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 doesn’t equate to a recommendation for their private label store credit card. Here’s what you need to know about it before you consider completing an application.
Several years ago they split their card program into 2 cards:
Option #1: Lowes Consumer credit card
Now pay attention because many are confused as to how this works!
It gives 5% cash back on Lowes purchases but only if you don’t use the “special financing”. If you opt for a financing offer (available on single-receipt purchases of $299+) then you won’t get the 5% rebate. So it’s one or the other, not both.
The biggest negative is what you will see in the fine print if you look closely…
Yes that’s right, you’re prohibited from using it along with any coupon or those discounts. You can’t get the 5% on any price matched purchases either.
If you have a big purchase and skip Lowe’s 5% to get their financing offer, then make sure you understand how it operates…
Read the rules and you will see that in order to pay no interest, you have to pay off the entire amount before the 6 months is up. If not, then the interest accrue your Lowes credit card account from the date that purchase was made – which can be a very unpleasant surprise considering the 24.99% interest rate.
Before Lowes used to offer the occasional special 18 month no interest financing promotion on their old card, however on this card it appears they only give the 6 month deferred interest plan, unfortunately.
Conclusion? Only use the financing if you are 100% confident in your ability to pay it off before the promotion period is up, as in you already have the money in the bank and give yourself all kinds of reminders before the due date.
Option #2: Lowes Project Card
The second credit card is aimed towards those undertaking major home improvement projects. Your initial purchase has to be $1,000+ for it. My guess is that it will therefore probably have increased credit limits (compared to the other version) if you qualify. If you’ve ever remodeled a house or moved into a bigger home you know how fast you can spend money on new major appliances, etc.
Now this one is actually a better opportunity if you have good credit, but it won’t be the best way to save money on interest (more on that in a minute).
The Lowes credit card application isn’t available online for this version (must apply in store) but their website does provide some information about it and in a nutshell, here’s how it works:
- When in an initial purchase of $1,000+ is made then a “project window” starts, which is a 6 month window where no interest will be accrued – both for the initial purchase as well as any additional purchases made within that 6 month window.
- During this 6 month project window minimum payments still have to be made.
- Once the 6 months is up, interest will begin. When writing this review, the APR tiers were as follows: 7.99%, 9.99%, 11.99%, 13.99% or 17.99% (the one given depends upon the applicant’s credit).
- After the 6 month window is up, the fixed monthly payments will be based on a 4 to 10 year schedule for re-payment.
For those with excellent credit, this actually is a fair deal if the 7.99% or 9.99% APR is given. However even with that, you still will probably save more money with a regular credit card that gives you 0% on purchases. There are some that give 0% for up to 21 months and you can see those offers here.
Both of these cards are issued by GE Capital Retail Bank (formally known as GE Money Bank). They don’t exactly have a warm and fuzzy reputation when it comes to customer service, but these new credit cards for Lowes appear to be better than what they offered in the past.
Typically store cards have much lower credit score requirements, so if your credit is bad then the Lowes offers may be a good way to go. I wouldn’t say they are easy to get, but the qualifications / requirements for approval aren’t super hard, either.
But if you have good to excellent credit you should be able to qualify for a superior deal with a different card:
Best Rewards Alternative: 6% cash back at Lowes?
The American Express Blue Cash Preferred gives 6% cash back at US supermarkets on the first $6,000 spent. Many forum members who have this credit card use it to buy Lowes gift cards at supermarkets so they can earn 6% on them.
This is an excellent strategy not only for saving money at Lowes, but also Home Depot and the countless other places you can buy gift cards for at your supermarket. Go here to learn more about the American Express Blue Cash Preferred.
Best Financing Alternative: Longer 0% on purchases?
So the Lowes project credit card only gives 6 months at 0%, you can do a lot better than that!
This review was written or last updated July 25, 2014