Does Best Buy Perform a Hard Credit Check?
When you apply for credit at Best Buy, such as the My Best Buy Credit Card, the store does perform a hard credit check. This article will explore why a hard credit check is necessary, whether it affects your credit score, and the implications of this action.
What is a Hard Credit Check?
A hard credit check, also known as a hard inquiry, is when a creditor checks your credit report to determine your creditworthiness. Unlike soft inquiries, which do not affect your credit score, a hard inquiry will be visible to lenders and can lower your score by a few points. This is a crucial factor to consider before applying for credit at Best Buy.
What Triggers a Hard Credit Check with Best Buy?
When you apply for a credit card or finance a purchase through Best Buy, the store is required to perform a hard credit check. This applies even if you are asking about credit options rather than applying. The purpose of this check is to ensure that the customer has the ability to repay the loan or credit extended to them.
How Does a Hard Credit Check Affect Your Credit Score?
A hard credit check can have a temporary impact on your credit score. According to credit bureaus, a single hard inquiry usually only affects your score by a few points. However, if you have several hard inquiries in a short period, your score can drop by a larger margin. It is important to monitor your credit score and avoid unnecessary hard inquiries.
Other Considerations When Applying for Credit with Best Buy
While a hard credit check is necessary, there are other factors to consider when applying for credit with Best Buy. One significant concern is the high interest rates associated with their credit card. Currently, the interest rate is over 25% APR, except on promotional offers. This high rate can make it challenging to manage the debt.
Best Buy also offers "Deferred Interest" deals that promise to save you from paying any interest if you clear your balance within the promotional period. However, if you don't, you could be charged the highest interest rate on the full balance, which is a risky proposition. Additionally, even promotional rates like 11.9% are not particularly attractive. If you decide to use Best Buy's credit card or finance a purchase, it is advisable to have a plan to pay off the balance within 6 months or consider saving up enough money to pay for the item in full.
Conclusion and Additional Resources
When applying for credit at Best Buy, it is essential to understand the implications of a hard credit check. While it is necessary for the store to assess your creditworthiness, it can impact your credit score. Additionally, the high interest rates and deferred interest offers present potential risks. The Best Buy Credit Card Terms and Conditions provide detailed information on these issues. If you are unsure about any aspect of the process, it is advisable to contact Best Buy's customer service for clarification.
By considering these factors, you can make a more informed decision about whether to apply for credit at Best Buy and how to manage any credit extended to you.