Best Buy is a leading America-based electronics retailer company founded by Richard M. Schulze and James Wheeler in 1966 under the name ‘Sound of Music’ in Richfield, Minnesota. It became the ‘Company of the Year’ in the Forbes magazine of 2004 and ‘Most Admired Company in the Fortune magazine of 2006. Standing today, it has its branches all over the world and is one of the trustworthy electronics retailer companies in the USA. Does Best Buy Have Payment Plans?
Coming to the question, yes, Best Buy has several payment plans which it offers to its customers. Let us see what payment plans Best Buy offers its customers.
Procedures for Payment Plans
Best Buy credit cards can give you a ton of options and advantages of various financial offers. These offers defer your interest rate. If you can pay off the actual price of the product before the financial term ends, then you need not worry about the interest rate on that product.
But in case the purchase price can’t be paid before the financial term of that product ends, the interest which you have to pay further will be owed at the Annual Percentage Rate for other purchases.
How does it Work?
To explain how the payment plans work, let us look at some examples. Let us assume you purchased a phone for $ 1,200 on a 24-month deferred plan with an Annual Percentage Rate of 26%. Here is the chart of how your monthly payment would look:
1st Month: $50
2nd Month: $50
3rd Month: $50
… 24th Month: $50
Total Amount: $1,200.
Thus, you can see although there are interest plans, since you have completed the payment within the term of the financial plan you have applied for, you don’t have to give the interest.
However, you can also pay a minimum monthly payment and a huge payment at the end of your finance term. This is a flexible plan, and you need not worry as long as you pay the amount within the stipulated time.
Again, let’s assume you buy a laptop for $1,500 on a 24-month deferred plan with an Annual Percentage Rate of 26%. Here is the chart of how your monthly payment would look with a minimal amount:
1st Month: $’29.
2nd Month: $29.
3rd Month: $29.
… 24th Month: $29.
Total Amount: $696.
Accrued Interest During Promotional Period: $607.
Total Paid: $1,303 + $804 (remaining balance).
The approximate payment would be $607 in interest at the end of your financial term on regular purchases with a 26% Annual Percentage Rate and regular payments of $29 with no other balances on your credit card.
You can also try the reduced rate credit plans where interests are calculated during the promotional period on a monthly basis with a reduced Annual Percentage Rate charged for other purposes. You have to pay your total balances by the end of the financial term, including the interest.
Let’s assume you buy that same laptop for $1,500 on the reduced rate credit plan for 24 months with a reduced Annual Percentage Rate of 7.99%. Here is the chart of how your monthly payment would look:
The minimum payment for each month includes 1/24 of the purchase balance + interest.
1st Month: $68.
2nd Month: $68.
3rd Month: $68.
… 24th Month: $68.
Interest Per Month: $5.
Total Paid: $1,632.
Principle Balance Paid: $1,500.
With a reduced Annual Percentage Rate of 7.99% and monthly fixed payments of $68 with no other balances on your credit card, you would pay $132 as interest during your financing term.
However, you have to pay more than the actual price with this reduced rate credit plan, but the rate of interest would be much less as compared to other plans with regular purchases.
Thus, Best Pay offers several plans for your purchase of electronic products. All you need to do is select a plan according to your choice and pay certain amounts monthly. If you feel all of this is too complicated, or you have any additional questions or would like to direct your payment across those multiple purchases, you can feel free to call Citibank at 1-888-574-1301.
- How can I check and view my Annual Percentage Rates?
When you open your credit card account, on your monthly payments, you can view your Annual Payment Rate on the account terms you received, or you can visit the website of Citibank account.
- How can I check and view my deferred-interest financing balance?
You can find your deferred-interest financing balance in your monthly credit card statement, or you can visit the website of your Citibank account. Also, if you are receiving your monthly credit card statement online, make sure you review it after the promotional period ends.
- Can I avoid interest charges on a deferred-interest finance plan?
If you want to avoid your interest rates, you need to pay the purchase price before the term of your chosen financial plan runs out. In case of failure, interest charges would be applicable irrespective of the plan.