The Home Depot Consumer Credit Card: Should You Get It?

The Home Depot Consumer Credit Card: Should You Get It?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Citi is an advertising partner

Renovating your home can be costly. So if you're working on multiple projects at once, you may have considered applying for The Home Depot Consumer Credit Card to score a discount or cardholder perks.

But unlike most store credit cards that offer discounts or rewards for your purchases, The Home Depot Consumer Credit Card takes a different approach. The card pitches a six-month financing offer for purchases over $299, which can help those who need to break up large purchases.

However, besides this benefit, The Home Depot Consumer Credit Card disappoints. The biggest downside is that this card doesn't offer any ongoing cashback rewards, as you might find on other credit cards. Plus, if you miss a payment, you could potentially face a high APR.

Good For

  • $0 annual fee, financing large purchases, extended returns

Bad For

  • No sign-up bonus, no rewards program, high APR

The Home Depot Consumer Credit Card benefits and features

The Home Depot Consumer Credit Card is not a traditional store credit card with a loyalty program. Instead, this card is designed for those who frequent the store and need breathing room to pay off big purchases — all for a $0 annual fee.

Even with the special financing offer, the interest charges can mount up and be financially straining over time. As a rule of thumb, you should only finance big purchases that you consider to be an investment. For example, if you need to take out credit to pay for a remodeling that will increase your home's resale value, the card may be worthwhile.

However, avoid the temptation to simply finance things that don’t have a long-term value, like a new power tool or electric saw. Ideally, those things should only be purchased once you can immediately pay your bill at the end of the month. Otherwise, you're subject to a high purchase APR ranging from 17.99% - 26.99% variable.

Before applying, you can use Home Depot's preapproval tool to see if you'll qualify for the credit card without affecting your credit score.

Finance large purchases

The primary benefit of applying for The Home Depot Consumer Credit Card is the ability to finance purchases. Whether you're working on small repairs around the house or an entire makeover, this card helps reduce the amount of interest you would pay.

The Home Depot Consumer Credit Card offers six-month financing on purchases of $299 or more. This means you won't be charged any interest if you pay the balance within this six-month period. You can even finance certain purchases for 24 months on special promotions.

What is deferred financing?
The Home Depot Consumer Credit Card advertises deferred financing or no interest on certain purchases for the first six months. You'll want to be sure to pay your balance in full by the end of the six months. If you have any remaining balance left over — even if it’s just 1 cent — you’re responsible for paying back all of the interest for the six month period. Since the card's APR ranges from 17.99% - 26.99% variable, you'll want to avoid this situation.

You can avoid this problem completely by applying for a card with a 0% introductory APR offer instead. With these credit cards, you’ll forgo interest charges during this set period, typically between 12 and 18 months. You'll have more time to pay back any charges and will only owe interest on your remaining balancing once the introductory period expires.

Receive a coupon on qualifying purchases

The Home Depot Consumer Credit Card does not come with a sign-up bonus. Instead, it comes with a coupon offer when signing up:

  • Enjoy $25 off on your purchase of $25 or more
  • Enjoy $50 off on your purchase of $300 or more
  • Enjoy $100 off on your purchase of $1,000 or more

This offer is valid until Jan. 27, 2021.

Enjoy an extended return policy

Home Depot offers a 180-day return policy on most items, with some items only qualifying for 30- or 90-day returns. But by owning The Home Depot Consumer Credit Card, you'll enjoy up to one year to return your purchases. However, items purchased at the Home Depot Design Center are still subject to the 90-day return policy.

How does The Home Depot Consumer Credit Card compare to other options?

Whenever you sign up for a credit card, you should consider how it stacks up against other available options. Shopping around and comparing offers will help you find the best deal for you and help you determine whether a store credit card is the best option.

The Home Depot Consumer Credit Card vs. Lowe's Advantage Credit Card

The Lowe's Advantage Credit Card is a much better offer from Home Depot's main competitor. It not only provides financing options, but also gives 5% off your eligible purchase or order charged to your Lowe’s Advantage Card. However, you cannot simultaneously finance a purchase and receive a discount.

Just like The Home Depot Consumer Credit Card, you can enjoy six-month financing on purchases of $299 or more. Alternatively, you can finance purchases of $2,000 or more into 84 fixed monthly installments with a reduced APR of 7.99%.

Keep in mind, though, that the standard APR for the Lowe's Advantage Credit Card is relatively high. At 26.99%, you never want to miss a payment, as this will negate any of the savings you earn with this card.

Highlights

  • Special financing offers
  • 5% off your eligible purchase or order charged to your Lowe’s Advantage Card
  • $0 annual fee

The Home Depot Consumer Credit Card vs. Citi® Double Cash Card – 18 month BT offer

  • On Citibank's Secure Website

Since The Home Depot Consumer Credit Card does not offer any discounts on purchases, you may want to apply for a cashback credit card instead. The Citi Double Cash lets you Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.

There are no caps or restrictions, so you'll receive valuable rewards that you can convert into a statement credit, direct deposit, check or points. While the Citi® Double Cash Card – 18 month BT offer does not have special financing offers, earning cash back on both your costly and routine purchases may be a better deal for some.

Highlights

  • Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases.
  • $0 annual fee

The Home Depot Consumer Credit Card vs. Discover it® Cash Back

If you're after a new credit card, the Discover it® Cash Back can help you earn maximum rewards. The card lets you earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate, 1% unlimited cash back on all other purchases - automatically. Your bonus cash each quarter ks limited to the first $1,500 spent.

Below, we've included the 5% rotating bonus calendar for 2021:

January-March
April-June
July-September
October-December
Grocery stores, Walgreens & CVSGas stations, select streaming services and wholesale clubsRestaurants & PayPalAmazon.com, Target.com & Walmart.com
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The best part about the Discover it® Cash Back is that it comes with an introductory offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

Not only are you earning up to 5% cash back, but you also have the opportunity to double all of the rewards you earn in one year. Although home improvement stores aren't part of the calendar, you can still earn 5% back on common purchase categories.

Highlights

  • 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate, 1% unlimited cash back on all other purchases - automatically
  • Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.

ValuePenguin's verdict

The Home Depot Consumer Credit Card offers the unique opportunity to finance expensive purchases without accumulating interest. Unfortunately, the lack of a discount or meaningful rewards makes it difficult to recommend for most people. In the long run, a cashback card can help you earn rewards on all purchases — not just at Home Depot.

The information related to The Home Depot Consumer Credit Card,Lowe's Advantage Credit Card and Discover it® Cash Back has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.

Stella Shon

Stella Shon is a travel credit cards writer with ValuePenguin. After studying abroad in Paris three years ago, she became determined to keep traveling. That’s when she discovered the world of points and miles, which enabled her to travel on a student budget. Since then, she’s flown over 150,000 miles and earned more than 500,000 points and miles with eight different credit cards. While in college, she even co-founded her own travel agency, helping her peers plan and book trips on a budget. As a recent journalism graduate from UNC-Chapel Hill, her goal is to write about travel to make it simpler and achievable for everyone. Her work has also appeared on JetBlue, The Points Guy, Travel + Leisure and CNBC.

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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).