The Home Depot Consumer Credit Card review: Build your credit and finance your projects

The ideal use for the Home Depot card is when you have an upcoming home improvement project that you can’t pay in full upfront. Using the card’s initial discount and financing offer gives you breathing room to pay for your project without paying interest as long as you pay the balance before the end of the financing term.

Intro APR: Good financing options

Spreading out costs over time without paying interest is a valuable tool to finance a project or build credit. This card offers various financing options on purchases more than $299, meaning you can get the materials you need from Home Depot and have the flexibility to pay it back over time. Depending on your credit score, you can get anywhere from six to 24 months of 0 percent financing. 

For example, if you finance a $1,000 purchase over 12 months, you’ll need to pay around $84 per month to pay in full. In that same time frame, if you used a regular card with a 29.99 percent APR, you’d pay about $170 in interest while paying $98 per month, for a total repayment of around $1,170. People who do their own projects or manage their own properties may find this feature very handy.

But if you don’t pay the entire balance off by the end of the term, you’ll be responsible for all interest accrued from the date of the purchase.

Welcome offer: Discount on initial purchase

The welcome offer on this card gives a solid discount on your single-receipt purchase. You can get a $25 discount on a purchase of $25 to $299, a $50 discount on a purchase of $300 to $999 or a $100 discount on a purchase of $1,000 or more.

Getting $100 off a $1,000 purchase equates to a 10 percent discount, which is a good value for Home Depot fans compared to what other cards offer on these purchases.

Since the welcome offer is tied to your initial purchase, you’ll want to spend enough to get the maximum discount. If you won’t be spending that much, choose a different option. You could use a flat-rate card like the Citi Double Cash® Card or find a card with the best sign-up bonus that aligns with your regular monthly spending.

Rates and fees: No fees if you pay on time

Home improvement projects can be costly. With no annual fee and the possibility of up to two years of no-interest financing, this can be the best option to finance home repairs and improvements. When you have an expensive project, a card without extra fees can be a big help. As always, you’ll want to make sure you pay the bill on time to avoid potentially expensive interest charges. As with most store credit cards, the ongoing APR is high, meaning if you carry a balance, you’ll pay significant interest, which can quickly erase the value of the initial discount offer.

The Home Depot card’s value significantly diminishes after the first purchase, so you won’t want this card if you’re looking for ongoing rewards or discounts. While you’ll have no interest financing during your term, you’ll be responsible for any deferred interest if you don’t pay the entire purchase off by the end of the term.

Rewards: Earn points with other cards

You won’t earn any rewards with the Home Depot card, so it has no value for spending outside of financing options. This card functions primarily as a no-interest line of credit — if that holds no value to you, look elsewhere.

Many rewards credit cards offer bonuses in the home improvement category that will reward you well for these purchases. If you have ongoing spending needs, these cards will be better options. Home improvement spending can be a sizable expense, so if you don’t need financing, the potential for significant rewards could be more appealing.

Perks: Longer returns, not much else

While not uncommon for store cards, no notable benefits make this card fall short. It extends the window for returning eligible purchases from three months to up to a year, which can be useful when planning long-term projects. A return window of an entire year might also be helpful if a product is faulty within the one-year timeframe. However, these factors aren’t enough to be a decisive reason to get this card.

Deferred interest: high potential for trouble

This card offers deferred interest during the term of the financing offer. This means that while you aren’t responsible for paying interest during that time, interest will still accrue from the date of your purchase. If you pay your balance in full by the end of the term, you won’t owe any interest.

If you don’t pay the purchase amount in full by the end of the financing terms, the card will charge all the accrued interest from the original purchase date. This can be very dangerous because if you can’t pay the bill in full, these charges can begin to compound and can quickly become a massive financial burden. Under no circumstances do you want to find yourself getting hit with deferred interest charges.

The Home Depot card is only helpful as a short-term financing product for large Home Depot purchases. Compared to other cards that offer bonus categories and other incentives, this card doesn’t measure up.

The Home Depot card works best to finance projects when you need extra breathing room to pay it off. Getting the highest discount and longest financing term is the goal when using this card. This especially appeals to people with less-than-ideal credit, as it will also help build credit if used responsibly.

This card has one use: financing home improvement projects over time. It has some additional value if you need to build credit, but there is not much else worth it with this card. It is essentially a short-term line of credit.

It has no rewards or additional incentives to spend after the first purchase, outside of financing needs. You’ll also pay expensive fees if you don’t pay off the original purchase within the specified time frame. With so many other cards with better terms, benefits and rewards, this card doesn’t make much sense long-term for many people.

Our proprietary card rating system takes into account a mix of factors when scoring balance transfer and low-interest cards, including each card’s introductory APR, intro APR period length, ongoing APR, balance transfer fee, perks and more.

While balance transfer and low-interest cards share a similar ratings rubric, we weigh features differently based on how a card is categorized. We categorize cards that carry an especially long intro APR offer on balance transfers as dedicated balance transfer cards, while cards that offer an especially low ongoing APR are considered general low-interest cards. 

We analyzed over 100 of the most popular balance transfer and low-interest cards and scored each based on how its key features stacked up against those of other cards in its category. 

Here’s a breakdown of what gave this card its score: