Is the Best Buy Credit Card Worth It? The Catch
Rewards locked to Best Buy
The Best Buy card earns 5 percent back at Best Buy, paid as points that convert to Best Buy reward certificates, worth about 2 cents per point but redeemable only at Best Buy. So your rewards are trapped at one electronics retailer, useless anywhere else. Best Buy is an occasional purchase for most people, which makes locking a rewards currency there especially limiting. See are store cards worth it.
The deferred-interest trap
The card carries a steep APR, around 31 percent, and its big selling point is deferred-interest financing on large purchases. Deferred interest is dangerous: if you do not pay the entire balance before the promo period ends, you are charged interest back to the purchase date, which can erase the rewards and more. You also have to choose between earning rewards or using the financing on a given purchase, not both. See the rewards math.
What to use instead
A flat 2 percent cash card or a transferable-points card buys a TV or laptop at Best Buy or anywhere else, earns rewards you can spend on anything, and avoids the 31 percent APR. If you need to finance a big electronics purchase without interest, a card with a true 0 percent intro APR, where interest is waived rather than deferred, is far safer than the Best Buy card. See cash back vs travel rewards.
Frequently asked questions
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