Home Depot is America’s largest home improvement warehouse store. Both online and in the checkout line, consumers are often encouraged to apply for the Home Depot credit card. At times, this card offers compelling features, such as a 10% discount on purchases or a 0% rate. In the long run, however, the Home Depot credit card is beset by the same issues that plague most store credit cards: high interest rates, limited acceptance and lackluster rewards.
Home Depot Credit Card Overview
The Home Depot credit card is not affiliated with any payment network such as Visa or MasterCard. Therefore, it can only be used for purchases at The Home Depot. Furthermore, Home Depot does not have loyalty program, so this product is not a rewards credit card. In fact, the Home Depot card’s primary benefit is an offer for interest free financing lasting six months on purchases of at least $300. Unlike typical 0% APR credit card offers, interest will be charged from the date of purchase if the cardholder fails to pay the monthly minimum payments or the entire balance before the special rate expires.
Once the 0% rate ends, Home Depot credit card customers will then be faced with an interest rate that will be no lower than 17.99% and can range as high 21.99%, 25.99%, or 26.99% depending on their credit score. Even the lowest interest rate offered on this card is significantly higher than what is offered on most credit cards, some of which offer significantly longer introductory periods that last 15 months or more.
Benefits and Disadvantages of the Home Depot Credit Card
Most cardholders apply for the Home Depot credit card in stores where they are oftentimes offered 10% off purchases made that day in addition to a 0% introductory rate lasting 6 months. This can be a good deal for homeowners who are financing a few thousand dollars or more in appliances or some other major project so long as they can pay their entire balance during the promotional period. Otherwise, the sky high interest rates charged can nullify any in store discount and turn what appears to be a good deal into anything but.
Additionally, a number of low interest, cash back credit cards offer signup bonuses of $100 and longer 0% interest periods. One of these cards can provide significantly more value than the one time discount and limited 0% promotion offered by Home Depot.
Because the Home Depot credit card doesn’t offer remotely competitive interest rates and is not accepted at other stores, a general low interest credit card that offers a sign up bonus and a long 0% interest rate will typically offer consumers much more value. Additionally, these cards also offer credit card rewards programs, something the Home Depot credit card does not. Consequently, unless you are about to make a large purchase and can save a lot of money via a 10% one time discount, the Home Depot credit card is probably not a great credit card option.
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