The Best Buy Credit Card has no annual fee

The Best Buy Credit Card (issued by Citi) charges zero dollars per year to hold it. You can open the account, use it, or leave it unused without paying an annual cost. There is no hidden annual fee that appears after a promotional period either — it stays at zero whether you carry a balance or pay in full each month.

This matters because it removes one barrier to keeping the card open for rewards. Many store cards charge annual fees ranging from $40 to $95, which can erase the value of occasional purchases. The Best Buy card's zero fee means you can hold it alongside other cards without that cost working against you.

Key Takeaways

  • The Best Buy Credit Card has no annual fee, now or after any introductory period.
  • You can keep the card open indefinitely without paying to maintain the account.
  • The card's rewards structure (typically 1% to 5% back depending on purchase category) is the only cost-benefit calculation you need to make.
  • No annual fee means the card makes sense to keep even if you use it only occasionally for Best Buy purchases.

How the Best Buy card's rewards offset other costs

Because there is no annual fee, the card's value depends entirely on whether the rewards rate beats what you would earn elsewhere. The Best Buy Credit Card typically earns 1% cash back on most purchases and 5% back on Best Buy purchases (the exact rate can change, so check the current offer). If you spend $500 a year at Best Buy, that is $25 in rewards with no fee subtracted.

Compare that to a card with a $95 annual fee: you would need to earn at least $95 in rewards just to break even. The Best Buy card's zero fee means you start ahead. Even if you only buy there once or twice a year, you are not losing money to a membership cost.

Interest charges and late fees still apply

No annual fee does not mean the card is free to use. If you carry a balance, you will pay interest. The APR (annual percentage rate) for purchases varies based on your credit score and current market rates — Citi publishes a range, typically between 18% and 28%, but your actual rate depends on your creditworthiness.

Late payments also carry a fee. Missing a due date can result in a late fee (usually $25 to $40 for the first offense) and a higher APR. These costs are separate from the annual fee question and apply to most credit cards, not just this one.

When the Best Buy card makes financial sense

The card is worth keeping if you shop at Best Buy regularly enough that the 5% rewards exceed what you would earn with a general-purpose card. A 2% cash back card (common among no-annual-fee options) would earn you $10 on a $500 Best Buy purchase. The Best Buy card earns $25 on the same purchase. That $15 difference per $500 spent is real money.

The card also makes sense if you value Best Buy's financing offers. The card sometimes includes promotional financing periods (such as 12 months 0% APR on purchases over a certain amount), which can lower the cost of larger electronics purchases. These promotions are separate from the annual fee and change periodically.

Comparing the Best Buy card to other store cards

Most store cards have no annual fee, so the Best Buy card is not unusual in that respect. What differs is the rewards rate and the retailer's return policy. Target's card, for example, also has no annual fee but offers 5% back only on Target purchases (1% elsewhere). Walmart's card offers similar structure. The choice between them comes down to where you shop most, not fee differences.

If you shop at multiple retailers, a general-purpose card with no annual fee (such as a basic cash back card) might serve you better than any single store card. You would earn a lower percentage at Best Buy but avoid the mental overhead of managing multiple store accounts.

How to check your current Best Buy card terms

Your Best Buy Credit Card agreement spells out the annual fee (or lack thereof) in the Pricing Information section. You can find this in your welcome materials or by logging into your Citi account online. The terms do not change mid-year, so if you were told there is no annual fee when you opened the account, that remains true.

If you have an older Best Buy card, the terms may differ slightly from newer versions. Citi occasionally updates rewards rates and promotional offers. The annual fee status has remained zero across all recent versions, but checking your own agreement takes 30 seconds and removes any doubt.

Frequently Asked Questions

Does the Best Buy card charge an annual fee after the first year?

No. The Best Buy Credit Card has no annual fee in year one or any year after. There is no promotional period that expires and then charges you. The zero-fee structure is permanent for all cardholders.

What happens if I don't use the Best Buy card for a year?

Nothing related to fees. Citi may close the account due to inactivity (typically after 12 months of no use), but they will not charge you for that period. If the account closes, you can reopen it later without penalty.

Are there any hidden fees on the Best Buy card?

The card has no annual fee, but standard credit card fees still apply: late payment fees (if you miss a due date), balance transfer fees (if you transfer a balance from another card), and foreign transaction fees (if you use it outside the US). Interest charges apply if you carry a balance. None of these are hidden — they appear in the cardholder agreement.

Can I get the annual fee waived on other credit cards if I ask?

Some cards allow you to request an annual fee waiver by calling the issuer, especially if you have been a long-term customer. The Best Buy card does not have an annual fee to waive, so this does not apply. If you are considering a different card that does charge an annual fee, it is worth asking whether the issuer will waive it.