The Best Buy card makes sense if you spend $500 or more per year at Best Buy, but not otherwise
The Best Buy Credit Card comes in two versions: the regular card and the Elite version. The regular card earns 1.5% cash back on Best Buy purchases and 1% on everything else. The Elite version requires a $399 annual fee but earns 5% cash back at Best Buy and 2% on everything else — but only if you spend enough to make that fee worthwhile.
For most people, the regular card (no annual fee) is the only one worth considering. You break even on the Elite card only if you spend roughly $8,000 per year at Best Buy, which is more than the median household spends on electronics and appliances in a year. If you spend less than that, the regular card's 1.5% back on Best Buy purchases beats paying a fee you cannot recover.
The real question is whether 1.5% cash back at Best Buy is better than what you already have. If you have a card that earns 2% cash back on all purchases, the Best Buy card does not improve your rewards. If you have a card that earns 1% on everything, the Best Buy card gains you 0.5% on Best Buy purchases only — which is worth it only if Best Buy is a regular part of your budget.
Key Takeaways
- The regular Best Buy card has no annual fee and earns 1.5% cash back at Best Buy and 1% everywhere else, making it useful only if Best Buy is a regular shopping destination.
- The Elite version costs $399 per year and requires roughly $8,000 in annual Best Buy spending to break even, which most households do not reach.
- You should compare the 1.5% Best Buy rate against your existing card's rewards rate before opening a new account, since a 2% flat-rate card beats it everywhere.
- Best Buy's financing offers (12 or 18 months interest-free on large purchases) are available to cardholders but also to non-cardholders, so the card itself does not unlock special financing.
- The card's purchase protections and return window extensions are modest compared to premium cards and do not justify opening an account if rewards do not fit your spending.
How the rewards actually work and what they are worth
The regular card earns 1.5% cash back on Best Buy purchases and 1% on everything else. That cash back posts to your account as a statement credit, not as points you redeem separately. If you spend $1,000 at Best Buy in a year, you earn $15 in cash back. If you spend $2,000 at Best Buy and $3,000 elsewhere, you earn $30 from Best Buy plus $30 from other purchases, for $60 total.
The Elite card earns 5% at Best Buy and 2% everywhere else, but the $399 annual fee eats into those rewards. To break even, you need the extra rewards to cover the fee. The difference between the regular card (1.5% at Best Buy) and Elite card (5% at Best Buy) is 3.5%. On $8,000 in Best Buy spending, that is $280 in extra rewards — which leaves you $119 short of the $399 fee. You would need closer to $11,400 in Best Buy spending per year for the Elite card to pay for itself.
Cash back from either card posts monthly, so you see the credit on your statement within 30 days of the purchase posting. You cannot transfer it to another account or convert it to points; it is a direct reduction of what you owe.
When the Best Buy card loses to cards you might already own
If you carry a 2% flat-rate cash back card (like the Citi Double Cash or Capital One Quicksilver), the Best Buy card is worse everywhere. You earn 2% on all purchases with your existing card and only 1.5% at Best Buy with the new card. The only way the Best Buy card wins is if you ignore your existing card and use the Best Buy card instead — which defeats the purpose of having a rewards card.
If you have a card that earns 1.5% or higher on all purchases, the Best Buy card adds nothing. If you have a card that earns 1% on everything, the Best Buy card gains you 0.5% on Best Buy purchases only. That 0.5% difference matters only if Best Buy is a regular part of your budget — not a place you visit once every two years.
The card also has no sign-up bonus, which most rewards cards offer to new cardholders. You start earning rewards immediately, but you miss the lump sum that cards like the Chase Sapphire Preferred or American Express Blue Cash offer. That sign-up bonus often equals several months of rewards, so its absence is a real cost.
What the card's other benefits actually cover
Beyond cash back, the Best Buy card includes purchase protection (covers damage or theft within 120 days of purchase), an extended return window (45 days instead of Best Buy's standard 15 days), and price protection (if Best Buy drops the price within 15 days, the card covers the difference). These are real benefits, but they are modest compared to premium cards.
The purchase protection and price protection apply only to Best Buy purchases, so they do not help with your other spending. The extended return window is useful if you buy electronics and want more time to decide, but Best Buy's standard 15-day window already covers most buyer's remorse situations. The price protection is the most valuable feature here — if you buy a laptop for $800 and Best Buy drops it to $750 within 15 days, the card refunds $50 — but this only works if you remember to file a claim.
The card does not include travel insurance, concierge services, or other perks that come with premium cards. It is a straightforward rewards card with a narrow set of protections tied to Best Buy purchases.
Financing offers: available to cardholders and non-cardholders
Best Buy regularly offers financing promotions like 12 or 18 months interest-free on purchases over a certain amount (usually $399 or $499). These offers are available to Best Buy credit cardholders, but they are also available to anyone who applies for Best Buy's store card at the register or online. You do not need to carry the card to use the financing; you can open it, make the purchase, and close it afterward.
If financing is your main reason for considering the card, it is not a strong enough reason to keep it open. You can get the same financing offer without holding the card long-term. The cash back rewards are what justify keeping it in your wallet, and only if your Best Buy spending is regular enough to make 1.5% worth tracking.
Comparing the Best Buy card to other store cards
Store cards like Best Buy's, Target's, and Amazon's all follow the same pattern: higher rewards at that store, lower rewards everywhere else, and no annual fee. The question is whether the higher rate at one store beats what you earn with a general-purpose card.
| Card | Best Buy Rate | Other Purchases | Annual Fee | Break-Even Spending |
|---|---|---|---|---|
| Best Buy Regular | 1.5% | 1% | None | $0 (no fee to recover) |
| Best Buy Elite | 5% | 2% | $399 | ~$11,400 at Best Buy |
| Citi Double Cash (comparison) | 2% | 2% | None | N/A (beats Best Buy everywhere) |
If you shop at multiple stores and want one card that works everywhere, a 2% flat-rate card is simpler and usually better. If you shop almost exclusively at Best Buy, the regular card's 1.5% is worth keeping. The Elite card is only worth it if you spend over $11,000 per year at Best Buy, which is rare outside of small business owners or people who buy appliances and electronics constantly.
The actual decision: do you shop at Best Buy regularly?
Open the Best Buy card if all three of these are true: you shop at Best Buy at least four times per year, you spend at least $500 per year there, and you do not have a card that earns 2% or higher on all purchases. If any of those is false, the card does not improve your rewards.
If you have a 2% flat-rate card, keep using it. If you have a 1% card and shop at Best Buy regularly, the Best Buy card gains you 0.5% on those purchases, which is worth the small effort of carrying two cards. If you shop at Best Buy rarely, the card is not worth the mental overhead of tracking which card to use where.
The regular card has no annual fee, so there is no penalty for opening it and not using it much. But there is also no benefit. A card you do not use regularly is a card that clutters your wallet and complicates your rewards tracking without earning you anything extra.
Frequently Asked Questions
Does the Best Buy card come with a sign-up bonus?
No, the Best Buy card has no sign-up bonus. You start earning 1.5% cash back on Best Buy purchases immediately, but you do not receive a lump-sum bonus for opening the account. Most other rewards cards offer $100 to $500 in sign-up bonuses, so this is a real disadvantage compared to alternatives.
Can I use the Best Buy card to finance a purchase and then close the card?
Yes. You can open the card, use it for a financing promotion (like 18 months interest-free), and close the card after the purchase posts. The financing offer stays active even if you close the card, as long as you make your payments on time. You do not need to keep the card open to use the promotional rate.
What happens if Best Buy drops the price after I buy something?
The card's price protection refunds the difference if Best Buy lowers the price within 15 days of your purchase. You have to file a claim with the card issuer (Citi) and provide proof of the lower price. The refund posts as a statement credit, not as cash. This protection applies only to Best Buy purchases.
Is the Best Buy card better than a cash back card I already have?
Only if your existing card earns less than 1.5% at Best Buy. If you have a 2% flat-rate card, your existing card is better everywhere. If you have a 1% card, the Best Buy card gains you 0.5% on Best Buy purchases only — worth it only if Best Buy is a regular part of your budget.
Does the Elite card's 5% rate make it worth the $399 fee?
Only if you spend more than $11,000 per year at Best Buy. Most households spend far less on electronics and appliances annually, so the Elite card costs more than it returns for typical shoppers. Calculate your own Best Buy spending over the past year before considering it.