Best Buy is one of the largest electronics and appliance retailers in Canada. They sell everything from TVs to drones, computers, washing machines, and the latest gaming systems.
One of the main reasons why the retailer has remained so popular is that they make it easy to finance almost anything that they sell.
If you’re eligible for Best Buy financing in Canada, then you’ll be able to break your total cost up into affordable monthly payments, all of which are interest-free.
Below, I’ll explain a bit more about how Best Buy financing works, how to get it and outline some of the pros and cons of financing through Best Buy.
How Does Best Buy Financing Work In Canada?
Best Buy doesn’t always have the cheapest prices. Speaking from personal experience, I’ve found many of the same items sold online for a good bit cheaper.
As much as I enjoy walking through a massive Best Buy superstore (I always feel like a kid in a candy shop), I also prefer to save money.
That being said, Best Buy offers one thing that most online electronics retailers don’t – financing.
If you’re working with a limited budget and can’t afford to buy a brand-new laptop for $1,000 upfront, Best Buy’s financing program will allow you to break the cost of your laptop into affordable payments made over the course of 6 to 24 months (depending on your plan).
This is a game-changer for students who are trying to save money or families trying to keep their budget under control.
In short, the main benefits of applying for Best Buy financing include:
- You won’t pay interest as long as you make your payments on time
- It works just like a standard cash loan (it’s not a credit card)
- You can split the cost of expensive electronics into affordable payments
Unlike traditional retail credit lines, Best Buy doesn’t directly offer financing. Instead, Best Buy has partnered with a third-party independent Canadian financing company called Fairstone.
This lender will perform a credit check, disburse the loan amount, and manage your loan until it’s paid off.
It’s as simple as that!
Best Buy’s financing program in Canada is still in its beta phase of development. In the states, Best Buy customers can apply for financing if they’re approved for the Best Buy credit card.
If you’re approved, you’ll receive a “deferred interest” balance on your Best Buy credit card. However, all other purchases made on the card will be subject to the credit card’s usual interest rate.
In Canada, however, Best Buy doesn’t offer a deferred interest credit card. Instead, Best Buy offers cash financing in the form of a short-term loan through Fairstone.
At this time, Best Buy is only offering financing to select Canadians. To get accepted, you must apply online through Best Buy’s Canada website.
If you’re pre-approved for financing, then you may randomly see the option to finance your purchase while you’re checking out through the online store.
If you’re approved for Best Buy financing in Canada, then you’ll have several different options to choose from for repayment terms:
- 6 months
- 12 months
- 24 months
No matter which financing term you end up going with, all loans are zero-interest and will come with a set monthly payment. The amount you’re approved for financing will depend on your credit score, payment history, and the total amount you’re trying to finance.
Now that you know some of the basics about Best Buy financing in Canada, let’s take an in-depth look at how it works so you know what to expect if you’re approved.
One of the best features of Best Buy financing in Canada is that borrowers don’t have to pay any interest on the amount that they’re financing. As long as you make your monthly payments on time, then it’s a 0% interest loan.
That being said, things get a bit complicated if you miss payments or can’t pay the full amount within the defined loan terms.
Fairstone charges over 30% APY on any amount that’s carried over past the agreed-upon terms. This interest rate is higher than most credit cards, so it’s very important to keep up with your payments. Otherwise, you could end up paying far more back than you planned.
Best Buy financing in Canada is very different from the company’s financing plan in the US. In the states, borrowers are given a credit card that they can use just like a normal card.
The amount that’s being financed will be put on the card as a deferred-interest loan.
However, Best Buy financing in Canada is much more similar to a short-term cash loan.
If you’ve ever applied for a personal loan from your bank or a small lender, then you’ll find that the process is almost identical.
Once you’re approved for the loan, the amount will be transferred from Fairstone to Best Buy. After the transaction is complete, your loan will be handled entirely by Fairstone (not Best Buy).
This means if you have any questions or concerns or have a problem paying, you’ll need to contact Fairstone to resolve your issue. You’ll also make your monthly payments directly to Fairstone through their online or telephone payment system.
Above, I mentioned that Best Buy Financing in Canada is zero-interest. However, there is a cost to getting your purchase financed through Fairstone.
If you’re approved, then you’ll have to pay one of the following administrative fees:
- 6-month financing: $29.99 admin fee (for purchases over $299)
- 12-month financing: $69.99 admin fee (for purchases over $399)
- 24-month financing: $119.99 admin fee (for purchases over $1,000)
The administrative fee accounts for payment processing and billing fees that occur over the course of your Fairstone loan.
In my opinion, these admin fees seem fair, especially considering that the loan doesn’t come with an annual fee or costly interest stacked on top.
If you think you might want or need to finance your purchase, here’s how to apply for Best Buy financing in Canada.
- Option One: If you’re shopping in-store, then you can speak to the store’s customer service department and ask them if the store is currently offering financing.
- Option Two: If you’re shopping online, then you can directly apply for Best Buy financing through Best Buy’s Canadian website.
- Option Three: Certain select customers may be pre-approved for Best Buy financing in Canada. If you’re pre-approved, then you’ll be given the option to “finance your purchase” while checking out on the online store.
The application process is fairly simple and takes less than ten minutes to complete. You’ll be asked to provide key information, such as:
- Your full name
- Your mailing address
- Your social insurance number (SIN)
- Your birthday
- Proof of residence
- Two forms of identification
To apply, you must be at least 18 years old to apply for financing and must be a legal resident of Canada.
Best Buy’s financing program in Canada is still in its beta development stage, which means that it’s not being offered to everybody just yet. At this time, it’s only being offered to select applicants and certain pre-approved customers.
That being said, it definitely helps to have good credit if you want to get approved for financing.
Since Fairstone is already being picky about selecting applicants, it’s doubtful that they’ll offer financing to individuals with low or bad credit.
Not sure what your credit score is? Check out the best websites to get your free credit report to see what your latest scores are.
Once you’re approved for your Best Buy financing plan, you’ll be given a set monthly bill along with your monthly payments terms.
Your first payment will be due the day that you begin the financing program, and you’ll make recurring payments on the same day every month until the amount is paid in full.
Your loan payments will be made directly to Fairstone – the bank that’s partnered with Best Buy to offer financing in Canada. You can make your Fairstone payments by:
- Phone: 1-866-508-7765
- Online: Fairstone online portal
- Fairstone branch: Visit a Fairstone branch to pay in-person
You can also mail cheques to the following address:
630 René-Levesque Blvd. West
If you opt to mail your cheque, just make sure that you send the cheque ahead of time to ensure that Fairstone receives the cheque before your payment date.
Products You Can Finance at Best Buy Canada
You can finance a lot of different types of products at Best Buy, including (but not limited to):
- Consumer Electronics: High-end items such as televisions, laptops, desktop computers, gaming consoles, and cameras can typically be financed.
- Appliances: Major and minor household appliances like refrigerators, washing machines, dryers, dishwashers, and microwaves are often available for financing.
- Home Theater Equipment: Home theatre systems, soundbars, projectors, and other audio-visual equipment can usually be financed.
- Smart Home Devices: Items like smart speakers, smart lighting systems, smart thermostats, and other smart home devices are often eligible for financing.
- Mobile Phones: Best Buy Canada typically offers financing for unlocked cell phones and associated accessories.
- Fitness Equipment: Higher-priced fitness equipment such as treadmills, exercise bikes, and ellipticals can often be financed.
Pros & Cons Of Best Buy Financing In Canada
Still not sure whether or not Best Buy financing is right for you? Here’s a brief overview of the pros and cons to give you a better idea of what to expect:
- Zero-interest financing
- 6, 12, or 24-month loan terms available
- Can help you build credit
- It’s easy to pay your loan online, on the phone, or by mailing a cheque
- Over 30% interest is imposed if you fail to repay your total loan amount on time
- Financing is only available to select applicants at this time since the program is in its beta development phase
- May result in a hard credit inquiry on your credit report
- Additional administrative fee that ranges from $29.99 to $119.99, depending on your loan terms
To wrap up, here are a few quick answers to some of the most commonly asked questions about Best Buy financing in Canada.
No. While Best Buy offers credit card financing in the United States, Best Buy financing in Canada is offered through Fairstone.
This third-party lender provides eligible applicants with a short-term, interest-free loan that’s paid over a 6, 12, or 24-month period.
If you fail to pay the full balance of your Best Buy financing amount by the end of the loan term, then it will be subject to a high-interest rate. Currently, Fairstone imposes over 30% APY interest on amounts that are unpaid at the end of the loan term.
If you miss a payment while you’re still within your term period, you’ll typically be charged a small late fee for the inconvenience.
Best Buy Canada does not handle any financing claims. If you have any questions or concerns about your loan, you’ll need to contact Fairstone directly. Once Fairstone issues the loan, Best Buy is no longer involved in your financing or bill repayment.
Will Applying For Best Buy Financing In Canada Affect My Credit Score?
Yes, applying for Best Buy financing in Canada, or for any kind of credit, typically involves a “hard inquiry” or “hard pull” on your credit report. This is done to check your creditworthiness and determine your eligibility for financing. Hard inquiries can cause a small, temporary drop in your credit score.
The impact of a hard inquiry varies based on your overall credit profile. For people with many hard inquiries in a short time, the impact can be more significant, as this can signal to potential lenders that you are a higher-risk borrower due to the perceived increased reliance on credit.
If your application is approved, then financing with Best Buy can help you split an otherwise expensive purchase into affordable monthly payments.
Plus, it’s zero interest, which means that your only additional cost will be the small administrative fee for issuing the loan.
That being said, you shouldn’t finance an amount without having a plan to pay it back on time. The last thing you want to do is find yourself buried in debt and missing payments.
If you’re not approved for financing, then you may be able to finance your purchase by using a credit card (even if you have low credit).
Keep reading to see my list of the best credit cards for low credit in Canada next!