Vault’s Viewpoint
- The Home Depot Credit Card is a retail credit card that you can only use at The Home Depot and at HomeDepot.com.
- Unlike other popular retail credit cards, the Home Depot Credit Card does not offer rewards on purchases.
- The Home Depot Credit Card offers 6-month financing on purchases of $299 or more, but cardholders who fail to pay off the balance before the financing period expires may owe deferred interest on the entire purchase.
1. The Home Depot Credit Card Is Issued by Citi
Citibank is the lending bank associated with the Home Depot Credit Card. Home Depot, as a retail business, is not capable of issuing credit cards on its own. That’s why Home Depot and Citi partnered together to offer the Home Depot Credit Card.
In general, retail credit cards can be good options for people who regularly shop at a specific retailer and want to earn rewards on purchases. However, these cards often come with higher-than-average interest rates, and cardholders who carry a balance on a retail credit card can often find themselves in more debt than they were anticipating.
2. You Can Only Use The Home Depot Credit Card at Home Depot
Since you can only use the Home Depot Credit Card to make purchases at Home Depot stores and at HomeDepot.com, it cannot be used at other retailers. You also cannot use the card to purchase Home Depot products from other online portals such as Amazon.com.
This kind of limitation is typical of retail credit cards that are not specifically co-branded with an issuing bank. Although the Home Depot Credit Card is issued by Citi, it is not a co-branded Citi card like the Costco Anywhere Visa® Card by Citi, which cardholders can use for both Costco purchases and for general purchases wherever Visa is accepted.
3. The Home Depot Credit Card Has a High Interest Rate
The Home Depot Credit Card has an APR of 29.99%. That’s significantly higher than the average credit card APR, and could cost cardholders a lot of money over time. If you pay off your Home Depot Credit Card bill in full every month, you won’t have to worry about the higher-than-average interest rate—but once you start carrying a balance, you can expect the interest charges to start adding up.
If you’re considering the Home Depot Credit Card because you want to fund a specific home improvement project, you may want to consider another card that rewards home improvement purchases and offers a lower APR. Rotating bonus category credit cards such as the Discover it® Cash Back card and the Chase Freedom Flex℠ card could be good options.
4. The Home Depot Credit Card Offers a Welcome Bonus Worth $100
Most retail credit cards offer welcome bonuses designed to entice new cardholders to sign up for the card at checkout. The Home Depot Credit Card offers a discount of up to $100 on a qualifying purchase.
That said, the details of the Home Depot Credit Card welcome bonus are a bit unique. New cardholders can receive a $25 discount on a single-receipt purchase between $25 and $299, a $50 discount on a single-receipt purchase between $300 and $999 or a $100 discount on a single-receipt purchase of $1,000 or more, excluding tax and delivery fees. People can make this purchase within 30 days of opening your Home Depot Credit Card, giving you the opportunity to apply for the card without feeling pressured to maximize your discount immediately.
5. The Home Depot Credit Card Does Not Offer Rewards
When you apply for a retail credit card, you’re probably expecting to earn rewards on every purchase with the retailer. The Prime Visa, for example, offers 5% cash back on Amazon.com, Amazon Fresh and Whole Foods Market purchases with an eligible Prime membership. The Home Depot Credit Card, however, does not offer any rewards. You won’t be able to earn points, discounts or cash back on your Home Depot purchases.
The lack of Home Depot Credit Card rewards makes this card’s value a little lower than its competitors. If you can get your home improvement needs covered by a retailer like Walmart, for example, you may want to consider the Capital One Walmart Rewards® Mastercard® instead. You’ll earn 2% cash back on purchases in Walmart stores and 5% cash back on Walmart.com purchases (including pickup and delivery), and you’ll also be able to use the card everywhere Mastercard is accepted.
6. The Home Depot Credit Card Offers 6-Month Financing on Purchases of $299 or More
One of the biggest Home Depot Credit Card benefits is the option to finance purchases of $299 or more. This 6-month financing offer gives you 6 months to pay off your purchase in full without paying interest. However, if you do not pay off your purchase by the end of the 6-month financing period, you’ll owe 6 months’ worth of interest on the entire amount of the purchase.
During certain promotional periods, you may receive 12 months of financing on purchases, giving you a full year to pay off your balance. If you don’t pay off your balance in full, you’ll owe 12 months’ worth of interest on the entire purchase.
These kinds of deferred-interest financing offers can save you money, but only if you are able to pay off the purchase in full during the financing period. Deferred-interest credit cards should not be confused with 0% intro APR credit cards, which do not charge any interest on qualifying balances until the introductory period ends—and may be the better option for people who are hoping to use a credit card to finance a large purchase.
7. The Home Depot Credit Card Gives You a Year to Make Returns
Typically, the Home Depot return policy only gives consumers 3 months in which to return qualifying purchases. Home Depot Credit Cardholders get a full year to make returns. While this is the kind of cardholder perk that could appear to add to the Home Depot Credit Card value at a glance, ask yourself how often you’ve returned something a year after you purchased it—and then ask yourself how often you’ll take advantage of this Home Depot Credit Card benefit.
Frequently Asked Questions
Can a Home Depot Credit Card Be Used Anywhere?
You can only use the Home Depot Credit Card in person at The Home Depot and online at HomeDepot.com. You cannot use it to make purchases at any other retailer, whether in-person or online. This fact means that you cannot use your Home Depot Credit Card to buy groceries or gas, and you can’t use it to do your online shopping.
What Is the Limit on a Home Depot Credit Card?
Your creditworthiness determines the credit limit on the Home Depot Credit Card. People with very good or excellent credit scores—which are generally defined as a FICO or VantageScore above 700—are likely to see higher credit limits than people with lower credit scores. If you want to increase the credit limit on your Home Depot Credit Card, consider building your credit score before you apply.
Is the Home Depot Credit Card Hard to Get?
Like most retail credit cards, the Home Depot Credit Card is relatively easy to get—especially if you only have fair or average credit. While cardholders with multiple negative items in their credit report may still have trouble getting the Home Depot Credit Card, the average cardholder with a less-than-perfect credit score could have an easier time getting accepted.
