The lowe’s credit card offers customers financing and special benefits on home improvement products at Lowe’s stores in the United States.
Cardholders can choose between discounts on everyday purchases and special financing terms for purchases over a certain amount. Like any credit card, the lowe’s credit card It has terms and conditions that should be thoroughly reviewed.
How the Lowe’s credit card works
Once approved and activated, the card can be used to make purchases at Lowe’s up to a certain credit limit, based on the customer’s creditworthiness. The Lowe’s credit card is not accepted at any other store or ATM.
This credit card, like most, provides a revolving line of credit. Cardholders can avoid interest charges by paying the balance in full each month. As of February 2020, any balance carried over beyond the first month accrues interest at an annual percentage rate (APR or Annual Percentage Rate) of 26.99%.
Lowe’s credit card benefits
Cardholder benefits include a 5% discount on eligible purchases made with the card and 0% interest for six months on purchases of $299 or more. For purchases of $2,000 or more, customers can request a term of up to 84 months of fixed payments at a reduced APR.
Note that it is not possible to combine the 5% discount promotion with six months of zero interest or special financing offers. With the six-month promotion, minimum payments must be made on time each month. In addition to paying the total amount of the purchase at the end of six months. Otherwise, the 0% interest promotion is voided and interest is applied to the purchase.
The special financing offer of 36, 60 and 84 months is structured with fixed monthly payments at reduced rates of 3.99%, 5.99% and 7.99%, respectively.
Who are the most benefited?
The lowe’s credit card offers great benefits to home improvement enthusiasts, DIYers and those who shop frequently at Lowe’s.
Even if special financing offers are never used, a cardholder who purchases many home improvement products you can save a lot of money every year with the 5% discount promotion. For example, a cardholder who spends $2,000 a year at Lowe’s saves $100 over the year.
A person planning a major home renovation who doesn’t want to pay the full cost up front can benefit from the card. The cost is financed over 36 months at 3.99% APR. This means paying less in interest than you would with most credit cards.
Lowe’s vs. Home Depot
the Home Depot Inc. (HD), Lowe’s main competitor, offers a credit card with features similar to the lowe’s credit card. The Home Depot credit card has the same 0% interest for six months of benefit as the Lowe’s card. Your APR ranges from 17.99 to 26.99% based on creditworthiness. Therefore, the cardholder can pay a lower or slightly higher interest rate than the Lowe’s card, depending on their credit.
Also in the case of returns, Home Depot gives cardholders a full year to return products for a full refund, as opposed to the 90 days given to regular customers.
For large purchases, Home Depot offers a separate card known as the Project Loan Card. This card provides loans of up to $55,000 payable in 84 months at a fixed APR of 7.99%.
holders of lowe’s credit cards who choose the 0% financing offer for purchases of $299 or more and do not pay off the entire purchase within six months will have interest applied retroactively to the date of purchase.
Also, making the minimum card payment each month is not always enough to pay off the purchase in full within six months.
Therefore, borrowers who want to avoid surprise interest charges they must remain vigilant so as not to leave any outstanding balance after the six-month period is over.