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Best Buy Financing: 6 Ways to Pay for Your Next Purchase

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The cost to buy the latest electronic gadgets can add up quickly, but Best Buy financing can make these products more accessible to shoppers who can’t pay for them upfront. Best Buy offers two co-branded Citibank credit cards and a leasing program, which could be good options if you frequently make purchases at this retailer.

However, unless you frequently make large purchases at this retailer, you’re likely to find better financing options elsewhere. We’ll dig into what you need to know in this Best Buy financing review.

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Best Buy financing options

Best Buy offers three in-house financing options for its customers: the , My Best Buy® Visa® Card and a leasing program. Both credit cards are issued by Citibank.

Financing optionPurchase restrictionsAPRsPerks
Can be used only for Best Buy purchases for purchases*
  • 10% back in rewards on first day of purchases
  • No interest on Best Buy purchases over $299 if the balance is paid in full within 12 months
  • Annual fee:
My Best Buy® Visa® CardCan be used anywhere Visa is accepted30.99% variable for purchases*
30.99% variable for balance transfers*
29.99% variable for cash advances*
  • Earning Rate: 5% back in rewards at Best Buy, 3% back on gas purchases, 2% back on dining and takeout purchases, 2% back on grocery purchases, 1% back on other purchases
  • Annual fee: $0
Best Buy’s Progressive Leasing programCan be used only for Best Buy purchasesNot specified
  • 12-month lease-to-own program
  • Initial $59 down payment on purchases over $250
  • No credit required

*Interest rates accurate as of April 2023

The can only be used at Best Buy, so it may not be a good option if you’d like to make purchases elsewhere. This credit card comes with an annual percentage rate (APR) of , and this rate will fluctuate with the market. For example, in the last 30 days, purchase APRs have ranged from 28.99% to 30.99%.

Qualified borrowers may receive promotional 0% APR financing on purchases over $299. If you pay off your purchase in full within 12 months, you won’t pay any interest. If the entire balance is not paid by the end of the promotional period, however, you’ll be responsible for all the deferred interest accrued since the purchase.

Card users can also earn 10% cash back rewards when they use their for the first time, and 5% rewards on purchases after that. Since this card doesn’t have an annual fee, it could be a good option for making a single large purchase on the day you open the card — as long as you plan to pay off the balance before the promotional period is up.

To get the , you’ll have to create a Best Buy account, submit an application and go through a hard credit inquiry.

My Best Buy® Visa® Card

Unlike the , the My Best Buy® Visa® Card can be used anywhere that Visa is accepted, including Best Buy.

This card has an APR of 30.99% variable, and like the store card, you’ll be responsible for paying deferred interest if you can’t repay your balance within the promotional period. In addition to purchases, you can use this card for balance transfers or cash advances.

The My Best Buy Visa comes with a variety of opportunities to earn rewards:

  • 5% back on Best Buy purchases
  • 3% back on gas purchases
  • 2% back on dining purchases
  • 2% back on grocery purchases
  • 1% back on other purchases

To get a My Best Buy Visa card, you’ll have to fill out an application and submit to a credit inquiry, which could temporarily lower your credit score by a few points.

Best Buy’s Progressive Leasing program

If you can’t get approved for a credit card, you can apply for Best Buy’s Progressive Leasing agreement, though it is a very expensive way to borrow money. While Best Buy doesn’t disclose the exact APR that comes with this program, the estimated payment plans indicate very high, predatory APRs.

For instance, if you want to purchase a $500 item from Best Buy, you live in Florida and get paid every other week, the cost to lease is a whopping $634 on top of the $500 price tag. This means that by the end of the 12 months, you’ll have paid a total of $1,134, which roughly translates to 187% APR.

This 12-month lease-to-own program only runs a soft credit pull with the three major credit bureaus — Equifax, Experian and TransUnion — so your credit score won’t be impacted when you apply.

Considering how high the APR can be, Best Buy’s lease-to-own program may not be a good option, unless you plan to pay it off right away. Progressive Leasing is not available in Minnesota, New Jersey, Vermont, Wisconsin, Wyoming or Puerto Rico.

Who is Best Buy financing best for?

Best Buy financing may be best for consumers who shop at this electronics retailer often and can take advantage of the 5% cash back perk. If you regularly spend a significant amount of money at Best Buy, the co-branded credit cards could be worth considering.

However, none of the retailer’s in-house financing options are terribly competitive. Both credit cards have high APRs and deferred interest, which could stick you with a hefty interest payment if you can’t repay the balance in time. The Progressive Leasing program may be a good fit for shoppers with bad credit. However, since the APR can be so high, it may be better to consider alternative financing options that are more affordable.

Unless you’re a die-hard Best Buy shopper, there are better financing options out there to cover your next big purchase.

3 alternative financing options for your Best Buy purchase

If you need to pay for your next smartphone or a home theater system, Best Buy financing may not be the best option. Here are three choices to consider:

  1. Personal loan
  2. Zero-interest credit card
  3. Buy now, pay later

Personal loan

A personal loan comes with fixed interest rates and predictable monthly payments. The funds are disbursed in a lump sum, so you’ll need to know how much you want to borrow when you apply.

Many lenders allow you to prequalify for a personal loan, meaning you can check the rates, terms and minimum monthly payments you may be eligible for without any impact to your credit score. Rates may be as low as 5.99% if you have excellent credit, and you can repay the loan over a term of 60 months or longer.

If you’re looking to purchase an item from Best Buy using a loan, you may want to consider lenders that offer small personal loans since they offer loan amounts that are more in line with the amount you’re likely to spend.

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Zero-interest credit card

If you have good credit, you may qualify for a 0% APR intro credit card offer from a company other than Best Buy.

These promotional offers allow you to carry a balance for a predetermined period of time (often six to 21 months) without paying interest. As long as you repay the balance in full before the introductory period ends, you won’t have to pay any interest. Once the promotional period is over, you’ll pay interest on any remaining balance.

While a 0% APR card could save you a lot of money, be sure to check for other fees that may come with a credit card, such as annual and late fees.

Buy now, pay later

Buy now, pay later (BNPL) is a popular way for shoppers to pay for large purchases that they can’t afford outright. Most commonly, payments are split into four installments over six weeks, with a payment due every two weeks until the full amount is repaid. This type of BNPL financing often comes with no interest or fees.

With Affirm, for example, customers can either break up their Best Buy purchase into four payments with 0% APR — known as Affirm Pay in 4 — or get an Affirm loan with an APR up to 36%. With the Affirm loan option, you may be subject to a credit inquiry.

 

The information related to the and the My Best Buy® Visa® Card have been independently collected by LendingTree and have not been reviewed or provided by the issuer of this card prior to publication.

Frequently asked questions

Best Buy customers can qualify for deferred interest financing if they apply for a My Best Buy credit card. If the customer makes a purchase for over $299, they can avoid interest as long as they repay the balance within 12 months. If a balance remains at the end of the promotional period, the consumer will be responsible for paying all the interest that would have accrued since the purchase date.

If you apply for a Best Buy credit card, you will have to submit to a hard credit pull. This can temporarily cause your credit score to go down by a handful of points and can stay on your credit report for up to two years.

Applying for a Best Buy credit card could lower your credit score since you will have to go through a hard credit pull and the new credit could raise your credit utilization ratio. Both of these factors can cause your credit score to decrease. However, as you pay off your credit card over time, your credit utilization will improve and Citibank may report your on-time credit card payments to the credit bureaus, which can bring your score back up.

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