Here's Why I'd Never Use a Best Buy Credit Card, and the Card I Recommend Instead

I get why the Best Buy credit card looks tempting. You walk in, see that shiny flat-screen, and the cashier offers you 5% back or "no interest for 12 months" if you just open their card. It feels like an easy win.

But the Best Buy card is one of the last cards I'd ever swipe. Not because I don't like Best Buy (I've spent more than I'd like to admit on headphones there), but because the math just doesn't add up for most people.

The big trap with store cards

Best Buy actually has two cards: the store-only My Best Buy® Credit Card and the My Best Buy® Visa® Card you can use anywhere Visa is accepted. At first glance, they seem decent by offering up to 5% back in rewards at Best Buy, plus financing options.

Here's the catch:

• Rewards come as Best Buy certificates, not real cash.
• Certificates expire and can only be used at Best Buy.
• Financing isn't truly "no interest" -- it's deferred interest. That means if you miss your payoff window by even a few bucks, you'll have to pay all the back interest.

And those interest rates? We're talking some of the highest in the industry. If you carry a balance, your "5% back" disappears instantly.

What I recommend instead

If you want rewards that actually work in your everyday life, the Wells Fargo Active Cash® Card (rates and fees) is the card I'd reach for.

Here's why it's better:

• 2% cash rewards on all purchases. Best Buy, Target, Amazon, gas stations, you name it. No categories, no tracking.
• Real cash rewards. You're not locked into store credits. Use your rewards for statement credits, deposits, or even toward your Wells Fargo mortgage or loan.
• Welcome bonus. New cardholders can snag a $200 cash rewards bonus after spending $500 in the first 3 months. The Best Buy card doesn't offer anything close.
• intro APR offer. The Wells Fargo Active Cash® Card gives you a 0% intro APR period for 12 months from account opening on qualifying balance transfers and 12 months from account opening on purchases (an ongoing 18.99%, 24.99%, or 28.99% Variable APR applies after), making it a much safer way to finance big buys than Best Buy's deferred-interest scheme.
• Extra perks. Pay your cellphone bill with it, and you'll get built-in cellphone protection (subject to a deductible).

Why flexibility beats store loyalty

Unless you're outfitting a new home theater every month, locking your rewards into Best Buy certificates just doesn't make sense. With the Wells Fargo Active Cash® Card, you're putting money back in your pocket on every purchase you make -- groceries, gas, travel, and yes, even that flat-screen at Best Buy.

And don't forget about the current welcome offer for the Wells Fargo Active Cash® Card: New cardholders will get a $200 cash rewards bonus after spending just $500 in the first 3 months. That's some serious savings on your new TV.

The smarter move

So here's my take: Best Buy's card might sound good at checkout, but long-term, it locks you into a limited system that doesn't work for most people. The Wells Fargo Active Cash® Card gives you flexibility, consistent value, and actual cash rewards.

If you're considering a new card, I'd skip the Best Buy pitch and check out the Wells Fargo Active Cash® Card instead. It's the card I'd recommend to anyone who wants rewards they can actually use.