Best Buy, an American multinational conglomerate, focuses on selling consumer electronics. Actually, this electronics retailer appears to be among the most popular in the United States. That is not surprising that it also offers its customers to take advantage of the Best Buy Credit Card. If you are a frequenter to Best Buy, you may, indeed, consider applying for the Best Buy Credit Card. This article will help you in analyzing all the risks, advantages and drawbacks, as well as you will gain all necessary information about this company and the credit cards it offers.
Things To Know About Best Buy
Best Buy is an American retailer of electronics, which has more than 1,000 stores in the United States and Canada. Yahoo Finance described Best Buy as the largest specialty retailer of electronics in the United States. The company is headquartered in Richfield, Minnesota, while having number of employees more than 125,000.
Best Buy has often appeared in the numerous ratings of the best retailers in the United States. Its annual revenues exceed $44 billion, while the profit almost reaches $1 billion per year. All this makes an idea of applying for a Best Buy credit card quite lucrative. If you wish to apply for a Best Buy credit card, you can do it in one of the company’s stores that can be located with the help of this page.
General Information About the Best Buy Credit Card
Purchase rate (APR for purchases): 26.49% variable.
Cash advance rate: 27.24% to 29.24% variable.
Annual fee: depending on your credit history, it may be anywhere from $0 up to $59.
Minimum interest: $2.
Interest-free period: up to $2.
The requirements needed to match in order to apply for the card: being 18 years old, having the minimum credit score as Fair (660-699).
Late payment fee: $38.
Cash advance fee: $10 or 5% of every cash advance (the one that is greater gets chosen).
The first thing you should know before applying for the Best Buy credit card is the following fact: there are two credit cards from Best Buy. Those credit cards from Best Buy include:
- My Best Buy Credit Card.
- My Best Buy Visa.
While the first credit card can be used only in Best Buy stores, the Visa credit card from Best Buy allows you to use it anywhere where Visa cards are accepted. Anyone reading these lines might ask a question “Who may need to apply for a Best Buy credit card?” Well, the answer for that question is pretty straightforward: anyone who is a frequent shopper at Best Buy may consider applying for this credit card. If you don’t shop frequently in the stores of this chain, we can only recommend you to stay away from the Best Buy credit cards.
Best Buy Credit Card Benefits
Obviously, there are some pretty good benefits that can be obtained from using a Best Buy credit card. At this point of our Best Buy credit card review, we will just uncover them slightly, while more detailed comments will be given at the end of this article. So, the following are the benefits of using a Best Buy credit card:
- Sign-up offer. Within 14 days after opening your account at Best Buy, you can enjoy a special sign-up offer, which provides you with a cash back of 10%. If you are planning to make an expensive purchase, we recommend you to apply for the card before it.
- Cash back from Best Buy. Whenever using this credit card, you will be able to accumulate points – 2.5 points for every dollar spent at Best Buy (regardless whether it was spent online or in-store). Once you have accumulated 250 points, you can exchange them for a $5 worth reward certificate. This roughly gives you 5% of cash back. If you are an Elite Plus member of the company’s loyalty program (see lower), you will enjoy 6% of cash back – this figure can barely be matched by any other credit card issuer.
- Cash back in other places. If you have got a Best Buy Visa credit card, you will also enjoy 2% of cash back on grocery products and 1% of cash back on all other expenditures. Though, you have to keep in mind that those rewards can be redeemed only in a form of the Best Buy reward certificates.
- Best Buy loyalty program. Once you have received a credit card from Best Buy, you will automatically be enrolled in the company’s loyalty program. Depending on how much you spend in a year, you will be able to enjoy an even bigger number of benefits.
- Flexible financing. Instead of accumulating the points for cash back, you can (for larger purchases) opt to enjoy a financing period without interest, which may last anytime from 6 months up to 24 months.
Disadvantages of the Best Buy Credit Card
Even though Best Buy credit cards may offer pretty solid perks, obviously there are disadvantages you should be aware of. This part of our review focuses more on the disadvantages of this card, so you will know what to expect from the Best Buy credit card. So, the disadvantages of this card are the following ones:
- Annual fee. Even though the usual Best Buy credit card (not Visa’s) rarely charges an annual fee, the case with the Best Buy Visa card is quite different. Based on your credit rating, you will have to pay either $0 or $59 annual fee for the Visa card.
- Cash back is not that simple. Cash back figures are fairly good at Best Buy, but not everything is as simple as it may seem at first sight. First of all, 5% (or 6%) of cash back is given to you only in a form of the Best Buy reward certificates, so you can’t spend them elsewhere except of Best Buy. The other thing is that those reward certificates expire just within 60 days after their issuance.
- High APR. As of the present time, the APR of the Best Buy credit cards appears to be among the highest in the market, being equal to as high as 26.24%.
- Deferred interest. This is the most serious problem when you get to use a Best Buy credit card. If you have got a 12-month interest-free period for a major purchase and have not succeeded to pay the credit on time, you will have to pay all the interest on the entire sum of the credit – regardless of how much you have paid out before!
Advantages of the Best Buy Credit Card In Detail
At this point of our guide, we will just review the benefits of this credit card more thoroughly. Enjoy!
As it was pointed out above, with any of these two cards you get from 5% to 6% of cash back on the purchases you have made at Best Buy. Considering that many other retailers offer just 2% or 3%, 5% sounds like really a lot.
Yet, you have to be aware that the funds you receive in a form of reward certificates. If you have not used your points in 12 months, they are likely just to be written off. If you are not an Elite or Elite Plus member, your reward certificates are valid only for 60 days.
The 18-Month Financing Period
As it was stated above, you will be able to choose between cash back you may receive in points and a long-term financing, which may last from 6 up to 24 months. Most usually, the financing period appears to be 18-month long.
Sometimes, getting a financing period may be more beneficial than getting a cash back – especially when you can’t pay for a device outright. For instance, for a laptop worth $1,500 you will receive only $75 cash back, while the interest rate for a 6-month long credit would exceed $125. There is no need to say what is more beneficial, right?
Varying Zero-Interest Offers
Regardless whether you are going to choose a cash back or an 18-month long interest-free period, Best Buy will also make you exclusive offers. For instance, it often offers special deals on appliances, smartphones, laptops and other devices. Most of them come with a 0% interest rate and have their own conditions and terms. Such deals are usually changed on a bi-monthly basis.
Best Buy Loyalty Program
Once you have received a Best Buy credit card, you will automatically be enrolled in its loyalty program. If you spend more than $1,500 in a year with your card, you will become the Elite member of the loyalty program. If you succeed to spend $3,500 in a year, you will become the Elite Plus member. If you have a Best Buy Visa credit card, you can spend that money anywhere. With a usual Best Buy credit card, you can spend them only in Best Buy stores.
There are some perks, indeed, that the Elite and Elite Plus status offers.
The Elite status offers the following advantages:
- Free shipping
- Dedicated Elite customer service line
- 30-day return window.
The Elite Plus status offers the following perks:
- Free 2-day shipping
- Dedicated Elite customer service line
- 45-day return window
- 6% cash back for purchases made at Best Buy.
Besides, you can find out about the credit card offers on this page.