Posted on Saturday, 24th October 2009 by CreditCardGuru
If you are considering applying for a Lowes credit card, you will definitely want to read this review first.
I actually prefer Lowe’s over Home Depot. From my experience, the customer service is a bit better. At Home Depot, every time I go I have to travel 10 aisles down just to find an associate to help, only to tell me that’s not their department and for me to go back and wait… it’s a huge pain in the behind to shop there.
But just because I like this home improvement store, it doesn’t mean I like the Lowes credit card. Here’s what you need to know about this card before you fill out that application.
Rewards?
I don’t know about you, but this is the main reason I love credit cards so much. I love getting cash back on my spending. I’m by no means a big spender, but over time, if you use the right cards and pay for all your purchases with them, the rewards can really ad up big time!
Unfortunately, the Lowes card offers no rewards. No points, no cash back, nothing at all. To make matters worse, those projects around the house are definitely not cheap. Just remodeling a kitchen or bathroom can set you back several thousand and up. Especially if I’m spending that much, I better be getting something back. Even the most basic cash back credit cards would give me 1% on that, so why would I pay with a Lowes credit card that’s going to give me nothing?
Interest Rate?
Okay if this thing isn’t going to give rewards, it better be giving you a darn good interest rate. Well, this is letdown #2… at the time I’m writing this, they have a ridiculous 22.99% APR. So 23% interest compounded? No thank you!
Fine Print Warning: Now this is definitely sneaky and can slip by even the most savvy shoppers. Because the card has no rewards and a crappy APR, they need a gimmick to get people to apply. And that gimmick is currently an offer for 0% interest and no payments for 6 months on new purchases of $299 or more. Sounds like a deal, right?
Upon closer inspection, you will discover that this only applies in certain circumstances: you need to pay off that balance entirely within 6 months. If it takes you even one day or week longer to pay off that entire amount, you will be charged interest retroactively starting at the date of purchase at a crazy 26.99%!
Possible Credit Score Damage?
So we’ve already established from this Lowes credit card review that there is really no good reason to apply. But did you know that applying may impact your credit? A so called “hard pull” is used to check your report, and when that’s done, it can drop your score by 10 to 30 points.
In addition, some people feel it reportedly looks bad having any store card listed on your file. The reason being is that typically they are opened on impulse, and the people that apply are more likely to be those with a bad history that would not qualify for a “normal” credit card. So whether that describes you or not, suddenly you may be viewed as such simply for having one.
Is There a Better Option?
To be honest, just about any card is better than the Lowes card. If you were interested in it because of a finance rate promotion, there are cash back credit cards which not only offer 0% for 6 months or more on purchases, but will also give you high cash back at the same time.
Tags: lowes card, lowes credit card
Posted in Reviews | Comments (9)
November 4th, 2009 at 7:56 pm
Wish I’d read your blog post before buying 1,000 sq. feet of Pergo on my new Lowe’s card! I found your article quite insightful and accurate and wanted to add one additional observation on the Lowe’s card. Lowe’s offered me 12 months of 0% interest on the new card, which I jumped on. However, there’s one MAJOR catch I discovered after the fact. If I don’t pay off the entire balance by the end of the promotional period, not only do I start paying the ridiculous 23% interest rate, but also they are going to charge me the DEFERRED interest as well. That’s right, if this balance isn’t down to $0 by the end of Sept. 2010, I’m going to get hit with around $1,000 in back interest charges plus 23% each month thereafter. I’m comfortable I can avoid this little caveat, but the lesson here is: Do not open a Lowe’s card if you are uncertain about paying off the entire balance by the end of the grace period.
November 9th, 2009 at 3:38 pm
Just tried to make a payment on my Lowes Credit Card, which I wouldn’t have if I’d read this article first, and wouldn’t you know there’s more reasons to by-pass this General Electric product here too.
Unless your bill is late, you can’t pay with a debit or credit card online, only by direct withdrawal from your bank. However, if you are late, then you can use a credit card, debit card, or just about anything else you like, ONLINE! If you talk to a representative, you can pay your bill for a nominal fee of either $10 or $15 {the person I spoke with seemed a bit unsure which applied}.
They really do their best to get you coming and going at Lowes Credit, don’t they?
WB
November 13th, 2009 at 6:57 am
Agreed — not a great card BUT really good if you know that you can and will pay off the entire balance by the end of the six or 12 months 0% APR promotion. My husband and I used the Lowe’s credit card for a $1700 carpet installation — they gave us a year 0% APR — we paid a little every month and by the end of the year, it was paid off. This allows my husband and I the freedom to purchase what we want without having to put down one big lump payment. You shouldn’t use this card if you’re not sure you’ll have the money by the end of the promotion. We’re about to do a kitchen renovation and will again use the 12 month 0% APR to pay it off slowly — can’t beat that!
December 1st, 2009 at 8:01 am
I was a “Perfered Costumer” at lowes for 24 years and used the 0% APR offers several times. If you use it right, it’s not a bad deal. But it can bite you in the rear if you let it. The problem I think everyone should know, is Lowes can break one of in you. I held a account with Lowes for 24 years, never late with a payment, always kept the account up to date. And have charged large amounts at a time and paid them down quickly so I would not have to pay all the intrest they charge you. I found out that they can and will close your account whenever they want to. My credit score had dropped a little and when I tried to talk to someone about it, there was no real good reason why they closed it since I have never missed a payment, was current, and only had a balance of $118.00. Go figure. So Lowes lost a good paying customer and alot of money.
December 15th, 2009 at 7:41 pm
If Lowe’s gives you a 6 or 12 month zero interest and no payment, how can they legally close your account if you haven’t failed to meet the requirements of the agreement? I would like to purchase 6 windows (4 doubles, 2 singles)at a cost of approximately $2,000 and take advantage of this credit method. However, I don’t want to hurt my credit rating or some other “surprise!”
Maybe I should purchase the windows at Home Depot! Please provide me with the Company’s reponse to this matter.
January 2nd, 2010 at 1:00 pm
LOWES DROPPED MY ACCOUNT TO $500 LIMIT AND I HAVE A 0 BALANCE BECAUSE I PAY OFF MY DEBTS AS SOON AS I CAN, BUT IF I NEED TO MAKE A BIGGER PURCHASE $500 WON’T COVER IT. THE REASON? BECAUSE OF A LOAN I CO-SIGNED THAT WAS NOT PAID ON TIME TWICE BY MY SON…WHAT THE???? IN HIS ECONOMY I WOULD THINK THAT THEY WOULD WANT TO KEEP GOOD CUSTOMERS AROUND-I WILL GO ELSWHERE JUST BECAUSE THIS IS INSULTING.
January 11th, 2010 at 7:08 pm
I have shopped at lowes for years and had a lowes CC with $2,500 credit line. I went to lowes last week to buy a storm door and was told my lowes cc was closed. I used my lowes cc previously to buy a refridgerator and dishwasher and had paid it off early. While at the store I called Lowes CC and was told they had closed my lowes account to protect my credit score. I said ok i need it re-opened im at lowes and want to buy a door. I went thru all the process to open my account and was only given $400. This would not cover the storm door and installation, so i just walked out of lowes drove about 1/2 mile to Home Depot. Filled out their CC and was given $10,000…YES $10,000 in Credit. Lowes Lost my business FOREVER!
January 14th, 2010 at 7:21 am
Lowes is the worst credit card EVER,
NEVER EVER GET ONE OF THESE
WARNING
do not ever get a Lowes Card
February 5th, 2010 at 2:32 pm
We have the Lowe’s project card, and no the interest is not charged retroactuvely UNLESS YOU ARE LATE … having never been late and knowing how to properly use our 6,000 line of credit we have used our project card to buy appliances and for home repairs throughout our home. We plan on starting another project window on march 1st to replace subflooring and carpet in 1/2 our house. 0% interest is a reward in my opinion… and since we got the card we have received several coupons for $10 off or $25 off our next purchase.