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My Best Buy™ Deferred Interest Promotion

by ‎01-15-2016 03:17 PM - edited ‎03-16-2017 01:03 PM (40,856 Views)



My Best Buy™ Deferred Interest Promotion


Promotional financing, deferred interest promotion, and no-interest financing are all terms used to describe the ability to make a purchase without paying interest as long as you pay the purchase amount in full before the promotional period expires. However, if you do not pay the purchase amount in full by the expiration date of the promotion, you will be charged interest on the promotional balance at the regular purchase rate from the date the purchase was made until the promotional balance is paid in full.


Understanding Making Payments Online


The most important part of any promotional financing offer is understanding how to make payments. To make the most out of your deal, you’ll want to make sure you know exactly what to look for and where to look for it, to ensure that your payments are made in full and on time.


Below is a snapshot of the Account View on your My Best Buy™ online credit card account through Citibank. This section can be found on the main page right below the “Make a Payment” feature. In this section, you’ll want to take note of your promotional plan’s expiration date, description, and balance. The balance listed is the amount you will want to have paid before the expiration date that is listed.




You can also click on “Promotional Balance Details” to view information like the amount of deferred interest that has accumulated (the amount that will be charged to you if the agreements of the plan are not met), minimum payment due, interest already charged, payments, date of the original transaction, and the amount of the original transaction.




Making Payments with Paper Statements


It’s understandable that not everyone will be using the online account to view their balance and make payments. Sometimes it’s easier to receive a paper reminder of any balances or payments that are due, which is why all of this information is provided on both. Your paper statement will contain a section towards the end of the statement that looks like this:



This section includes all the same information, laid out a bit differently. Again, the most important things to be mindful of here is the new balance, minimum payment due and the expiration date.


As long as you are making your minimum payments in full and on time, and have the promotional balance paid off before the expiration date, you’ll never have to worry about the deferred interest charges being added to your balance.






Does Best Buy offer layaway?

We do not currently offer layaway. If you are looking to secure a product for later purchase, you will probably be interested in our current financing offers on the My Best Buy™ Credit Card! You'll have the option to purchase the product today and continue to make payments over time with no-interest.  


What is a promotional balance?

A promotional balance is a designated portion of your available credit that has a reduced introductory interest rate. Any balance you accrue up to the amount of the promotional balance is subject to the reduced interest rate. Any portion of your balance in excess of the promotional balance will be subject to your card's standard APR.


What is a promotional rate?

Your card's promotional rate is an introductory APR that is applied to your balance for a limited period of time. When you signed up for your card, your agreement included a post-promotional APR that will become active when the promotional period ends.


When will payments and credits related to my promotional balance display?

Payments and credits to your account may take 24 to 48 hours to display.


How many promotional balances are displayed on my account?

Up to 20 of your promotional purchases may be displayed on this page. Your monthly statement also includes all of your promotional purchase details.


How are my payments applied?

Payments are generally applied in excess of the Minimum Payment Due to higher APR balances first. However, when you have a deferred interest promotion on your account that is expiring within the next 2-3 billing cycles, your payment will be applied first to the Minimum Payment Due and then to the expiring deferred interest promotional balance before other balances. This may allow you to pay off your deferred interest promotional balance before it expires and help you to avoid interest on the deferred interest promotional balance that might otherwise be billed to your account. See below for more details and examples. Read more about making payments here: Making Payments on your My Best Buy™ Credit Card.


If you are still curious or have remaining questions about your account, payments, or promotions feel free to contact Citibank N.A. by calling them at 1-888-574-1301 or by logging into your online account and chatting with an available agent.





Purchase Scenarios – How Payments Are Applied



1 or More Regular Purchases (No other purchases)

You will not need to worry about deferred interest in this case as interest is already being added to your statement each for month that your balance remains active. Reference your statement to view your current interest rate.


The best advice is to pay off this balance as quickly as possible to minimize interest charges, but there are no expiration dates to pay attention to. Also, ensure you are making minimum payments each month to avoid late fees.


1 Promotional Purchase (No other purchases)

Example: You have an overall balance of $500 on your credit card. Your promotion expires in 12 months. Your minimum payment is $25.


You will need to pay $25 by the due date on your statement to ensure the promotion stays active. In addition, you will need to make sure that the entire $500 is paid within 12 months. In this situation, the entirety of your payments will be applied to the promotional balance of $500.


1 Promotional Purchase & 1 Regular Purchase

Example: You have an overall balance of $1000. $600 is from a promotional purchase and is set to expire in 12 months and $400 is from a purchase that is being charged the regular interest. Your minimum payment is $25. 


You will need to pay $25 by the due date on your statement to ensure the promotion stays active. Anything paid in addition to the $25 will be automatically applied to the $400 purchase (because you are currently paying interest), leaving the promotional purchase at a $600 balance. You will want to have the entire $1000 balance paid before 12 months is up, since the payments will first apply to the $400 before they will go towards the promotional balance.


Multiple Promotional Purchases

Example: You have an overall balance of $1000. $600 is from a promotional purchase and is set to expire in 18 months and $400 is from another promotional purchase that is set to expire in 6 months. Neither purchase is currently gaining interest. Your minimum payment is $25. 


In this scenario, you will still need to make your minimum payment of $25 by the due date each month to ensure both promotions stay active. Any payments made in addition to the minimum payment will be applied to the $400 purchase because it is set to expire sooner (in 6 months).Once that balance is paid off, payments will begin to go towards the $600 balance. You will need to make sure the $400 is paid within 6 months, and the $600 remaining balance is paid within 18 months.