What the Best Buy Credit Card Actually Does

The Best Buy credit card is a store card issued by Citi that you can use at Best Buy locations and online. It gives you rewards points on purchases — typically 1.5 points per dollar spent at Best Buy, and 1 point per dollar everywhere else. Those points convert to Best Buy certificates you can spend on anything the store sells: phones, laptops, appliances, or services like Geek Squad.

The card has no annual fee. That means the only cost to you is interest if you carry a balance month to month. The rewards themselves cost nothing — you earn them automatically on every purchase. But the card is not a way to borrow money cheaply. The interest rate (called the APR) is typically in the high teens to low 20s, which is standard for store cards but higher than most regular credit cards.

Best Buy also offers a separate card called the Best Buy Visa, which works everywhere Visa is accepted, not just at Best Buy. That card has different rewards rates and different terms. This article focuses on the store card, which is what most people mean when they say "Best Buy credit card."

Key Takeaways

  • The Best Buy card earns 1.5 points per dollar at Best Buy and 1 point per dollar elsewhere, with no annual fee.
  • Points convert to Best Buy certificates at a rate that typically equals 1 cent per point, so 100 points becomes a $1 certificate.
  • The interest rate is usually 18% to 24% APR, so carrying a balance costs significantly more than the rewards are worth.
  • You need to be approved by Citi, which checks your credit report and credit score — the better your score, the more likely you are to be approved.
  • The card works only at Best Buy and online at bestbuy.com unless you get the separate Best Buy Visa card.

How Rewards Points Actually Add Up

Every dollar you spend at Best Buy earns 1.5 points. Every dollar you spend elsewhere earns 1 point. Those points sit in your account until you convert them to a Best Buy certificate, which you can then use like a gift card.

The conversion rate matters. Most store cards convert at 1 point = 1 cent, meaning 100 points becomes a $1 certificate. At that rate, spending $100 at Best Buy earns 150 points, which converts to $1.50 in certificates. That is a 1.5% return on your money — not bad for a store card, but only if you pay off the balance every month.

If you carry a balance and pay interest, the math flips. A $100 purchase at 20% APR costs you about $20 in interest over a year if you make only minimum payments. The 1.5 points you earned is worth $1.50. You lost money. This is why the card only makes sense if you pay in full each month.

When the Interest Rate Becomes the Real Cost

The Best Buy card's APR — the yearly interest rate — is not fixed. Citi sets it based on your credit score and credit history. People with excellent credit might get 18% APR. People with fair or poor credit might get 24% or higher. You do not know your exact rate until after you are approved.

Interest accrues daily on any balance you do not pay off by the due date. If you carry $500 from one month to the next at 20% APR, you owe roughly $8.33 in interest that month alone. Over a year, that $500 balance costs you about $100 in interest — far more than any rewards you earned.

The card does offer a promotional 0% APR period on purchases for a set number of months (usually 6 to 12 months, depending on the current offer). During that window, you can carry a balance without paying interest. After the promotion ends, the regular APR kicks in. This can be useful if you are buying an expensive item and know you can pay it off before the promotion expires.

How to Get Approved and What Citi Checks

You can explore for the Best Buy card online at bestbuy.com or in a Best Buy store. Citi will pull your credit report and check your credit score. They are looking for a history of on-time payments, how much debt you already carry, and how long you have had credit accounts open.

You do not need perfect credit to be approved. People with fair credit (scores in the 600s) often get approved, though they may receive a higher interest rate or a lower credit limit. People with poor credit (scores below 580) are less likely to be approved, but it is not impossible.

The process takes a few minutes and you usually get a decision right away. If you are approved, you can use the card when ready online or in store. If you are denied, Citi will tell you why in writing, and you can dispute any errors on your credit report with the credit bureaus (Equifax, Experian, or TransUnion).

Best Buy Card Versus a Regular Rewards Credit Card

A regular rewards credit card from a bank or credit union often has a lower interest rate than the Best Buy card — sometimes 15% to 18% APR instead of 18% to 24%. Regular cards also work everywhere, not just at one store. And many offer higher rewards rates on certain categories like groceries or gas.

The Best Buy card's advantage is that it has no annual fee and the 1.5% rewards rate at Best Buy is decent for a store card. If you shop at Best Buy regularly and always pay off your balance, the card can save you money compared to paying cash. If you carry a balance or shop there only occasionally, a regular credit card or no card at all is usually the better choice.

Another option is Best Buy's financing programs. For large purchases (usually $399 or more), Best Buy offers 0% APR financing for 12 to 24 months through a third-party lender. You do not need the credit card to use this. You explore at checkout, and if you are approved, you pay no interest as long as you pay off the full amount by the end of the term. This can be cheaper than using the card if you cannot pay in full when ready.

What Happens If You Miss a Payment

If you do not pay by the due date, Citi charges a late fee (usually $25 to $35 for the first late payment, more for repeat lates) and the interest rate may jump to a penalty APR, which can be 29% or higher. A missed payment also shows up on your credit report and damages your credit score, making it harder and more expensive to borrow money in the future.

If you miss a payment, contact Citi as soon as possible. Explain what happened. If it is your first late payment and you have a good history, they may waive the fee. If you cannot pay the full balance, ask about a payment plan. Citi is often willing to work with you rather than send your account to collections.

Frequently Asked Questions

Can I use the Best Buy card outside Best Buy?

The regular Best Buy card works only at Best Buy and bestbuy.com. Best Buy also offers a separate Best Buy Visa card that works anywhere Visa is accepted, but it has different rewards rates and terms. Check which card you have before you try to use it elsewhere.

What if I do not use my points — do they expire?

Best Buy certificates do not expire as long as your account is active. However, if your account is closed for inactivity or nonpayment, you may lose the points. Keep your account in good standing and convert points to certificates when you are ready to use them.

Does explore for the card hurt my credit score?

Yes, but only slightly and temporarily. When Citi pulls your credit report, it creates a hard inquiry that typically lowers your score by a few points. The impact fades after a few months. However, if you explore for multiple cards in a short time, the damage adds up.

Can I pay off my balance early without a penalty?

Yes. There is no penalty for paying off your balance early or in full. In fact, paying early saves you interest and is always the best move if you can afford it.

What is the credit limit, and can I increase it?

Your starting credit limit depends on your credit score and income. It is usually between $300 and $2,500. You can request a higher limit after you have had the card for several months and made on-time payments. Citi may do a hard inquiry when you request an increase, which temporarily affects your credit score.