Applying for a Home Depot Card
Review of the Home Depot Consumer Credit Card and MasterCard
A look at what you need to apply for either a Home Depot store card or MasterCard. And which one will save you the most money. What you should know before applying.
If you spend your days fixing up your house and your nights at Home Depot looking for tools and material, the Home Depot store card or MasterCard might save you money. But which one to choose?
The Home Depot Consumer Credit Card
If you’re planning a major home remodeling project but don’t have the cash to finance it until summer, the Home Depot store card could allow you to start the project now and pay for it in six months. For every $299 you spend on one receipt, you’ll have half a year to pay the bill with no finance charges. And at least once a month, Home Depot offers the same deal for 12 months. Free money? Yes, but don’t get caught in a debt trap. Only take advantage of this plan if you’re absolutely sure you’ll be able to pay the entire amount once that bill arrives in July. Otherwise, your new deck or basement remodel will suddenly get a lot more expensive. The interest rate on Home Depot’s store card is 21 percent APR. And if you fail to make that payment the late fees will run anywhere from $20 to $39.
The Home Depot Rewards MasterCard
If you consider Home Depot your second home and your spouse knows where to get ahold of you if you’re not at your real residence, the rewards MasterCard could offer some real savings. You’ll receive three "points" for every dollar you spend at the retailer. Rack up 2500 points and you’ll be eligible for at least a $25 gift card. You’ll get points even when you’re not at the home improvement mega-center. After all you have to eat and fill up your car. So MasterCard is rewarding you with 2 points for every dollar you spend at gas stations, restaurants, grocery stores and drug stores, and one point anywhere else.
What You Should Know before Applying for a Home Depot MasterCard
- Annual percentage rate The interest rate starts at 13.99 percent (based on the prime rate) and goes up from there if you make late payments or your credit history is not so great.
- Foreign currency transaction fee If you love to visit home improvement stores overseas, you need to know that Citbank, which offers the Home Depot MasterCard, will charge you three percent of each foreign currency purchase after it gets converted into US dollars.
- Cash advances They will also cost you three percent with a five dollar minimum.
- Balance transfer fee If you decide to transfer your balance from another card, you’ll be charged another three percent fee.
- Late fees Anywhere from $15 to $35
- Over the credit limit fee $35
How easy is it to qualify for? Some people get accepted for the MasterCard and get rejected for the store card, or vice versa. Citibank will look at your credit history and may accept you even with a less-than-stellar credit score. But you may receive a low spending limit. After a series of on-time payments, you can always call the 800 number on the back of your card and ask for a higher credit limit.
Bottom line: If you’re planning a future remodeling project, you might want to go with the rewards MasterCard so you can start racking up points on all your other purchases. But if you want to start on a new kitchen now, wait for the 12 months same-as-cash deal and buy all your materials with the store card. And what if you get tired of home improvements? Look for another card that pays you back in cash.
