How the Home Depot Credit Card Works: Benefits and Rewards (2023)

How the Home Depot Credit Card Works

Home improvement isn’t cheap, but sometimes it becomes a “must do” instead of a “want to.” When that's the case, a credit card from Home Depot might be just the ticket, especially for emergencies that come with a high price tag.

Home Depot offers a variety of credit cards, including consumer cards and company cards. On the consumer side, Home Depot offers its consumer credit card that can be used by individuals at its stores. This card comes with six months of 0% financing for a purchase of $299 or more.

Home Depot also offers commercial cards for contractors and businesses. Its commercial cards include a commercial charge card and a commercial line of credit account (due in full each month). Home Depot’s credit cards are issued by Citibank.

The Home Depot Consumer Credit Card

Similar to other store cards, the Home Depot consumer credit card can be used to make everyday purchases at Home Depot. For purchases of more than $299, Home Depot offers 0% interest for six months and other promotions throughout the year. You can often find 12-month interest-free financing on appliances of $299 or more, 24 months of special financing on heating and air conditioning, and seasonal offers, such as $25 off snow blowers in the fall.

But beware of the promotions. The 0% financing makes for a great headline, but it’s only free if you follow the rules. Like any other “deferred interest” promotion, 0% for six months means that you have to pay the balance in full before the six months run out. If you’re even one day late, Citi (the bank behind the Home Depot credit cards) will charge you the full interest amount for the past six months—as if the promotion never existed.

Banks offer promotions like these because they know that consumers will have every intention of paying the balance long before the promotional period ends, but many will not. If you don’t have a history of consistently paying your credit card balances in full at the end of the month, it’s best to steer clear of promotional offers like these.

The Home Depot Project Loan Credit Card

If you’re planning a large renovation or building project, Home Depot has a project loan credit card with credit lines of up to $55,000. This card comes with no annual fees, up to 84 months to pay the balance in full, and a six-month buying window to purchase products.

The starting annual percentage rate (APR) is 7.42% (for the six-month payback) and the card comes with no perks. Think of it as a loan or a line of credit more than a credit card. Although the interest rate is much more attractive than the one on the consumer credit card, if you wait the full 84 months to pay the balance, your project becomes substantially more expensive.

Rewards and Benefits

The Home Depot consumer credit card offers an initial zero-percent interest rate for six months on purchases above $299. As of February 2021, Home Depot is also offering various rewards to consumers, including discounts and statement credit for certain purchases. In particular, Home Depot is offering free stain and 5% statement credit for certain pergolas and pavilions, as well as up to $500 off and 5% statement credit for particular sheds and garages.

Where Can Someone Get the Home Depot Credit Card?

Those interested can apply for the Home Depot credit card on their website. As well, the card can be applied for in stores. The decision process for both is generally instant, but it can take up to 10 days to receive the card.

What Kind of Credit Is Required for the Home Depot Credit Card?

The requirements for the Home Depot card are not laid out, but note, the credit requirements are generally more lenient for store cards versus regular credit cards. As with most store credit cards, the credit needed is generally fair to good.

Where Can the Home Depot Credit Card Be Used?

The Home Depot credit card, which is a private label card, can be used online or in Home Depot stores. Note that Home Depot’s two consumer credit cards cannot be used at other stores or retailers, as it is not a general-use credit card.

Alternatives to the Home Depot Credit Card

If you’re not a contractor receiving discounts or benefits for brand loyalty, then many individuals may instead opt to shop at Lowe’s—one of the major Home Depot competitors. Lowe’s offers a consumer store-only card too, as well as cards for contractors. The Lowe’s credit card, also called the Lowe’s Advantage Card, comes with an APR of 26.99% and an introductory rate of 7.99% for 84 months on purchases above $2,000.

Terms and Conditions of the Home Depot Credit Card

The Home Depot card offers APRs of 17.99%, 21.99%, 25.99%, or 26.99%, based on creditworthiness. The card comes with the standard 25-day grace period and late payment fees can be up to $40.

Other than the special offers, don’t expect any perks like rewards points or cash back with this card. If you use a credit card responsibly, a card that offers cash back or rewards points might be a better option than a store card unless the promotional offers are appealing to you. The Home Depot Project Loan Card is more similar to a line of credit. It doesn't offer any perks or rewards, but you can borrow up to $55,000 for home projects and renovations.

Who Should Consider the Home Depot Credit Card?

If you’re an avid Home Depot shopper, the card may make sense for you. The card does not offer any cash back, but it could be enticing for those interested in the introduction offers currently being made. With that, consumers may want to consider one of the best cash back credit cards if they are going to be shopping at the home improvement store for routine fixes.

The Bottom Line

The Home Depot credit card can entice consumers looking to make a major renovation. The retailer also offers various commercial cards for contractors. Of note, the card does offer zero interest for six months on purchases above $299. For projects, such as fixing heat or A/C, replacing a water heater, or repairing plumbing, the card can be used for zero-interest financing.