In a Nutshell
Store credit cards from the big-box home improvement retailers offer new homeowners some nice perks, but you might want to keep more than one card in your wallet. Here are a few that will meet your money-saving needs.Buying a house is a life event that comes with plenty of additional expenses, so finding a credit card that rewards your everyday purchases can help you save money in the long run.
You may have spent a significant portion of your savings on a down payment, but if you just bought a home, chances are your spending is about to increase big time.
From moving expenses to new furniture to home repairs, owning a home costs a bunch. So it’s a smart move as a homeowner to look for a credit card that rewards you for the things that you spend money on every day.
Keep in mind that if you are still in the process of applying for a home loan, it may not be the right time to apply for a new credit card.
You’ll want your credit scores to be as high as possible when shopping for a home loan and finalizing the paperwork — and applying for a new credit card can negatively affect your scores.
When you apply for a credit card, a hard inquiry will appear on your credit reports. One hard inquiry may result in a slight drop in your credit scores. But if you have excellent credit, the effect of one credit card application will likely be minimal.
However, if you’ve already closed on your loan, here are a few cards you may want to check out.
| Best for simple cash back | Citi Double Cash® Card |
| Best for complex cash back | Discover it® Cash Back |
| Best for home improvement discounts | Lowe’s Advantage Card |
| Best for deferred-interest financing | The Home Depot® Consumer Credit Card |
Best for simple cash back: Citi Double Cash® Card
Who’s it for?
Homeowners who want to earn simple, flat-rate cash back rewards on purchases made anywhere at any time.
Why we like it
The Citi Double Cash® Card offers cash back rewards with a $0 annual fee. You’ll earn 2% cash back — 1% cash back on all eligible purchases and an additional 1% as you pay for those purchases.
Watch out for
While you can redeem cash back as a statement credit, that redemption technically doesn’t count as paying for your purchase to earn the additional 1% cash back.
To receive the full 2% cash back, you’ll want to pay off your statement balance in full and redeem your cash rewards for a check or a credit to your linked Citi® bank account.
How to use it
Use your card for your everyday purchases: dining, gas, groceries, retail stores and, of course, home repairs and make sure you pay off the statement balance in full each month. To get maximum rewards, redeem your cash rewards for a credit to a linked Citi® bank account or a check.
Best for complex cash back: Discover it® Cash Back
Who’s it for?
Homeowners who don’t mind keeping track of rotating rewards categories.
Why we like it
First, the Discover it® Cash Back is a cash back card with a $0 annual fee. And as long as you don’t mind activating rewards categories that rotate every quarter, you’ll earn 5% cash back in categories such as restaurants, gas stations, home improvement stores, wholesale clubs and more, on up to a quarterly maximum. Cash back rewards never expire, and you can redeem them in any amount at any time.
Watch out for
To maximize rewards, you’ll need to activate the rotating categories each quarter — which means earning 5% cash back rewards isn’t automatic.
Also, each bonus category has a quarterly maximum. For instance, a quarter’s bonus category might be offering 5% cash back at home improvement stores but only on up to $1,500 in purchases. That’s a pretty low cap if you’re planning a big home improvement project that quarter.
How to use it
Keep track of those quarterly bonus categories and their spending caps. There may be a quarter that rewards purchases at home improvement stores, so keep an eye out.
Also, take advantage of Discover’s first-year cashback match: Discover automatically matches all of the cash back you’ve earned, dollar for dollar, at the end of your first year.
Best for home improvement discounts: Lowe’s Advantage Card
Who’s it for?
Homeowners with a lot of repair and remodeling projects on their to-do lists.
Why we like it
In a word: options. Lowe’s Advantage Card allows cardholders to opt for one of three promotional deals.
- You can choose to get 5% off all your eligible purchases and orders.
- You can opt for no interest on purchases or orders of $299 or more if paid in full within six months.
- You can get financing on any project of $2,000 or more. Ask for up to 84 fixed monthly payments with reduced-APR financing until paid in full. (Offer must be requested at time of purchase.)
If you choose the 5% off option, unlike most rewards cards, you’ll get the 5% as a discount at the time of purchase rather than points or cash back later. This means your cardholder benefits can be realized immediately.
Watch out for
The high annual percentage rate. The standard variable APR for this card is 26.99%, which is very high compared with the national average APR.
The card benefits also can’t be combined with other coupons or discounts, and certain services and brands aren’t eligible. So read the fine print before you plan your purchases.
How to use it
If you opt for 5% off, be ready to pay your balance in full each month.
If you instead choose six months’ interest-free financing, be sure to pay off the purchase within six months.
Keep in mind that the six-month period isn’t truly interest-free; the interest is just deferred. Deferred interest means you won’t have to pay interest as long as you make your monthly minimum payments and pay off the full balance within the specified time frame — in this case, six months.
However, if the balance isn’t paid off by the time the promotional period ends, interest will be charged based on the balance you owed each month since you made the purchase. That means you owe all of the interest back to the original date of purchase.
Best for deferred-interest financing: The Home Depot® Consumer Credit Card
Who’s it for?
Homeowners who want to take advantage of deferred-interest financing for six to 24 months.
Why we like it
The Home Depot® Consumer Credit Card’s best feature is its variety of special financing options. In general, you’ll get six months’ interest-free financing on purchases of $299 or more.
During special promotions throughout the year, you may be able to get up to 24 months’ interest-free financing on purchases above a certain dollar threshold in certain categories.
Watch out for
Like most store cards, The Home Depot® Consumer Credit Card comes with a hefty interest rate, currently an APR of 29.99%. So be sure to make your monthly minimum payments and pay the full balance before the deferred-interest period expires. If your balance isn’t paid in full before the promotional period expires, you’ll be charged interest from the original purchase date.
How to use it
When using the card, you can take advantage of interest-free financing offers as well as limited-time discounts on selected items.
Bottom line
Once you buy a home, chances are you’ll find yourself making frequent trips to your nearest home improvement store. If that store is Home Depot or Lowe’s, signing up for their store credit cards can help you finance your big-ticket home improvement purchases and avoid paying interest.
Keep in mind, though, that with these store cards, unless you choose the Lowe’s 5% off option, there’s little benefit to using the card for everyday purchases that you pay off at the end of the month.
Neither card offers points or cash back rewards. The main benefit of these cards is the interest-free financing for larger purchases.
For other purchases, use a card like the Citi Double Cash® Card to earn cash back twice or Discover it® Cash Back to earn up to 5% cash back for everyday shopping.
*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the card shown, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.