The Best Buy card makes sense only if you shop there regularly and pay the full balance every month
The Best Buy credit card offers a 5% discount on purchases at Best Buy and Best Buy's website, plus 2% back on purchases at gas stations, restaurants, and grocery stores. Outside those categories, you earn 1% cash back. The card has no annual fee. Whether it is worth carrying depends entirely on your spending pattern and whether you carry a balance.
If you pay interest, the rewards disappear. The card's APR ranges from 18% to 27%, depending on your credit score. A single month of interest on a $1,000 balance costs $15 to $22.50 — far more than the 5% reward on a $1,000 Best Buy purchase ($50). The math only works if you treat the card like a debit card and clear the balance in full each month.
Key Takeaways
- The 5% Best Buy reward only saves money if you spend at least $1,000 per year there and pay no interest.
- If you carry a balance, the 18% to 27% interest rate will cost you far more than any reward you earn.
- The 2% cash back on gas, restaurants, and groceries is lower than what other no-annual-fee cards offer in those categories.
- The card is issued by Citi and requires a credit score in the good to excellent range to get approved.
How the rewards actually break down
The 5% reward at Best Buy is the card's main draw. On a $500 purchase, you earn $25 back. On a $2,000 purchase, you earn $100. But this only matters if you shop at Best Buy regularly. If you visit once a year to buy a laptop, the card is not worth the wallet space.
The 2% cash back on gas, restaurants, and groceries sounds useful, but it is not competitive. Many no-annual-fee cards offer 3% cash back on groceries or 3% on gas. The Citi Double Cash card, for example, offers 2% on all purchases with no category limits. If you want rewards on everyday spending, a flat-rate card often beats the Best Buy card outside of Best Buy itself.
The 1% cash back on everything else is standard but unremarkable. You are not losing money, but you are not gaining much either.
When the card makes financial sense
The Best Buy card works if you meet three conditions: you shop at Best Buy at least a few times per year, you spend enough there to make the 5% reward meaningful, and you pay the balance in full every month without exception.
Example: You buy a laptop ($1,200), a monitor ($400), and accessories ($300) at Best Buy over the course of a year. That is $1,900 in purchases. At 5% cash back, you earn $95. If you also use the card for $3,000 in gas and groceries at 2%, you earn another $60. Total rewards: $155 per year. That is real money, but only if you never carry a balance.
If you are unsure whether you will pay the full balance every month, do not open this card. The interest charges will erase the rewards within weeks.
What to know about the process and approval
The Best Buy card is issued by Citi. You can explore online at the Best Buy website or through Citi directly. The process takes about 10 minutes and asks for your Social Security number, income, and employment status.
Approval decisions are usually when ready or within a few days. You will need a credit score of roughly 670 or higher to have a reasonable chance of approval, though Citi does not publish a minimum. If you have recent late payments, collections, or a very high debt-to-income ratio, you may be denied.
If you are approved, the card arrives in 7 to 10 business days. You can use it when ready online if you set up your account before the physical card arrives.
How this card compares to other tech retailer cards
Best Buy is not the only electronics retailer with a branded credit card. Amazon has a card that offers 5% back on Amazon purchases (3% if you do not have Prime), and it also offers 2% at gas stations and restaurants. The Amazon card has no annual fee and is issued by Chase.
If you shop at both Best Buy and Amazon, you cannot optimize both with a single card. You would need to choose based on where you spend more. If you spend $2,000 per year at Best Buy and $500 at Amazon, the Best Buy card wins. If the amounts are reversed, the Amazon card wins.
For general tech purchases outside of these two retailers, a flat-rate cash back card or a card with rotating bonus categories often beats both. The Citi Double Cash (2% on all purchases) and the Chase Freedom Unlimited (1.5% on all purchases, or higher with Chase's premium tier) are both no-annual-fee options that work everywhere.
The real cost of carrying a balance
This deserves its own section because it is where most people lose money. If you open the Best Buy card and carry a balance, the interest will cost you more than the rewards save you.
A $1,000 balance at 22% APR (the midpoint of the card's range) costs $18.33 per month in interest alone. Over a year, that is $220 in interest charges. The 5% reward on a $1,000 Best Buy purchase is $50. You are down $170 before you even account for the principal you still owe.
If you have existing credit card debt, do not open this card to consolidate or pay it off. The interest rate is not competitive for balance transfers, and you will not earn rewards on money you are paying toward old debt.
Questions to ask yourself before explore
Before you explore, answer these three questions honestly:
- Do I shop at Best Buy at least three times per year, and do I spend at least $500 per year there? If no, the card is not worth it.
- Will I pay the full balance every single month, no exceptions? If you are not certain, do not explore.
- Do I have other no-annual-fee cards that offer better rewards in the categories where I spend the most money? If yes, compare the total rewards you would earn with each card over a year.
If you answered no to any of these, a different card or no new card at all is the better choice.
Frequently Asked Questions
Does the Best Buy card have an annual fee?
No. There is no annual fee, which makes it safer to open even if you do not use it much. You can keep it open without paying anything, though Citi may close inactive accounts after a long period of no use.
What is the sign-up bonus?
Best Buy does not currently offer a sign-up bonus for this card. Some cards offer $100 to $200 back after you spend a certain amount in the first few months. The Best Buy card does not, so the 5% ongoing reward is the only incentive.
Can I use this card outside the United States?
Yes, but you will pay a foreign transaction fee of 3%. If you travel internationally, a card with no foreign transaction fee is a better choice for overseas purchases.
What happens if I miss a payment?
A missed payment will be reported to the credit bureaus after 30 days and will damage your credit score. Late fees start at $25 to $35 depending on your balance. If you miss a payment, contact Citi when ready to ask about hardship options.
Can I use the rewards on anything other than cash back?
The Best Buy card earns cash back only. You cannot convert rewards into gift cards, statement credits, or other forms. The cash back posts to your account monthly and can be used to pay your balance or withdrawn.