Lowes Credit Card
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 reportedly drop your score by up to 10 to 20 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. Or at least, that’s what many experts out there allege.
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.
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.
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
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!
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.
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.
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.
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!
Lowes is the worst credit card EVER,
NEVER EVER GET ONE OF THESE
WARNING
do not ever get a Lowes Card
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.
We used to use lowes cc for all home appliances, carpet, fencing and took full advantage of the 0% interest rate and was never late, and always paid off before even due. Once we didn’t use the card for 5 months they closed our account stating because of past due which isn’t true. I agree we won’t shop lowes again.
Same thing just happened to me as happened to Jim up there. I don’t even know what the reason is that it is closed – I haven’t gotten the letter yet and no one can tell me, just that my credit score went down. I ordered my credit report but will just shop Home Depot from now on.
I was thinking about getting a Lowe’s card to do some remodeling but I am glad I read this. Oh and I have never had a lowes card and I get coupons all the time for $10, $25 & even $50 off my next purchase depending on what I spend. I am pretty sure anyone on their mailing list can get those. I signed up for the little magazine/flyer they send out and that’s when I started getting them.
just like Karen up there, I owed $635 paid $500 got next statment for $135 but my cedit was lowered to $500. called customer service but they could not tell me why as citibank controls that and there is no one to talk to. i have to write the bank about my account. i am mad and am thinking of doing my shopping at the other place. OH did i mention that i am talking about
THE HOME DEPOT. after reading the above, NOW what are my chorces !!!!
My mother passed away over ten years ago and had an outstanding balance of $171 on her card. Nothing moves fast when you are trying to settle up an estate, and it took some time before I got all of her bills paid, but I didpay them. The balance has always shown up on my credit report an unpaid. but it was paid, I have talked to them many times but they leave the item on my credit report.
Hey thanks for the heads up! Disaster averted.
I have been reading these reviews and am surprised by some of what I am seeing. Just to set some things straight…
On Lowes Visa Accounts all of the APRs have gone up since the credit crunch. I was notified of it and given the opportunity to opt out 90 days before it went into effect. It is all there if you read your statements. In BOLD print, it says “Please see the enclosed change in terms.” It’s very hard to miss.
On the Lowes Consumer Card, there is no grace period for payments. Just like on my other cards. If it’s late, you get a late fee. Plain and simple. Also, the due date change that went into effect several months ago was due to the credit card act that flew through Congress. They determined how many days there have to be in a billing cycle. Lowes credit card HAS to comply with the law. Again, I was notified that my date would be changing 90 days before it happened.If you READ YOUR STATEMENTS you can’t miss this stuff. It’s not anyone else’s fault that you are complacent with your credit.
Also, if you were just approved for a mortgage or a brand new car…it affects your credit score and availability. So that could actually cause you to NOT be approved for something small like a Lowes card. There is only so much available credit you are entitled to. If you use it all up on a home loan…well I’m sure you get it.
Basically I am tired of everyone blaming their credit card woes on others. It’s your fault.
I’m with LTM, there are no surprises when you fill out the application for credit at Lowe’s. It is all spelled out. My wife and I have done the “no interest thing” twice and both times have been very successful. You have to make sure you pay in full a couple of weeks ahead of the deadline to make sure the payment will get credited in time. The first time we made a purchase of appliances for the house we had just bought. That was 6 months same as cash. The second time we charged $3600.00 in material for a garage we are building and just paid that off 3 months ago. That was 12 months same as cash. We look at it as free money. Where else do you get someone to loan you $3600.00 for a year with no interest? In the mean time all year I was building the garage with the materials in my driveway ready for me when I needed them.