There is special financing available for large purchases. However, it is not a real 0% deal, and you will not get any continuing benefits.
There’s something alluring about browsing around Home Depot’s vast aisles, daydreaming about potential home improvement projects. Despite its $0 annual fee, The Home Depot Consumer Credit Card does not inspire the same positive sentiments.
This is due to the fact that the store-branded card does not collect recurring benefits and provides few incentives. Even the most devoted Home Depot customer would be better served with a flat-rate cash-back or rewards card.
The following are five facts regarding The Home Depot Consumer Credit Card:
1. It provides postponed (but not waived) interest
The Home Depot Consumer Credit Card may assist you in financing a large home improvement project; in fact, it is its principal selling feature. It provides six months of interest-free credit on purchases of $299 or more.
However, keep in mind that there is a distinction between delayed interest and a real 0% intro APR deal. The former just “put aside” interest, but the latter temporarily waives it.
If you do not entirely pay off the amount on The Home Depot Consumer Credit Card before the six-month mark, you will be liable for interest accumulating from the day you made the transaction. That might turn out to be a costly blunder.
You’d be better off if you could qualify for a card with a real 0% introductory APR deal that lasts 12 months or longer. For example, the Chase Freedom Unlimited® provides a 0% initial APR for 15 months on purchases and debt transfers, followed by an ongoing APR of 14.99 percent -24.74 percent Variable APR. Furthermore, it generates rewards: at least 1.5 percent on everything.
2. You will not desire to keep a balance
Even if you don’t use the deferred interest option, you should avoid carrying debt from month to month. The continuing interest rate, like with many store-branded credit cards, maybe fairly high. The continuing APR ranges from 17.99% to 26.99% Variable.
In contrast, the average APR for interest-bearing accounts in 2018 was 16.04 percent.
3. New cardholders get a little discount
The Home Depot Consumer Credit Card gives $25 off purchases of $25 to $299, $50 off sales of $300 to $999, and $100 off purchases of $1,000 or more on new accounts. That is not insignificant.
Nonetheless, there are no recurring benefits for in-store purchases, unlike many store-branded credit cards. You’re capable of doing better.
For example, if you’re a do-it-yourselfer who isn’t a fan of Home Depot, the Lowe’s Advantage Card gives 5% off qualifying store purchases, earning it a spot on. For orders of $299 or more, you may pick between the 5% discount and a comparable deferred interest deal.
4. Cardholders benefit from an extended return time as well as unique deals
Frequent Home Depot shoppers may benefit from the card’s one-year hassle-free return policy, which is four times longer than you’d ordinarily receive on Home Depot purchases. That might come in helpful, particularly if you make huge purchases that you subsequently regret.
Cardholders may also take advantage of rotating unique deals, such as 10% off a certain brand for a short period or 24-month financing during special campaigns.
5. Home Depot has a separate credit card for larger jobs
Home Depot also provides the Home Depot Project Loan Card, which enables users to borrow up to $55,000 for large home improvement projects at a low APR (7.99 percent as of July 2019) for up to 84 months (seven years).
It’s intended to fund large projects like kitchen or bathroom remodels and may appeal to customers who don’t have access to lower-interest financing elsewhere, such as a home equity loan.