Pros and Cons of The Home Depot Project Loan

Brendan Harkness

Brendan Harkness | Reviews

Sep 23, 2015 | Updated Jan 02, 2019

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The Home Depot offers The Home Depot Project Loan for regular customers to pay for a single large job at home (it’s not meant for contractors).

This card isn’t for earning rewards or getting benefits. Instead, it provides a very large credit limit (up to $40,000) for home building and renovation projects, and gives you a very long time (7 years) to pay it off.

If you want to shop at The Home Depot but you’re not looking to finance a large project, you’ll be better off with a basic rewards credit card.

Read on to learn how this card can help pay for your next home renovation, and if this option will really be worth it for you.

Where Can I Use This Card?

The Home Depot Project Loan can only be used at The Home Depot stores and

The Home Depot Project Loan
Apply Now

The Home Depot Project Loan

For People with
Fair Credit

  • Annual Fee: $0
  • Interest Rate: 7.99% (Fixed)
Quick Card Facts
  • Fixed 7.99% APR
  • Credit lines up to $40,000
  • 6 months to make all of your project purchases
  • No annual fee

The Offer

Once you’re approved you’ll be granted a loan of up to $40,000. Then you’ll have 6 months to make purchases for your project.

During that 6-month period, you’ll only need to make payments on the interest for any purchases you make, at a fixed rate of 7.99% APR.

After the 6 months are over you’ll have up to 84 months to pay off the balance, at the same fixed rate of 7.99% APR. There’s no penalty for prepayment.

How Much Will The Project Loan Cost?

Paying off a large balance over 84 months at a rate of 7.99% APR will end up being quite expensive.

Here’s a breakdown of your monthly payments for various loan amounts over 84 months, along with how much more you’ll end up paying over the original balance.

Loan Amount 84 Monthly Payments Amount Paid Over Original Balance
$2,500 $39 $776
$5,000 $78 $1,552
$10,000 $156 $3,104
$20,000 $312 $6,208
$30,000 $468 $9,312
$40,000 $624 $12,416

As you can see, you’ll end up paying over $700 extra for the smallest loan listed here.

For the largest loan of $40k you’ll end up paying over $10k extra – that’s over 30% the original loan amount!

So you’ll be paying quite a bit more for your project if you use this loan. But, you can cut down on those extra costs substantially by paying your balance in full well before the 84-month due date.

If you can pay off your entire project in full immediately you’ll be able to save a lot of money compared to this plan.

Or, you could consider using a regular rewards credit card, maybe one with a 0% introductory APR, to pay for a smaller portion of your project.

The Costs & Fees

Annual Fee Regular APR Regular Balance Transfer APR Cash Advance APR
$0 7.99% (Fixed) N/A N/A
Penalty APR Late Fee Returned Payment Fee
See Terms See Terms See Terms

The Bottom Line

If you really need a large credit line to pay for a construction project, this card can help you out.

But you’ll end up paying a lot more for that project if you take the full 84 months to pay it off and incur the maximum amount of interest.

This deal will be more worthwhile the earlier you can pay off the entire balance.

If you can afford it, it will be much cheaper to pay off your entire project in full immediately.

The Home Depot also offers The Home Depot Project Loan, meant to help you fund big home improvement projects. It’s available with a very high credit limit and provides long-term financing, but you may be better off without it if you’re going to pay a lot of interest.

Or, consider using a general rewards credit card that will give you a bit of cash back for your purchases. You may not be able to fund your entire project with a smaller credit line, but you can put some purchases on it. Many even come with 0% introductory APR periods that last pretty long.

If you this review was helpful to you, go ahead and share it with a friend! How do you like to shop at The Home Depot? If you use the Home Depot Project Loan, do you mind paying the interest? Click here to leave your own review for other visitors, we’d love to hear from you!

Or learn more about reward credit cards and see our picks for the Best Reward Cards.
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  • Melissa Baez

    worst service ever!!! i will NEVER use them again and i’ll make sure i stop as many people as i can from doing so also!!! First, they dropped off my roof supplies (pallets of material) on 8/31. The forklift wouldn’t fit in my driveway so the driver literally left everything on the sidewalk in front of my driveway!!! The install was supposed to begin on 9/3. About 30 minutes after they drop this stuff off at my home, i get a call that the workers and manager were fired and they’re not sure when our next install date will be. Now mind you, i can’t use my driveway due to the pallets they left blocking me and my neighbor in. We cannot get in contact with any “manager” or “supervisor” from their team to find out what’s going on. We FINALLY get through to someone and the install begins on 10/5 and is done by 10/8. The contractors didn’t use 36 sheets of the 42 sheets of plywood that were delivered and we were charged for!!! We fought for a discount due to the inconvenience. What we got was, oh, here’s a credit for the plywood we didn’t use. Today, i miss an entire day of work for the town to come and inspect the roof and close out the permit. Well, home depot took out the permit for “replacing roof sheathing” they were supposed to have the inspector come by to check out the sheathing and never did. When the inspector came today, we FAILED INSPECTION because they already covered the sheathing with all the shingles. I can’t tell you the lawsuit i plan on their sorry asses if the town fines us!!!!!! DO NOT USE HOME DEPOT LOAN SERVICES!!!!

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