Best Buy is a large electronics retailer in Canada with over 160 stores nationwide. Some of the items it sells can be quite expensive, and this is where Best Buy Financing can be a useful option.
Best Buy Canada has teamed up with Fairstone to offer financing, making breaking up the cost of your purchases easier.
Here’s everything you need to know about Best Buy Financing, including how it works, how to apply, the pros and cons, and more.
Key Takeaways
- Best Buy Financing allows you to break up the cost of your purchases at Best Buy Canada.
- Several terms are available from three to 18 months (24 months in Quebec).
- No interest is charged unless you fail to pay back the total cost over the length of the term.
Does Best Buy Canada Offer Financing?
Best Buy Canada does not offer financing itself. Instead, it has teamed up with Fairstone to offer financing.
So when you want financing to buy at Best Buy Canada, you must apply via Fairstone.
Fairstone then provides you with a personal loan, and it manages the loan until you pay it off in installments.
How Does Best Buy Fairstone Financing Work?
Best Buy Financing allows you to break down larger payments into regular monthly payments without paying interest.
It’s essentially a buy now, pay later option. You buy the products you want and pay for them over time, which works for in-store and online purchases.
You can access Best Buy Financing online, and you must first apply for financing with Fairstone using a simple online application.
Next, choose the product you want to buy, and then choose to pay via Best Buy Financing at checkout. Then simply choose the payment plan you want and make the first payment.
You then pay the rest of the cost over your chosen financing term. This will be interest-free if you pay off the loan on time.
If you fail to pay back the amount you borrowed over the loan term, you’ll be charged a high interest rate (currently 31.99% APR) on the amount you have not paid. This is a very high rate compared to most credit cards, which could make your purchase much more expensive.
There’s one other thing to keep in mind: admin fees.
While this is a zero-interest loan, admin fees vary from $29.99 to $99.99, depending on the purchase size and the length of the term.
Quebec residents, however, do not pay an admin fee. Instead, they pay an annual Quebec Membership fee of $35.
Best Buy Buy Now Pay Later Financing Plans
With Best Buy Financing, you can choose from several financing plans, including 3-month, 6-month, 12-month, and 18-month plans. Best Buy 24-month financing is also available in Quebec only.
3-Month Financing
You do not pay any interest in the first three months if you pay off the loan in full. This is valid for purchases over $149.99 (before taxes); no admin fee is charged.
6-Month Financing
Use this option for purchases over $299.99 and pay it off over six months. There is a $29.99 admin fee.
12-Month Financing
This is available for purchases over $399.99, and the admin fee is $69.99.
18-Month Financing
This option is only for large purchases over $999.99, and it is limited to home theatres and major appliances. There is a $99.99 admin fee.
How to Apply for Best Buy Financing
You’ll need to apply for Best Buy Financing via the Fairstone website. You must be the age of majority in your province or territory, and you must be a resident of Canada to apply.
Click on one of the application buttons on the Best Buy Canada website saying “Start Your Application” or something similar. This takes you to the Fairstone website.
The first step is to provide information about yourself. You can apply with digital ID scanning or secure bank login. If you choose the former, use your webcam or phone to photograph your face and ID document.
You must also provide additional info, including your name, address, social insurance number, and proof of residence.
Fairstone will then approve or reject your application. It will check your credit score as part of the process, and a better credit score will help you to get approved. If you are approved, you can shop immediately.
How to Pay Best Buy Financing Online
Once you have purchased at Best Buy Canada using financing, you must make regular payments until you have paid off the total cost.
The number of payments you make will depend on the length of the term, from three to 18 months. The total amount will be divided into equal monthly payments without interest added.
You will pay directly to Fairstone and not Best Buy Canada.
The easiest way for most people to pay is via online banking. Simply log into your bank account online and make the payments on time. Set the payee to “Fairstone – Credit Cards.”
You can also pay over the phone using telephone banking. Alternatively, visit a Fairstone branch and pay in person.
You can even send a cheque, but make sure you send it in good time to avoid late payment.
Pros and Cons of Best Buy Financing
Pros:
- Borrow money interest-free (as long as you pay back in full over the term) to purchase items at Best Buy Canada.
- Break up the cost of larger purchases into smaller monthly payments.
- Easy to apply online in minutes.
- Easy to make monthly payments in several ways, including online.
- Several loan terms are available to choose from.
Cons:
- The high interest rate makes it an expensive option if you fail to repay your loan on time.
- The loan is not entirely free because administrative fees apply.
- Failing to make your payments on time could impact your credit score.
Is Best Buy Financing Safe and Legit?
If you have never used Best Buy Financing, it’s understandable that you may be concerned about how safe it is.
But Best Buy Canada has partnered with Fairstone, a bank with a long history and good reputation. There is no greater risk in taking out a loan from Fairstone than from any major bank in Canada, so you can be sure that Best Buy Financing is legitimate.
Should You Use Best Buy Financing?
Whether you should use Best Buy Financing or not requires some careful consideration.
It could be a good option if you need to buy something, especially a more expensive product, and you don’t have the funds available.
While there is an admin fee, buying a product without paying interest on the amount you borrow is a tempting proposition. It makes it a cheaper option than buying on your credit card.
Issues arise if you are unable to meet the payments on time. If you fail to pay off your loan within the term, you will be hit with a high interest rate, which could make your purchase much more expensive.
It could also hurt your credit score, just as with any other type of credit where you fail to make the payments.
So you should always carefully consider your situation and plan your purchase before you apply for Best Buy Financing.
FAQs
Best Buy Financing does not specify a credit score to apply for financing. However, a good credit score of 660 or above will increase your chances of approval.
Like any type of credit, failing to make your payments on time could have a negative effect on your credit score when you use Best Buy Financing.
Best Buy has partnered with Fairstone to offer financing to its customers.
While Best Buy Canada does not do Apple financing, you can use Best Buy Financing to buy any items you find at Best Buy Canada stores or online, including Apple products.
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