Best Buy Credit Card Review: Only for Best Buy's Most Loyal Customers

If you shop at Best Buy often, you could earn a competitive amount back with a Best Buy Credit Card. You can apply in-store or online, and when you do, you're considered for the card's three rewards card options. Benefits outside of Best Buy are lacking, though. Learn more and check out some good alternatives in our Best Buy Credit Card review.

This credit card is a good fit for: Frequent Best Buy shoppers who want to earn rewards while building their credit.

How the Best Buy Credit Card works

There are three Best Buy credit card options:

• My Best Buy® Visa® Platinum: A traditional credit card with no annual fee that can be used anywhere Visa is accepted.
• My Best Buy® Credit Card: A closed-loop store credit card that can only be used at Best Buy. It also has no annual fee.
• My Best Buy® Visa® Gold: A traditional credit card with a $59 annual fee that can be used anywhere Visa is accepted.

When you apply for a Best Buy Credit Card, you're first considered for the My Best Buy® Visa® Platinum. If you qualify, then that's the card you get.

If not, you're next considered for the My Best Buy® Credit Card. And if you don't qualify for that card, you're considered for the My Best Buy® Visa® Gold. This makes it more likely you're able to qualify for a Best Buy card, since there are multiple options with different qualification requirements. But you could also end up getting approved for a card you don't want.

RELATED: Are Store Credit Cards Worth It?

Top perks

Cardholders get a few valuable benefits with the Best Buy Credit Card.

Up to 5% back

All Best Buy credit cards earn 5% back when shopping at Best Buy. Note that these cards technically earn points, including 2.5 points per $1 at Best Buy, and each point is worth $0.02 toward a Best Buy reward certificate.

The My Best Buy® Visa® cards also earn rewards in other categories, since they can be used outside of Best Buy. Here's what they earn:

• 5% on Best Buy purchases
• 3% on gas purchases
• 2% on dining, takeout, and grocery purchases
• 1% on other purchases

Those rates are similar to what some of the better cash back cards earn. Best Buy rewards aren't nearly as flexible as cash back, but you can at least earn a reasonable amount on your spending.

MORE OPTIONS: Best Cash Back Credit Cards

Welcome offer

There are often special welcome offers available with Best Buy credit cards. For example, they sometimes earn a higher rate, such as 10% or 15% back, on all qualifying purchases at Best Buy for the first day you have the card. These are generally available for a limited time.

If you're planning to make some big purchases at Best Buy, like a new computer or smartphone, this could be a good deal. On $1,000 in qualifying purchases, you could earn $100 to $150 back. However, there are better credit card sign-up bonuses out there.

SEE MORE: Best Credit Card Sign-Up Bonuses

No interest financing

Best Buy periodically offers deferred interest financing lasting from six to 36 months. If you pay off the full balance within the allotted time, you won't get charged any interest. This type of financing availability varies, and the length of the offer may depend on the amount financed or the type of product purchased. Also, you don't earn rewards on purchases you finance.

While it's better to pay for purchases in full, a Best Buy flexible financing plan is helpful when you can't do that. And some of the zero-interest offers you can get with a Best Buy Credit Card are longer than anything you'd get with 0% intro APR credit cards.

If you use a special financing plan with your Best Buy Credit Card, make sure to check how much you need to pay per month to pay off the balance within the zero-interest period. The minimum payment amount isn't always enough. If you don't pay off the entire balance within the allotted time, you're charged interest going back to the purchase date.

LEARN MORE: What Is Deferred Interest?

What could be improved

Before you apply for a Best Buy Credit Card, it's important to know about the major drawbacks.

Can't choose which Best Buy card you get

Like some other store credit cards, the Best Buy credit cards have a complicated application process. You don't get to pick your card. Best Buy will decide which card to approve you for, if any, based on your creditworthiness.

If you have a high credit score, then you could qualify for the My Best Buy® Visa® Platinum, which is the best option. But if not, you might get approved for a My Best Buy® Credit Card that you can only use at Best Buy. Or, you could end up with the My Best Buy® Visa® Gold and its $59 annual fee. That's far too expensive. A Best Buy credit card is only worth it with no annual fee.

High APR

Store credit cards often carry high APRs. The Best Buy Credit Card options are no exception, with an APR well above the national average. If you don't pay the full balance on your Best Buy Credit Card payment, you could be in store for some hefty interest charges.

Inconvenient reward redemptions

The only way to use your Best Buy rewards is issuing a reward certificate. There's a minimum redemption amount of 250 points for a $5 reward certificate. Many rewards credit cards have no redemption minimums, so it's always frustrating when one does.

Another problem is that when you don't have anything you need to buy at Best Buy, you won't have a good way to use your rewards. This is a common issue with store credit cards. That's why I always recommend looking at cash back cards first -- cash back is something you can always use to your benefit. Store rewards only help you when shopping at that store. It's well worth reading more credit card reviews for more flexible options.

No rewards on financed purchases

If you decide to use one of Best Buy's financing plans, you won't earn any rewards on the purchase. Since consumers usually only finance their more expensive purchases, this could mean missing out on a large amount of rewards. Some top credit cards with 0% intro APRs let you earn rewards on a purchase and finance it at zero interest during the introductory period. That’s a much better deal.

Purchase protection

You don't get any sort of purchase protection, such as extended warranty coverage or insurance against damage and theft, from your Best Buy Credit Card. This is understandable since Best Buy sells its own protection plans. Nevertheless, it's a big drawback. Purchase protection is nice to have when you buy electronics and appliances -- two very popular types of products at Best Buy.

We recommend having a FICO® Score of 640 or higher when applying for a Best Buy Credit Card. With fair or good credit, you'll have a strong chance of approval for at least the My Best Buy® Credit Card. There are reports of applicants getting approved with lower credit scores, but it's more hit or miss.

SEE MORE: Best Credit Cards for Fair/Average Credit

You shop at Best Buy several times monthly. Otherwise, you may be able to get more rewards with a standard rewards card that earns premium rewards in a broader range of categories.

Since each Best Buy Credit Card earns 5% back on Best Buy purchases, you could get a good value in rewards if you spend a lot with the retailer. For example, it could be one of the better credit cards for gamers who go to Best Buy for new games and equipment. You'll also need to shop there frequently, though, to make use of the rewards you earn.

MORE OPTIONS: Best Store Credit Cards

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.