Hi! Today, everyone is looking for a credit card that will satisfy their needs and desires, so we would like to tell you all you need to know about the Visa Card because you never know if it might just be the one for you. So let’s quickly delve into the subject matter of the day.
The My Best Buy Visa® Card and the My Best Buy Credit Card are two excellent credit cards for devoted clients of the chain, offering a 5% rewards rate for purchases at the store. Unfortunately, however, the My Best Buy Visa® Card and the My Best Buy Credit Card don’t give a lot of breathing room when it comes to how you can spend your rewards; they must be redeemed for more items at Best Buy.
The fact that your My Best Buy Visa® Card rewards are limited to Best Buy, coupled with the My Best Buy Visa® Card’s high APR (25.24%), makes this card only useful for a select few individuals who don’t mind its rewards structure.
Now, before we make any hasty decisions, we must evaluate the pros and cons of the credit card.
- Someone who shops at Best Buy frequently
- Anyone with fair credit looking for good rewards
- People who want flexible rewards
- Anyone who doesn’t pay their credit card bill in full each month
My Best Buy Visa® Card: Should You Apply?
Here are all the possible reasons why you might want to apply for this credit card.
- The My Best Buy® Visa® Card produces fantastic rewards rates on in-store purchases as well as good returns on dining and grocery purchases. The catch is that the rewards come to you in the form of points redeemable only towards Best Buy Rewards certificates, that is, gift cards that can be used towards buying things at the store.
For consumers who frequently find themselves shopping at the chain, this might not be a major problem; on top of that, an unlimited 5% reward credit card is hard to come by. For less restrictive rewards, we recommend readers look towards cards such as the Citi® Double Cash Card with an 18-month BT offer or the Sallie Mae Mastercard, both of which are top-notch cashback options.
- Though using the My Best Buy® Visa® Card opens the door for financing your purchases, we advise against doing so. First of all, choosing to do so will nullify any rewards points you get from that purchase.
Secondly, financing small purchases at Best Buy is not a prudent financial decision. Ideally, you should only be financing purchases that are investments, such as cars or homes. If you really want something from Best Buy that you can’t afford for another 12 months, we recommend saving money towards it and getting it later. You are far less likely to run into financial trouble doing so.
Note: Keep in mind that you don’t have to open a new line of credit to earn rewards with Best Buy. Their My Best Buy rewards program is free to sign up, and at the base level (a pure loyalty card), it earns users 1 point per $1 on all purchases, which translates to a 2% rewards rate. This option can be good for individuals with very low FICO scores or who simply want to avoid opening new credit accounts.
My Best Buy Visa® Card Benefits and Features
Here are some of the benefits and features of a Visa card, which include:
- The My Best Buy Visa® Card accumulates points with every purchase, which can later be redeemed for reward certificates. These certificates can be used to purchase merchandise from Best Buy.
- Cardholders are awarded 2.5 points for every $1 they spend at the affiliated store and 1 point per $1 on net purchases made at restaurants, bars, and grocery stores. All other spending rewards 1 point for every $2 spent. If you are an Elite Plus member (that is, you spend $3,500 or more annually at Best Buy), you will receive an extra 0.5 bonus point on all Best Buy purchases. Note that to earn rewards points, you must pay for your purchases conventionally, which means not choosing any of the financing options.
- Each point earned through the Best Buy credit cards is worth $0.02 towards a reward certificate. Best Buy states that 1,250 points can be turned into a $25 rewards certificate, which we translated into $25 / 1,250 = $0.02. If you convert the points into rewards certificates, you can explicitly state the card’s rewards rate as falling between 1% and 5% (or 6% for Elite Plus members).
- As a welcome bonus, new cardmembers will receive 10% back in rewards on their first purchase. The purchase will be quite literally the first one you make, so we urge consumers to be strategic about their application timing. If you have a big purchase planned that you could put onto this credit card (again, without financing), we recommend getting your card then. The amount of money you’ll save is proportional to your purchase price.
As with most retailer-issued credit cards, having a Best Buy credit card allows you to finance certain purchases with 0% APR over a period of time. Depending on the purchase amount, you may qualify for different financing periods.
If you do not pay your balance off in full by the time the financing period ends, you will be on the hook to pay high interest. For the amount you owe, interest will be charged retroactively, dating back to the time of your purchase. That means you will be slapped with a bill higher than normal.
Also keep in mind that if you choose to finance a purchase using a Best Buy credit card, you will not be eligible to receive rewards points.
We generally advise readers against financing purchases that are not an absolute necessity or investment. Breaking up purchases into incremental payments can sometimes lead people to buy things they can’t really afford or need. Given the line-up of products sold at Best Buy, we advise customers to use the store credit cards for the rewards points they offer; this is a far better deal.
My Best Buy Visa® Card vs. My Best Buy® Credit Card
The two Best Buy credit cards are virtually identical; the major difference between them is where they’re accepted. Because the My Best Buy® Visa® Card is part of the VISA network, it can be used to pay for things outside of Best Buy stores, whereas the other card can only be used for in-store purchases.
As a result, the My Best Buy® Visa® Card will also provide users with some savings on non-Best Buy purchases, including dining and grocery shopping. The table below gives a brief overview of the two cards.
Earning My Best Buy Rewards without a Credit Card
It is possible to enroll in the My Best Buy rewards program without getting a credit card, though the number of points you’ll be earning without a credit card will be significantly lower.
My Best Buy works just like most brand loyalty programs we see in other stores. At the time of purchase, you can present your membership card and earn reward points. Non-credit My Best Buy users earn just 1 point per $1, which translates to a 2% rewards rate. If you don’t wish to open a new line of credit to earn rewards with Best Buy, this may be a good option for you.
How Does the My Best Buy Visa® Card Compare to Other Credit Cards?
In general, retailer credit cards are much worse deals than those that banks provide. As such, the My Best Buy Visa® Card doesn’t perform much better. It has high interest and low credit limits, and the rewards you earn from it are only good for more purchases at Best Buy. We profile how these cards perform against some alternatives below. The catch is that you will need a better FICO score to qualify for some of these better credit card offers.
Here are some comparisons between My Best Buy Visa® Card and some other credit cards to determine the value of My Best Buy Visa® Card.
- My Best Buy® Visa® Card vs. Citi® Double Cash Card: 18-month BT offer
The Citi® Double Cash Card 18-month BT offer, one of the best fixed-rate cash-back credit cards, is a ValuePenguin favorite. This card lets all users earn 2% on every purchase with unlimited 1% cashback when you buy, plus an additional 1% as you pay for those purchases. Therefore, it matches or beats all the rewards on the My Best Buy® Visa® Card, except for shopping at Best Buy stores.
The Citi® Double Cash Card 18-month BT offers rewards users with statement credit, which is far more flexible than the rewards certificate earned with the My Best Buy® Visa® Card. Statement credit can be used to pay down any purchase on your credit card bill. Therefore, if you value this flexibility, we advise users to try and qualify for a card like the Citi® Double Cash Card—an 18-month BT offer.
- My Best Buy® Visa® Card vs. Sallie Mae MasterCard
The Sallie Mae Mastercard is an excellent credit card that gives users 5% cashback on a number of different categories. Those of you interested in the Best Buy credit card might be interested to know the Sallie Mae credit card offers 5% back on Amazon.com purchases (up to $750 each month).
While Amazon.com might not have the same range of electronics and appliances as Best Buy, it can still have what you are looking for. With the same 5% reward rate, it can serve to appease those of you looking for maximum savings. Like with other cash-back credit cards, the Sallie Mae Mastercard gives rewards in the form of statement credit, which means greater flexibility for users.