Home Depot Credit Card Review

The coronavirus (COVID-19) pandemic has caused a surge in home renovations across the United States. With more time on their hands, people have naturally become eager to undertake both minor and major home remodeling projects.

With the Home Depot credit card, financing any home renovation project may become more convenient, especially if you’re on a tight budget. It’s important to remember that the Home Depot credit card is different from other store credit cards.

Instead of offering rewards and discounts for your purchases, the Home Depot credit card leverages a six-month financing option for any purchases exceeding $300. This can help customers finance multiple home renovation projects simultaneously.

This credit card does have noticeable disadvantages, such as the lack of cashback rewards and a high penalty APR if you miss a payment. This Home Depot credit card review will break down the basics of this offer, as well as the pros and cons to help you make an informed decision about whether to apply.

Home Depot Credit Card Review: The Basics

The Home Depot credit card is unlike most store credit cards, primarily because it’s sole purpose is to finance home renovation projects. There isn’t any loyalty program to speak of.

Instead, customers can apply for and use this credit card if they are frequent shoppers at Home Depot and need some financial breathing room to handle major purchases. Fortunately, frequent shoppers can take advantage of a $0 annual fee with this credit card.

This lucrative financing benefit does have its caveats. The interest rate for this credit card can increase substantially over time. Thus, you should only apply for this credit card if your home renovation projects are considered to be an investment.

For example, if you’re remodeling your home to improve its resale value, then applying for the Home Depot credit card will be an acceptable option. You should avoid using this credit card to finance items that aren’t an actual investment into your home, such as a power drill or ladder.  Instead use a card like Netspend for smaller purchases.

If you do decide to purchase home renovation equipment, you should make these decisions only if you can pay the amount back by the end of the month. Otherwise, you’ll be penalized into paying an APR within 17.99% – 26.99% variable. Furthermore, if you do plan on applying for the Home Depot credit card, you should use the company’s pre-approval tool to make sure you quality without negatively impacting your credit score.

Home Depot Credit Card Benefits

The Home Depot credit card isn’t for everyone. However, this credit card is an exceptional financial benefit for customers who are looking to:

Finance Major Purchases
The sole purpose of applying for this credit card is to finance major purchases for multiple home improvement projects. Whether you’re undertaking a massive home renovation project or just making small repairs, you can use this credit card to bankroll any project without having to pay an unreasonable interest rate.

The Home Depot credit card offers members a six-month financing period to pay for large purchases over $300. If you pay back these purchases within this period, you won’t be charged any interest at all.

In fact, with special promotions, you can finance specific Home Depot purchases for up to 24 months.

Receive Coupons on Eligible Purchases

The Home Depot credit card does not offer a sign-up bonus. Instead, members can receive coupon offers when they sign up. These offers are typically based on the amount of purchases you make.

Take Advantage of an Longer Return Period

Standard customers have 180 days until they return most items back to Home Depot for a refund. In some cases, they’ll only have 30 or 90 days depending on the purchase. When you apply for the Home Depot credit card, you can return a product up until a year after your purchase.

However, if you purchase anything from the Home Depot Design Center, you’ll still be subject to the 90-day return policy.

Home Depot Credit Card: Deferred Financing

If you’re planning to apply for the Home Depot credit card, it’s best if you first understand what deferred financing is. This credit card provides deferred financing or simply no interest for specific purchases within six months.

With deferred financing, you must pay your balance at the end of the six-month period. If there is a remaining balance at the end of this period, even if it’s just two cents, you’ll be subject to paying all the interest for the six-month period.

The penalty APR for this credit card ranges from 17.99% – 26.99% variable, so you’ll definitely want to avoid this outcome. By making major purchases that will add value to your home and avoiding the temptation of splurging on unnecessary items, you can avoid this penalty altogether.

Home Depot Credit Card: Pros and Cons

Ultimately, it all comes down to the advantages and disadvantages that will determine if you want to apply for this credit card. Here are the pros and cons of applying for the Home Depot credit card:

● There is a $0 annual fee
● It’s very easy to get approved for this credit card
● There is $0 APR financing for a 6-24 month period

● There isn’t a loyalty program, nor rewards or bonuses.
● There is a noticeably high APR variable
● Deferred interest can be problematic to customers and result in exorbitant interest fees

Home Depot Credit Card Review: The Verdict

Home renovations are certainly in style, and the Home Depot credit card can help homeowners finance all kinds of improvement projects. Particularly, this credit is ideal for homeowners who want to add substantial value to their home.

In this case, if they’re planning for a potential sale in the future, they won’t incur high
interest rates if they make smart purchases within the six month period. However, if you’re not going to sell your home any time soon, or if you want to engage in a steady project over time, applying for this credit card won’t be a smart option.

Read our other credit card reviews to see which one works best for you!

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