Lowe's Advantage Credit Card Review: Is It Worth Applying For?

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Citi is an advertising partner.

The Lowe's Advantage Credit Card can be a great option for anyone who frequently shops at Lowe's, given the high savings and financing features it offers cardholders. That said, the Lowe's Advantage Credit Card can only be used for purchases as Lowe's, so people looking for an everyday card would be better off with a different card. For those who don't mind carrying multiple cards, the Lowe's Advantage Credit Card does come with some great benefits that make it a good backup card.

Lowe's Advantage Credit Card Review: Great Pick for Home Renovators and DIYers

Anyone making several expensive home repairs may find themselves frequently shopping at Lowe's, where it's hard to top the Lowe's Advantage Credit Card's 5% discount. For reference, some of the top cash-back rewards cards offer merely a 2% rewards rate—albeit, you can earn that rate on non-Lowe's purchases, too. Although the Lowe's Advantage Credit Card can only be used at Lowe's, the fact that it comes with no annual fee compensates for its limited use.

Good For...Bad For...
Costly home renovationsSomeone looking for an everyday card
Someone searching for a credit card with no annual feeContractors or business owners
Someone who wants cash-back rewards

The main drawback of the Lowe's Advantage Credit Card is that cardholders can't combine its benefits. You'll have to choose between applying the 5% discount or one of the card's financing features. Anyone looking to apply for the card should consider how it compares to other cards that either offer cash-back rewards or have similar financing features.

Contractors or small-business owners in search of a credit card should note that Lowe's has a suite of three business credit cards to choose from. The cards offer varied benefits, but they're all in some way better than the consumer version of the card for contractors and small-business owners. For example, the Lowe's Business Account card offers reduced job-site delivery fees. This feature alone can save you thousands of dollars over time. Business credit cards tend to also carry a higher credit limit.

Bottom Line: Anyone whose budget is stretched due to large home renovations can benefit from the Lowe's Advantage Credit Card's great 5% discount and financing features. However, other cards offer similar features that can be used outside of just Lowe's stores. You should also keep in mind that the Lowe's Advantage Credit Card is a store card, meaning you likely won't need a very high credit score to get it. Non-store cards may be tougher to qualify for.

Lowe's Advantage Credit Card Benefits and Features

Everytime a cardholder uses their Lowe's Advantage Credit Card for a Lowe's store purchase, they are automatically eligible for a 5% discount. For example, if a cardholder purchases a light fixture for $100, the actual charge would only amount to $95, reflecting the 5% savings. The discount excludes a few products and services, such as extended protection plans and delivery charges. Furthermore, the discount can't be stacked, which means cardholders with coupons have to decide whether to use the 5% discount or the coupon's discount.

Lowe's Advantage Credit Card Benefits at a Glance

Annual FeeNo Annual Fee
APRStandard APR is 26.99%
Financing BenefitNo interest if paid in full within six months for purchases of $299 or more
Project Financing Benefit36 fixed monthly payments at 3.99% APR, 60 fixed monthly payments at 5.99% APR, or 84 fixed monthly payments at 7.99% APR until paid in full
DiscountGet 5% off your eligible purchases

Cardholders have the option to forgo the 5% discount in order to receive 0% interest for six months on purchases of $299 or more. If purchases aren't paid off in the six-month time frame, the cardholder will have to pay interest from the purchase date. Keep in mind that you'll still have to make minimum payments. For example, you can't purchase a $400 chandelier and skip payments until the sixth month—even if you plan to pay for it in full at that time.

A cardholder who makes a purchase of at least $2,000 can request to use the Lowe's Advantage Credit Card's project financing feature. The feature grants approved cardholders a reduced annual percentage rate (APR) for a certain number of months. The specific APR you'll receive will depend on the number of fixed monthly payments you decide to make.

How Does the Lowe's Advantage Credit Card Compare to Other Cards and Products?

As mentioned, the Lowe's Advantage Credit Card makes sense if you're looking to make large home-related purchases. However, even then, prospective cardholders should consider how the Lowe's Advantage Credit Card compares to other cards and products.

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

If you're after discounts on hardware purchases, we recommend the Lowe's Advantage Credit Card over The Home Depot Consumer Credit Card. That's because The Home Depot Consumer Credit Card lacks one critical benefit: a discount feature. While The Home Depot Consumer Credit Card allows cardholders to save $100 on a purchase of $1,000 or more, the offer is only valid for new accounts and is a one-time deal. Otherwise, The Home Depot Consumer Credit Card offers similar features to the Lowe's Advantage Credit Card. For instance, both cards offer interest-free financing for six months on purchases of at least $299, and both come with no annual fee.

Consider this if...

  • You'd prefer to shop at Home Depot over Lowe's.
  • The idea of one-year hassle-free returns is enticing.

Lowe's Advantage Credit Card vs Citi® Double Cash Card – 18 month BT offer

  • On Citi's Secure Website
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Unlike the Lowe's Advantage Credit Card, the Citi® Double Cash Card – 18 month BT offer makes for a great everyday card. Cardholders can Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay. While the Lowe's Advantage Credit Card tops the v when it comes to purchases at Lowe's due to its 5% discount, the Citi® Double Cash Card – 18 month BT offer offers a better rewards rate everywhere else. Overall, the Citi® Double Cash Card – 18 month BT offer is one of the best cash-back cards on the market. If you're going to apply for just one new credit card, we'd recommend making it the Citi® Double Cash Card – 18 month BT offer.

Consider this if...

  • You'd prefer cash-back rewards versus an automatic discount on purchases.
  • You need a primary credit card.

Lowe's Advantage Credit Card vs Chase Freedom Unlimited®

Chase Freedom Unlimited®
This product is not available through ValuePenguin.
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Cardholders who are enamored with the Lowe's Advantage Credit Card due to its financing features should consider the Chase Freedom Unlimited®. The Chase Freedom Unlimited® offers cardholders a 0% intro APR for 15 months from account opening on purchases and balance transfers, then a 16.49% - 25.24% Variable APR. Cardholders who need to make large one-time purchases should opt for the Chase Freedom Unlimited® given its low intro APR, but those who will make large ongoing purchases should consider applying for the Lowe's Advantage Credit Card.

Consider this if...

  • Your purchase needs will be limited to a time frame of a few months.
  • You want cash back and a low intro APR.

Consider a Personal Loan: Earnest

  • on LendingTree's secure website
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Anyone who is taking on a large home renovation project that will cost more than $15,000 should consider applying for a personal loan over a credit card. Of course, we only recommend this strategy for homeowners who need to make emergency repairs—for example, if your home insurance claim has been rejected by an insurer. To be clear, a personal loan is not a revolving line of credit; rather, it's awarded to the applicant as one lump-sum amount.

Earnest offers great personal loans for creditworthy applicants for up to $50,000. Keep in mind that an Earnest personal loan can be exhausted, therefore, anyone making frequent or ongoing smaller purchases would likely be better off applying for the Lowe's Advantage Credit Card. Personal loans also don't have introductory 0% APR financing periods, meaning you'll pay interest from day one. That's why we only recommend applying for a personal loan under an emergency situation.

Consider this if...

  • Your purchases will cost more than $15,000.
  • Your home renovation is an emergency.

The information related to the Chase Freedom Unlimited®, Citi® Double Cash Card – 18 month BT offer and the The Home Depot Consumer Credit Card have been independently collected by ValuePenguin and have not been reviewed or provided by the issuer of this card prior to publication.

Joe Resendiz

Joe Resendiz is a former investment banking analyst for Goldman Sachs, where he covered public sector and infrastructure financing. During his time on Wall Street, Joe worked closely with the debt capital markets team, which allowed him to gain unique insights into the credit market. Joe is currently a research analyst who covers credit cards and the payments industry. He earned a bachelor’s degree from the University of Texas at Austin, where he majored in finance.

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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).