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This Is Why Best Buy Credit Cards Can Save You Money

I remember spending hours at the mall as a kid. It didn’t matter if I was looking for something for myself or shopping during the holidays. The mall was the place to be.

Today things are much different. We’re all making fewer trips to brick and mortar retail stores. When we do venture out to buy something, there is a common question we all get at the checkout counter.

Would you like to save money today by signing up for our credit card? Retail store credit cards are only growing in popularity with retailers. We’ve all read about the retail apocalypse. Experts don’t see this stopping anytime soon.

According to UBS, if online retail sales increase from its current 16% to 25% by 2026, it would force the closing of 75,000 retail stores.

In response, many retailers have chosen to offset declining sales through traditional channels by aggressively expanding their card business.

 

Best Buy And Its Credit Card Business

Best Buy, the massive consumer electronics retailer, offers credit cards as a way for shoppers to finance their purchases. Third-party banks issue these cards, manage them, and directly extend credit to Best Buy’s customers.

Credit cards are a large part of Best Buy’s business. In fiscal 2019, approximately 25% of its revenue came from the company’s branded cards.

In addition to helping customers make incremental purchases, Best Buy also earns profit-share income and shares in any losses based on the performance of the programs.

 

Best Buy Offers Two Types Of Credit Cards

 

1. A store card called the My Best Buy Credit Card

A store card is an attractive option if you do a lot of shopping at Best Buy. You can buy all the products you love and pay them off over time, either monthly or all at once.

It also provides a much faster and easier manner of checking out.

The card offers 5% back rewards on your purchases. You can apply for either card through the company’s online application process.

What’s the catch? You cannot use the store card outside of Best Buy.

Interest charges start the day you buy something, and its added to your daily balance. At 26.74%, the store card’s annual percentage rate is steep when compared to a bank credit card. Yet, some select purchases are eligible for the 48-month reduced credit plan that charges an APR of 11.90%.

Best Buy adds purchases, interest charges, and fees to your daily balance. They will continue to charge interest until you pay your total balance.

Best Buy offers a 25-day grace period on purchases that you can use to avoid paying interest. Remember that you need to pay your balance by the payment due date every billing cycle to get a grace period. You can read our article on grace periods as a refresher.

 

2. A Visa card called the My Best Buy Visa Card

The My Best Buy Visa® Card allows you to earn 5% back in rewards for all your Best Buy purchases. Plus, you can receive rewards shopping anywhere Visa® is accepted.

Here is a summary of the Best Buy Visa® Card rewards:

  • Earn 1.5 points for every $1 spent (equal to 3% back in rewards) on net purchases made at gas stations. Note: this is subject to Visa’s merchant classification.
  • Earn 1 point for every $1 spent (equal to 2% back in rewards) on net purchases made at restaurants, bars, and grocery stores. Note: this is subject to Visa’s merchant classification.
  • Earn 1 point for every $2 spent (equal to 1% back in rewards) on net purchases outside Best Buy with the My Best Buy® Visa®.

 

My Best Buy Membership

Whether you choose the store card or the Visa card, you are automatically part of the My Best Buy® program

It doesn’t cost anything to become a member. As a member, you get to enjoy some unique benefits. Not only can you earn rewards points for every dollar you spend, but you also get free shipping on everything, receive member-only offers, and get early access to sales.

To be eligible for program membership, you must be a U.S. resident at least 13 years of age. If you are between 13 and 18 years old, you need the permission of a parent or guardian to sign up.

Category My Best Buy My Best Buy Elite My Best Buy Elite Plus
Points on Purchases 1% back in rewards 2% back in rewards 2.5% back in rewards
Points for using the Credit Card 5% back in rewards 5% back in rewards 6% back in rewards
Free Shipping Yes, on purchases $35 and up Yes Fee 2-day shipping
Returns and Exchanges 15 days 30 days 45 days
Access to Offers Yes Yes, Elite access Yes, Elite Plus access
Point Banking Option No Yes Yes
24/7 Customer Service Line 1-888-BEST BUY Dedicated customer service line Dedicated customer service line
How to Qualify Free to join $1,500 in purchases per calendar year $3,500 in purchases per calendar year

 

How Can I Pay My Best Buy Bill?

There are four ways to pay your Best Buy credit card bill

1. You can pay online by clicking

2. You can pay at your local store by cash, check, or debit card.

3. By mail by sending your payment to the address printed on your statement. Be sure to include the account number on your check in the notes section.

4. By phone by calling 1-888-574-1301. Have your account number and routing and bank account numbers ready when you call.