Home Depot Credit Card Review and Benefit Analysis

by Credit Card Wisdom on June 29, 2011

Home Depot Credit Card Review and Benefit AnalysisHome 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.

You can learn more about the Home Depot credit card here or compare this card with the best credit card offers currently available by visiting the credit card comparison section of CardWisdom.

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{ 3 comments… read them below or add one }

Greg September 29, 2011 at 11:00 am

At Home Depot, I thought I was getting a deal on about $5,000 of appliances using their credit card with a 0% introductory rate. Just found out six months later they are charging me 23% retroactively. So there is no deal after all.

I am not happy, so I am telling, tweeting and blogging everyone I can. I literally have spent over $100,000 at home depot in home renovations over the years. However I intend to cancel my account, and will boycott them from now on. I will seek out the local businesses who may be a little more cost upfront but provide better service and will not scam with credit.


Credit Card Wisdom September 29, 2011 at 11:03 am


That’s a huge problem with the Home Depot card. With a regular, 0% APR credit card, you don’t pay interest retroactively. With the Home Depot credit card, if you don’t pay in full, you get charged the nosebeed rate on everything. If you still have a balance, I strongly recommend using a bank issued 0% balance transfer credit card so you don’t end up spending $1,000+ a year on interest paying this card off.


Credit Card Wisdom July 5, 2011 at 1:39 pm

Sorry to hear you missed out. About five years back my Mom made the same mistake, but to save maybe $20 tops. A few months later she wanted to redo her kitchen tops – she could have saved over $300! Neither of us were very happy about that.


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