list of places to shop, you may wonder whether you should also pick up the My Best Buy credit cards to use toward your multi-hundred dollar purchase. The answer largely depends on how you plan to use the card.

The Best Buy credit card comes in two versions:

  • My Best Buy Credit Card that can only be used at Best Buy
  • My Best Buy Visa that can be used anywhere Visa is accepted

Each version divides cardholders into three tiers: regular cardholders, Elite cardholders, and Elite Plus cardholders. The two Elite tiers are based on annual Best Buy spending, and regular cardholders can be upgraded to either tier by reaching that tier's requisite spending threshold. Elite Plus customers get more cash back for Best Buy purchases.

We'll explain more below. But first, here are some current credit card promotions you should not ignore.

$150 Bonus

Best Buy Credit Card Benefits

  • Best Buy Rewards: Best Buy purchases earn you 2.5 points per dollar spent (both in-store and online). When you accumulate 250 points, you're sent a $5 reward certificate that you can use toward future Best Buy purchases. This is effectively a reward rate of 5% cash back. Elite Plus members get 6% cash back for Best Buy purchases (3 points per dollar spent).

  • Sign-up offer: Your first purchase at Best Buy within 14 days of account opening will get 10% back in rewards. If you've got your eye on a big-ticket item, you can take advantage of this.

  • Cash back on other purchases (Visa version only): With the Visa version, you'll earn rewards on other purchases too. You get 2% cash back on dining out and groceries and 1% cash back on all other purchases. But these rewards can still only be redeemed in the form of Best Buy rewards certificates.

  • Flexible financing offers: On larger purchases, you can opt for an interest-free financing period instead of the reward points. This is for purchases of $199 and up. Depending on what you buy, the financing offers can be from 6 months all the way up to 24 months. Terms and conditions apply.

  • Elite and Elite Plus Status: With both cards, you're automatically upgraded to Elite and Elite Plus status by spending $1,500 and $3,500 on the card, respectively, in a single year. With the My Best Buy Credit Card, it has to be on Best Buy purchases. Whereas with the My Best Buy Visa, it can be on purchases made anywhere.

    Here are some perks when you have elite status:

    • Elite: 30 day return window, free shipping, dedicated Elite customer service line
    • Elite Plus: 45 day return window, free 2-day shipping, dedicated Elite Plus customer service line, 6% back in rewards for Best Buy purchases

Drawbacks

  • Reward Expiration: The $5 reward certificates issued when you reach 250 points expire after just 60 days (unless you're an Elite or Elite Plus member). For the higher tiers, you can choose to save up points and get a bigger certificate. For the basic tier and Elite status, if you don't use the card for 12 months, you may end up forfeiting points you have earned. You may want to consider a credit cards with no expiration on rewards.

  • Annual Fee: The My Best Buy store credit card does not have an annual fee. But the My Best Buy Visa version can charge you an annual fee of either $0 or $59 (based on your creditworthiness). For a store credit card, any annual fee - let alone one this high - is very rare. You may want to consider a no annual fee credit card instead.

  • Deferred interest: The no-interest financing offer can be useful, but it's important to make sure you pay off the balance financed in full by the time that no-interest period expires. If you don't, you'll be charged all the interest you would have accumulated back to the date of purchase - regardless of how much you paid off so far. If you are planning large purchases, you may want to consider a 0% apr credit card promotion instead.

    What deferred interest means: Say you purchased a $1,000 TV and got 0% financing for 1 year. At the end of the year, you paid off all but $100. But you will still be charged for 12 months of interest on the original $1,000 (instead of assessing interest for only the $100). So it's important that you pay off the entire purchase before the financing period ends.

  • High APR: Currently, the APR is a high 26.24%. Returning to the above example, if you aren't able to pay off that last $100 before the no-interest financing period ends, you'll find yourself stuck with an additional $262 of interest to pay. You may want to consider a low interest credit card instead.

Who It's Best For

© Alton Jefferson II (CC BY-SA 2.0) via Flickr

If you're a frequent Best Buy shopper and have a high enough credit score to be eligible for the no fee version of the Visa card, this could be a good supplemental card to have in your wallet. Getting 5% rewards on Best Buy spending is generous if you shop there often, especially if you purchase all your big-ticket home electronics there. The other bonus cash back categories are decent too.

All that said, you probably want to avoid this card if you'll have to pay the annual fee. There are better no-annual fee cash back cards out there with good rewards and introductory 0% APR. If you're planning on a large purchase and want time to pay if off, we recommend that you go with another offer.

Alternatives

Wary of having only 60 days to redeem the Best Buy rewards? Or is Best Buy not necessarily your go-to store for all things electronic? You may be better off with a rewards credit card that lets you accumulate rewards indefinitely. Consider the following alternatives:

  • If you tend to carry a balance: In general, shoppers who usually carry a balance should avoid store credit cards and their higher interest rates. Look for a card that offers low-interest rates instead.

  • If you always pay your bill in full, on time: Consider a cash back credit card. You may be able to get that 5% cash back on Best Buy purchases during certain times of the year, depending on purchase categories that get that amount back and rotate every three months. At the very least, you'll get 1% on your purchases made with this type of card.

  • If you're in college: You can maintain your love of videogames and shop responsibly with a student credit card, which is designed to help you build a credit history and, in some cases, earn rewards as well.

Leah Norris is a research analyst at CreditDonkey, a credit card comparison and reviews website. Write to Leah Norris at leah@creditdonkey.com

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. This site may be compensated through the Advertiser's affiliate programs.

Editorial Note: This content is not provided by Chase. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by Chase. This site may be compensated through the Advertiser's affiliate programs.

More from CreditDonkey:


Best Place to Buy a TV


Best Place to Buy Appliances


Best Time to Buy a Laptop

More Articles in Reviews


Chase Freedom Unlimited
Apply for Chase Freedom Unlimited
At Chase's Secure Site
  • 0% Intro APR for 15 months from account opening on purchases and balance transfers, then a variable APR of 16.99-25.74%. Balance transfer fee is 5% of the amount transferred, $5 minimum
  • Unlimited 1.5% cash back on every purchase - it's automatic
  • Earn a $150 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • No minimum to redeem for cash back
  • Cash Back rewards do not expire as long as your account is open
  • Free credit score, updated weekly with Credit Journey℠
  • No annual fee
  • Go to issuer's official application, terms, and details
Intro APR for PurchasesIntro APR for Balance TransferRegular APRAnnual Fee
0% for 15 months
0% for 15 months
16.99% - 25.74% Variable
$0


Comments about Best Buy Credit Card Review: Worth the Annual Fee?

  • janell from New Jersey
    on January 12, 2016 5:22 PM said:

    I opened a new account with Best Buy only to find out that I was going to get a 0% interest rate for the purchases I made AT Best Buy. The only reason I would keep this credit card is if I made a lot of purchases at Best Buy, which I will not. Sad to say, but I am going to cancel my account once I finish paying the purchase I made. There are better credit cards out there if you are trying to get one to work your credit. I would not recommend this credit card from Best Buy.

Comments may be filtered for language. CreditDonkey makes no guarantee of comments' factual accuracy. These responses are not provided or commissioned by bank advertisers. Responses have not been reviewed, approved or otherwise endorsed by bank advertisers. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered. Visitors may report inappropriate content by clicking the Contact Us link.


November
19
2018

MailChimp Review

Even in the golden age of social media and a zillion chat apps, nothing connects you to your audience better than email.

    Credit Card Deals with No Annual Fees

    For your next credit card, you want a lucrative deal. What you don't want is to pay for the privilege with an annoying and pricey annual fee. We canvassed current offerings by credit card companies on CreditDonkey for the cash back, reward points, balance transfers, low interest, and small business offers you should consider.

    Cash Back Rewards

    We think you'll agree with us when we say ...

    Airline Rewards

    The best airline credit card racks up miles fast with reasonable fees and amazing rewards.

    Credit Card Deals

    Applying for a card with a bonus or an introductory offer can be a great way to get a head start on earning rewards or to get a handle on your debt.

    Credit Card Bonus Offers

    Looking for a new credit card? Earn extra cash, reward points, and airline miles with these bonus offers for new customers.

    Best Credit Cards

    Here are the CreditDonkey picks for "Best Credit Cards" from our partners in the following categories ...

    Credit Card Rewards

    So you've decided you want to earn rewards for your spending but aren’t sure how to pick the right card?

    Balance Transfer

    Here are three factors to keep in mind when choosing the right balance transfer credit card for your wallet ...
    How to Pay Off Credit Cards

    How to Pay Off Credit Card Debt Fast

    Balance transfers can help you pay off credit card debt faster. Read on to learn how to shrink your balance and pay less interest.

    Passive Income: Practical Ideas to Build Wealth

    Want to make passive income? Here are 24 passive income opportunities and investments you can start today. Find the best ideas to build real wealth.

    Best Credit Card for First-Time Applicants

    Learn how to get a credit card for the first time. Read this guide to find out which cards are the best and how to avoid common mistakes beginners make.

    Victoria's Secret Credit Card: What to Know Before You Apply

    Do most of your mall visits include a must-have stop Victoria's Secret? Do you have enough VS totes stored away that you could pack your lunch in one every day for a month? If so, the luxury lingerie retailer's Angel credit card might be worth a look.

    Can You Pay a Credit Card Bill with Another Credit Card?

    Paying a credit card with another card sounds like a great idea if you're struggling to pay your balance. But it's not as easy as it sounds. Here's what you need to know.

    Starter Credit Cards: What's a Good Starter Card?

    Are you ready for your first credit card? It is possible to get a card even with no credit. Read on for your options and our top card recommendations.

    Comenity Bank Credit Cards: What You Need to Know

    Comenity Bank's 155+ store credit cards are often easy to obtain. But which one is right for you? Read this guide to learn how to apply for the best Comenity Bank credit card.

    23 Best Ways to Use Chase Ultimate Rewards

    Redeem Chase Ultimate Rewards points for the most value. This guide highlights some of the best redemption opportunities with Chase points and airline transfer partners.

    Chase Credit Limit Increase

    Need a higher credit limit on your Chase card? It's easier than you think. Here are the different ways you can get a credit line increase.

    Walmart Credit Card Review

    Is the Walmart Credit Card worth applying for? Read this expert review and comparison of the Walmart store card and Walmart MasterCard before you apply.

    Credit Cards for Young Adults

    The best credit cards for young adults have good rewards and benefits but low fees. Use this must-read guide to help narrow down your search.

    Chase 5/24 Rule: What You Need to Know

    Applying for a new Chase card? Not so fast. The 5/24 rule can make you ineligible. Learn what the Chase 5/24 rule is and which credit cards are impacted.
More Articles in Reviews








About CreditDonkey®
CreditDonkey is a credit card comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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

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

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.