Is the Best Buy Credit Card Worth It? Editor’s Review for 2024 (2024)

Pros

• No membership fees
• High rewards rate
• 10% back in rewards initial rewards bonus
• No foreign fee

Cons

• No intro APR on balance transfers
• Balance transfer fee
• Requires good/excellent credit

Is the Best Buy® Credit Card Worth It?

The Best Buy® Credit Card is worth applying for if you regularly shop at Best Buy because you will enjoy a $0 annual fee and good rewards. Specifically, the card gives you the choice between earning 2.5 points / $1 (5% back) at Best Buy and having an intro APR of 0% for 18 - 24 months on Best Buy purchases. We recommend choosing rewards because the financing offer includes deferred interest.

When you apply for the Best Buy credit card, you may be approved for either the Best Buy® Store Card or the Best Buy® Credit Card, depending on your overall creditworthiness. The biggest difference between the two versions of the Best Buy credit card is that the Visa can be used anywhere Visa cards are accepted, while the store card only works at Best Buy. The Visa also lets you earn rewards when you use your card outside of Best Buy, with bonus rewards on gas, restaurant, bar and grocery purchases.

What You Need to Do to Make the Best Buy® Credit Card Worthwhile

What you need to do to make the Best Buy® Credit Card worthwhile depends on whether you choose rewards or promotional financing. If you choose the financing, you need to pay off your entire balance by the time the promotional 0% APR ends. If you don’t, you will owe all the interest you would have accrued at the card’s 31.49% (V) regular APR, starting from the date of purchase. This is what’s known as “deferred interest.”

If you choose to get rewards on Best Buy purchases instead, you should simply pay your credit card bill in full each month. That way, interest won’t wipe out the value you get from rewards. You should also take advantage of the card’s initial discount: 10% back in rewards on your first day of purchases within 14 days of opening an account.

Best Buy Credit Card Highlights

5% Back On Best Buy Purchases

You will earn 2.5 points for every $1 in Best Buy purchases charged to your card and receive a $5 reward certificate after accumulating 250 points. That’s the equivalent of 5% cash back, with a stipulation that proceeds can only be used for more Best Buy buying. The offer is even sweetened with an extra 10% back on your first purchase after account approval, as long as you make it within 14 days.

Furthermore, it’s important to reiterate that neither the 5% regular earning rate nor the 10% first-purchase bonus (which applies to a purchase of any amount) is compatible with promotional financing offers. You pick one or the other: rewards or promotional financing.

Up To 2% Back Elsewhere With The Best Buy Visa

If you get approved for the Best Buy Visa Credit Card, meaning you have at least good credit, you will be able to earn Best Buy rewards while buying items from other merchants. You’ll get a 1% base rate (1 point per $2 spent) that jumps to 2% (1 point per $1 spent) for purchases made at restaurants, bars, grocery stores and at 3% (1.5 points per $1 spent) for purchases made at gas stations.

Likelihood Of No Annual Fee

Perhaps the most important feature of Best Buy’s credit cards, the lack of a fixed cost allows you to use Best Buy plastic to supplement an everyday rewards or 0% credit card without guilt. It also makes the Best Buy® Store Card a suitable choice for fruitful, cost-effective credit building.

Unfortunately, not everyone who gets approved for a Best Buy® Credit Card stands to benefit from this advertised account feature. If you don’t qualify for the Best Buy® Store Card, you might be offered a version of the Best Buy® Gold Visa Credit Card that charges a $59 annual fee. Should that prove to be the case, we recommend asking for that account to be closed. The benefits of being an account holder won’t warrant the cost.

Best Buy Credit Card Lowlights

Special Financing Offers

There are currently a few financing offers from which Best Buy cardholders may choose, assuming they wish to eschew rewards. The offers vary from 0% for 18 - 24 months.

Such offers could help you save money on big-ticket purchases, if you’re very careful. But they also have perhaps more potential to be a trap that cardholders don’t see coming. The deferred interest clause in these financing arrangements means the slightest slip up could leave you buried in the very interest charges you were seeking to avoid. This is not a game that we recommend playing, especially if you can get approved for a non-retailer-branded 0% credit card, which would not use deferred interest.

Furthermore, Best Buy’s special financing offers apply to items purchased during a single trip to the store. In other words, the 0% introductory rate that you could get for 18 months on a $599 purchase would not apply to a subsequent Best Buy purchase made with the card within that eighteen-month window. The second purchase would accrue interest based on the card’s regular APR, unless another applicable financing offer is available.

5% (min $15) Balance Transfer Fee

The Best Buy Visa Credit Card is structured to encourage new purchases more so than to help the retailer’s customers save money. One example of this is a 5% (min $15) balance transfer fee that serves as a disincentive to using the card to pay off an existing balance incurred with a different credit card. When you further consider that you’d be paying that fee not for a low introductory interest rate but instead for the card’s 31.49% (V) regular APR, it’s clear this is not the ticket to debt freedom.

High Regular APR

Based on their terms and conditions, both the Best Buy® Gold Visa Credit Card and the Best Buy® Store Card have a 31.49% (V) regular APR. That’s well above the market average for credit cards for people with good credit (24.12%) and fair credit (26.41%), which are the respective approval requirements for the two cards. It’s about the same as the average store credit card’s 30.16% APR. This merely underscores that Best Buy credit cards are ill-suited to financing.

Confusing APR Structure

Not only are you likely to incur interest charges at an above-average rate if you carry a balance from month to month with a Best Buy® Credit Card, but Best Buy also adds a cloud of confusion to the process by sending mixed messages about what that rate will ultimately be. While the terms state a 31.49% (V) APR, there’s a footnote indicating that’s just a 90-day average. If this rate changes in accordance with the Prime Rate, the terms say you will be provided with information about the rates used in the previous 30 days. That doesn’t seem too helpful, and it certainly doesn’t provide much clarity regarding the ultimate cost of revolving debt.

To make matters worse, Best Buy’s online credit card application includes a note at the bottom of the page that draws a distinction between variable and non-variable rates, and references other card offers without providing any necessary context. It reads, “As of the last 30 days, My Best Buy, Magnolia & Pacific Sales Credit Card Purchase APRs: variable 23.74%–28.49%, non-variable 9.00%–24.34%; My Best Buy Visa Purchase APRs: variable 12.49%–28.49%, non-variable 9.99%–20.24%.”

This is one of the most confusing interest rate disclosures we’ve seen. We advise against putting yourself in the position to learn what the real rate is through experience.

Confusing Approval Process

Not only are there two main types of Best Buy credit cards – store cards and Visa cards – but each of those categories has two iterations as well. There’s a standard store card and a preferred store card as well as a Visa Platinum card and a Visa Gold card. You’ll first be considered for the Visa Platinum version, and if you don’t qualify, you’ll then be evaluated for the preferred store card, the standard store card and the Visa Gold card, in that order. It might seem a bit weird that a Visa is the last option, considering that you can use it more places than the store card, but its anchor position is largely due to the presence of a $59 annual fee.

Other Things To Consider About The Best Buy® Credit Card

My Best Buy Elite Plus Members Get Added Perks

You can achieve My Best Buy Elite Plus status by spending at least $3,500 on your card in a calendar year at Best Buy and bestbuy.com. The purchases that you make after achieving this status will yield an extra 0.5 point per $1, which is the equivalent of 1% back in Best Buy’s rewards program. Elite Plus status also scores you an extra 15 days in which to return or exchange items, plus free expedited shipping. Such benefits should certainly be taken into account by high-spending, brand-loyal Best Buy customers.

Rewards Dispensed As Best Buy Gift Certificates

Best Buy credit card rewards are bestowed in the form of points, redeemable for Best Buy gift certificates at a rate of $5 per 250 points. This is important to keep in mind, not only in the sense that redemption is ultimately restricted to Best Buy’s wares, but also because it makes Best Buy points susceptible to devaluation and expiration. After 12 months of account inactivity, you will receive $5 certificates for every 250 points you’ve earned, with any leftover amount being lost. What’s more, the certificates themselves expire (the use-by date is listed on each one), and you might have to show ID if redeeming in a store.

Best Buy® Credit Card vs. The Competition

Best Buy® Credit Card Review Methodology

This Best Buy® Credit Card review is based on WalletHub’s proprietary 100-point credit card rating system. By using a consistent methodology to evaluate the Best Buy® Credit Card and all other cards, WalletHub’s credit card experts make it easy for people to compare their options and find the best credit cards for their needs.

The WalletHub rating system uses 16 key metrics grouped into seven categories: Fees, Rewards, Two-year Cost, Interest Rates, Approval Requirements, Special Features, and Reviews. Each metric has a maximum number of points allocated to it, based on the metric’s importance as determined by our editors. The points are added up to create an overall rating for the Best Buy® Credit Card out of a maximum of 100 points, which is then converted to a 5-point scale.

Ratings for each category reflect how close Best Buy® Credit Card is to WalletHub’s definition of a 5-star credit card, which is based on market conditions and what we believe are reasonable terms. We compare Best Buy® Credit Card to that standard to give a numerical approximation of how reasonable and competitive its terms are compared to other cards.

To learn more about how WalletHub rates credit card offers, check out our full credit card review methodology.