Using Home Depot Credit Card Services: Is It Right for You?

FT Contributor  | 

Home Depot credit cards may be useful for consumers and contractors or businesses that purchase building materials in bulk. Home Depot has separate credit options for private homeowners and professionals. Cardholders can get financing deals, such as 0% interest for six months, or a low, fixed interest rate for larger purchases. Commercial credit cards are available with flexible payment options and the ability to have multiple users on one account.

Home Depot cards can provide benefits to both pros and do-it-yourself consumers. However, to get the most out of Home Depot credit cards, you have to use them in specific situations when you can fully take advantage of the financing, 0% APR offers, low interest, and flexible account management.

Here is what you need to know when deciding if a Home Depot card is right for you:

Home Depot Card Offers: Consumer and Commercial

Home Depot’s basic consumer credit card is for people who make home repairs or do building projects on their own. The primary financing offer is for deferred interest on qualifying purchases. This deal only applies when you spend more than $299, so this card is best for people who perform occasional painting, repair, or remodeling projects. The consumer card is not beneficial for those who only make small purchases.

Home Depot’s professional cards are for businesses who make regular purchases at Home Depot and wish to have an account with more than one cardholder. Because of the way Home Depot sets up professional cards, you need to have the cash flow to pay off balances within two months.

Home Depot Card Benefits

Each Home Depot card is for a specific type of spending. There are two consumer options and two professional varieties. Here are the details of each one:

Consumer Credit Card

The Home Depot Consumer Credit Card does not have an annual fee. The regular interest rate is 17.99% to 26.99%, but you can get financing for six months for purchases of $299 or more.

This deal offers deferred interest, which means that if you do not pay off the balance in full, then regular interest rates apply to the entire purchase price (not just the remaining balance). Home Depot occasionally offers special promotions that lengthen the payback period to up to 24 months. Unless you buy during one of these promotions, the payback period to qualify for 0% interest is six months.

Unfortunately, the Home Depot Consumer Credit Card does not have an ongoing rewards program, though new cardholders get a small discount of $25 on their first purchase. You can also get 10% off specific brands or products at Home Depot during special promotions.

One of the most significant advantages of the consumer credit card is that cardholders get a full year to make returns on purchases. This return period is four times longer than the standard return period for those who do not use the card.

Project Loan

Home Depot also has a Project Loan Card for larger purchases, such as those you would make during a major kitchen or bathroom remodeling project, roof replacement, or whole-home renovation. You can borrow up to $55,000 with this card. Additionally, you get a low, fixed interest rate of 7.99%. Also, you have up to 84 months to pay off the entire balance. The interest rate for the Project Loan Card is much lower than for the standard consumer credit card.

Commercial Revolving

The Commercial Revolving Charge Card is for businesses and professionals. With this charge card account, you can issue cards to multiple employees who work for you. One of the advantages of this card is that you have two months to pay off purchases. This arrangement allows businesses to be flexible with cash flow.

However, you must make a minimum payment after the first month and pay the balance in full by the end of the second month. You can also use this card to get fuel discounts at participating gas stations. Like Home Depot’s consumer cards, you get a full year to make returns with the Commercial Revolving Charge Card.

Commercial Account

A Commercial Account is similar to a Commercial Revolving Charge Card, except payments are due in full monthly. A Commercial Account comes with account management tools that you can access online. You can issue ID cards to employees, so you know who has made purchases. One of the main reasons to get a commercial account is that you can easily track purchases, pay invoices, and manage your account online.

Home Depot Credit Card Benefits

A Home Depot Consumer Credit Card is ideal for medium-size purchases that you’re able to pay off within six months. An example of a project that you could cover with this card would be laying new tiles in your kitchen, renovating and repainting a small room in your house, or performing a seasonal landscaping project. If you wait for a 24-month deferred-interest promotion, you can use the Consumer Credit Card for larger projects such as, perhaps, painting the exterior of your home, laying new carpeting, or finishing an unfinished basement.

Because of the relatively low interest rate and payoff period of 84 months, which is seven years, the Project Loan card is ideal for larger projects. Examples could include replacing a roof, renovating a kitchen, building a small addition, replacing floors, adding carpeting throughout your home, or even doing a whole-home renovation.

A Commercial Revolving Charge Card is for small contracting businesses or subcontractors who purchase all or most of their materials from Home Depot.

Because of the ability to track spending, invoices, and employee purchases, the Commercial Account is ideal for larger businesses or contractors who work with multiple employees.

Credit Score Needed for Home Depot Credit Card

To get a Home Depot Consumer Credit Card, you should have at least a fair credit score of 640 or above. Home Depot requires a fair or above credit score for the Project Loan card. Commercial credit cards require a similar credit score. If you have a higher credit score, you may qualify for a higher credit limit.

If the benefits of a Home Depot credit card match your personal or business needs, it is worthwhile to apply for one. However, if you are not a contractor or you do not make occasional large purchases at Home Depot, these cards may not be useful for you.


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This post was updated December 11, 2019. It was originally published December 11, 2019.