How To Save With Home Depot's Credit Card in 2024

If you're not working on major renovations, is the Home Depot credit card even worth it?
Published
Home Depot storefront.

Plenty of retailers offer their own credit cards to boost store loyalty and provide benefits you won't find elsewhere. It should come as no surprise that Home Depot is one of those retailers, but before applying it's important to know what the benefits of a Home Depot credit card are as well as potential drawbacks. Considering Home Depot also has more than one credit card available, it's helpful to investigate all your options to choose the one that's best for you.

Continue reading below for the pros and cons of the Home Depot credit card as well as the different types available.

What Is the Home Depot Credit Card?

As the name suggests, the Home Depot credit card is a credit card specifically for shopping at Home Depot. There are four different options but most often this term refers to the most basic of them — that is, the Home Depot consumer credit card. This is the card that most general Home Depot customers will probably look into but there are other options to consider too (more on those below).

You Can Get Deferred Interest

The Home Depot consumer credit card offers deferred interest for six months on purchases of $299 or more. The biggest thing to keep in mind here is that deferred interest isn't the same as a 0% APR card — something that pops up a lot for introductory offers when companies are trying to persuade new users to apply. In the case of the Home Depot card, unfortunately it means that if you don't pay off your purchases in full within the period, you'll owe interest. And you won't just owe interest on whatever remains, either; instead, you could end up owing the amount of interest that basically would have accrued since you started making your purchases. That can turn an already costly set of home improvements into an even more expensive endeavor. Be sure to read the fine print on these credit card offers before you take the time to apply, as it can be easy to fall into bad habits that wrack up debt.

But Don't Carry A Balance

As mentioned above, if you do apply and are approved for a Home Depot consumer credit card, you may be able to defer interest on select purchases for six to 12 months. But just because you can doesn't mean you should, and you definitely won't want to carry a balance on it just in case. Remember that any balance you still have after the deferment period is over will immediately accrue all the interest that would've been owed from the time of purchase — and will continue to do so until you pay off your balance.

You'll Have Longer Return Periods

One notable perk of the Home Depot credit card is that you'll have a full year to make returns. This can certainly make it easier to tackle projects where you may be uncertain about what exactly you need or want, but keep in mind that there could be exceptions. Be sure to read up on the return policy before you buy something you're unsure of to avoid buyer's remorse down the road.

There's also a good chance you'll receive exclusive offers as a cardholder, too. For instance, during promotions you may be eligible for 24 months of financing instead of the standard six month period. If you're a cardholder, it's worth watching for these specials to pop up to make your larger purchases.

There's a Separate Card for Bigger Projects

Speaking of larger purchases, you may want to consider the Home Depot Project Loan credit card if you're looking at bigger projects like full kitchen renovations or bathroom overhauls. This particular credit card offers the following features:

  • Six months to buy everything you need for your project
  • Fixed monthly payments with more time to pay
  • Loans up to $55,000
  • Four different tiers of APR and loan duration
  • No annual fee
Note that the six month period for this card starts the second you're approved, so it's a good idea to have project plans in place before applying for this one. Additionally, the fixed monthly payments are meant to offer more flexibility in paying off your balance, which you can do at any time.

The four tiers available at the time of writing include 66 monthly payments at 7.42% APR; 78 monthly payments at 12.86% APR; 90 monthly payments at 16.24%; or 114 monthly payments at 19.96% APR. The monthly payment will not exceed $20 per $1,000 spent and the APR is fixed for the life of the loan. You won't be required to offer a down payment either. All that said, it's important to note that these details can change at any time and you should read the fine print carefully before applying for a credit card.

Don't Count on Loyalty Perks

The Home Depot credit cards meant for standard consumers don't offer that many perks. That is, you won't be earning points or cash back on your renovation purchases. While the commercial credit cards can have perks such as these, that doesn't really help your typical weekend warrior. Because of that, it's important to keep in mind that there's no real incentive to apply and use the consumer credit cards from Home Depot over shopping without it — or even just shopping elsewhere.

What Are the Pros and Cons of the Home Depot Credit Card?

Pros Cons
6 months special financing on $299 or more Limited value for new applicants
Occasional discounts or offers for longer financing Special financing offers rely on deferred interest
Extended period of 1 year for returns Can only be used at Home Depot stores
No liability for unauthorized charges No rewards program for purchases

What Other Credit Cards Does Home Depot Offer?

The Home Depot consumer credit card isn't the only option for passionate DIYers. There are also the following options:

  • Home Depot Project Loan: As noted above, this is another credit card with special circumstances. It allows customers to finance larger projects via a loan rather than putting everything on a standard credit card. You'll have six months from approval to purchase everything you need and can be approved for amounts up to $55,000. Keep in mind that there are four tiers of APR and loan durations, but none of them are great options — the "best" one still has a 7.42% APR for a 66 month payment plan. If you have good credit, you can likely find better options than this.
  • Home Depot Pro Xtra Credit Card: This is a commercial revolving charge account and it's solely meant for contractors and other businesses buying similar items. The Pro Xtra credit card is also one of the only ones to offer any kind of perks for users. They can earn Pro Xtra Perks four times faster than those without it. Plus, it allows payment flexibility that will allows users to make low monthly payments or pay in full each month. Additionally, authorized user cards can be issued to trusted employees so they can also make purchases.
  • Commercial Account: This isn't a credit card, but it is another option for businesses that use Home Depot frequently. Businesses using this method will receive a 2% early pay discount if their invoices are paid online within 20 days, or they can opt to pay within 60 days if they need more time. Authorized users can be chosen and given spending limits as well as employers being provided with detailed purchase info to ensure everything is above board.

How to Apply for the Home Depot Credit Card

Applying to your choice of Home Depot credit card is relatively easy — it can be done online by visiting the Home Depot credit card services page and then reading over your options. Once you've decided which card you want to add to your wallet, simply click the relevant "Apply Now" button. Follow the instructions and you should be able to receive a response relatively quickly after. Do note that your credit will be checked and so an approval is not guaranteed. If you aren't approved, you'll likely receive a longer response detailing why in the mail. If you are approved, you'll most likely be able to start using your new details immediately.

How Does Applying Affect Your Credit Score?

As with other credit card applications, your credit will checked in what's known as a hard inquiry. Remember that these can affect your credit score and potentially lower them, depending on the circumstances and how many cards you've applied for in recent months.

The good news is that if you're only seeking a Home Depot consumer credit card, you can see if you prequalify to avoid impacting your credit score. If you're on the fence and aren't sure if you'll be approved or not, this is a good way to go to avoid a hard inquiry. It's also a good option if you're more curious about how much you can be potentially be approved for before actually applying. Do remember that just because you may prequalify doesn't mean you'll actually be approved, so take that into consideration before continuing the application process.

Unfortunately, this is the only payment option that's eligible for a prequalification screening. If you're looking at any of the others, you'll have to apply to find out if you're approved.

Is It Hard to Be Approved?

This really comes down to your own credit health and history. The card is issued by Citibank, and as noted above, a hard inquiry will be performed on your credit to determine eligibility. A good credit score will increase your chances of being approved, but having a lower score doesn't necessarily mean you won't be approved either. Unfortunately, it's one of those situations where it's good to ask a financial advisor or just take the leap and apply to see if you get approved.

Where Can You Use the Home Depot Credit Card?

The Home Depot consumer credit card can only be used at Home Depot stores. Likewise, any other payment option offered by the retailer can only be used at Home Depot stores, too. If you're considering applying for one of these options, it's good to weigh the pros and cons and try to determine if you'll use it enough to make the credit ding worth it.

Is the Home Depot Card Worth It?

Honestly, unless there's a special financing offer and you need something large right away that you don't have the cash on hand for, there's not much of a reason to get a Home Depot credit card. While you may be able to take advantage of deferred interest on some purchases, even if you're looking at doing a ton of projects, it probably still isn't worth it. Your credit will be checked with a hard inquiry, these cards can only be used at Home Depot stores, and consumers can't even earn any rewards like points or cash back on their card purchases. Ultimately, it really doesn't seem like it's worth it for most regular customers.

Can You Save With the Home Depot Credit Card?

Theoretically new users can save if there happens to be a promotional offer on tap at the time of application. For instance, at the time of writing, new applicants could save as much as $100 off their first purchases on their new cards. The fine print states the following:

  • Save $25 off purchases $25 to $299
  • Save $50 off purchases $300 to $999
  • Save $100 off purchases of $1,000 or more
Again note that this offer is only available to new applicants and it's currently noted as being valid through July 31, 2024. These are also not guaranteed to be available at any given time, so the savings can vary wildly.

When Should You Get the Home Depot Credit Card?

If you decide the Home Depot consumer credit card is a good fit for you, it's going to be best to try to take advantage of limited-time promotions like those above. You can also likely find some good use in it if you're planning on making large purchases that you know you'll be able to pay off within six months.

When Should You Avoid the Home Depot Credit Card?

Basically you should avoid the Home Depot credit card if you're looking at making large purchases you may not (or definitely won't) be able to pay back within six months. Remember that if you don't pay those purchases off within six months, you'll end up having to pay deferred interest on them, which makes the whole thing much more pricey. If you're looking to receive the best prices, consider trying to have Home Depot price match your purchases. You can also take advantage of sales holidays (just be sure to check holiday hours before you head out!) and opt for store pickup when you can to avoid the cost of delivery.

Is the Home Depot Credit Card Worth It?

For most consumers, the short answer is probably not. The fact that you can only get deferred interest rather than a true 0% APR and there are no rewards to be earned with every purchase makes this one a less-than-ideal pick for most shoppers. You're better off finding a different card that will reward you with points or cash back to make those large purchases worth it.

What is the Home Depot Project Loan Card?

The Home Depot Project Loan Card is a special option available for those looking to tackle larger and more expensive projects. You can be approved for loans valued up to $55,000 and have six months to buy everything you need for your project. You'll also have fixed monthly payments, it doesn't require a down payment, and there's no annual fee. However, as mentioned above, there are four tiers of differing loan durations and APR options, so your credit health will determine which one you'll be approved for — if at all.

What is the Home Depot Credit Card Best For?

There's really only a select few types of customers the Home Depot credit card is good for, and that comes down to people who are either making massive renovations to their own home or they have real estate interests, such as flipping houses. In those cases, it could beneficial, but honestly you're better off finding another credit card with better perks that can be used at more stores than just Home Depot.

It's Good for Those Making Many Returns

If you're determined to have a Home Depot credit card, it can be good for those who make frequent returns. However, be cautious with this as like any other retailer, Home Depot can bar you from making returns if it seems that you're abusing the policy as a cardholder. That said, if you don't abuse it, you can make returns for one year on purchases made with your consumer credit card.

It's Good for Frequent Larger Purchases

If you know you can pay something off in six months, the consumer credit card can also be useful for larger purchases over $299. That's when you receive deferred interest as a cardholder. The important thing to remember there is that it is only deferred, so if you have any balance remaining six months after purchase, you'll have to pay all the interest that would have accrued since the purchase was made.

You Won't Earn Points or Cash Back

As noted above, the Home Depot consumer credit card doesn't come with any sort of loyalty perks. That means no matter how often you shop, you won't be earning points or cash back on your purchases, which means there's no real incentive to having the card in the first place. Especially if you can be approved of another card that can be used elsewhere and therefore earn better rewards (as opposed to none at all).

Your Credit History Will Be Important

Because acquiring a Home Depot consumer credit card means having a hard inquiry done on your credit, the health of said credit is going to be what determines if you're approved. Additionally, it'll also determine your limit, so if you're on the lower end of the credit score range and you need a significant amount of funds for home projects, this probably isn't the way to go. If you're considering applying for the Home Depot credit card, it's worth remembering you can complete a prequalification screening to determine if you have a decent chance of being approved. This is especially good if you're on the fence about the card in general, but remember that even if your prequalification says you could be approved, it's not a guarantee. You won't know unless you've actually been approved for the Home Depot credit card until you submit a full application — and have the hard inquiry on your credit. By then, whether you're approved or not, the damage is done.

How to Decide If the Home Depot Credit Card is Right For You

It's frankly hard to recommend the Home Depot credit card for any regular customer. If you're trying to decide if it's right for you, ask yourself how often you'll be using it as well as what you'll be using it on. If you're only going to be purchasing relatively inexpensive things on a seasonal basis, then you likely won't be using the card enough to warrant the risk of accruing high amounts of interest on your purchases.

If you're doing something like flipping houses, it's worth looking into. But at that point, you may find it easier to start a business and opt for the Pro Xtra credit card instead. At least with that one you can earn perks for your many construction purchases.

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DealNews may be compensated by companies mentioned in this article. Please note that, although prices sometimes fluctuate or expire unexpectedly, all products and deals mentioned in this feature were available at the lowest total price we could find at the time of publication (unless otherwise specified).

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