Lowe’s credit card vs. Home Depot credit card

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In a Nutshell

The Lowe’s® Advantage Card offers cardholders 5% off all eligible Lowe’s purchases, while the Home Depot® Consumer Credit Card doesn’t offer any ongoing rewards. Plus, the Lowe’s® Advantage Card comes with more low-interest special financing options for big projects and a sign-up bonus that’s slightly easier to achieve.

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Lowe’s® Advantage Card vs. Home Depot® Consumer Credit Card

Feature Lowe’s Advantage® Card Home Depot® Consumer Credit Card
Savings on purchases 5% on eligible purchases None
Sign-up bonus $30 off your in-store purchase of $30 to $599.99 or $100 off a purchase of $600 or more by Aug. 2, 2019 $25 off your in-store or online purchase of $25 to $999 or $100 discount on a purchase of $1,000+ within 30 days of account opening (offer available until Jan. 31, 2020)
Special project financing Several options

Single option

 

Annual fee None None

What you need to know about each card

Both store credit cards come with no annual fee and offers that can help you save on big purchases.

But if you want ongoing rewards or more special project financing options, you’re going to want to go with the Lowe’s® Advantage Card. Here’s a breakdown of each store card and what it has to offer.

Home Depot® Consumer Credit Card

If you plan to start a big project soon and Home Depot is the only big box home improvement store in your town, you may find its six-month financing option appealing. On purchases of $299 or more, the Home Depot® Consumer Credit Card will charge no interest for six months. If you don’t pay off your purchase in full by the end of the deferred interest period, then Home Depot will charge you interest at the regular interest rate from the date of purchase, effectively wiping out your savings with the offer. The regular purchase APR is 17.99% to 26.99%, depending on your credit health.

Unfortunately, Home Depot doesn’t offer financing deals with longer terms except during special promotions on specific products. If longer-term financing is what you’re looking for, Home Depot has a separate product called the Home Depot® Project Loan Card. It offers credit lines of up to $55,000 with a six-month buying window, 84 months to pay it off, and a fixed 7.99% APR.

Until Jan. 31, 2020, new cardholders who are approved for the Home Depot® Consumer Credit Card can take advantage of a sign-up offer of $25 off a purchase of $25 to $999 or a $100 discount on a purchase of $1,000 or more. Purchases must be made using the card and at Home Depot retail stores, or online, within 30 days of your account opening in order to qualify. Unfortunately, this card offers no ongoing rewards program.

Eligible purchases made with your Home Depot® Consumer Credit Card can be returned free for up to one year after your purchase, which is four times longer than the regular return policy.

The Home Depot® Consumer Credit Card has no annual fee.

The Lowe’s® Advantage Card

If you get a Lowe’s® Advantage Card, you can choose one of the current sign-up offers. Here are your choices as of July 16, 2019.

  • 12-month deferred interest on appliances
  • 12-month deferred interest on blinds and shades
  • 12-month deferred interest on HVAC

Like the Home Depot® Consumer Credit Card, you’ll have to pay interest from the purchase date at the regular interest rate on your promotional purchases if you haven’t paid them off in full by the end of the deferred interest period. The regular purchase APR for the Lowe’s® Advantage Card is 26.99%.

The last current sign-up offer is a discount of $30 for an in-store purchase of between $30 and $599.99 or $100 off a purchase of $600 or more. Lowe’s will give new cardholders until Aug. 2, 2019, to make a qualifying purchase.

But unlike Home Depot’s card, the Lowe’s® Advantage Card offers ongoing discounts on purchases. Cardholders will always earn 5% off on all eligible purchases made at Lowe’s stores with the Lowe’s® Advantage Card.

And if you’re looking to finance a large purchase, the following financing deals are available to cardholders:

  • Six months of deferred interest on purchases of $299 or more (regular APR kicks in after) — and remember that if you don’t pay the balance off before six months have passed, you’ll be charged interest from the purchase date
  • 36 fixed monthly payments at 3.99% APR until paid in full
  • 60 fixed monthly payments at 5.99% APR until paid in full
  • 84 fixed monthly payments at 7.99% APR until paid in full

Like the Home Depot® Consumer Credit Card, the Lowe’s® Advantage Card has no annual fee.

The winner: The Lowe’s® Advantage Card

Even before considering any other features, the ongoing 5% discount for eligible purchases makes the Lowe’s® Advantage Card our favorite over the Home Depot® Consumer Credit Card.

And while both cards offer 0% APR deferred-interest periods for six months on purchases of $299 or more, the Lowe’s® Advantage card also includes 36-, 60- and 84-month financing periods with low interest rates. With Home Depot®, you’d need to apply for the Home Depot® Project Loan Card to get similar financing offers.

Finally, the Lowe’s® Advantage Card offers $100 off your in-store Lowe’s purchase of $600 or more, while you would need to spend at least $1,000 to get that amount back with the Home Depot® Consumer Credit Card.

Even with the extended return period that the Home Depot® Consumer Credit Card gives its cardholders on eligible purchases, it just can’t compete with the Lowe’s® Advantage Card.

What to consider when applying for home improvement credit cards

While both cards offer promotional 0% APR financing periods, it’s important to understand that both of these promotions use a deferred-interest model. These kinds of 0% APR deals are sometimes referred to as “no-interest-if-paid-in-full” offers.

Deferred-interest periods can be dangerous, and here’s why: If you don’t pay the purchase off in full before the six months are up, the interest that would have accumulated during that time will be added to your bill all at once. With deferred-interest deals, it’s important to pay your bill off in full (and on time) before the promotional period ends.

But not all 0% APR credit card promotions use the deferred-interest model. If project financing is a priority for you, then a true 0% intro APR card (rather than 0% APR if-paid-in-full card) may be a better choice.

Not sure either card is for you? Consider these alternatives.

  • American Express Cash Magnet® Card: If you’re looking for a card that combines a generous intro APR period on purchases and balance transfers, with cash back on everyday purchases, this card could be a good choice.
  • Chase Freedom Unlimited®: This card offers a great cash back sign-up bonus the first year and solid ongoing cash back rewards.
  • Citi Simplicity® Card: If you’re looking for a card with minimal fees and an intro APR period for both purchases and balance transfers, this card may be worth considering.