Best Buy, one of the largest electronics retailers in the United States, offers two types of credit cards to its customers: the Best Buy Credit Card and the Best Buy Visa Credit Card. Both cards are issued by Citibank and are designed to help consumers save money on electronics and appliances. Whether you’re a frequent shopper at Best Buy or simply looking for a credit card that provides rewards for tech-related purchases, understanding the differences between these two cards and their benefits can help you decide which one is right for you.
Types of Best Buy Credit Cards
- Best Buy Credit Card (Store Card) The Best Buy Credit Card is a store-specific credit card, meaning it can only be used for purchases made at Best Buy or BestBuy.com. It’s ideal for those who regularly shop at Best Buy and want to earn rewards for their purchases. The Best Buy Credit Card offers financing options, promotional discounts, and rewards specifically geared toward Best Buy shoppers.Key Features of the Best Buy Credit Card:
- Financing Options: Best Buy Credit Card holders can enjoy special financing for purchases over a certain amount (e.g., 18 months or 24 months financing on eligible purchases over $299.99). The interest is deferred as long as the balance is paid off in full before the promotional period ends. However, if the balance is not paid in full by the end of the promotional period, deferred interest will be charged on the entire purchase amount from the date of the transaction.
- Reward Points: Best Buy Credit Cardholders earn 5% back in rewards on qualifying purchases made at Best Buy. The rewards are issued in the form of My Best Buy points, which can be redeemed for discounts on future Best Buy purchases.
- Exclusive Offers: Cardholders may receive special offers, such as early access to sales, exclusive discounts, and other perks.
Drawbacks:
- High-Interest Rates: As with most store credit cards, the interest rate on the Best Buy Credit Card can be quite high (around 26.99% APR, variable). If you carry a balance from month to month, the interest charges can quickly outweigh the benefits of rewards or financing.
- Limited Use: The Best Buy Credit Card is a store-only card, meaning it cannot be used for purchases outside of Best Buy.
- Best Buy Visa Credit Card The Best Buy Visa Credit Card is a more flexible option, as it can be used anywhere that accepts Visa, making it ideal for individuals who want to earn rewards not just for Best Buy purchases, but for all of their spending. In addition to earning rewards for purchases made at Best Buy, cardholders also earn points on everyday purchases such as groceries, gas, and dining.Key Features of the Best Buy Visa Credit Card:
- Rewards on Purchases: With the Best Buy Visa Credit Card, you earn 5% back in rewards on Best Buy purchases, just like the store card. However, you also earn 1% back on all other purchases, whether they are made in-store or online at other retailers.
- Special Financing Options: Like the Best Buy Credit Card, the Visa version also offers financing options for qualifying purchases. For example, you may get 12-month financing on purchases over $299.99. There are also 18-month and 24-month financing options available for higher-ticket items.
- Flexibility: The Visa card is accepted at millions of locations worldwide, unlike the store-only version. This makes it a more versatile option for those who want to earn rewards on all their spending, not just Best Buy purchases.
- No Annual Fee: The Best Buy Visa Credit Card has no annual fee, making it an attractive option for those who don’t want to pay extra costs just for having the card.
Drawbacks:
- Higher APR: Like the store card, the Best Buy Visa Credit Card has a relatively high APR (typically around 26.99% variable). This makes it less attractive if you tend to carry a balance, as interest charges can quickly add up.
- Rewards Redemption: While the rewards earned with the Visa version are versatile, they are issued in the form of Best Buy Reward Zone points, which can only be redeemed for Best Buy purchases. These points cannot be transferred to other retailers or used for cash back.
Rewards and Financing Options
One of the primary draws of the Best Buy Credit Card and Best Buy Visa Credit Card is the ability to earn rewards and access promotional financing. Here’s a breakdown of how these rewards and financing options work:
- My Best Buy Rewards: Cardholders earn My Best Buy points on their purchases. For every dollar spent at Best Buy, cardholders earn 5% back in the form of points. These points can be redeemed for discounts on future Best Buy purchases. For example, 250 points equals $5 in rewards. You can use your points to offset the cost of future purchases, whether you’re buying a new laptop, home appliance, or gaming console.For the Best Buy Visa Credit Card, you also earn 1% back on every other purchase made anywhere Visa is accepted. While this isn’t as generous as the 5% rewards rate for Best Buy purchases, it still offers an incentive to use the card for everyday purchases, especially if you are already planning to make a larger purchase at Best Buy.
- Special Financing: Both versions of the Best Buy Credit Card offer special financing on qualifying purchases, such as electronics and appliances. If you purchase an item that qualifies, you can opt for financing terms like 6 months, 12 months, 18 months, or even 24 months, depending on the size of your purchase. These financing options can be particularly useful for purchasing high-ticket items like a new television, refrigerator, or gaming system.However, it’s important to remember that these financing plans often come with the caveat of deferred interest. If you fail to pay off the balance in full by the end of the promotional period, you will be charged interest from the original purchase date at a high APR.
- Sign-up Bonus: Some Best Buy Credit Card holders may receive a sign-up bonus, such as 10% back in reward points on purchases made within the first 30 days of account opening (on qualifying purchases). The specifics of the bonus can vary, but this can be a great way to boost your rewards early on.
How to Choose the Right Best Buy Credit Card
Deciding between the Best Buy Credit Card and the Best Buy Visa Credit Card depends on how and where you shop. Here are a few factors to consider when choosing the best option for you:
- Frequency of Best Buy Purchases: If you shop frequently at Best Buy and prefer to keep all your rewards tied to that retailer, the Best Buy Credit Card (store card) might be the better choice. You’ll earn 5% back on all purchases at Best Buy, and you’ll also have access to special financing offers.
- Need for Flexibility: If you want a more versatile credit card that allows you to earn rewards on all types of purchases—not just Best Buy items—the Best Buy Visa Credit Card is the better choice. You’ll earn 5% back on Best Buy purchases and 1% back on all other purchases, plus it can be used anywhere Visa is accepted.
- Ability to Pay Off Balance: If you plan to carry a balance and will be using the card for financing, be aware that both cards have relatively high APRs (around 26.99% variable). However, if you pay off your balance in full before the end of the promotional financing period, you won’t incur any interest charges.
- Sign-up Bonus: If you want to maximize your rewards right away, look for special promotions like the sign-up bonus. Both cards may offer special incentives for new applicants.
Conclusion
The Best Buy Credit Card and Best Buy Visa Credit Card are solid options for shoppers who frequently make purchases at Best Buy and want to earn rewards for their spending. The Best Buy Credit Card is ideal for those who primarily shop at Best Buy and want to benefit from financing options and high rewards at that store. The Best Buy Visa Credit Card, on the other hand, provides flexibility by offering rewards on all purchases, not just at Best Buy.
Whichever card you choose, be sure to read the fine print about interest rates, promotional financing terms, and rewards redemption policies to ensure that it aligns with your financial habits. By understanding the benefits and drawbacks of each card, you can make an informed decision that suits your shopping preferences and financial goals.
