Home Depot Consumer Credit Cards: Should You Apply Now?



Financing Your Home Renovations

Home Depot offers two options for consumer financing.  The credit card does not offer flashy rewards but it does provide a decent financing option.

Customers can also elect for the project loan for bigger expenses.

Deciding whether or not you should finance your purchase will depend on several factors.

Let’s take a look at these consumer financing options.

Picture of the Home Depot Credit Card
The Home Depot Credit Card

Understanding The Options – Credit Card vs. Project Loan

There are two financing choices available to consumers with Home Depot.  The first is the store-branded Credit Card.

This option is best for smaller purchases or smaller projects.  Special financing is available for new cardholders.

The Project Loan is intended for large projects.  This card provides financing up to $55,000.  Special financing is available for Project Loans.

The primary difference between these two options will be the size of your expected project.

If you are using your card to make smaller, frequent purchases, then the credit card will be your best bet.

If you are embarking on a large project the loan option will probably be a better choice.

Features and Benefits – Consumer Credit Card

  • 6 months everyday financing
  • Special extended financing promotions
  • Up to $100 of qualifying purchase for new accounts
  • 1 year extended return policy
  • Pre-qualification check available before applying
  • No annual fee
Financing Purchases of $299 or More

The big feature of this credit card is the ability to use it for everyday financing.  Any purchase of $299 or more can be financed using your card.

You will pay no interest if the balance is paid off within 6 months of making the purchase.

The important feature of this offer is that your balance will still accrue interest in the meantime.

If you do not pay off your balance within the 6 month period you will be subject to the interest charges which will range from 17.99% – 26.99%.

This can be a very useful financing option for regular Home Depot customers.  It is extremely important to pay off your balance before the 6 months expires.

Failing to do so will result in interest charges and you will no longer be taking advantage for the special financing advantage that comes with this credit card.

Discount On Purchase For New Cardholders

Another feature of this card is the one-time purchase savings for new accounts.  Once approved for this card you can save up to $100 on a new purchase.

If you spend over $1,000 on your new account you will receive $100 off your total purchase price.  If you spend less than $1,000 (but at least $25), you will receive a $25 discount on your purchase.

This is a one time offer for new cardholders.  If you know you have a substantial purchase to make it is best to open your account at that time.

This will give you a better chance of taking advantage of the $100 discount.

Pre-qualify For The Home Depot Card

Citi Bank is the issuer of the Home Depot Consumer Credit Card.  Customers can check to see if they pre-qualify for the card before applying.

Citi Bank is well known for being very generous with their pre-qualification offers.  This is a huge plus for consumers because it will give you an idea of your approval odds.

There will be no hard credit check which means your credit score is not impacted whatsoever.

Extended Returns and Special Offers

Another great bonus for cardholders is the extended return policy.  All of your purchases made with your card will be subject to generous one-year return policy.

Additionally, this card also provides special offers and financing options.  Select financing offers may extend your zero percent financing up to 24 months.  These offers are consistently updated and cardholders will be alerted when new product offers become available.

Features and Benefits – The Project Loan

  • Low 7.99% fixed interest rate
  • Line of credit up to $55,000
  • 6 month buying window to complete purchases
  • Fixed payments for up to 84 months
  • No pre-payment penalties
  • No annual fee
Financing Your Project

As mentioned above, this option is designed for big projects and purchases.  After you are approved you will have 6 months to complete your purchases.  During this time your purchases will be subject to the 7.99% interest and interest payments will need to be met.

After the 6 months have expired you will enter the fixed-rate portion of your repayment plan.  All payments will remain the same and will be based on the total loan amount plus interest.

The interest rate for this option is very competitive with a personal loan or other flexible financing plans.

This provides an alternative from lending from a bank.  Consumers should consider other loan options if they find they can get a lower interest rate.

It is worth noting that personal loans typically run from about 6%-20% interest.  This will be a much better choice for consumers who would pay more in interest elsewhere.

Fixed Payments and No Pre-Payment Penalties

Once your loan amount has been set you will be provided with a fixed monthly payment.  This will not change throughout the repayment of your loan.

The loan will be subject to the 7.99% interest rate.

The best way to use this loan is to attempt to repay it as quickly as possible.  Repaying your loan early will reduce the amount of interest charged to your account.

There is no penalty for paying early and consumers should attempt to do so.

Home Depot Card and Loan Drawbacks

The primary downside to the Home Depot Credit Card is the lack of a solid rewards program.  The card is primarily designed to provide consumers with an option to avoid interest for qualifying purchases.

Unfortunately, the card does not provide additional rewards.

Cardholders will receive special offers and financing options.  If you are looking for big cash back options or other reward benefits, this card may not be the best choice for you.

As for the Home Depot Project Loan, the only significant drawback is the 7.99% interest is the same for all consumers.  In many ways, this will actually be a benefit for many individuals.

However, if you have stellar credit it is possible you can find financing options like a personal loan at a lower interest rate.

Managing Your Home Depot Accounts

Depending on which option you choose your account will either be managed through Citi Bank or MasterCard.  The Consumer Card is managed with Citi.  The Project Loan is issued through MasterCard.

Payment and Activation – Home Depot Card

New cardholders can activate their card online.  You will be required to create an account with Citi in order to complete your activation.

Once your account is set up you can manage all payments online.

Account Management – Project Loan

Your account will be managed with THD Loan Online.  This is a different account management tool than is used with the Credit Card.  Customers will need to create an online account.  Once set up you will have access to all of your loan details and payment options.

Final Thoughts For Home Depot Consumer Financing

Both of these options present decent financing for Home Depot Customers.  The lack of a rewards program is the biggest downside to the Home Depot Credit Card.

However, if you make regular purchases with Home Depot it can be a great way to finance your purchases and avoid costly interest.

The most important thing to keep in mind with this card is to always pay off your balance within the special financing period.

The Project Loan is going to be geared for customers who are starting a large project.  The interest rate is very low compared to credit card interest.

If you find that the interest rate is lower than other options this is a pretty solid financing choice.

The interest rate is very competitive but keep in mind that financing a purchase with interest is never ideal.

Let us know what you think about these cards in the comments below!

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