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A Best Buy credit card can be used to help improve your credit score and credit history as long as you use the card responsibly. How you use the Best Buy card will ultimately determine how helpful it can be to your credit.

Understanding Your Credit Score

The Fair Isaac Corporation (FICO) credit score is calculated using five different categories of credit information. Thirty-five percent of the credit score is based on payment history and another 30% is based on the amount owed on credit cards. Essentially, two-thirds of the overall credit score is based on how well you can pay off your credit card balance in full and on time. The remainder of the credit score calculation looks at information such as the length of your credit history and the frequency with which you open new lines of credit.

How the Best Buy Credit Card Can Help

If you use a Best Buy credit card but pay off the balance within the terms of the agreement, you will likely see an improvement in your credit score. Timely payments of any outstanding credit balances help you build a strong credit history and avoid paying any unnecessary interest and late fees.

Best Buy offers free financing on certain purchases for terms of up to 24 months. This means that it charges no interest if you pay off the full balance of the purchase on time. Doing so will likely result in a higher credit score, as it demonstrates to lenders that you can use the card responsibly and have the means to pay for what you have borrowed. A higher credit score can lead to potentially lower interest rates on mortgages and other loans in the future.

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