Using Lowe’s Credit Card Services: Is It Right for You?

FT Contributor  | 

Lowe’s offers credit cards and credit services to both consumers and professional contractors. If you perform do-it-yourself projects around your home, or you are planning a major remodeling project, the Lowe’s Advantage Card (a consumer credit card option) can provide cash-back bonuses or financing benefits. Businesses have three card and account options that offer cash back, financing, secure record-keeping, and expenditure tracking.

To get the most out of these Lowe’s cards, you need to understand how they work, and how you can use them to earn the most benefits and savings, as well as the best low-interest financing deals. 

What Lowe’s Credit Cards Are Available?

Lowe’s offers four different credit options. However, only one is for consumers. The Lowe’s Advantage card allows consumers to choose the benefits they want. With the Advantage card, you can opt for cash back or short-term or long-term financing. You need to meet specific criteria to qualify for each perk.

Lowe’s has three credit options for professional contractors. None has an annual fee, and all offer 5% back on Lowe’s purchases. The Lowe’s Business Rewards Card from American Express offers additional rewards points. You can use this card outside of Lowe’s at any store that accepts American Express.

The Lowe’s Business Account and Lowe’s Accounts Receivable cards both offer 5% cash back as well, but they are only for use at Lowe’s. These business-oriented options have features such as purchase control, online account management, and the ability to issue cards to employees.

Lowe’s Credit Card Services, Deals, Promotions, and Rewards

Lowe’s cards each have specific benefits designed for  particular types of Lowe’s shoppers. To get the most out of these cards, you have to understand the benefits and options, because you can choose different rewards or financing options, but only if your purchase meets specific requirements.

One other thing to consider is that none of the four cards has an annual fee. Here is a closer look at the benefits and requirements.

Lowe’s Advantage Card

The standard reward for using your Lowe’s Advantage Card is 5% cash back on all purchases at Lowe’s. On purchases of $299 or more, you get the option of 5% cash back or special financing. Special financing, in this case, is a deferred interest financing for six months. If you make the minimum payment each month and pay the balance in full, you do not have to pay interest on your purchase. However, if you fail to pay the balance on time, you will have to pay interest on the entire purchase.

Lowe’s Advantage also offers fixed-rate financing on purchases over $2,000. You can get up to 84 months to pay back the purchase with a fixed rate of 7.99%, which, in many cases, is cheaper than personal loans or other unsecured loans.

Lowe’s does occasionally offer special promotions with additional financing or cash-back deals on specific products or purchases.

Lowe’s Business Credit Cards

The Lowe’s Business Account Card is best for small or medium-sized businesses that need flexible payment options. You can either pay your balance in full each month or spread payments out over several months with an interest rate between 15% and 21%. You get features such as multiple cards for your account, detailed invoices and statements, and the ability to manage payments online. You also get a discount on deliveries.  

The Lowe’s Accounts Receivable Card is the best option for medium-sized or large businesses that have multiple purchasers and need record-keeping features and purchase controls. Cardholders can make purchases via phone or internet, and they get discounted delivery options.

Lowe’s expects you to pay the balance in full each month. You can have multiple users for your account and set limits and track each user. Lowe’s provides six months of purchase data for you to download. You can personalize statements, track spending easily, and use online tools to manage the account.

The Lowe’s Business Rewards Card from American Express is for businesses that want rewards and perks for Lowe’s purchases, but would also like to earn rewards for purchases outside of Lowe’s. You get 5% back on all Lowe’s shopping, and you’ll earn rewards points on other purchases.

If you use the Lowe’s Business Rewards Card from American Express outside of Lowe’s, the standard rewards rate is one point per dollar spent. You’ll earn double rewards for Lowe’s shopping, and triple rewards for spending at restaurants, office supply stores, and wireless services. The American Express card has the same multiple card options and account management and invoicing features as the two Lowe’s-only business cards.

Lowe’s Credit Card Scores and Limits

The Lowe’s Advantage Card usually requires good to excellent credit, which means you have the best chance of obtaining this card with a score of 670 or above. The APR for the Lowe’s consumer card is 26.99% (fixed). Instant approval could be possible if you have an excellent credit score. Since the minimum purchase for financing is $2,000, this card has a higher credit limit than most store charge cards, with the overall limit depending on your credit history.

The Lowe’s Business Rewards Card from American Express has a variable interest rate of 17.24% to 26.24%, based on your credit history. You need good to excellent credit, which means having a FICO score of 670 or above.

The Lowe’s Accounts Receivable Card does not have an interest rate because you must pay the balance in full each month. The Lowe’s Business Card has an APR of 21% if you carry a balance from month to month, which is an option.

The two Lowe’s business store cards usually require at least a fair credit score of 580 or above.

Managing a Lowe’s Credit Card

One disadvantage of the Lowe’s Advantage card is that the standard interest rate is quite high. If you make purchases and take the 5% cash-back option, you need to pay off the balance within a month to avoid interest charges, which can quickly cancel out any money saved with the 5% back.

If you make purchases of $299 or more and select special financing, you can take longer than a month to pay off purchases. However, you need to ensure that you make minimum payments each month and pay off the entire balance by the end of the six months. Keep in mind that minimum payments may not pay off the whole balance, so you may need to pay more than the minimum.

For loans of $2,000 or more, you also need to make minimum monthly payments. With the Lowe’s Advantage Card, however, you can set automatic payments to ensure that you never miss a payment.

There is one situation when you would opt for 5% back instead of financing on purchases over $299. If you plan to pay off your purchase in one month, you would be better off accepting cash-back rewards rather than special financing.

Are there any drawbacks to getting a Lowe’s card? The cards are only worthwhile if you shop at Lowe’s and are either a professional contractor or a do-it-yourself enthusiast. If you only make an occasional small purchase at Lowe’s, you won’t benefit from this card and should seek a different rewards card.

Also, the financing options have deferred interest, which means you are liable for all interest payments and if you do not make minimum monthly payments and pay off the balance on time, you could get hit with significant interest payments.

Finally, except for the American Express card, these credit cards are only for use at Lowe’s. If you wish to earn rewards elsewhere, you will be better off with a general rewards card.

However, if you regularly shop at Lowe’s, and you use these cards correctly, you can get cash-back bonuses and financing that offers better terms than you are likely to get on an outside personal loan.


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This post was updated December 19, 2019. It was originally published December 19, 2019.