Posted by: John S Kiernan

EDITOR’S RATING 1.5 / 5 PROS

• No annual fee
• Available to people with limited/fair credit

CONS

• No rewards
• 0% intro rates use ''deferred interest''
• Likelihood of an above-average regular APR

The Verdict: Home improvement is an expensive endeavor, which means any trip to Home Depot can be one, too. Considering that purchases of more than $900 each account for about 20% of the company’s sales and most Americans have less than $1,000 in savings, it’s clear that financing is likely to enter the equation.

That helps to explain why financing needs represent one of the biggest reasons consumers are interested in the Home Depot® Credit Card. After all, the card doesn’t offer rewards, which essentially rules out its usefulness if you can pay for purchases in full by your due date. It also offers a 0% introductory interest rate for six months on purchases of at least $250. That might seem appealing until you consider that missing a payment by a day or leaving even $1 unpaid by the end of the intro period will result in interest applying retroactively to your entire original purchase amount at a rate as high as 26.99%.

So, as you’ll see below, most people likely will be better off sourcing the plastic they need for their home-improvement projects elsewhere.

The Highlights

• No Annual Fee: The best part of the Home Depot® Credit Card is something that it lacks: an annual fee. It’s not uncommon for a store-affiliated credit card not to charge an annual fee, even if it will approve applicants who have limited credit, but it’s definitely a plus nonetheless. 

• 1-Year Hassle-Free Returns: The Home Depot® Credit Card gives you a full 365 days to return an item for a full refund. That’s pretty sweet. 

• Credit-Building Capabilities: Approvability is a major hurdle that anyone with limited credit must climb over. Placing a refundable deposit on a secured credit card is always an option, but cards that will approve relatively unproven consumers at no cost are even better. The Home Depot® Credit Card is one such option, and if you simply keep it open and in good standing, you don’t even need to make purchases to improve your standing. It could therefore serve as a bridge to better credit and a better card, which has to be considered a benefit.

The Lowlights

• You Won’t Be Rewarded: With all of its big-ticket items, Home Depot is a place where you can rack up some serious credit-card rewards. You’ll have to use unaffiliated plastic for that, however, because the Home Depot® Credit Card does not offer rewards: no initial bonus, no per-dollar earning rate, nothing. 

• Regular APR Won’t Do You Any Favors: If you’re approved for the Home Depot® Credit Card, you will be assigned a regular APR between 17.99% - 26.99%. The rate you’ll get is a function of creditworthiness, with the lowest rate likely being limited to people with excellent credit and the highest rate being reserved for those with limited credit.For context, the average APR for all new credit-card offers is 19.26%, the average for fair credit is 22.99% and the average for store credit cards is 25.76%, according to WalletHub’s latest Credit Card Landscape Report. 

• Deferred-Interest Financing Poses Risks: Home Depot periodically offers 0% financing “deals” of varying lengths, often with a specific spending threshold attached. For example, the Home Depot® Credit Card’s base financing offer is 0% interest for six months on purchases of at least $299. Special 24-month financing offers also are available from time to time.However, there is a very important caveat to this deal. It’s known as deferred interest, which means interest will retroactively apply to the entire amount of the purchase that you financed if you slip up in the slightest. If you pay your bill a day late or you’re a dollar short on paying off your full balance by the end of the promotional period, it will be as if the 0% deal never existed. That has to be worrisome when you consider the lofty regular APR levied by this card. At the very least, it makes using a credit card calculator imperative if you use the Home Depot Card for financing purposes.

Other Things To Consider

• Decent Reviews: The Home Depot® Credit Card’s terms aren’t too complex, as it doesn’t bring too much to the table. A thorough review of this offer must therefore extend beyond the limited features it provides to include metrics such as customer ratings, which figure to be revealing when it comes to customer service and the overall cardholder experience.The Home Depot® Credit Card has an average rating of 3.6 out of 5 stars on WalletHub, with 50% of people giving four stars and only 15% giving two or fewer. You can read their reviews in detail for more context, but these ratings seem to indicate general satisfaction. 

• Your Credit Score: Your credit score should ultimately be a big determinant of whether it makes sense to apply for this card. After all, you can likely do a lot better in terms of either rewards or financing with a different card if you have good or excellent credit. If you have limited or fair credit, it’s more of a discussion.You can see exactly where you stand by checking your credit score for free on WalletHub – the only site that offers free daily updates.

Compared To The Competition

	Home Depot® Credit Card	Lowe's Store Card	SponsoredCiti Simplicity® Card - No Late Fees Ever	SponsoredCapital One® QuicksilverOne® Cash Rewards Credit Card
Annual Fee	$0	$0	$0	$39
Rewards Bonus	N/A	N/A	N/A	N/A
Rewards Rate	N/A	5% Cash Back	N/A	1.5% Cash Back
Purchase Intro APR	0% for 6 months	0% - 7.99% for 6 - 84 months	0% for 12 months*	Not Offered
Transfer Intro APR	Not Offered	Not Offered	0% for 21 months*Transfer Fee: 5% (min $5)	Not Offered
Regular APR	17.99% - 26.99%	26.99%	16.24% - 26.24%* (V)	26.96% (V)
Editors’ Rating	1.5 / 5	3.0 / 5	3.7 / 5	4.7 / 5
Details, Rates & Fees	Learn More	Learn More	Learn More	Learn More
Winners	Citi Simplicity® Card - No Late Fees Ever		Capital One® QuicksilverOne® Cash Rewards Credit Card

from Wallet HubWallet Hub


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