Many of the products found at Best Buy are high-ticket items that can be a little outside the financial comfort zone of many Canadians. Fortunately, you can get a little financial help to cover the cost of these expensive products with the Best Buy Card.
This card offers a service that allows you to finance your purchase through an installment loan. You’ll have a few options for loan terms, depending on how much you’re spending. But, there are some fees that come with this financing product to consider.
Let’s take a closer look at the Best Buy Card to help you determine if it’s something worth applying for.
Best Buy Financing In Canada
Financing high-ticket items at Best Buy is easy thanks to the Best Buy Card. This financing program is designed to allow customers to defer an upfront, complete payment on their purchases and instead make installment payments. And, it charges zero interest until the end of the financing term.
Depending on the cost of the purchase, you can finance your purchase for up to 2 years. Financing options are made available through Best Buy’s partnership with Fairstone, a trusted financing company that’s been providing loan options to Canadians for years. Applying and qualifying for financing is quick and easy and can be done from any device at any time.
It should be noted that the program is only available for in-store purchases, and not purchases made online.
Best Buy Payment Plans
The Best Buy Card comes with payment plan options:
- 6-month financing
- 12-month financing
- 24-month financing
Please note that if you don’t pay off your loan by the end of the term, interest fees will apply.
How Does the Best Buy Financing Card Work?
There are a couple of ways that the Best Buy Financing program works:
Same As Cash Financing
Finance fees will be charged on the purchase when the credit promotional period begins. No minimum payments are required during the credit promotional period.
The situation is a bit different for Quebec residents, who are required to make minimum payments of 5% of the balance every billing cycle. Quebec residents who make the required payments and pay for the item in full by the due date of the credit promotional period will have all accrued finance fees waived. On the other hand, if the purchase price is not paid in full by the due date, all accrued finance fees will be assessed.
Once the payment period expires, any outstanding balances that remain will be subject to the standard APR of 31.99% and the terms of the Regular Credit Plan.
Finance fees will not be charged on the purchase during the credit promotional period if the minimum payment is made every billing cycle by the due date. Your payments will be determined by the price of the product and the payment period and divided accordingly.
For example, if you buy a product for $500 and are given 12 months to pay it off, your monthly payments would be $41.67 ($500 divided by 12 months). If you fail to make the minimum payment by the due date or if you still carry a balance after the credit promotional period ends (in this example, 12 months), you’ll be charged the standard annual interest rate of 31.99%. Further, any of the terms of Best Buy’s Regular Credit Plan will apply to your outstanding balance.
Quebec residents are not required to pay the admin fee. Instead, they will be charged an annual Quebec Membership fee of $35.
Ways To Pay
There are several ways to make your payments towards paying down your balance:
- Online banking. Use your online banking portal with your financial institution to make payments virtually.
- At a Fairstone branch. Visit your local Fairstone location and make your payment in person.
- Telephone. Call Fairstone at 1-866-508-7765.
- Cheque. Mail your cheque to:
630 René-Levesque Blvd. West
Cost Of Best Buy Financing Card
The costs associated with financing your purchase using the Best Buy Card will depend on the financing term and the cost of the item you’re buying:
- 6-month financing. 0% interest if paid in full within 6 months for all purchases $299.99 and up; $29.99 admin fee.
- 12-month financing. 0% interest if paid in full within 12 months for all purchases $399.99 and up; $69.99 admin fee.
- 24-month financing. 0% interest if paid in full within 24 months for all purchases $999.99 and up; $119.99 admin fee.
While there is no interest charged during the payment period, an interest fee of 31.99% will be applied to any outstanding balances after the payment period expires.
And as mentioned above, Quebec residents are charged a $35 annual fee, which includes Geek Squad online support for one year.
Best Buy Financing Card Perks
There are several advantages to using the Best Buy Card to make your next big-ticket purchase at Best Buy:
- Easy qualification requirements. You can get approved for your Best Buy Card in a matter of minutes using your mobile device from wherever you happen to be.
- Different term lengths. The Best Buy Card comes with a few different term lengths for you to choose from, ranging from 6 months to 2 years.
- No interest during the loan term. If you pay back what you owe before the end of the payment term, you won’t be charged any interest.
- Easy monthly installments. It’s much easier to break down a big purchase into much smaller payments thanks to the Best Buy Card financing program.
- Cheaper than a credit card. Many credit cards charge high annual fees in exchange for the perks that come with them. The Best Buy Card, however, is generally a lot more affordable in terms of the admin fee charged.
Best Buy Financing Card Drawbacks
While there are multiple perks to the Best Buy Card, there are also a handful of drawbacks to consider as well:
- No online Best Buy account. You can’t access any online account with the Best Buy Card. Instead, you’ll only be able to get your account details via a paper statement that’s mailed to you on a monthly basis. Otherwise, you can call Fairstone to get your account information.
- High set-up fees. Before your financing arrangement is set up, you’ll need to pay an admin fee based on the term length, which can be quite high for longer terms.
- High interest on unpaid balance. If you do not pay off your entire balance on time, you’ll be looking at a hefty interest rate of 31.99%, which is much higher than the average loan or credit card rate.
- No insurance. There’s no extended warranty, purchase insurance, or protection against fraud with the Best Buy Card, which is standard with many other traditional credit cards.
- Can only be used at Best Buy. Unlike traditional credit cards that can be used to make purchases just about everywhere, the Best Buy Card can only be used to make in-store purchases at Best Buy.
- No rewards. There are no cashback rewards when you make purchases using your Best Buy Card.
- Limited options in Quebec. Residents in Quebec won’t have access to all of the financing options available to cardholders in other provinces.
How To Apply For Best Buy Financing
In order to be eligible for the Best Buy Card, you need to be a Canadian citizen or permanent resident who is at least the age of majority in your province. If you live in Quebec, you’ll also be required to pay an annual fee of $35.
When you apply, you’ll need to supply the following pieces of information:
- Your full name
- Your contact information
- Your residential status
- Your birthdate
- Your social insurance number (SIN)
- Two pieces of ID
What is Best Buy’s contact information?
- Telephone at 1-866-237-8289 between 8am to 12am EST
- Contact page
- Live chat
Does Best Buy finance?
Can you earn points with the Best Buy financing card?
Are there any penalties for paying off my account balance early?
Can I use my Best Buy Card after I pay off my balance?
If you plan to make a big purchase or two at Best Buy but are a little tight on cash to cover the bill in full, the Best Buy Card may be an option to consider. Just be sure to take the fees into consideration before applying for the card, and compare it to other potential financing options that may be available to you.
Largest Lender Network In Canada
Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.
goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest
goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...