If you’re a gadget enthusiast, tech enthusiast, home entertainment watcher, or gamer, you’ll probably enjoy shopping at Best Buy. Superstores also sell home appliances, outdoor technology, toys and more. Of course, these shopping categories have one thing in common: Most of them contain expensive items!
Shop Best Buy
Enter your Best Buy credit card. There are actually two versions: For loyal Best Buy shoppers, this card gives them the opportunity to earn rewards on larger purchases that can be used to save on excessive shopping in the future.
But this store card best for you purchase? Spoiler alert: This might not be true for most people.
Break down card features, pros and cons, and other strategies to save a few bucks at the big blue electronics supermarket.
Best Buy Credit Card Analysis
Best Buy offers two credit cards, and as of 2023, these are the only ways cardholders can earn rewards.
| my best buy credit card | It’s a “store card” because you can only shop at Best Buy or BestBuy.com. |
| My Best Buy Visa Card | This card can be used anywhere Visa is accepted, but the rewards are still focused on Best Buy. |
Each card has different ways to receive rewards.
As you can see in Best Buy’s handy dandy chart, the key difference is that the Visa card earns rewards even in non-Best Buy purchase categories, including 3% back on gas, 2% back on dining/takeout and groceries, and 1% back on everything else. It will. .
Get 10% back on the first day of purchase
How Best Buy Rewards Work
We’re going to come right out and say that Best Buy’s compensation structure is confusing. While many rewards cards stick to an easily calculated 1 point = 1 cent framework, the Best Buy card does not.
Instead, each point is worth two cents. And the points you earn will depend on your spending category.
With the My Best Buy Visa Card, you can enjoy:
- 2.5 points per $1 spent on Best Buy® purchases (5% back category)
- 1.5 points per $1 spent at gas stations (3% back category)
- 1 point per $1 spent at restaurants or grocery stores (2% refunded as rewards)
- 1 point per $2 spent on all other eligible purchases (1% back as rewards)
With the My Best Buy Credit Card, you can earn 2.5 points for every $1 you spend on Best Buy® purchases.
All of this means you’ll get the best value when you shop at Best Buy. Earn 250 points when you spend $100. 250 points are worth 2 cents each, which translates into a $5 discount certificate.
To keep it simple, you should know that for every $100 you spend at Best Buy, you get $5 back. If you make a purchase outside of Best Buy, you may receive additional compensation, but not as much.
How Compensation Certificates Work
So let’s say you buy a $100 pair of headphones from Best Buy and receive a $5 certificate via email. What’s next?
You can print or redeem your rewards in-store using the Best Buy app or online at BestBuy.com. But here’s the problem…the redemption certificate has an expiration date, so if you don’t need the gear from Best Buy in the near future, you’re in a “use it or lose it” situation.
tip: You have the option to select different units for your reward certificate. To change from the default $5 to $10, $20, $50 or $100, you must log in to your card account and go to Preferences.
You may receive financing instead of compensation
When making Best Buy purchases, cardholders can forgo reward points and opt for special financing instead. This allows you to space out interest-free payments on big-ticket items over a period of time.
You might be thinking, “Okay, this is exactly what I need to buy that fancy new surround sound system!” But wait… Funding proposals like this come with a big caveat.
Yes, it can be of great help if you pay the full purchase amount before the end of the special funding period. However, if you still owe even a dollar when the deal expires, you’ll have to pay interest on the entire amount dating back to the purchase date. This is called deferred interest.
Your best (buy) bet: If you want to take advantage of one of these offers, plan to pay off the entire balance a month before the due date (with a little extra). For example, let’s say it’s $1500 and you have 12 months, divide $1500 by 11 and pay $137 over 11 months, which you’ll pay off over time.
Other card features
welcome offer
One of the attractive features when deciding to open a store card is a welcome offer or discount. It’s a bit lackluster on the Best Buy card. Instead of getting a percentage off your first purchase like other cards offer, you get 10% back on your first purchase (instead of the typical 5% back the card earns). In other words, there are no upfront cost savings. Even after you reach 250 points, you still have to wait to receive your certificate.
Annual Percentage Rate and Fees
The card has no annual fee, which is always a good thing for consumers. However, the APR on purchases can exceed 30%. Therefore, it is wise to pay in full every month to avoid paying interest. Otherwise any compensation you obtain will be void.
Is the Best Buy Credit Card Right for You?
The Best Buy Credit Card targets loyal customers who frequent the brand. Rewards programs are fine in the sense that you can save $5 for every $100 you spend, but you need to remember to redeem your rewards at the right time.
This card can also be helpful when you need extra time to complete a large purchase. But make sure you can actually do so within the allotted time.
If you have the Visa version of the card, it’s probably not worth using it for gas, groceries, or eating out, as there are other rewards cards that offer cash back or more flexible redemption options. To get the 5% discount, focus only on your Best Buy purchases.
More Best Buy Credit Card Tips
What are the Best Buy credit card requirements?
Best Buy doesn’t disclose minimum requirements to qualify for the card, but typically at least a good credit score (about 700 or higher) and ability to pay (i.e., steady income) are key considerations. Store cards sometimes have lower minimum credit score requirements than regular cards.
How do I pay my Best Buy credit card bill?
Best Buy makes it easy to pay your credit card bill by offering five options. You can pay online, by mail, in-store, by text, or by phone.
Where can I use the Best Buy credit card?
If you have a My Best Buy credit card, you can use it at any Best Buy store or BestBuy.com. The My Best Buy Visa Card can be used wherever Visa is accepted.
The post How a Best Buy Credit Card Can Help You Save on Your Next Big Purchase appeared first on RetailMeNot’s The Real Deal.
