Do you always have the newest gadget? Do you live in fear that somebody may see you with an outdated phone or the now outdated HDTV? If that's you, maybe you spend a lot of time at your neighborhood Best Buy.

Along with MyBestBuy, the store's customer loyalty program, Best Buy has a rewards credit card. Should it have a place in your wallet? Here's how to decide.

The Bank

Like most retail stores, Best Buy partnered with a large bank to offer the MyBestBuy Credit Card. The bank is Citibank. As one of the large mega banks, Citibank is both loved and hated. There are plenty of negative reviews about the Citibank, but that's true of all large banks with hundreds of thousands of customers.

The Card

Benefits include receiving 5% back in rewards for every Best Buy purchase: 5% equates to 2.5 rewards points for $1 spent. For every $250 spent, look for a $5 reward certificate in the mail.

If you're a Best Buy Elite Plus member – that means that you've spent at least $3,500 in one year – you receive an additional 1% in rewards, taking your total to 6% back on all Best Buy purchases.

Make your first credit card purchase a big one because Best Buy will give you 10% back the first time you use the card.

In addition to rewards, expect to receive enticing special promotions. Offers include special payments terms like 18-month financing on purchases of $429 or more or longer on larger purchases. And, of course, the card comes with the standard store credit-card perk – access to special members-only events.

Finally, if you use your Best Buy credit card online, you won't pay for shipping on any order of $35 and up.

The Fine Print

You don't want to carry a balance with this card. The annual percentage rate is 25.24% or 27.99%, based on how good your credit is. Special promotions might bring the rate down to 11.90% for 48 months but, overall, the interest rate is on the high side of cards of its type.

Standard payment terms apply. You have 25 days after the end of the billing cycle to pay the balance in full to avoid any interest charges and there's a late payment fee of $35. Depending on creditworthiness, some customers will pay a $59 annual fee.

The card does permit balance transfers. Customers will pay $15 or 5% of the amount of the transfer – whichever is greater. The APR for balance transfers is 17.99% or 21.74%, depending on creditworthiness, if transfers are made within the first 4 months of getting the card. Cash advances cost $10 or 5% – whichever is greater. For more on the financial aspects of this choice, see The Pros And Cons Of Balance Transfers.

The Bottom Line

If you spend a great deal every year at Best Buy, and pay off your balance in full, this card probably provides richer rewards for Best Buy purchases than a standard cash back card would (see Find The Top Cash Back Credit Cards). But be cautious before you decide to sign up.

Store credit cards are designed to entice you to spend more. Don't fall let yourself fall for the hype. Never make rewards and rebates a reason to purchase a product. If the item is expensive enough that you can't pay the balance at the end of the month, don't use a high APR card like this one. Instead, make your purchasewith a card that has a lower interest rate and pay it off as quickly as possible.