Home Depot Credit Card Facts – What You Need to Know

Just in case you have somehow skipped the 20th century inside a cave, Home Depot is the largest home improvement retailer in the United States with 2,193 stores across the country and in foreign shores. In fact, you can build your own manmade cave with their construction supplies. Also, this home improvement giant also accepts commercial credit cards like MasterCard, Visa, American Express and Discover. However, if you are after the best deals with this retailer, you might want to secure a store-issued Home Depot credit card.

Types

There are two main types of the Home Depot cards. First, the Consumer Card and the Consumer Rewards MasterCard are mainly for homeowners who spend smaller amounts on construction materials for basic home repair, renovation and maintenance. Second, the Depot Commercial Cards and Depot Business Rewards MasterCard are targeted towards the small to large size businesses that spend larger amounts on construction supplies. As such, they are often engaged in interior design, office and residential building construction and other related industries.Of course, each card has its advantages depending on your home improvement needs.

Advantages

There are many benefits to getting either of the abovementioned Home Depot cards, of which the following are the most important for card holders:

o You need not pay for an annual fee, which is in contrast with commercial credit cards charging as much as $100 annually.

o Upon your initial purchase of at least a thousand dollars, you do not have to make payment and pay interest for 6 months after the purchase. Basically, you are borrowing money for six months at no interest. After 6 months, you should start repaying your debt at fixed interest rates starting at 8 percent, depending on your card type.

o You can view, manage and pay your credit card account online at their website, which is definitely very fast, easy and convenient for busy individuals. You may also make in-store payments at any of the Home Depot stores.

o Your Home Depot credit card is valid in all Home Depot stores. You can basically shop in over 2,000 stores!

o You will be provided with easy-to-read itemized billing statements, which can be used for settlements and reconciliations, when and where necessary.

o You can track your purchases by either purchase order number, job name or job order, which is a very good feature especially when you are ordering in bulk.

o You do not assume financial responsibility and liability for unauthorized charges to your credit card.

o You can choose to pay in full or make low monthly payments. Take note, however, that the Commercial Credit Card requires full payment of all charges due and demandable every month.

You can also avail of special promotions and rewards programs with your Home Depot credit card. For example, you earn 2 points for charges made at gas stations, restaurants, drugstores and grocery stores. You can then redeem your accumulated points in gift cards, merchandise and air travel.

Credit Card Debt Now Something to Avoid

We have entered a new age in the world of loans and credit. Times were such that one could count on getting a new credit card application almost daily – sometimes two. But it seems the ease of applying for a new credit card may be the Achilles heel to a prospective home buyer. Why?

It seems that one of the many things mortgage lenders look at when deciding if someone is a good credit risk is to look at how many credit card accounts they have open. The more you have, the less likely that part of your credit score will be good. It seems that folks who use credit cards a lot also have the lack of discipline necessary to pay off a home loan.

Credit cards were never intended for what we use them for today. They were only issued to folks who already had the money on deposit elsewhere carried a credit card to purchase items, then could pay it off by the end of the month with money they already had.

This eventually evolved into offering unsecured credit to those who didn’t have the means to pay off the “mini loan” each month, allowing just about anyone to buy something more expensive than they could afford, and make small monthly payments.

Frankly, this was an invention of savvy bankers looking for a way to make more money on interest. Unfortunately, it is now to their detriment to have made these bad loans as more and more people cannot afford the monthly payments and are defaulting on their credit cards.

The wise course, it seems, is to not even apply for that second or third credit card. The reason is simple. Should you ever desire to apply for more important kinds of loans like a home loan or a home improvement loan, you want to keep your record squeaky clean including a clean credit history; no bankruptcies, etc.

An example of a good credit risk might be someone who has a car loan, a gas card and maybe a one credit card. So a wise consumer would hold off on opening a new line of credit with a bank. It is just too easy to run up to your spending limit. And if you have two or more credit cards you can get in over your head, financially speaking, and the only choice is to file for bankruptcy.

But even filing for bankruptcy has become more difficult. The new bankruptcy laws instituted in 2005 make it harder for just anyone to write off their debts with a Chapter 7 bankruptcy and “start from scratch.”

You have to fit certain qualifications to even be considered for a Chapter 7 nowadays, otherwise you may have to consider the tougher Chapter 13 bankruptcy which still requires you to pay off your debts but in a more structured way.

So, if you do get yourself in trouble with credit card debt, you don’t have any easy options to get out of owing on those debts. To top that off, you can potentially ruin your chances of getting a loan to buy a new home or to improve the home you own, if you have a record of not paying your bills on time.