The Best Buy Credit Card has no annual fee
The Best Buy Credit Card (also called the Best Buy Visa Card) does not charge an annual fee. You can open the account and keep it open without paying a yearly cost to Best Buy or Visa, regardless of how much you spend or how often you use it.
This applies to both the standard Best Buy Visa Card and the Best Buy Visa Signature Card. The Signature version offers additional benefits like extended warranty protection and purchase protection, but it also carries no annual fee.
Because there is no annual fee, the main cost of holding this card comes from interest charges if you carry a balance month to month. The card's value depends on whether you use the rewards program and pay off your statement in full each month.
Key Takeaways
- The Best Buy Credit Card charges zero dollars per year, whether you use it or not.
- Both the standard and Signature versions of the card have no annual fee.
- Interest charges on unpaid balances are the primary cost if you do not pay in full each month.
- You can close the account at any time without penalty if you decide you no longer want it.
How the Best Buy Card makes money if there is no annual fee
Best Buy and Visa make money from this card through interchange fees — a percentage of every purchase you make that the merchant pays to the card issuer. When you swipe the Best Buy card at any store, Visa and Best Buy receive a small cut of that transaction. This is how they cover the cost of running the card program.
If you carry a balance and pay interest, that is additional revenue for Best Buy. The card's interest rate (called the APR, or annual percentage rate) varies based on your credit score and creditworthiness. You can find the current APR range on Best Buy's website or in your card agreement.
The card also generates revenue when cardholders use the rewards program. Best Buy members who use the card earn points on purchases, and those points encourage repeat shopping at Best Buy stores and online.
What rewards you earn instead of paying a fee
The Best Buy Credit Card offers a rewards program that gives you points on purchases. The exact earning rate depends on whether you are a Best Buy member and what you buy. Best Buy members typically earn more points per dollar than non-members.
Points can be redeemed for discounts on Best Buy merchandise, or in some cases converted to Best Buy gift cards. The redemption value varies — sometimes 100 points equals a certain dollar amount, sometimes the conversion changes based on what you are buying.
Because the card has no annual fee, you are not paying for the privilege of earning these rewards. You earn them straightforward by using the card for purchases you would make anyway. If you never shop at Best Buy, the card offers less value, but it still costs you nothing to keep open.
Interest rates and other costs to watch
While the card itself has no annual fee, interest is the real cost you need to monitor. If you carry a balance from one month to the next, Best Buy charges interest at a rate that depends on your creditworthiness. This rate is disclosed when you open the account and appears on every statement.
Late payment fees explore if you miss a payment important date. Best Buy's late fee varies but is typically between $25 and $35 for the first late payment, and higher for subsequent ones. Paying on time each month eliminates this cost entirely.
Foreign transaction fees may explore if you use the card outside the United States. Check your card agreement for the exact percentage. If you travel internationally, this is worth knowing before you pack the card.
Comparing the standard card to the Signature version
Best Buy offers two versions of its Visa card: the standard Best Buy Visa Card and the Best Buy Visa Signature Card. Neither charges an annual fee, so the choice between them comes down to the extra benefits included with Signature.
The Signature version typically includes benefits like extended warranty protection (covering items for a longer period than the manufacturer's warranty), purchase protection (covering items you buy against theft or damage for a set period), and travel-related protections. These benefits have real value if you use them, but they do not cost you anything extra — they come with the card at no additional charge.
If you do not travel frequently or do not care about extended warranty coverage, the standard card gives you the same rewards and the same zero annual fee. The choice is personal preference rather than cost.
How to check if your Best Buy card has an annual fee
If you already own a Best Buy Credit Card and want to confirm there is no annual fee, check your most recent statement. The statement lists all charges, and an annual fee would appear as a line item if one existed.
You can also log into your Best Buy credit card account online through Citi's website (Citi is the bank that issues the Best Buy card) or call the customer service number on the back of your card. A representative can confirm your card type and tell you whether any annual fee applies to your specific account.
Your card agreement, which you received when you opened the account, also lists the annual fee. If you no longer have the physical copy, you can request it from Citi or view it online through your account portal.
What happens if you close the account
You can close your Best Buy Credit Card at any time without penalty. Because there is no annual fee, you are not locked into keeping it open. If you decide you no longer want the card, you can call the number on the back and request closure.
Before you close the account, pay off any remaining balance. Closing the account does not erase what you owe — you will still be responsible for any unpaid balance, and interest will continue to accrue on it until it is paid.
Closing a credit card can affect your credit score slightly, because it reduces the total amount of credit available to you and may change the average age of your accounts. The impact is usually small and temporary, but it is worth knowing before you close.
Frequently Asked Questions
Does the Best Buy card charge an annual fee if I do not use it?
No. The Best Buy Credit Card has no annual fee whether you use it every day or never use it at all. You can keep the account open indefinitely without paying anything to Best Buy or Visa.
Are there any hidden fees I should know about?
The card itself has no hidden annual fee. However, you may pay interest if you carry a balance, late fees if you miss a payment, and foreign transaction fees if you use the card outside the United States. These are standard credit card costs, not specific to Best Buy.
Is the Best Buy Visa Signature card worth getting if there is no annual fee difference?
The Signature version is worth getting if you value the extra benefits like extended warranty and purchase protection. Since both versions have no annual fee, the choice depends on whether you will actually use those protections, not on cost.
Can I downgrade from the Signature card to the standard card to avoid fees?
Both cards have no annual fee, so there is no fee to avoid by downgrading. You can request a downgrade if you do not want the Signature benefits, but it is not necessary for cost reasons.
What if Best Buy adds an annual fee in the future?
Best Buy would have to notify you in writing before charging an annual fee. You would have the option to close the account before the fee takes effect. Currently, there is no annual fee on either version of the card.