Thread: Is Home Depot credit card a scam?

The Home Depot credit card is extremely popular, largely due to the heavy promotion of it. Find out the details about the Home Depot card before you apply. Despite what some posters have alleged, this card is not a scam since there's nothing illegal about it. That being said, it still isn't a good deal...

Why It’s Seems Attractive
Make no mistake about it; this credit card sounds extremely attractive at first glance. The signup promos and benefits are constantly changing, but let’s take a look at what those offers typically are:

10% Off First Purchase?
Periodically they offer an incentive when you apply for a card and get approved. They used to offer a 10% discount on the first purchase made with the card. Upon searching the net, I discovered that a lot of people found this misleading. There’s a lot of fine print to this offer, excluding many products such as John Deere lawnmowers. There are also some restrictions surrounding it. Since the credit crunch occurred apparently it is no longer being offered.

$25 Statement Credit?
Instead of the 10% on the first purchase, alternately they are now offering a $25 statement credit for new Home Depot card members. Of course something is better than nothing, but for me and I think for most people, a measly $25 in itself is not a compelling enough incentive to bother with another credit card.

Interest Rates?
This is what many call the biggest “bait-n-switch” part of it. They offer 0% on purchases of $299 or more for the first 6 months, but here’s the catch… that’s only if the purchase is paid off in full within 6 months. If it takes you a day longer than 6 months, you will be charged the interest retroactively ("deferred interest") for the entire time from the date of purchase. To make matters worse, the interest rates are outrageous – up to 26.99% at the time of this review.

Rewards?
Believe it or not…. THERE IS NONE! There is no cash back or points earned for spending on the Home Depot credit card. So the only thing you get from it is whatever the signup offer is (currently $25) and that’s it.

Here’s A Better Card
(sponsored offer)

Discover credit cards now offer a 5% cashback bonus on your Home Depot purchases when you buy through their "ShopDiscover" feature:

So if you are a Discover cardmember and want to buy a fridge, faucets, doors, or windows... just go to the Home Depot website through your Discover account and you will receive a full 5% cashback bonus on your purchases.

It Gets Even Better...

You don't have to only buy online to save money. There is one card in particular which Discover offers that gives big discounts for shopping at Home Depot, Lowes, and other home improvement stores!

The Discover More card gives a full 5% cashback bonus in rotating categories which include home improvement stores, gas stations, grocery stores, and many others. Best of all, there is no annual fee and they also offer great promos on new purchases. The benefits of the Home Depot credit card are laughable in comparison.

Find out how you can save big money at Home Depot with Discover More

Written or updated Nov. '10

Of you can go to the post office and get the 20% off coupons for Lowes and use them at Home Depot. The Discover card cash back 5% only applies to internet sales, not to sales from the store. The 6 mo SAC is a good deal on large purchases, though, when you plan to pay them off within that time frame. Another trick with Home Depot (and Lowes and Sears) - if you purchase online and schedule install, you pay tax. If you purchase in the store and they install, there is no tax.

Oh, and the 5% that Discover card offers on the More card - the Home Improvement category only lasts 2 months. And, there is a $500 cap on the purchases. So, if you go in and buy $1000 worth of merchandise, they will only give you 5% on the first $500 and then next $500 is at the 1% standard cash back bonus rate. No, you can't make two $500 purchases because the cap is for the duration of the promotion, not per purchase.

we have had a home depot card for several years and have used the 6 or 12 months 0% option a few times. The minimum monthly payments have always been the same each month, and then rest of the balance is due at the end of the term.

As of the Sept. 2011 bill, they raised the min. payment from 10.00 to 25.00. Being used to the 10.00 steady payment forever, I sent a check, which cleared my bank 7 days before the due date. The statement for Oct. came, and showed a 25.00 late fee was charged for Sept.

I called & they said they sent a letter in Aug. stating the min. payment was increasing. I never saw the letter, and with all the ad crap they put on their bills every month, you'd think they could put something on the bill about the increase.

They were not too anxious to reverse the charge.. said they would if the account was 'brought up to date'.... this is a sneaky way to gouge more money out of their customers, and potentially damage their credit. Be sure to read your bill very carefully, so you don't end up getting nailed, too.