The Best Buy card pays 1.5% cash back on most purchases and up to 5% in the Best Buy store, but the value depends entirely on how much you spend there
Best Buy offers two versions of its credit card: the Best Buy Visa (no annual fee) and the Best Buy Visa Signature (annual fee varies by issuer). The no-fee version gives you 1.5% cash back on all purchases and 5% back on Best Buy in-store and online purchases. The Signature version adds benefits like extended warranties and return windows, but you pay an annual fee to carry it.
Whether the card is worth it comes down to one question: how much do you actually spend at Best Buy? If you buy electronics, appliances, or software there regularly, the 5% cash back on those purchases can offset the annual fee quickly. If you shop there once or twice a year, the card probably costs you money overall.
Key Takeaways
- The no-annual-fee Best Buy Visa gives 1.5% cash back everywhere and 5% at Best Buy, making it free to carry but only valuable if you shop there regularly.
- The Signature version charges an annual fee that you must pay upfront, regardless of whether you use the card that year.
- Best Buy's 5% cash back only applies to in-store and online purchases at Best Buy itself, not to other retailers or services.
- The card's rewards do not stack with Best Buy's My Best Buy loyalty program, so you choose one or the other, not both.
- Closing the card after earning rewards does not affect the cash back you have already received, but it does affect your credit utilization and account age.
How the rewards structure actually works
The Best Buy Visa earns 5% cash back on purchases made in Best Buy stores and on bestbuy.com. That 5% applies to the full purchase price, including tax. It also earns 1.5% cash back on all other purchases made anywhere Visa is accepted. Cash back posts to your account as a statement credit that you can use toward your next purchase or request as a check.
The rewards do not expire as long as your account remains open and in good standing. However, if you close the card, any cash back you have not yet used is forfeited. This is different from some other cards that let you redeem rewards after closing; Best Buy does not. You must use the cash back before you close the account, or you lose it.
Best Buy also runs periodic bonus categories and promotional offers — for example, extra cash back during holiday shopping or on specific product categories. These are announced in your account and via email, but they are not may provide to continue year to year. Do not count on bonus categories when deciding whether to open the card.
The annual fee question and when it makes sense
The no-fee version has no annual cost, so there is no threshold you need to cross to break even. You can carry it indefinitely and use it only when you shop at Best Buy, with no penalty. This makes the no-fee card a low-risk option if you are unsure whether you will use it regularly.
The Signature version charges an annual fee. The exact amount depends on your bank and the current terms, so you should check your cardholder agreement or contact Best Buy's card issuer before opening one. You pay this fee once per year, whether you use the card or not. To justify the Signature fee, you need to earn enough cash back to cover it and still come out ahead.
For example, if the annual fee is $95, you would need to spend roughly $1,900 at Best Buy in a year to earn $95 in cash back at the 5% rate. If you spend less than that, the Signature card costs you money. If you spend more, it may be worth it — but you should also compare the Signature benefits (extended return windows, purchase protection) to see if those matter to you.
How the Best Buy card compares to other rewards cards
The 5% cash back at Best Buy is competitive for a store card, but it is narrower than what general-purpose cards offer. A card like the Chase Freedom Unlimited gives 1.5% cash back everywhere with no annual fee and no requirement to shop at one retailer. The Best Buy card beats that only if you spend enough at Best Buy to make the higher rate there worth the limitation.
Some general-purpose cards also offer rotating 5% categories that occasionally include electronics or office supplies, which could include Best Buy purchases. These cards typically cap the 5% at $1,500 in purchases per quarter, so they work best if you spread your spending across multiple categories. If you buy almost everything at Best Buy, the Best Buy card's unlimited 5% is better.
Store cards almost always have higher interest rates than general-purpose cards. The Best Buy Visa's APR is typically higher than a major bank's card. This matters only if you carry a balance, but if you do, the higher rate will cost you more in interest than you earn in cash back.
What happens to your credit when you open or close the card
Opening the card triggers a hard inquiry on your credit report, which can lower your score by a few points temporarily. It also adds a new account to your credit history, which lowers your average account age — another factor that affects your score. These effects usually fade within a few months.
Closing the card removes an open account from your credit mix and can raise your credit utilization ratio if you carry balances on other cards. For example, if you have $5,000 in balances across all cards and a total credit limit of $20,000, your utilization is 25%. If you close a card with a $5,000 limit, your total limit drops to $15,000, and your utilization rises to 33%. Higher utilization can lower your score.
The Best Buy card also reports to the three major credit bureaus (Equifax, Experian, and TransUnion), so it builds your credit history as long as you keep it open and pay on time. If you close it, you lose that account's contribution to your credit age and mix.
Interest rates, fees, and what happens if you carry a balance
The Best Buy Visa's APR varies based on your creditworthiness and current market rates. You will see the exact rate in your cardholder agreement or when you apply. Like most store cards, the Best Buy card typically carries a higher APR than major bank cards — often in the 18% to 27% range, depending on your credit score.
If you carry a balance, interest accrues daily on the unpaid amount. For example, a $1,000 balance at 22% APR costs roughly $18.33 per month in interest alone. Over a year, that is $220 in interest on a $1,000 purchase. The 5% cash back you earned ($50) does not come close to covering that cost. This is why the Best Buy card only makes sense if you pay the full balance every month.
The card may also charge late fees if you miss a payment. These typically range from $25 to $40 for the first late payment and up to $40 for subsequent ones within six months. Late payments also report to credit bureaus and can damage your score for years.
The My Best Buy loyalty program versus the credit card rewards
Best Buy runs a separate loyalty program called My Best Buy that offers discounts, early access to sales, and exclusive deals. You cannot earn rewards from both the credit card and the loyalty program on the same purchase — you choose one or the other. This is an important distinction because some shoppers assume they stack.
If you are already a My Best Buy member and use it for discounts, adding the credit card does not give you both the discount and the cash back. You have to decide which benefit is larger for each purchase. In most cases, the 5% cash back from the card is better than the typical My Best Buy discount, but you should compare the specific offer before you buy.
Frequently Asked Questions
Can I use the Best Buy card at other retailers?
Yes. The card earns 1.5% cash back on all purchases made anywhere Visa is accepted, not just at Best Buy. The 5% rate applies only to Best Buy in-store and online purchases. So you can use it at grocery stores, gas stations, and restaurants, but you will earn the lower 1.5% rate there.
What happens to my cash back if I close the card?
Any cash back you have not yet redeemed is forfeited when you close the account. You must use the cash back as a statement credit before closing the card, or you lose it. This is different from some other cards that let you redeem rewards after closing.
Does the Best Buy card have a sign-up bonus?
Best Buy occasionally runs promotional offers for new cardholders, such as extra cash back in the first few months or a statement credit. These promotions change frequently and are not may provide. Check the current offer before you apply, as it may affect whether the card is worth opening.
What is the difference between the no-fee and Signature versions?
The no-fee version has no annual cost and earns the same 5% at Best Buy and 1.5% elsewhere. The Signature version charges an annual fee but adds benefits like extended return windows, purchase protection, and travel insurance. You should compare the annual fee to the value of those extra benefits for your situation.
Will the Best Buy card hurt my credit score?
Opening the card triggers a hard inquiry and lowers your average account age, which can temporarily lower your score by a few points. Closing it later can raise your credit utilization if you carry balances on other cards. Keeping the card open and paying on time builds your credit history over time.