When you think of home improvement, chances are Home Depot is the first brand to pop into your head—and not just because of its catchy name. The major retailer has spent decades helping Americans repaint their walls, fix their faucets, mow their lawns, and even decorate their homes for the holidays (we can’t forget the 12-foot skeleton that makes waves every Halloween).
If you find yourself perusing your local Home Depot on a fairly regular basis, you might have heard about the Home Depot Consumer Credit Card. It’s the store’s very own credit card, and while it has its perks, it’s not built for everyone.
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Here’s everything you need to know about the Home Depot credit card—the good and the not-as-good.
1. It’s best suited for home renovators and creatives
Perhaps most obviously, the Home Depot credit card targets a specific group of people—those who plan to do a decent amount of home renovating or decorating, and like to shop at Home Depot.
“If you are somebody who does a lot of DIYing, or maybe you have a business where you offer handyman work, or you have real estate investments…then getting the Home Depot credit card would make sense,” says Andrea Woroch, a consumer finance and budgeting expert specializing in credit card programs. “But it wouldn’t be something that I would pitch to most everyday consumers.”
2. It’s great if you make a lot of returns
Maybe you’re testing out a whole new aesthetic for your house right now and consistently waffle on ideas. One of the Home Depot credit card benefits is that you have a whole year to make a return on a purchase.
“Sometimes you buy too much,” Woroch says. “I think anyone who’s gone through a home renovation knows that…and so it’s nice to be able to make that return” without rushing or having to settle for store credit. Of course, Home Depot’s return policy isn’t entirely relaxed—some plants are only returnable within 90 days, and others can be returned within the year for store credit alone.
3. It’s good for frequent large purchases
With the Home Depot credit card, you receive six months of special financing on purchases of $299 or more before the 17.99%–29.99% annual percentage rate (APR) kicks in.
Special financing means you don’t have to pay interest on a large purchase as long as you pay the amount in full by the time the promotional period is up. This can be handy if you’re in need of a new washer/dryer, or tend to buy a lot of new appliances or pricey tools for work projects.
“What I like about the special financing is that it’s not just going to be that first year you sign up,” Woroch says, noting that the company often offers other promotions. For example, currently between right now and May 8, 2024, cardholders can receive 12 months of financing on storewide purchases at or above $299.
The company is also offering new cardholders up to $100 off a qualifying purchase now until July 31. That said, Woroch adds, “I don’t think that people should look at that and say, ‘Oh, I automatically get a hundred dollars on my purchase. You really need to read the fine print”—such as the fact that you only get the full $100 off your purchase if the bill is $1,000 or more.
(Home Depot’s other cards, Project Loan and Pro Xtra Credit Card, might be good options for especially bulky shopping outings, or situations where you need a loan.)
4. It doesn’t rack up points or cash back
“The Home Depot Credit Card doesn't offer many benefits like you see with other general-use reward cards,” Woroch says. For example, you don’t get any cash back or points on purchases made with the card to apply as discounts to future shopping trips.
You might also end up with a low credit limit as a result of companies mitigating risk, which could negatively affect your credit score. “What’s nice about having a high credit limit is that the amount that you have charged at any time would be a lower percentage of that available credit,” Woroch says. “And that’s important because with your credit score, one of the factors is your debt-to-credit ratio.”
Read more: Trying to Build Credit? What You Should Know About Credit Cards
Basically, even as a frequent Home Depot customer, you’re not rewarded for that loyalty beyond easy returns and 0% interest for the first six months.
One nice additional offer, however, is zero liability for unauthorized charges—meaning if someone steals your Home Depot credit card, you won’t be held responsible for any purchases they make under your name.
5. Your credit history matters before applying
Woroch doesn’t recommend applying for the Home Depot credit card as your first credit card, especially since it can only be used at Home Depot stores or HomeDepot.com.
Also, other cards might have better cashback offers or services for similar purchases. “There certainly are cards that might have a rotating category where you get 2 to 5% cashback that quarter on a home improvement store, or maybe they’re offering a bonus cashback during a certain month of the year,” she says.
Note, too, that canceling it after you’ve had your fill of home shopping is a risk as well. “Canceling your card will reduce how much available credit you show on your credit file, therefore affecting your debt-to-credit ratio.
So if you are applying for a house or to buy a car or get a personal loan or business loan, you’re going to want to hold off on closing that account because you’re going to want that available credit shown on your credit file,” Woroch says.
Home Depot Credit Card: Is it right for you?
When in doubt whether the Home Depot credit card is the right move for you, Woroch suggests doing an audit of your spending habits. Does home improvement take up a good amount of space on your credit card statement? “If that’s more than the other categories, then that would be beneficial to you,” she says.
You can see if you prequalify for the Home Depot credit card via Citi Retail Services without it impacting your credit score.
But if Home Depot purchases are only a small piece of your larger budgeting pie, Woroch adds, “it’s not really going to get you as much back as getting a card that rewards you for the category where you do spend the most.”