The Best Buy® Credit Card can be a great value for frequent Best Buy shoppers thanks to its attractive rewards. Yet there are some common missteps that cardholders make along the way that could end up costing you more than you save, if you’re not careful.
1. Applying If You Will Save Less Than $100 The First Year
Calculate your potential savings from rewards or discounts. If the numbers reveal you won’t save at least $100 within a year after getting the card, pass on the offer and consider applying for a general-use rewards card. You’ll get more value from such a card overall.
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2. Getting Caught by Deferred Interest
When you make purchases at Best Buy using your Best Buy® Credit Card, you’ll have the option to choose 5% back in rewards or low-interest financing for 12 - 24 months.
You should opt for the financing only if you’re confident you’ll pay off the entire balance before the promotional period expires. Otherwise, deferred interest kicks in, meaning you’ll be charged interest on the original purchase amount, starting from the purchase date. Essentially, you’d owe as much as you would’ve if you carried the original balance at the card’s regular APR.
In general, it’s better to pay for your purchase outright and earn your rewards.
3. Not Having Another Credit Card for Non-Best Buy Purchases
Even if you can use your credit card outside of Best Buy, which is not guaranteed unless you have the Visa version of the card, you won’t earn competitive rewards. There are a number of better rewards cards on the market that can get you higher earning rates on non-Best Buy purchases, along with more flexible redemption options.
4. Failing To Redeem Rewards Certificates Before They Expire
Best Buy automatically issues rewards certificates once you’ve earned a minimum of 250 points (a $5 value). Certificates are valid for 60 days from the date they’re issued, unless it’s stated otherwise on the certificate, so it’s a good idea to use them before you lose them. It’s also important to note that if your rewards balance is less than 250 points and there’s no activity on your account for 12 straight months, you will lose those rewards.
5. Not Taking Full Advantage of the First-Purchase Bonus
One of the Best Buy® Credit Card’s signature features is 10% back in rewards on your first Best Buy purchase. Here’s the catch: You must make the purchase within 14 days of account opening. After that, your purchases will get the regular rewards rate of 2.5 points / $1 spent (5% back in rewards).