Introduction to the Lowe’s Credit Card
Home improvement can be very costly. The equipment cost a lot and getting a qualified professional or contractor to get the job done is even more expensive. Some people end up doing the job themselves, but without the right skills and financial muscles, it is almost guaranteed that the job won’t get done the way it is supposed to.
Lowe’s Credit Card are cards designed for people who make many home improvements and would like to uplift the financial burden of doing so.
But, just how good is this card and is it any better than say a rewards credit card? What sorts of benefits or features can one expect from owning a Lowes Credit Card?
Lowe’s Credit Card Overview
Lowes credit card is for people who make most of their home improvement purchases at Lowe’s. This is because the card can only be used in this store and hence if you don’t shop there frequently, you are better off looking for another card. It is that simple.
It is also important to note that the Lowes credit card is for people with good credit and overall financial discipline. The holder of this card must always pay the monthly charges in full and clear all balances in time. Failure to do so results in the activation of high APR which can quickly increase your debt and damage your credit score.
Lowe’s Advantage Credit Card Rewards
The Lowe’s advantage card comes with a few rewards that can help the cardholder save some money. Unfortunately, one cannot get all the three main rewards of this card. You must pick just one of the three rewards. This means that you need to do your research on each of the rewards to find one that matches with your shopping needs. Otherwise, you could end up with a reward program that you cannot utilize making it rather pointless.
This reward is given every time you make an eligible purchase be it in-store or through their website. The keyword here is “eligible.” The discount applies on certain purchases only, and it will be deducted after all other discounts are applied.
Another issue with the 5% discount is that it cannot be applied when you have a coupon, employee discount, military discount, Lowe’s low-price guarantee, or Lowe’s volume/special discount program. That’s not all. The discount cannot be used with certain brands, protection or replacement plans, gift cards and shipping/assembly/delivery charges, taxes or fees.
You must consider all of these conditions and see how they will affect your purchases before applying for this reward.
Under this program, the cardholder can apply for a 0% APR in the first six months. This reward is given to all purchases exceeding $299. Here is the catch though, you have to clear the entire balance within the six months. Failure to doing so leads to the activation of a 26.99% APR which will be backdated to the day you made the purchase.
The deferred interest reward program is a decent option for people making a huge purchase. However, they must make sure that they clear the whole balance in the stipulated time. If you cannot do so, you will end up in trouble because the APR that will be introduced afterward will result in hefty interest rates.
This program is for people who are planning on doing a big project and hence require substantial financing. The program is, therefore, designed for projects that are going to cost more than $2000. Not all such projects will get financed though. Lowe’s tend to exclude specific projects, and hence you must consult them and confirm if your project is eligible before applying for the reward.
The project financing program offers cardholders with three options:
- 3.99% APR for a 36 months
- 5.99% APR for 60 months
- 7.99% for 84 months
The monthly payments under the project financing programs are usually fixed, and in some cases, they may be higher than what one would have paid had they not applied for this reward. According to Lowe’s, these payments will be around 1.5581% for 84 months, 1.9328% for 60 months and 2.9520% for 36 months of the initial promotional purchase amount. Additionally, the payments are not adjustable to merchandise returns in case you clear the payments in less than 84, 60 or 36 months.
The project financing rewards are also not applicable to people making an online purchase.
Pros of the Lowe’s Advantage Credit Card
We like the Lowe’s credit card for various reasons:
- Flexibility – Lowe’s Credit card allows the holder to choose a reward program they are comfortable with. This is a very nice feature as it gives you the freedom to do your research and make the calculations to determine the rewards that are most beneficial to you. It makes it easier for you to select a program that will help you save more cash in your specific case.
- Everyday discounts – The 5% discount rate applies to everyday eligible purchases. It enables you to save much cash especially if you are a frequent Lowe shopper.
- Immediate benefits – Standard credit cards come with bonuses, but most of them can only be obtained or redeemed after a specified period. That’s not the case when you are dealing with Lowe’s credit card. The 5% discount rate is applied automatically on daily purchases as long as they are eligible.
- No annual fee – It won’t cost you anything to own a Lowe’s credit card, and this is regardless of how frequent you use it.
The Lowe’s credit card is not without its limitations, sadly.
- High interest rate – The 26.99% APR is an insanely high interest rate. You are better off staying away from this card if you know you won’t always be able to clear all the balances in the allotted time.
- Exceptions on the 5% discount – The 5% discount is not applicable to all purchases. Some of the items in Lowe’s store are not covered under this discount and hence if you picked one without confirming its eligibility, you will end up being frustrated. Also, the discount cannot be used with other discount programs, and it is also not applicable in assembly and delivery charges. Dealing with this discount can be a headache.
- No cash advance option
- Late payment can be subjected to a late fee of up to $38
- They don’t provide extended warranties, extended returns or free shipping
Qualifications for the Lowe’s Advantage Credit Card
Getting the Lowe’s advantage credit card is quite easy especially if you have a good credit score. Individuals with slightly low credit scores also stand a good chance of getting approved for the card.
Applications for the Lowe’s Advantage Credit Card can be made online or in the store. Some people may get approved instantly while others may have to wait for 7-10 business days.
Lowe’s also provide sign-up bonuses, but these come with certain restrictions. For instance, the bonus may be applicable for in-store purchases only, and they also have a time limit after which they expire.
Lowe’s Advantage Credit Card is an excellent option to frequent Lowe’s shoppers with financial discipline. You can take advantage of the reward programs on offer and save a significant amount of cash, but you have to make sure that you read the conditions under each one of them and get your calculations right.
For anyone else who cannot guarantee timely payments within the specified periods, having this credit card will prove very problematic. If you fall under this category, I’d advise you to look for other rewards credit cards instead.
David is a financial expert who graduated from the University of Fordham (Master in Finance) in 2001. He has 10+ years of experience in private equity and wealth management. With strong expertise in senior-level financial planning, personal financial analysis, and mortgages, David knows his way around personal finance. Before working at CCR he used to be a financial analyst at McKinsey.
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