Do you shop at Home Depot frequently? Want to finance a home improvement project or a new appliance? The Home Depot credit card may be the best credit card for you.
Here’s what you should know about how it works and the card’s features. here are two types of Home Depot cards. The best credit card will depend on how much you plan to spend and how long you need to finance a purchase.
Overview of the Home Depot Credit Card
A regular Home Depot card is a fairly standard store card that can only be used at Home Depot. There are sometimes limited offers such as a discount on a brand when you use the Home Depot card and special financing offers. Here’s a quick overview to help you decide if the Home Depot card is the best credit card for your needs.
- No annual fee
- APR of 17.99% to 26.99%
- Up to $15,000 credit limit
- Special financing offers up to 24 months with deferred interest
The Home Depot Project Loan card works differently by giving you a 6-month purchase window followed by 84 months to pay off the balance. It also has no annual fee but it comes with a fixed APR of 7.99% and much higher credit lines.
Understanding Home Depot’s Financing Offers
There are two types of 0% interest offers when it comes to credit cards. Real 0% interest promos and deferred interest offers. The Home Depot credit card offers deferred interest promotions when you use the card to finance a purchase.
There are always several deferred interest offers available on certain purchases. Examples include:
- Pay No interest for 6 months on purchases of $299 or more
- You Pay No interest for 12 months on appliance purchases of $299 or more
- You Still Pay No interest for 12 months on Nest purchases of $349 or more
- Pay Nothing for 18 or 24 months on installed and special order shades, blinds, and shutters of $999 or $1,999
- No interest for 12, 18, or 24 months on a purchase of $299, $999, or $1,999 on your first purchase
With a deferred interest promotion, it’s important to pay your balance in full before the promotion ends. If you do, you will pay absolutely no interest charges on your purchase. If you don’t pay the balance in full before the promotion is over, you will be charged retroactive interest. Still, this can be an easy way to finance a major purchase such as a new appliance or a home improvement.
Builds Your Credit History
Store credit cards like the Home Depot card can be the best credit card for building your credit because it’s easy to get approved and there’s no annual fee. If you have limited or no credit history or you’re trying to repair your credit, the Home Depot card can help you establish a positive payment history.
Home Depot Credit Card vs Project Loan
Major home renovation or project, the regular Home Depot card may not be the best option. An alternative is the less advertised Home Depot Project Loan card. The Project Loan card has a much lower fixed APR that makes it a better option for long-term financing.
Project Loan card currently has no annual fee and a fixed APR of 7.99% with credit lines up to $55,000. With this card, you get a 6-month buying window to make purchases at Home Depot or pay for installation services then 84 months to pay off the balance. You can also pay off your balance early with no prepayment penalties. There will be a fixed monthly minimum payment starting at just $39 with a balance of $2,500 or $468 with a $30,000 balance.