What the Citi Best Buy Card Is
The Citi Best Buy card is a rewards credit card issued by Citigroup that gives you points back on purchases at Best Buy and other retailers. You earn points on every dollar you spend, and those points convert to Best Buy certificates you can use in-store or online. The card comes with an annual fee, and the rewards rate varies depending on where you shop.
This is not a store-only card — you can use it anywhere Visa is accepted. But the rewards structure is built around Best Buy purchases, so the card makes the most sense if you shop there regularly. The points never expire as long as your account stays open, which is different from some other rewards programs that reset annually.
Key Takeaways
- You earn points on every purchase, but the rate is highest at Best Buy and lower everywhere else.
- An annual fee applies whether you use the card or not, so you need to earn enough rewards to offset it.
- Points convert to Best Buy certificates at a fixed rate, and you can check your balance anytime through your account.
- The card reports to the three major credit bureaus, so it affects your credit score the same way any credit card does.
- You can redeem points only as Best Buy certificates, not as cash or points toward other retailers.
How Points and Rewards Work
The card earns points at different rates depending on where you use it. At Best Buy, you earn a higher rate per dollar spent. At gas stations, grocery stores, and restaurants, you earn a lower rate. On all other purchases, you earn the lowest rate. Citigroup publishes the exact rates on their website, and they can change, so check before opening the account.
Points accumulate in your account and never expire. You convert them to Best Buy certificates through your online account or by calling the number on the back of your card. The conversion rate is fixed — you will know exactly how many points equal a dollar of certificate value. Once you have a certificate, you can use it at Best Buy locations or on bestbuy.com, and it works like a gift card.
There is no sign-up bonus with this card, so you do not earn extra points just for opening the account. Your rewards start from your first purchase.
Annual Fee and When It Makes Financial Sense
The Citi Best Buy card charges an annual fee. This fee is charged whether you use the card or not, so you need to earn enough points in a year to make the card worth keeping. If you spend less than a certain amount annually at Best Buy and other retailers, the rewards you earn may not cover the fee.
To decide if this card makes sense for you, calculate how much you typically spend at Best Buy in a year, multiply that by the rewards rate, and see if the dollar value of points exceeds the annual fee. If you spend $500 a year at Best Buy, for example, and earn points worth $20 in certificates, but the annual fee is $39, you are losing money. If you spend $2,000 a year and earn $60 in certificates, you still come out behind. You need higher spending or higher rewards rates to break even.
Many people keep this card specifically because they buy computers, monitors, or appliances at Best Buy regularly. If your shopping is occasional, a no-fee rewards card from another issuer may serve you better.
How This Card Affects Your Credit
Opening this card creates a hard inquiry on your credit report, which can lower your score by a few points temporarily. The inquiry fades after about a year. Once the account is open, it reports to Equifax, Experian, and TransUnion, the three major credit bureaus.
Your credit score is affected by how much of your credit limit you use (called utilization), whether you pay on time, and how long the account stays open. If you charge a large purchase and carry a balance, your utilization goes up and your score may drop. If you pay the full balance by the due date every month, you avoid interest charges and keep your utilization low, which helps your score.
Closing the account later can hurt your score because it reduces the total credit available to you and shortens your average account age. If you decide the card is not worth the annual fee, you can call Citigroup and ask if they will waive the fee before you close it — some cardholders have success with this request.
Interest Rates and Paying a Balance
The Citi Best Buy card charges interest on balances you do not pay in full by the due date. The interest rate (called the APR, or annual percentage rate) varies based on your credit score and credit history. Citigroup will tell you the range of possible rates before you open the account, but your exact rate depends on their review of your credit.
If you carry a balance, interest accrues daily. A $1,000 balance at 18% APR costs you about $15 per month in interest alone. The longer you carry the balance, the more you pay. Most people who use rewards cards pay the full balance every month to avoid interest charges that quickly erase the value of the rewards.
The card offers no introductory 0% APR period, so interest starts accruing when ready if you do not pay in full. This is different from some other credit cards that offer a grace period of 6 to 12 months with no interest.
Comparing This Card to Other Options
If you shop at Best Buy frequently, this card's rewards are designed for you. But if you shop there only occasionally, a general-purpose rewards card with no annual fee may earn you more value. Cards from Chase, American Express, and other issuers offer cash back or points that work at any retailer, and many have no annual fee.
The trade-off is that those cards usually earn a lower rate at any single retailer. A card that earns 1.5% cash back everywhere earns less at Best Buy than the Citi card does, but it earns the same everywhere else. If you split your spending across many retailers, the general-purpose card may win. If 80% of your rewards-may be able to access spending happens at Best Buy, the Citi card probably wins.
Some people use both: a no-fee card for everyday purchases and the Citi card specifically for Best Buy trips. This works if you are disciplined about tracking which card you use where and paying both on time.
How to Manage the Card and Avoid Common Mistakes
Set a calendar reminder for your annual fee date so you are not surprised. A few weeks before the fee posts, decide whether you will keep the card or close it. If you keep it, make sure you have a plan to earn enough rewards to justify the cost.
Pay the full balance every month if you can. Even a small balance carried month to month will cost you more in interest than you earn in rewards. Set up automatic payments for at least the minimum due so you never miss a payment — missed payments damage your credit score and trigger late fees.
Track your points balance in your online account. Points do not expire, but it is straightforward to forget how many you have accumulated. Some people let points sit unused for years and then close the account, losing the value. Check your balance every few months and redeem points before you close the account.
Frequently Asked Questions
Can I use my points at retailers other than Best Buy?
No. Points convert only to Best Buy certificates and can be used only at Best Buy or bestbuy.com. If you want rewards that work at multiple retailers, you need a different card.
What happens to my points if I close the account?
Points expire if your account is closed. You should redeem all remaining points before you close the account. Once the account is closed, you cannot convert points to certificates.
Does the annual fee get waived if I do not use the card?
No, the fee posts automatically every year. You can call Citigroup and ask if they will waive it, and some customers have success, but there is no may provide. If they refuse, you can close the account to stop future fees.
How long does it take to earn enough points to cover the annual fee?
That depends on your spending and the rewards rate. If you spend $100 per month at Best Buy and earn 2 points per dollar, you earn 2,400 points per year. If those points convert to $24 in certificates, and your annual fee is $39, you would need to spend more or find a card with lower fees.
Will opening this card hurt my credit score?
Opening any credit card creates a hard inquiry that may lower your score by a few points for a few months. The long-term effect depends on how you use the card. Paying on time and keeping your balance low helps your score. Carrying a high balance or missing payments hurts it.