Walking the wide aisles of Home Depot, many people dream of beautiful projects to improve or remodel their home. Regrettably, home depot credit card benefits they do not seem to accompany these dreams despite having a $0 annual fee.
The home depot credit card, unlike other cards, does not generate ongoing rewards and offers few benefits. Even the most loyal fan of Home Depot would probably be better off with a card from another brand that offers cash back on purchases or some kind of reward.
Here are five things you should know about home depot credit card:
- 1 1. Offer deferred interest (but not 0% introductory APR)
- 2 2. Better not to carry an outstanding balance on the Home Depot credit card
- 3 3. New cardholders enjoy a modest discount with the Home Depot credit card
- 4 4. Cardholders enjoy exclusive offers and a longer period to make returns.
- 5 5. Home Depot offers an exclusive card for larger projects
1. Offer deferred interest (but not 0% introductory APR)
The Home Depot credit card can help you finance a large housing project; in fact, that is its main advantage. Offers six months of deferred interest on purchases of $299 or more.
Keep in mind, however, that there is a difference between deferred interest and a true 0% introductory APR offer. The deferral simply “sets aside” the interest for another time. While the second is an interest-free grace period during which no interest is paid or accrued.
With the home depot credit card, if you do not pay the balance in full within six months, you will be responsible for the interest that accumulates from the day you made the purchase. This could certainly end up being a costly mistake.
If you can qualify for another card with a 0% APR offer for new customers, lasting 12 months or more, you’ll be better off.. Chase Freedom Unlimited®, for example, offers a 0% introductory APR for 15 months on purchases and balance transfers and then a continuous variable APR between 14.99% and 23.74%. Plus, you earn rewards like unlimited 1.5% on all your purchases.
2. Better not to carry an outstanding balance on the Home Depot credit card
It is important that you know that if you do not take the deferred interest offer, you should also avoid carrying a balance from month to month. Like many other credit cards from a specific store brand, the interest rate on the Home Depot credit card can be quite high. The current continuous APR is 17.99% – 26.99% variable.
For comparison, the average APR for accounts that incurred interest in 2018 was 16.04%, which is significantly lower than the APR we saw above for store cards like Home Depot.
3. New cardholders enjoy a modest discount with the Home Depot credit card
For new cardholders, the Home Depot Credit Card offers $25 off up to $999 on your first purchase, or $100 off if you spend $1,000 or more. Obviously it is a not inconsiderable discount.
However, unlike many other brand name credit cards, there are no rewards for in-store purchases. So maybe other cards are better for you.
For example, if you’re the do-it-yourself type of person and not a fan of Home Depot, Lowe’s Advantage Card offers a 5% discount on eligible store purchases, and for purchases of $299 and more, you can choose the 5% discount or a similar deferred interest offer.
4. Cardholders enjoy exclusive offers and a longer period to make returns.
One of the benefits of the home depot credit card is that heFrequent shoppers have one year of hassle-free credit card returns, which is four times longer than you typically get on Home Depot purchases without a card. That could come in handy, especially on big purchases that you sometimes end up regretting.
Cardholders also enjoy exclusive rotating offers, such as 10% off a specific brand for a specified time or 24-month financing offers during special promotions.
5. Home Depot offers an exclusive card for larger projects
An excellent option offered by the brand is the Home Depot Project Loan Card, which allows cardholders to borrow up to $55,000 for large improvement projects, at a relatively low annual interest rate (7.99% as of July 2019) and for a term of up to 84 months (seven years).This card is designed to finance large projects like kitchen or bathroom remodels and may be attractive to consumers who don’t have access to lower APR loans elsewhere., as is the case with a home equity loan, for which you need a good credit score if you want to enjoy a good APR.