Rewards are misleading: Their ads say 5% but that's a bit deceptive, because only 3% comes from the card. The other 2% is through their normal Rewards Zone program which is completely separate from their CC.
Insane interest rates: As of Nov 2013 they were a 25.24% or 27.99%.
Financing offers don't earn rewards: The extra 3% won't be earned.
0% is with deferred interest: It's not always true 0% because retroactive interest will be charged if you exceed the time frame.
Might pay a $59 annual fee: Those with less than great credit might get slapped with a $59 fee and unfortunately there's no way to know which version you get until after you're approved.
Better Option: Don't get their card. Instead use your Rewards Zone program with a different card.
Getting back to the details of what BB is offering, how many times have their sales associates pressured you to apply? I don't know about you but I find it extremely annoying to be asked every time I make a purchase at their store. You may be peddled one of two cards - either the Best Buy card (store use only) or the Reward Zone MasterCard from HSBC. Read these reviews of both.
Best Buy Card (store version)
This one doesn't appear to offer much for rewards, but it does attract atrociously high interest rates and fees.
- Store-Use Only: This version can only be used at their stores and nowhere else.
- Possible Low Credit Limits: Upon looking at Bust Buy credit card reviews posted by customers on various sites, one of the most frequent complaints I saw was about extremely low credit limits. Reportedly there are tons of people complaining about limits as low as $300. A limit like that won't do much good if you plan on buying a plasma TV or new computer with the card.
- High Interest Rates: At the time of this review, the standard APR was 25.24% or 27.99% and the penalty APR was even higher:
- Credit Card Bait 'n Switch: I found this statement in fine print at the bottom of the card's application: "For your convenience, if we find that we cannot approve you for a Best Buy credit card at this time, we will automatically consider you for a Gold MasterCardÂ® with Fee."
There are a lot of complaints out there about this! This is troubling since those with lower credit scores may be signing up for something they don't want.
- Lousy Rewards: While researching the card and application on the Best Buy website, I was surprised to see the card appears to offer the same rewards as the non-credit card version of the Rewards Zone program. The only exception to this is with the financing offers: "you may also receive one additional bonus point for every point earned on qualifying standard revolve purchases (regular financing) made using the card"
- Retroactive Interest: Warning: This is the #1 reason to NOT get the card! What you may not realize is that the Best Buy zero interest promotional offers do not operate like normal credit cards from a bank.
See that? A store credit card runs a promotion that offers 0% interest for X number of months on purchases above a certain dollar value. But if you don't completely pay for that purchase in full before the X number of months, you will be assessed interest charges from the first day of purchase on the purchase! Same thing can happen if you make late payments, too.
Normal credit cards through a reputable bank will never charge interest retroactively like that. If they give you 0% for X number of months, you really will get that regardless of whether you pay it off in time. This is why it's so foolish to risk it with the store card from Best Buy. Imagine the pain if something unexpected happens with your finances and you can't afford to pay it off in time? With the excessive APRs it will be a steep price to pay!
Instead I strongly recommend you check out CreditCardForum's sponsored offers which give 0% for an extended period of time on purchases.
Best Buy MasterCard
This one is affiliated with MasterCard so it can be used elsewhere, but unfortunately there are a lot of drawbacks. Is it difficult to obtain a Best Buy Mastercard? Not necessarily, but here's why you might not want one even if you do have the credit score required for approval...
So it looks like a $39 to $59 annual fee based on your credit score.
Low Rewards: The Best Buy credit card rewards program is as follows:
- Normal purchases at Best Buy = 2 points per $1 (in-store or online)
- Best Buy purchases w/ the promo financing give less points = only 1 point per $1
- 1/2 point for every $1 spent elsewhere
Rewards Forfeiture: In the fine print of the Best Buy MasterCard Reward Zone rules, there was a term titled "Program Annualization" that states at the start of the calendar year, accumulated points will be converted into Reward Certificates (in $5 increments) and any remaining points will be forfeited. I think this is extremely unfair.
High Interest Rates: The application lists 21.74% as the lowest (and only) tier available. So the best case scenario is nearly 22%? That's crazy.
Possible Low Credit Limit: Reportedly there are many complaints of cardmembers getting low credit limits with the Reward Zone MasterCard too. Ironically, out of all places, I saw many complaints on the BestBuy.com community message boards about this issue. For example, one poster alleges "I recently applied and was approved for a Mastercard for a measly $300.00..." and "...When I applied online it never mentioned that I would be charged $60 odd dollars annually..."
The Reward Zone MasterCard's minimum credit limit is only $300 which is obviously pitiful. For that high of a fee, should you get one if you might be stuck with such a low limit and crappy benefits?
After reviewing both cards thoroughly, I have difficulty finding any good reasons to apply for either. Is it hard to get a Best Buy credit card? Usually not as the credit score requirements are quite low, but as you can see, there's a good reason for that... you're getting a rotten deal in return!
Anyone with a half-way decent credit score would be better off trying for something like the Slate by Chase with its long 0% promotion.
The bottom line is this: The vast amount of complaints and negative reviews about the Best Buy card are disturbing to say the least. You probably would be better off with just a regular credit card.