Credit Cards from Home Improvement Stores

If you spend a lot of time—and money—at Home Depot or Lowe’s, you might benefit from using a store-branded credit card. Both stores offer a card that essentially gives users a six-month loan, during which time they accrue no interest and don’t have to make any payments. That’s six months of free money! After six months, you begin repaying at fixed interest rates ranging from 8 to 18 percent.

Lowe’s calls its product a “project card,” while Home Depot’s is simply the Home Depot Home Improvement Loan. Neither charges an annual fee, although you do need to make an initial purchase of at least $1,000. Not a bad deal, especially if you pay off the loan within the six-month window.

Another card worth looking into is the Home Depot Rewards MasterCard. The card program currently offers three reward points for every dollar you charge on the card at Home Depot and EXPO Design Center; two points for charges at gas stations, restaurants, grocery stores and drugstores; and one point for every dollar charged elsewhere.

Rewards can be redeemed in gift cards and merchandise as well as air travel. There is no annual fee, although the interest rates and penalty fees are pretty typical (i.e., high). If you pay your bill in full and on time every month, you don’t have to worry about these added expenses. If you don’t, however, you can easily find yourself paying for your rewards in interest and penalty charges.