Best Buy offers financing through a third-party lender, Citibank, for in-store purchases of electronic items. Best Buy advertises that consumers can take advantage of “no interest if paid in full within 18 months” financing. However, there is some concern that this type of financing may have a negative effect on one’s credit score.
When you finance a purchase through Best Buy, Citibank will run a hard inquiry on your credit report. This type of inquiry can stay on your report for up to two years and can ding your score by a few points. But if you make your payments on time and keep your balance low, the impact on your score should be minimal.
If you’re considering using Best Buy’s financing option, be sure to compare interest rates and terms from other lenders first. You may be able to find a better deal elsewhere.
And remember, any time you open a new line of credit, it comes with some risk to your credit score. So weigh the pros and cons carefully before making a decision.
