Home Depot Credit Card Review

If you have some home improvement on the horizon there’s a good chance you’ll be making a visit to Home Depot any time soon. If that’s the case, you might want to consider the Home Depot Consumer Credit Card, which offers a plethora of benefits to all cardholders.

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​The question is, how does this card compare to other major store credit cards and reward credit cards? In this Home Depot credit card review, we aim to find out.

Home Depot Credit Card Basics

Purchases in excess of $900 account for roughly a third of all transactions at Home Depot. It’s not the sort of store that you spend a few minutes and a few dollars in; it’s one that typically takes thousands of dollars of your hard-earned money and becomes essential when you have some big home improvements on the horizon.

For these purchases, the Home Depot card can help. It is a closed-loop credit card, which means it can only be used inside Home Depot stores and won’t work anywhere else. However, you can still create a balance, pay interest, and get into debt. It will also hit your credit report hard if you fail to repay your balance in full every month.

Home Depot Credit Card Rewards

The Home Depot card offers a 0% intro APR for between 6 and 24 months (on purchases of at least $250); it has an APR that ranges from 17.99% to 26.99% and it also offers a limited-time-only account opening bonus. This welcome offer gives you a coupon of between $25 and $100, which is valid for your first purchase and is dependent on the size of that purchase.

However, minus a few special financing offers and a returns policy, that’s where the benefits end. On a list of the best credit cards, the Home Depot card likely wouldn’t make an appearance. It wouldn’t even appear on a list of the best cards offered by home improvement stores.

Pros and Cons of the Home Depot Credit Card

When compared to other store cards and reward cards, the Home Depot card has many more negatives than positives and is somewhat lacking in key areas. But that doesn’t mean it’s worthless, far from it. Take a look at these pros and cons and you’ll see what we mean:

Pro: No Annual Fee

The lack of an annual fee is very important. It means you can keep the card in your wallet and use it only when you make qualifying purchases and can collect rewards. The fact that you won’t pay an annual fee means there’s no harm in leaving it on the sidelines as you use other reward cards for bigger and more important purchases.

Pro: Easy to Apply 

One of the great things about closed-loop credit cards is that you don’t need a Good or Excellent credit score to apply. You can apply for the Home Depot credit card even if you have a low credit score, which means you can use this card to improve your score and build a strong credit history.

Pros: Everyday Financing 

With the Home Depot card, you can take advantage of everyday financing options, getting an intro rate of 0% for specific periods of time. If you need to make a big purchase but don’t have the money just yet, this is a great way. You’ll get what you need completely interest-free and can repay the amount when you have the cash.

Pro: Extended Returns

The Home Depot store card allows you to return all products within 365 days and promises a hassle-free refund. Providing the item is in good condition, you can return it and get all of your money back.

Con: High APR

Store cards like this offer a huge purchase APR, which means you can get yourself into some serious trouble if you accumulate a large balance and then fail to repay it at the end of the month. 

The interest rate goes as high as 26.99% and you’ll be stung with even greater fees and penalties if you fail to clear your balance and pay the minimum.

Cons: Low Rewards

It’s possible to earn a huge amount of cash back on all Home Depot purchases, but not with the Home Depot card. For that, you will need to use a cash back credit card like the Chase Freedom or Discover It, as the Home Depot card simply doesn’t offer a good rewards rate.

Cons: Deferred Interest

The problem with the Home Depot financing option is that the 0% APR uses something known as deferred interest. This is all fair and well if you keep making the required payments and don’t slip up. If you do, however, all interest will be retroactively applied, and at a substantial rate. This means that being ever-so-slightly late could leave you with a massive bill on something you thought was free.

Credit Cards Similar to the Home Depot Credit Card

The Home Depot credit card is clearly lacking in many areas and if you’re looking for the perfect store card or rewards card, it’s clearly not the best option. To help you find a card that will provide you with what you need, take a look at these other top reward credit cards.

​Amazon Prime Visa Signature Credit Card

With a $100 gift card on signup and a rewards rate of 5% (for Prime members) and 3% (for non-Prime members) the Amazon Prime rewards card is one of the best open-loop store cards on the market. It’s issued by Chase and is branded with the famous and widely accepted Visa logo.

Furthermore, the Amazon Prime credit card is part of the Visa Signature program, which means it offers a wealth of additional perks and benefits, including travel protection, purchase protection, concierge service, extended warranties, roadside dispatch, and more. These are offered to all cardholders, regardless of whether they have Prime membership or not.

  • Credit Card Issuer: Visa Signature by Chase
  • Annual Fee: $0
  • Regular Interest Rate: 15.74% to 23.74% APR Variable
  • Intro Rate: N/A
  • Rewards Program: Earn up to 5% if you maintain your Amazon Prime membership and shop at Amazon.com or Whole Foods
  • Welcome Offer: Get a $100 gift card to use at Amazon when you qualify

Discover It Cash Back Credit Card

The Discover It cash back card has made it to the top of countless credit card lists, including a few of our own. It has a tempting intro APR that applies to all purchases and transfers; it offers as much as 5% cash back, and it doubles your earnings at the end of your first 12 months of membership.

With the Discover It cash back credit card; you can use changing quarterly bonus categories to get your 5% rate and this applies to a maximum of $1,500 per quarter. There is also a flat rate of 1% for all other purchases.

  • Credit Card Issuer: Discover
  • Annual Fee: $0
  • Regular Interest Rate: 13.49% to 24.49% APR Variable
  • Intro Rate: 0% on purchases and balance transfers for the first 14 months
  • Rewards Program: Up to 5% cash back on qualifying bonus categories
  • Welcome Offer: Discover Cashback Match will double all of your cash back after your first year, essentially earning you a rate as high as 10%
  • Other Perks and Benefits: Get a free credit score check from FICO and a host of other benefits

Costco Anywhere Visa by Citi

The Visa-branded Costco Anywhere card is issued by Citi and carries the name of one of the world’s biggest wholesale clubs. It’s an ideal alternative to the Home Deport card and offers countless more benefits, including a high rate of rewards and the ability to use the card at all non-branded stores.

With the Costco Anywhere Visa, you will get 2% cash back every time you use the card at Costco and Costco.com, making it ideal for big families and even for small business owners. It also offers 3% for travel and dining purchases and 4% when it is used at gas stations. 

The 4% rate is capped at $7,000 a year, but the majority of consumers will not get anywhere near that amount and even if they do, the card simply drops to a 1% rate after this.

  • Credit Card Issuer: Citi Visa credit card
  • Annual Fee: $0
  • Regular Interest Rate: 16.24% APR Variable
  • Intro Rate: N/A
  • Rewards Program: Get 2% cash back on Costco purchases; 3% and 4% rates also available
  • Welcome Offer: N/A
  • Other Perks and Benefits: Credit card reward certificate sent every year

Bottom Line: Is the Home Depot Card Right for You?

The Home Depot credit card certainly has its uses, but it pales in comparison to what you can get elsewhere. As noted above, there are far better cash back reward cards and point-based reward cards. In fact, there are even many better store credit cards, including those offered by other home improvement stores like Lowe’s.

By all means, take a look at this card if you spend a lot of money at Home Depot stores and are planning to make some large purchases. If not, you’ll almost certainly be better off with one of the alternatives outlined above, or even a cash back credit card offered by Capital One, American Express, the Bank of America or Wells Fargo.