Home Depot offers credit facilities to retail and business consumers. You can use these credit cards to make purchases at Home Depot only.
Let us discuss what financing Home Depot offers and what are the pros and cons for the borrowers.
What Does Home Depot Offer?
Home Depot is the go-to option of millions of people for house improvements, repairs, decoration, and miscellaneous house-related services.
You can find a product in every category for your household items. There is a wide range of electrical, HAVC, gardening, and wall decoration services available as well.
Some broader categories of products and services at Home Depot include:
- Home and Kitchen Appliances
- Automotive supplies
- Bath Accessories and Services
- Building Material Supplies
- Cleaning and Decoration Services
- Doors and Windows – Installation and Supplies
- Electrical – Supplies and Services
- Hardware Items and Handyman Services
You can find many useful services at Home Depot as well. For instance, it has a wide collection of cost guides for different items to help you purchase the right product at the right cost.
Similarly, you can get guides on DIY home renovation and repair projects. Every product category has a tools section and handyman service section as well.
What Financing Options Does Home Depot Offer?
Home decoration and renovation is a costly project. You can fund your purchases and maintenance projects with financing from Home Depot.
Home Depot has credit offers for retail and business customers.
Consumer Credit Card
This is the flagship credit card offered by Home Depot for individual buyers. The company offers a different cash back rewards and discounts through this card.
For example, you can get a welcome bonus cash back reward of up to $100 for your first purchases. Similarly, it has offers of cash back at $25, $50, and $100 on qualified purchases.
Some key features of this consumer card include:
- It offers a 0% interest rate if you repay the full amount within 6 months.
- You can get a financing term of up to 24 months. (During special offers)
- APR ranges from 17.99% to 26.99%.
- You get a 1-year return policy time with this card.
- This card has no annual fee.
- The late monthly fee is $40.
- Credit card limits are variable depending on your credit score and creditworthiness.
- This credit card is valid for purchases at Home Depot only.
The Home Depot project loan is similar to a home line of credit. It can be used for funding your home repairs and maintenance costs.
Depending on your income, credit score, and other qualification factors, you can obtain a home repair project loan of up to $55,000.
Your loan term, APR, and minimum monthly installment will depend on the loan amount and your credit profile. Usually, it ranges from 66- to 114 months.
Some key features of the project loan include:
- You get 6 months to make purchases for the project.
- APR ranges from 7.42% to 19.96% depending on your project loan term.
- You do not pay an annual fee.
- Monthly installments are fixed for the term of the loan.
- No down payment is required for this loan.
Commercial Revolving Charge
It is named “Pro Extra” credit revolving facility by Home Depot. It is a type of commercial revolving facility for business clients.
If you provide home renovation services, repairs, and other trading services, this credit facility is your line of credit.
Once approved, you can use this revolving charge for purchases up to the approved limit without reapplying every time.
If you do not need a significant amount or a full revolving credit facility, you can use the Home Depot commercial account.
This commercial account is also for business users. It comes with a choice of getting a reward of 2% with early repayment. Borrowers must repay the full amount within 60 days with the commercial account.
Some key features of business credit facilities include:
- You get a revolving loan with one-time approval.
- You can repay in monthly installments or the full amount.
- 4 times extra rewards on purchases from this card.
- The choice to pay by invoice.
How Does Financing Work at Home Depot?
Let us briefly discuss the credit application steps at Home Depot.
Unfortunately, Home Depot does not allow loan prequalification. It directly appraises your credit application and decides the outcome.
You should check your credit score before applying and can talk to a representative before filing the credit card application.
Like any other lender, your credit approval depends on different factors at Home Depot as well. These factors include credit score, monthly income, loan amount, and your debt-to-income ratio to name a few.
If you want to improve your chances of approval, you can get a co-signer. It will improve your application approval chances and may reduce the interest cost as well.
The credit score and minimum monthly income requirements are not officially listed by Home Depot.
However, you can expect to get approved with a good score of 680+ and a healthy debt-to-income ratio.
Your credit card limit and APR will depend on these factors too.
Important Things to Know About Home Depot Financing
Home Depot consumer credit cards are private label credit cards. It means you can only use these cards at Home Depot stores and for online purchases.
When using the 0% APR, you should repay the full amount within the promotional period to avoid interest charges. If you fail to repay the total borrowed amount, you’ll have to repay the accrued interest for the full period.
Similarly, the project loan amount can also be used only for purchases made at Home Depot.
Pros and Cons of Financing at Home Depot
Borrowers have discrete benefits and drawbacks of using the Home Depot financing options.
The approval for consumer credit cards is relatively easier as these are private label credit cards. These credit cards also combine different discounts and promotions.
You get 6 months to repay without paying interest charges. The financing terms for different products at Home Depot vary and can range from 24 months for the consumer card to 114 months for the project loan.
These financing options are available year-round with different APR promotional rates and other cash-back rewards.
The maximum loan amount for the project loan is flexible and relatively higher than a usual bank line of credit for homeowners.
The biggest drawback of these credit cards is that these cards can only be used for purchases at Home Depot.
Similarly, the revolving facilities through the project loan and commercial loans are only useful for purchases at Home Depot.
The 0% APR period of 6 months is relatively shorter. APRs on consumer credit cards are also relatively higher.
Unlike other credit cards, these private label credit cards do not offer many rewards and membership perks.
Frequently Asked Questions on Home Depot Financing
Let us answer a few FAQs on Home Depot financing.
Where can I Apply for Home Depot Credit Cards?
You can apply for a credit card at a Home Depot retail outlet or through its website. You can upload the required documents and provide information by completing the online application as well.
What is the qualification requirement for consumer credit cards?
There is no official word on what is the exact credit score requirement for a consumer card, project loan, or commercial loan.
Home Depot will likely approve your credit application with a bad score as well. However, it will come with a lower credit limit and higher APR.
What is the maximum credit limit for consumer cards?
The maximum credit facility limits for consumer cards and commercial credit cards vary by applicant.
These amounts depend on the creditworthiness of the applicants. The maximum loan amount for the project loan is $55,000.
Can I use Home Depot Credit Cards Anywhere?
No. These credit cards cannot be used for online purchases and other transactions. These are private label credit cards and can only be used for purchases at Home Depot.
What is the Project Loan Used For?
The project loan is for home renovation, repairs, and decoration projects. You get up to six months to utilize the loan amount.
However, the loan amount can only be used for purchases at Home Depot.
What is the 0% APR offer?
The 0% APR offer lets you repay the credit amount without paying interest charges. If you repay the full amount within 6 months, you do not pay any interest charges.
What is the Commercial Credit Facility at Home Depot?
Commercial credit cards are revolving around loan amounts for business consumers. These facilities work like short-term revolving credit facilities.