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 5% back on Best Buy purchases and 1% back on everything else — but only if you're a My Best Buy member, which costs $200 per year for the Plus tier or $150 for the basic tier. That membership fee is the real cost of the card, not the interest rate. If you don't spend enough at Best Buy to earn back that fee in rewards, you're losing money from day one.

The card itself has no annual fee, but Citi (the issuer) charges a high interest rate — currently around 24% to 29% depending on your credit score. Carrying a balance for even one month will erase months of rewards. The card only works as a money-maker if you treat it like a debit card: spend, get rewards, pay it off in full when the bill arrives.

Most people who open this card don't shop at Best Buy often enough to justify the membership cost. Before you apply, calculate whether you'll actually earn $150 to $200 in rewards annually. If you won't, a standard cash-back card with no membership fee is a better choice.

Key Takeaways

  • The Best Buy card requires a My Best Buy membership ($150 or $200 per year) to earn the advertised 5% rewards rate, so you need to spend at least $3,000 to $4,000 annually at Best Buy just to break even.
  • The card's interest rate is 24% to 29%, which means carrying a balance for even one billing cycle will cost more than you've earned in rewards.
  • You earn 5% back only on Best Buy purchases if you're a member; non-members earn 3% back, which may not justify the card at all.
  • A standard cash-back card with no annual or membership fee will almost always save you money unless Best Buy is genuinely your primary electronics retailer.

How the rewards structure actually works

The card offers different rewards depending on whether you have a My Best Buy membership. If you're a member, you earn 5% back on Best Buy purchases and 1% back on everything else. If you're not a member, you earn only 3% back at Best Buy and 1% elsewhere. The membership itself costs $150 per year for the basic tier (My Best Buy Plus) or $200 per year for the premium tier (My Best Buy Plus Elite).

The math is straightforward: to earn back a $150 membership fee at the 5% rate, you need to spend $3,000 at Best Buy in a year. To earn back $200, you need to spend $4,000. Many cardholders spend far less than that, especially if they only buy a laptop or TV once every few years. Even if you do spend that much, you're only breaking even — the rewards aren't profit, they're just recovering the membership cost.

The 1% cash back on non-Best Buy purchases is low compared to other cards. Most general cash-back cards offer 1.5% to 2% on all purchases with no membership fee, which means you'd earn more money overall even if you never set foot in Best Buy.

The interest rate makes carrying a balance expensive

The Best Buy card's purchase APR ranges from 24% to 29% depending on your credit score. That's higher than most other retail cards and much higher than many general cash-back cards, which typically range from 18% to 24%. The difference matters because even a small balance carried for one month can wipe out your rewards.

Here's an example: suppose you spend $1,000 at Best Buy and earn $50 in rewards. If you carry that $1,000 balance for one month at 27% APR, you'll pay roughly $22.50 in interest. You've already lost nearly half your rewards. Carry it for three months and the interest exceeds the rewards entirely. The card only works if you pay the full statement balance by the due date, every single month.

If you have a history of carrying balances or paying late, this card will cost you money. A card with a lower interest rate and no membership fee is a safer choice.

When the Best Buy card might actually make sense

The card is worth considering if you meet all three of these conditions: you already shop at Best Buy regularly (at least $3,000 to $4,000 per year), you can pay the full balance every month without fail, and you're willing to pay the membership fee. This typically describes people who buy computers, phones, or appliances from Best Buy as their primary retailer, not people who shop there occasionally.

If Best Buy is genuinely your electronics store and you're disciplined about paying in full, the 5% rewards rate is competitive. You'd earn $150 to $200 per year in rewards, which covers the membership cost and leaves you with a small gain. But this scenario is less common than Best Buy's marketing suggests.

The card also offers a 0% APR promotional period on purchases (typically 12 months for may have access to buyers), which can be useful if you're financing a large purchase and know you can pay it off within that window. However, you'll still need to cover the membership fee, and the 0% period ends — after that, the regular 24% to 29% rate kicks in.

Better alternatives if you don't shop at Best Buy often

If you shop at Best Buy only occasionally or for specific items, a general cash-back card will almost always save you money. Cards like the Chase Freedom Unlimited or Capital One SavorOne offer 1.5% to 2% cash back on all purchases with no annual or membership fee. Over a year, that 1% to 2% difference adds up, and you avoid the $150 to $200 membership cost entirely.

If you want category bonuses (higher rewards in certain types of spending), cards like the Chase Freedom Flex offer 5% back on rotating categories and 1.5% on everything else, again with no annual fee. You won't earn rewards specifically at Best Buy, but you'll earn more overall because there's no membership cost to recover.

If you do shop at multiple retailers, a card with rotating categories or a flat 2% cash back will outpace the Best Buy card unless you're spending thousands annually at Best Buy specifically. The membership fee is the hidden cost that makes the difference.

What happens if you miss a payment or carry a balance

Missing a payment on the Best Buy card carries the same consequences as any credit card: a late fee (typically $25 to $40), a mark on your credit report, and a jump in your interest rate. Citi may also increase your APR to a penalty rate, which can exceed 29%. If you're already at 29%, there's nowhere higher to go, but the late fee and credit damage remain.

Carrying a balance is even more costly. At 27% APR, a $1,000 balance costs you $270 per year in interest alone. That's more than the membership fee itself. The rewards you earn (5% = $50 on that $1,000 purchase) don't come close to covering it. This is why the card only works for people who pay in full every month.

If you're rebuilding credit or have a history of missed payments, avoid this card. The high interest rate and membership fee make it an expensive way to rebuild. A secured card or a card designed for fair credit is a better starting point.

How to decide: a simple calculation

Before you apply, do this math: estimate how much you'll spend at Best Buy in the next 12 months. Multiply that by 0.05 (the 5% rewards rate). Subtract $150 or $200 (the membership fee). If the result is negative or close to zero, the card isn't worth it. If it's positive and more than $50 or $100, it might be worth considering — but only if you're certain you'll pay the full balance every month.

Example: You think you'll spend $2,500 at Best Buy next year. $2,500 × 0.05 = $125 in rewards. $125 − $150 (membership fee) = −$25. You'd lose money. The card isn't for you.

Another example: You spend $5,000 at Best Buy annually. $5,000 × 0.05 = $250 in rewards. $250 − $150 (membership fee) = $100 net gain. The card makes sense, assuming you pay in full every month and don't carry a balance.

Frequently Asked Questions

Do I have to pay the My Best Buy membership fee to use the card?

Yes. The 5% rewards rate requires a My Best Buy Plus membership ($150 per year) or My Best Buy Plus Elite ($200 per year). Without membership, you earn only 3% back at Best Buy. The membership fee is separate from the card's annual fee (which is zero), so it's an additional cost to consider.

What if I only shop at Best Buy once a year?

The card probably isn't worth it. If you spend $1,000 once a year, you earn $50 in rewards but pay $150 for membership — a net loss of $100. You'd need to spend at least $3,000 annually just to break even. A general cash-back card with no membership fee is a better choice.

Can I use the card without paying the membership fee?

Yes, but you'll earn only 3% back at Best Buy instead of 5%, plus 1% on other purchases. At that rate, you're earning less than most general cash-back cards offer, and you're still paying the card issuer's high interest rate if you carry a balance. It's not a good deal.

What's the 0% APR promotion, and is it worth it?

may have access to buyers may receive 0% APR for 12 months on purchases. This is useful if you're financing a large purchase (like a computer or appliance) and can pay it off within 12 months. However, you still pay the membership fee, and the regular 24% to 29% APR applies after the promotion ends. Only use this if you have a concrete plan to pay off the balance before month 13.

Is the Best Buy card good for building credit?

It can be, if you use it responsibly — but the high interest rate and membership fee make it an expensive way to build credit. A secured card or a card designed for fair credit with a lower interest rate is usually a better choice for credit building. The goal is to use credit without paying interest, and this card makes that harder.