Best Buy Credit Card Review: What’s not to like here?

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The electronics store Best Buy accepts all major credit cards, but people who shop there frequently may be interested in one of the Best Buy branded cards that actually give customers rewards for shopping. There is a 5% balance transfer fee to move a balance from another credit card to a Best Buy card (balance transfers do not earn rewards points, however). The most important thing to know about the Best Buy credit card is that is has an excellent rewards program, including purchases at a Best Buy and purchases elsewhere (if you get the general card), but the rewards are only redeemable at Best Buy.

What Best Buy credit cards are available?

  • Best Buy card that’s only good in store
  • Best Buy card that’s a Visa card good anywhere Visa is accepted (gold and platinum versions of this card are available, both with the same terms)

Two Best Buy credit cards are offered to shoppers: one of which is only good for use at Best Buy and the Best Buy branded card that’s also a traditional Visa card that’s good anywhere. The card known as the “My Best Buy Credit Card” is a regular store credit card that’s only accepted at Best Buy or on BestBuy.com. There is no annual fee for this card. There is a “My Best Buy Credit Card Preferred” customers with the highest credit will receive, but it looks like the terms for both cards are identical, so this is a benefit that’s in name only.

The other Best Buy card people can sign up for is known as the “My Best Buy Visa,” which is a credit card that is accepted anywhere Visa is. This  second card comes in two versions itself, a gold which has an annual fee of $59, and a platinum that has no annual fee. When someone applies for a Best Buy Visa credit card, they’ll be notified which version they are qualified to receive.

Complete Review of Best Buy Credit Cards

If someone is interested in applying for a Best Buy credit card because of the rewards potential, one of the most important things to know that rewards are only redeemable at Best Buy or the Best Buy web site. So this credit card wouldn’t be good for people who don’t plan to shop at that store often, or who aren’t making a big purchase they need to finance. This card is only good for certain people, but for those people, this could end up being a great credit card.

Applicants who try to get a Best Buy credit card will be qualified for the Visa card by default, so it’s important to make sure the application is only for the Best Buy store card if that’s all that is desired. Of course, it’s easier to rack up rewards with the general Best Buy Visa card. Here’s a review of the Best Buy credit card, both the advantages and the downsides:

Best Buy Credit Card Rewards

The rewards system is likely the biggest benefit for having a Best Buy credit card and using it regularly. When cardholders open up a new account, they get a 10% cash back rewards promotional offer right off the bat on their very first purchase. For a purchase of a major appliance, that could equal out to several hundred dollars, making the card worth it just for that one time.

But after that, Best Buy cardholders get 2.5 points for every $1 they spend in a Best Buy store, 1 point for every $1 spent on all purchases made at other locations (restaurants or grocery stores), or 1.5 points for every $1 spent on purchases made at home improvement stores, pet stores, veterinary services, and outdoors stores.

  • New Best Buy card holders get 5% cash back in rewards for the first 12 months they have the account
  • A $5 reward certificate is sent out for every 250 points earned, giving the chance for Best Buy customers to save even more money on a big purchase (this could mean an extra $100 or more on a big purchase)
  • Best Buy credit card holders also get free shipping on purchases $35 and up made on BestBuy.com

Being a Best Buy credit card holder means the customer is automatically enrolled in the “My Best Buy” frequent shopper program. In this program, points rewards are racked up for every purchase made. The Best Buy customer rewards program has three levels: basic, elite and one called elite plus. The basic level is what most customers are enrolled in, and it totally free for anyone to join. Customers who reach the elite level must spend $1,500 in one calendar year at Best Buy to stay at that level, and customers who want to reach elite plus status will need to spend $3,500 in a calendar year.

Best Buy Credit Card Verdict

The $59 annual fee that’s applied for the My Best Buy Visa card makes it a tough one to be useful for people who don’t do a lot of shopping there. With that fee, a customer has to spend over $1,000 a year just to break even. And at that point, those rewards points are pretty much lost. If someone is considering getting a Best Buy credit card, they’ll probably be much better off just getting the My Best Buy credit card (the one that’s only good in a Best Buy store).

It’s recommended that customers who get a Best Buy credit card do not have a balance on it from month to month unless they’re taking part in a special promotion like 0% interest for the fist 12 months. Like many credit cards, this one does have a high APR for balances, which will take away any benefit earned by purchasing and getting rewards points. Paying off the balance each month on a Best Buy credit card will help the card holder avoid paying huge interest fees.

The 5% cash back feature on Best Buy purchases is maybe the strongest benefit of the Best Buy credit card, it’s just important for the card holder to make purchases where they will not be carrying a balance. Because like most credit cards, the interest on a Best Buy credit card can pile up pretty quickly if purchases aren’t paid off, negating any benefit that comes from earning rewards. If a cardholder shops at Best Buy often and can pay their card off each month, the cash back off Best Buy purchases can end up being a huge money saver.

One important note is that the Best Buy card does have a deferred interest program like many store cards do. They will offer a special promotion like 0% interest on a purchase over $999 for 18 months. With deferred interest, if a cardholder pays off the whole balance before their date, there is no interest charged. But if the whole balance is not paid off by the due date, interest is charged retroactively from the date the initial purchase was made, often times reaching hundreds of dollars. For customers using Best Buy’s special credit card financing, it’s very important to make sure the balance is paid off by the end of the promo period.

  • Most of the time, a Best Buy customer will have to choose between getting no interest financing or rewards points on their Best Buy purchase

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