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 prefer the Lowes card. Here’s what you need to know about it before you fill out an application.

Back in 2011 they split the 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 drawback however is what you will see in the fine print if you look closely…

Yes that’s right, you can’t use it in conjunction with any coupon or those discounts. You can’t get it on purchases which are price matched either.

If you have a big purchase and skip the 5% to get the 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 is tacked onto your Lowes credit card account from the date that purchase was made. And with the standard interest rate at 24.99% that can be one expensive lesson you don’t want to learn the hard way!

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.

Option #2: Lowes Project Card

The second credit card is geared 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.

Now this one is actually a better deal 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:

1. 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.
2. During this 6 month project window minimum payments still have to be made.
3. 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).
4. 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.

Verdict?

Both of these cards are issued by GE Capital Retail Bank (formally known as GE Money Bank). They don’t exactly have the best 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 lower credit score requirements, so if your credit is bad then the Lowes offers may be all that’s available to you. 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 can probably do better with a different card:

Best Rewards Alternative: 6% cash back at Lowes?

The American Express Blue Cash Preferred gives an unlimited 6% cash back at supermarkets. Many forum members who have this credit card use it to buy Lowes gift cards at supermarkets instead so they can save 6%.

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 you 6 months at 0% and you can do a lot better than that! Check out the Citi Simplicity and its current 0% offer for purchases.

This review was written or updated Jan 2012