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Vault’s Viewpoint

• The Best Buy credit card can be a good choice if you’re a frequent Best Buy shopper and want to save money on purchases
• Best Buy has multiple versions of the Best Buy card and the one you apply for may not be the one you get approved for
• You have other ways to save money on Best Buy purchases that don’t involve a new credit.

1. Best Buy Has Two Credit Cards

Citi issues both versions of these Best Buy credit cards: My Best Buy Visa® Card and the My Best Buy® Credit Card. The main difference between the two cards is where you can use them. While you can use the Best Buy Visa everywhere Visa cards are accepted, the My Best Buy Credit Card is limited to Best Buy purchases only.

Many of the incentives one might want from a Best Buy card are available on both cards. However, key differences in benefits, rewards and annual fees might sway certain consumers to pick one card over the other. For example, the Best Buy store card has no annual fee, while the Best Buy Visa may incur a $59 annual fee if you’re approved for the Gold version instead of the Platinum.

The Best Buy Visa’s fee might be worth paying if you earn enough rewards and take advantage of the waived foreign transaction fees. Store cards are also generally easier to get approved for if you have no credit history. That’s part of why many consumers with no credit opt for store cards over traditional cards.

2. The Welcome Bonus Is a 10% Discount

The welcome bonus is one of the biggest incentives for getting any credit card. A traditional welcome bonus consists of a certain number of points or cash back in exchange for meeting a spending requirement. The Best Buy credit cards don’t offer conventional welcome bonuses. Instead, approved applicants receive a 10% discount on Best Buy purchases made on the same day of your approval.

This discount can be worth much more than a typical cash back bonus. If you’re purchasing a new TV, laptop, or household appliance, the 10% discount can be substantial. Simply put, you’ll save $100 for every $1,000 spent, which can add up tremendously.

But before allowing the sales associate to sweet talk you into a Best Buy card for the discount, compare it against welcome bonuses from other cash back cards. For example, the Citi Custom Cash® Card offers $200 cash back after you spend $1,500 on purchases within the first six months of account opening. If your Best Buy purchase is less than $2,000, you might be better off with a Citi Custom Cash Card, which has no annual fee and earns up to 5% cash back in select rotating purchase categories.

3. The APR Is Steep, but You May Qualify for Special Financing Offers

While the 10% welcome discount might be substantial, you can counteract those savings if you don’t pay off your balance in time. Both Best Buy cards carry a staggering 31.49% APR, much higher than most credit cards. The last thing you want is to put a $2,000 purchase on the card, thinking you’ll save $200 and then pay over $600 in interest over a year. So be mindful of this possible caveat and avoid it at all costs.

If you have to finance a Best Buy purchase, you might want to opt for a 0% intro APR credit card instead. You’ll often earn some cash back but avoid the trappings of high interest rates for about a year.

That being said, Best Buy credit cardholders occasionally get access to interest-free financing for a specific period. These can be a great way to finance large purchases and earn rewards. However, these offers depend on creditworthiness, so not all cardholders will qualify.

4. Both Cards Earn 5% Cash Back at Best Buy

Best Buy Credit cardholders earn 5% cash back on Best Buy purchases. The Buy Visa also earns 3% cash back at gas stations and 2% on grocery, dining and takeout purchases. All other purchases earn 1% cash back. Best Buy Visa cardholders are also targeted for limited-time bonus categories, which opens up more earning opportunities. Overall, it’s a good choice for maximizing both Best Buy and everyday purchases.

Meanwhile, the My Best Buy Credit Card only earns 5% cash back at Best Buy. If you’re a frequent Best Buy shopper, the card could make sense—especially since it has no annual fee. But you might want to look elsewhere if you want a card that better suits your daily spending habits.

5. Best Buy Credit Card Rewards Are Convertible to Best Buy Certificates

While rewards are advertised as cash back, both Best Buy cards earn points. Every point equals 1% cash back and is redeemable for Best Buy certificates. For example, the 5 points per dollar spent on Best Buy purchases equates to 5% cash back. You can only redeem points for Best Buy certificates, which you can use towards future purchases.

The redemption structure makes the Best Buy cards much more limiting than a traditional cash back or rewards credit card. If you spend a significant amount on your card, you might find yourself with a substantial rewards balance that isn’t easy to redeem. While using certificates for discounted electronics is great, the redemption options may be unideal for folks who prefer to use rewards to offset monthly expenses.

6. You Don’t Need a Best Buy Card To Earn 5% Cash Back at Best Buy

While the 5% cash back rate on Best Buy purchases may be enticing, it’s not the only way to save 5% at Best Buy. For example, Amex Offers occasionally have cash back deals that amount to as much as 20% off on Best Buy purchases. Chase and Citi sometimes offer 5-10% cash back through their respective merchant offer portals. All you need to qualify for these deals is a credit card from one of these banks and to enroll in the specific offer.

Another great way to stack the savings is through cash back portals. For example, Retail Me Not formerly offered 4% cash back at Best Buy, while Barclay RewardsBoost offers 5 points per dollar spent. Simply click through these portals before you shop. You’ll earn bonus rewards regardless of which credit card you use. By taking advantage of shopping portal and merchant offer discounts on your existing credit cards, you can save money on Best Buy purchases without applying for a Best Buy credit card.

7. If You’re Rejected for One Card, You May Still Get Approved for Another

We’ve established that if you apply for the Best Buy Visa, you may get approved for either a Gold version with a $59 annual fee or a Platinum Card without the annual fee.

The Best Buy Visa has higher credit requirements than the Best Buy store card. As such, if you apply for the Best Buy Visa and Citi doesn’t deem you creditworthy, you may be approved for a My Best Buy Card instead. You’ll still get the 10% welcome bonus discount and earn 5% cash back on Best Buy purchases. However, it’s not ideal if you want a card you can use outside of Best Buy. So remember these details as a possible risk (or a positive outcome) if you’re applying for a Best Buy card.